BUSINESS MARKETING ‒ SAMENVATTING
1 Chapter 1: introduc1on B2B marke1ng
1.1 What is B2B?
The product/services you need to make your own products:
- the prac9ce of individuals, or organiza9ons, including commercial businesses,
governments and ins9tu9ons,
- facilita9ng the sale of their products or services to other companies or organiza9ons
- that in turn resell them, use them as components in products or services they offer, or
use them to support their opera9ons
For example:
Apple à Design
à Logis9cs
à Marke9ng agency
à IT company
à Factory
Brussels à Security
Airlines à Fuel
à Company that builds the planes
Top B2B brands:
Global Belgium
- caterpillar - Fagron (pharmaceu9cals)
- UPS - EVS (video servers)
- Google - EXMAR (shipping – tankers -)
1
,1.2 Characteris1cs of B2B markets
1. Market
2. Buying behavior
3. Demand
4. Distribu9on channels
1. Market
B2C market B2B market
Number of buyers Large Small
Buyers are geographically Dispersed Concentrated
RelaAonship to buyer Impersonal Personal & long term
Supplier switching cost Limited Large
Number of buyers:
B2C had more buyers than B2B à Bv; Apple hee[ meer poten9ële klanten dan verdelers
RelaAonship:
B2B it’s important to have a good (& LT) rela9onship with your suppliers, in B2C it’s hard to
have a personal rela9onship with every buyer.
2. Buying process
B2C markets B2B markets
Purchase to saAsfy Individual or family needs Organiza9onal needs
Number of decision makers Small Large
Buyer Less informed or technical Well informed & technical
background
Length of decision Ame Short & simple Long & complex
Size of purchase Small quan99es Large in value & volume
Consequence of poor Limited (low risk) Poten9ally cri9cal (high risk)
purchase
Nature of product/service Standard range of products Customized & complex
Decision Emo9onal Ra9onal
Primary promoAonal tool Adver9sing (data driven) Personal selling (account
based)
Level of price sensiAveness High Low
PromoAon focus Psychological benefits Economic/ulitarian benefits
B2C = to build brand awareness
B2B = to build rela9onships
2
,3. The demand
© Based on derived demand
= demand for product/service is determined by the demand for consumer goods/services on
the B2C market
- e.g. increased demand for Encyclopedia books àincreased demand for paper
- e.g. increased demand for steel àincreased demand for steel workers (labour) Demand
in business markets is highly driven by developments in consumer markets
© Based on joint demand
= demand for product/service is interdependent on each other
- e.g. more electric cars sold -> increased demand for charging sta9ons (joint)
- e.g. more printers sold -> increased demand Printers & Ink
© Price inelasAc (demand in B2B) © Price elasAc (demand in most B2C)
= a change in price causes a smaller = a change in price causes a bigger %
% change in demand àbecause there are change in demand
few alterna9ves
e.g. if price of petrol falls 30%, but demand
for petrol only decreases 10%
2excepAons:
- Giffen goods
= are essen9al goods (rice, potatoes, milk) Demand stays high when prices increase (no
ready subs9tute)
- Veblen goods
= are goods for which demand increases as the price increases due to its exclusive
nature and appeal as a status symbol (yachts, fine wines)
© FluctuaAng demand
= a small change in demand by consumers can have a big effect throughout the chain of
businesses that supply all the goods and services that produce it
Because of that, in B2B:
= Need for market data, data analyst
= Budge9ng & forecas9ng
= Account management
SimilariAes between B2B & B2C
• Both require invesAng in marke9ng and adver9sing
• Both require good customer service & a customer-centric sales process
• Both require digital presence
• Each model creates value
• Brand image is an essen9al element in both models
• Both models can have online and offline sales
• A single company can operate in B2B and B2C segments
3
, 4. DistribuAon channels
B2C
= Business 2 Consumer
à direct channel (zero level)
B2B
= Business 2 Business
à indirect channel (1-level, 2-level & 3-level)
Difference wholesaler vs distributor
Wholesaler Distributor
- Work to sa9sfy retailer - Work to sa9sfy the brand/manufacturer
- O[en work non-exclusively - O[en work exclusively
- Not usually restricted to geographic - Usually restricted to specific geographic
loca9on loca9on
Hybrid channels
= a mix of direct and indirect channels
à the manufacturer partners with intermediaries but s9ll controls customer contact
- e.g. brand promotes products online but doesn’t deliver them directly to customers.
Instead, they nominate authorized distributors
4
1 Chapter 1: introduc1on B2B marke1ng
1.1 What is B2B?
The product/services you need to make your own products:
- the prac9ce of individuals, or organiza9ons, including commercial businesses,
governments and ins9tu9ons,
- facilita9ng the sale of their products or services to other companies or organiza9ons
- that in turn resell them, use them as components in products or services they offer, or
use them to support their opera9ons
For example:
Apple à Design
à Logis9cs
à Marke9ng agency
à IT company
à Factory
Brussels à Security
Airlines à Fuel
à Company that builds the planes
Top B2B brands:
Global Belgium
- caterpillar - Fagron (pharmaceu9cals)
- UPS - EVS (video servers)
- Google - EXMAR (shipping – tankers -)
1
,1.2 Characteris1cs of B2B markets
1. Market
2. Buying behavior
3. Demand
4. Distribu9on channels
1. Market
B2C market B2B market
Number of buyers Large Small
Buyers are geographically Dispersed Concentrated
RelaAonship to buyer Impersonal Personal & long term
Supplier switching cost Limited Large
Number of buyers:
B2C had more buyers than B2B à Bv; Apple hee[ meer poten9ële klanten dan verdelers
RelaAonship:
B2B it’s important to have a good (& LT) rela9onship with your suppliers, in B2C it’s hard to
have a personal rela9onship with every buyer.
2. Buying process
B2C markets B2B markets
Purchase to saAsfy Individual or family needs Organiza9onal needs
Number of decision makers Small Large
Buyer Less informed or technical Well informed & technical
background
Length of decision Ame Short & simple Long & complex
Size of purchase Small quan99es Large in value & volume
Consequence of poor Limited (low risk) Poten9ally cri9cal (high risk)
purchase
Nature of product/service Standard range of products Customized & complex
Decision Emo9onal Ra9onal
Primary promoAonal tool Adver9sing (data driven) Personal selling (account
based)
Level of price sensiAveness High Low
PromoAon focus Psychological benefits Economic/ulitarian benefits
B2C = to build brand awareness
B2B = to build rela9onships
2
,3. The demand
© Based on derived demand
= demand for product/service is determined by the demand for consumer goods/services on
the B2C market
- e.g. increased demand for Encyclopedia books àincreased demand for paper
- e.g. increased demand for steel àincreased demand for steel workers (labour) Demand
in business markets is highly driven by developments in consumer markets
© Based on joint demand
= demand for product/service is interdependent on each other
- e.g. more electric cars sold -> increased demand for charging sta9ons (joint)
- e.g. more printers sold -> increased demand Printers & Ink
© Price inelasAc (demand in B2B) © Price elasAc (demand in most B2C)
= a change in price causes a smaller = a change in price causes a bigger %
% change in demand àbecause there are change in demand
few alterna9ves
e.g. if price of petrol falls 30%, but demand
for petrol only decreases 10%
2excepAons:
- Giffen goods
= are essen9al goods (rice, potatoes, milk) Demand stays high when prices increase (no
ready subs9tute)
- Veblen goods
= are goods for which demand increases as the price increases due to its exclusive
nature and appeal as a status symbol (yachts, fine wines)
© FluctuaAng demand
= a small change in demand by consumers can have a big effect throughout the chain of
businesses that supply all the goods and services that produce it
Because of that, in B2B:
= Need for market data, data analyst
= Budge9ng & forecas9ng
= Account management
SimilariAes between B2B & B2C
• Both require invesAng in marke9ng and adver9sing
• Both require good customer service & a customer-centric sales process
• Both require digital presence
• Each model creates value
• Brand image is an essen9al element in both models
• Both models can have online and offline sales
• A single company can operate in B2B and B2C segments
3
, 4. DistribuAon channels
B2C
= Business 2 Consumer
à direct channel (zero level)
B2B
= Business 2 Business
à indirect channel (1-level, 2-level & 3-level)
Difference wholesaler vs distributor
Wholesaler Distributor
- Work to sa9sfy retailer - Work to sa9sfy the brand/manufacturer
- O[en work non-exclusively - O[en work exclusively
- Not usually restricted to geographic - Usually restricted to specific geographic
loca9on loca9on
Hybrid channels
= a mix of direct and indirect channels
à the manufacturer partners with intermediaries but s9ll controls customer contact
- e.g. brand promotes products online but doesn’t deliver them directly to customers.
Instead, they nominate authorized distributors
4
