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    Add as FriendIntroduction to Business-to-Business (B2B) Marketing

    by: Rogers

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    1 : Introduction toBusiness-to-Business (B2B) Marketing
    2 : What Is Marketing? the process of planning and executing the conception (product), pricing, promotion, and distribution of ideas, goods, and services to create relationships that satisfy individual and organizational objectives.”
    3 : BUSINESS MARKETING IS MARKETING OF GOODS AND SERVICES TO: Companies Government Bodies Institutions (i.e. hospitals) Non-Profit Organizations (i.e. American Red Cross) FOR USE IN PRODUCING THEIR PRODUCTS AND/OR TO FACILITATE THEIR OPERATIONS
    4 : B2B: goods or services are sold for any use other than personal consumption Note: It is not the nature of the product; it is the reason for the transaction. What Distinguishes B2B from B2C?
    5 : You buy a gear to fix your mountain bike. Ford buys the same gear to fix a machine. Xerox buys soft drinks for its cafeterias. You start a landscaping business and purchase a lawnmower. The U.S. government buys…anything. Is it a B2C or a B2B Transaction?
    6 : B2B versus B2C Marketing
    7 : BUSINESS TO BUSINESS: IT IS ALL ABOUT DEMAND DERIVED DEMAND The demand for a company’s products comes from (derived) the demand for their customer’s products. Most demand comes from consumers. JOINT DEMAND Two products are used together and demanded together – Both products are consumed at the same time
    8 : Inelastic Demand Fluctuating Demand Other Characteristics of Business Demand
    9 : Major Uses of B2B Products For additional production (e.g., components are combined into subassemblies and become part of the finished product) For use in operations, but not part of the finished product For resale
    10 : Classifying Business Goods & Services 3 Main Categories of Products Entering Goods Become part of the finished product Cost assigned to the manufacturing process Foundation Goods Capital Items Typically depreciated over time Facilitating Products Support organizational operations Handled as overhead expenses
    11 : Classifying Business Goods & Services Entering Goods Raw Materials Farm products & natural products Only processed as necessary for handling & transport Require extensive processing Manufactured Materials & Parts Any product that has undergone extensive processing prior to purchase Component Materials require additional processing Component Parts generally do not require additional processing
    12 : Classifying Business Goods & Services Foundation Goods Installations Major long-term investment items Buildings, land, fixed equipment, etc. Accessory Equipment Less expensive & short-lived Not considered part of fixed plant Portable tools, PC’s, etc.
    13 : Classifying Business Goods & Services Facilitating Products Supplies Any supplies necessary to maintain the organization’s operations Services Maintenance & Repair support Advisory support Logistical support
    14 : Categories of B2B Customers Commercial enterprises Indirect channel members and facilitators OEMs (original equipment manufacturers) Users = customers Governmental organizations Institutions

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