Samenvatting Business Marketing

CHAPTER 1: INTRODUCTION B2B MARKETING

1.1 WHAT IS B2B?

B2B marketing:
= refers to marketing activities from one organisation to others business and
organisations
= a form of transaction between businesses, such as one involving a manufacturer and
wholesaler, or a wholesaler and a retailer

Manufacturer  wholesaler
Wholesaler  retailer




Goal of B2B marketing: to attract and convert leads into customers

Which social media platform in general generates the most B2B leads?: LinkedIn

Example: encyclopedia
 What B2B companies did you notice in the video? (dia 10)

 Packaging
 Manufacturer
 Wood production

(exercise dia 11, zelf niet ingevuld)

Top B2B brands – global
= Intel – SAP – Google – UPS - … (dia 12)

Top B2B brands – Belgian
= Fagron – Sioen – EVS - … (dia 13)



What’s the relationship between Philips and Audi?

1

,Philips, through its automotive lighting division (now part of Lumileds), collaborates with
Audi to deliver advanced lighting solutions that enhance safety, efficiency, and design.
Audi integrates Philips' technologies, such as Matrix LED headlights, laser lighting, and
dynamic lighting effects, to create distinctive, high-performance vehicles. This
partnership also supports sustainability goals, with energy-efficient lighting contributing
to Audi’s focus on electric and hybrid innovation, showcasing their shared commitment to
cutting-edge technology and environmental responsibility.

B2B + B2C (strong)

Which distribution channels? (vb. Lannoo Publishers)

B2C (Lannoo sells directly to consumer) B2B (Lannoo does not sell directly to
consumer)
 Webshop  Carrefour
 Lannoo’s Boekenmarkt (outlet)  Standaard Boekhandel
 Fnac
 Paar Van Troje
 Marketing campaign via newspaper
or magazine
 Bol.com
 Amazon
So in that case, the company has B2C AND B2B activities. A lot of companies have both!

1.2 CHARACTERISTICS OF B2B MARKETS


THE MARKET

B2C markets B2B markets
Number of buyers Large Small
Buyers are Dispersed Concentrated
geographically
Relationship to buyer Impersonal Personal & long term
Supplier switching cost Limited Large

BUYING BEHAVIOUR

B2C markets B2B markets
Purchase to satisfy Individual or family needs Organizational needs
Number of decision Small Large
makers
Buyer Less informed or technical Well informed & technical
background
Length of decision time Short & simple Long & complex
Size of purchase Small quantities Large in value & volume
Consequence of poor Limited (low risk) Potentially critical (high risk)
purchase
Nature of product/service Standard range of products Customized & complex
Primary promotional tool Advertising (data driven) Personal selling (account based)
Level of price High Low
sensitiveness
Decision Emotional Rational
Promotion focus Psychological benefits Economic/utilitarian benefits
If price increases, demand decreases (= sensitivity is high  price elasticity)  B2C


2

,B2B  Price inelasticity

B2C build brand awareness
B2B  build relationships


DEMAND
DERIVED DEMAND & JOINT DEMAND

Based on derived demand: demand for product/service is determined by the demand for
consumer goods/services on the B2C market

 (vb. as more workers are working from their homes, the demand for laptops has
risen. As result, you’ll see derived demand in computer-related products, such as
mice, monitors, printers and so on)
 Demand in business markets is highly driven by developments in consumer
markets
 When the demand for a product is determined by the demand for consumer goods
on the B2C market (interdependence of products) (vb. encyclopaedia  paper)

Based on joint demand: goods that are consumed together simultaneously (like bread &
butter)

 (vb. more electric cars sold  increased demand for charging stations)
 (vb. Apple iPhone and iPhone charger)

PRICE ELASTIC ↔ PRICE INELASTIC

Price inelastic: demand in business markets
= a change in price has very little effect on its demand

 (vb. if the price of petrol increases 30%, but demand for petrol only decreases
10%)
 Because there are few alternatives, highly differentiated products, complex
logistics processes,…

Price elastic: most B2C goods/services
= if demand is elastic, the quantity demanded is very sensitive to price

 (vb. when a 1% rise in price generates a 10% decrease in quantity  toothpaste,
apple juice)
 2 exceptions:
- Giffen goods are essential goods (vb. rice, potatoes, milk)
 Demand stays high when prices increase (no ready substitute)
- Veblen goods are goods for which demand increases as the price increases
due to its exclusive nature and appeal as a status symbol (vb. yachts, fine
wines)

FLUCTUATING 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

Therefore in B2B:

 Need for market data, data analytics

3

,  Budgeting & forecasting
 Account management



Example:

An airline company has 1,000 planes in its fleet to meet consumer demand (final
demand)

Every year, they have to replace 10% of their planes

What is the effect for the airplane manufacturer (derived demand) when consumer
demand changes?




Ingredient branding: the secret sauce for B2B success

 B2B businesses are looking for ways to minimize the effect of fluctuating &
derived demand by creating “value” for the customer of their B2B customer
 Very expensive!


DISTRIBUTION CHANNELS




DIRECT CHANNEL (ZERO LEVEL)
 Company owned retail stores
 E-commerce
 Sales team: to find prospect 4and
close deals and to change leads into
customers
 Catalogue