C1: Introduction B2B marketing
1. What is business-to-business (B2B)
Business marketing refers to marketing activities from one organisation to other businesses and organisations. (Could be profit or
non profit organsiations)
B2B: a form of transaction between businesses, such as one involving a manufaturer and wholesaler, or a wholesaler and a
retailer
Wholesaler:
Perfum products
Retailer:
Ici paris xl
Goal to attract and convert leads into customers
Linkedin is the platform that generates the most leads in B2B in
general.
Exercise
1) Think of 5 B2B companies that could work with…
- McDonalds
- Apple
- Brussels Airlines
=> There are more transactions & the value of the transactions is higher in B2B markets than in B2C!
ANSWER:
Apple: Mcdonalds: Brussels airlines:
- Amazon - farm - food companies
- battery - Coca Cola - cleaning services
- packaging box - Deliveroo, uber eats - fuel companies
- phone cases - transportation - clothing of the stewardess
2) Which distribution channels?
e.g. Lannoo Publishers
B2C (Lannoo sells directly to consumer)
• webshop
• lannoo’s boeknemarkt (outlet)
B2B (Lannoo does not sell directly to consumer)
• Bookstores like (standaardboekhandel)
• Online retailers (Amazon, bol.com)
• Fnac
• Carrefour
• Paard van Troje
So in that case, the company has B2C AND B2B activities.
A lot of companies have both!!
1
,2
,2. Characteristics of b2b markets
The market
B2C markets B2B markets
Number of buyers LARGE SMALL
Buyers are geographically DISPERSED CONCENTRATED
Relationship to buyer IMPERSONAL PERSONAL & LONG TERM
Supplier switching cost LIMITED LARGE
The buying process
B2C markets B2B markets
Purchase to satisfy INDIVIDUAL OR FAMILY NEEDS ORGANIZATIONAL NEEDS
Number of decision makers SMALL LARGE
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 purchase LIMITED (LOW RISK) POTENTIALLY CRITICAL (HIGH RISK)
Nature of product/service STANDARD RANGE OF PRODUCTS CUSTOMIZED & COMPLEX
Primary promotional tool ADVERTISING (DATA DRIVEN) PERSONAL SELLING (ACCOUNT BASED)
Level of price sensitiveness HIGH LOW
Decision EMOTIONAL RATIONAL
Promotion focus PSYCHOLOGICAL BENEFITS ECONOMIC UTILITARIAN BENEFITS
3
, The demand (examenvraag)
o Based on derived demand: demand for product/service is determined by the demand for consumer goods/services on the B2C
market
e.g. For example, as more workers are working from their homes, the demand for laptops has risen. As a 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
o Based on joint demand:
When the demand for one product increases, the demand for an other product will also increase. (Goods that are consumed
together simultaneously, like bread and butter.)
e.g. more electric cars sold -> increased demand for charging stations
o Demand in business markets is price inelastic:
a change in price has very little effect on its demand
e.g. 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, …
o Most B2C goods/services are price elastic:
The demanded quantity is very sensitive to price
e.g. when a 1% rise in price generates a 10% decrease in quantity
(apple juice, movie tickets, fastfood, …)
2 exceptions:
- Giffen goods are essential goods (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 (yachts, fine wines)
o Fluctiating demand:
A small change in demand by consumers can have a big effect rhroughout the chain of businesses that supply alll the goods and
services that produce it
• Therefore in B2B:
- Need for market data, data analysts
- Budgeting & forecasting
- Account management
Example fluctuating demand exercise
4
1. What is business-to-business (B2B)
Business marketing refers to marketing activities from one organisation to other businesses and organisations. (Could be profit or
non profit organsiations)
B2B: a form of transaction between businesses, such as one involving a manufaturer and wholesaler, or a wholesaler and a
retailer
Wholesaler:
Perfum products
Retailer:
Ici paris xl
Goal to attract and convert leads into customers
Linkedin is the platform that generates the most leads in B2B in
general.
Exercise
1) Think of 5 B2B companies that could work with…
- McDonalds
- Apple
- Brussels Airlines
=> There are more transactions & the value of the transactions is higher in B2B markets than in B2C!
ANSWER:
Apple: Mcdonalds: Brussels airlines:
- Amazon - farm - food companies
- battery - Coca Cola - cleaning services
- packaging box - Deliveroo, uber eats - fuel companies
- phone cases - transportation - clothing of the stewardess
2) Which distribution channels?
e.g. Lannoo Publishers
B2C (Lannoo sells directly to consumer)
• webshop
• lannoo’s boeknemarkt (outlet)
B2B (Lannoo does not sell directly to consumer)
• Bookstores like (standaardboekhandel)
• Online retailers (Amazon, bol.com)
• Fnac
• Carrefour
• Paard van Troje
So in that case, the company has B2C AND B2B activities.
A lot of companies have both!!
1
,2
,2. Characteristics of b2b markets
The market
B2C markets B2B markets
Number of buyers LARGE SMALL
Buyers are geographically DISPERSED CONCENTRATED
Relationship to buyer IMPERSONAL PERSONAL & LONG TERM
Supplier switching cost LIMITED LARGE
The buying process
B2C markets B2B markets
Purchase to satisfy INDIVIDUAL OR FAMILY NEEDS ORGANIZATIONAL NEEDS
Number of decision makers SMALL LARGE
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 purchase LIMITED (LOW RISK) POTENTIALLY CRITICAL (HIGH RISK)
Nature of product/service STANDARD RANGE OF PRODUCTS CUSTOMIZED & COMPLEX
Primary promotional tool ADVERTISING (DATA DRIVEN) PERSONAL SELLING (ACCOUNT BASED)
Level of price sensitiveness HIGH LOW
Decision EMOTIONAL RATIONAL
Promotion focus PSYCHOLOGICAL BENEFITS ECONOMIC UTILITARIAN BENEFITS
3
, The demand (examenvraag)
o Based on derived demand: demand for product/service is determined by the demand for consumer goods/services on the B2C
market
e.g. For example, as more workers are working from their homes, the demand for laptops has risen. As a 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
o Based on joint demand:
When the demand for one product increases, the demand for an other product will also increase. (Goods that are consumed
together simultaneously, like bread and butter.)
e.g. more electric cars sold -> increased demand for charging stations
o Demand in business markets is price inelastic:
a change in price has very little effect on its demand
e.g. 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, …
o Most B2C goods/services are price elastic:
The demanded quantity is very sensitive to price
e.g. when a 1% rise in price generates a 10% decrease in quantity
(apple juice, movie tickets, fastfood, …)
2 exceptions:
- Giffen goods are essential goods (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 (yachts, fine wines)
o Fluctiating demand:
A small change in demand by consumers can have a big effect rhroughout the chain of businesses that supply alll the goods and
services that produce it
• Therefore in B2B:
- Need for market data, data analysts
- Budgeting & forecasting
- Account management
Example fluctuating demand exercise
4
