B2B Marketing & CRM

S. S. Ranjan

B2B Marketing & CRMSubject Code : 3.1.8

Total Marks : 100

External : 60 Marks

Internal : 40 Marks

Inclusion & Considerations

Attendance : Not less than 75%

Class Test : Better 2 out of 3

Presentation : In groups on course subject

Case Study : Presentation

Discipline : Sincerity & Obedience

Participation : Effective

Course Content1. Introduction to industrial marketing difference between industrial and

consumer marketing.

2. Industrial Marketing Environment; Types of Customers; Types of Buying Situations ; Segmentation.

3. Derived Demand Concepts; Industrial Buyer Behaviour; Industrial market Research

4. Industrial Advertising & Promotions; Branding of Industrial, High Technology & Commodities.

5. B2B Product Decisions; New Product Development

6. Industrial Pricing Decision

7. Role of After Sales Services in Industrial Marketing

8. Industrial Distribution

9. B2B Selling and sales management; Key account management; concepts, Negotiated selling, Bidding for contracts; Selling to government customers

10. Concept & Context of CRM : CRM as an integral business strategy.

11. Customer Loyalty Program: A brief discussion from technology point of view

12. Customer Knowledge : The individualized customer preposition

13. The Relationship Policy : Relationship Data Management

Introduction to B2B Marketing It is sometimes also known as Industrial / Business

Organizational / Producer’s Marketing Industrial goods are in general not the final products. It refers marketing of products and services to the

business organizations. It includes,

♦ Manufacturing Companies

♦ Government Undertakings

♦ Private / Public Sector Organization

♦ Educational Institutions

♦ Hospitals

♦ Commercial Intermediaries

Need of B2B Marketing► To produce other goods and services

► To use of components for other purpose

► To reduce the production cost

► To limit the market size

► To establish business association

► To concentrate on client satisfaction

► To avoid the oligopolistic competition

► To guard against financial instability and risk

► To work in cohesion with partners

► To develop a dependent ancillary

Features of B2B Marketing► It is the largest market at all► One customer with huge purchasing capabilities► It serves from local to international level► Customers are generally organizations.► It serves for a longer period of time► Credit period is comparatively longer► Credit is more variable in amount► It facilitates the production process► Limited players remains in the market ► Customer relations are key to success ► It also includes technical advice to manufacturer ► It is mostly in direct interest of the customers ► It fosters joint demand

Functions of B2B Marketing

► It is the largest market at all

► To identify and decide the target market

► To dig out need and wants of the target market

► To create value for the buying organization

► To offer customized product or services

► To develop marketing program involving partner

► To support customer with technical support

► To help in identification of focus group & market

► To offer other related services to customers

► To develop mutual faith between the partners

Classification / Areas / Applications of B2B Marketing

► Materials and Parts ♦ It includes raw materials, manufactured materials, OEMs, components and parts ♦ This is considered under manufacturing cost ► Capital Items ♦ It comprise of installation, heavy equipments, accessories, light equipments, plant, building ♦ This is considered under fixed asset and operating cost ► Supplies and Services ♦ It comprise of items which has cross functional utilities like stationary, courier etc. ♦ This is considered under operating cost

Characteristics of B2B Marketing►Geographically concentrated.►Relatively few customers generally organization►Distribution channels are short & more supportive ►Buyer are well informed & aware of their purchase►Buyers are well organized and offers support ►Buyers have sophisticated purchase techniques►Purchasing decisions are based on observations►Sometimes it becomes difficult to separate and

identify the marketing and the corporate strategy►It involves large scale of individual purchase ►It consists of derived and fluctual demand ►Leasing is most preferred phenomenon at beginning ►It involves Reciprocal buying (Tyre and A/C for car) ►Sharing of risk is very common among partners

Buying Motives in Industrial Marketing ► To reduce the manufacturing cost

► To make product competitive in the market

► Regular supply of materials

► Durability and stability of the material

► Modernization of plant to increase efficiency

► Insured and protected products against risk

► To supplement with the technical support

► To share risk among the associated partners

► Extent of dependency on each other

► Speculation of price rise

► Government initiatives

Difference between Industrial and Consumer Marketing

PARAMETERS INDUSTRIAL MARKETING CONSUMER MARKETING

Market Characteristics Geographically Concentrated

Geographically Disbursed

Customer Size Relatively Fewer Buyer Mass Market

Product Specification Technically Complex Products

Standard Products

Product Specification Technically Complex Products

Standard Products

Product Variant Tailor Made Products Customized Products

Service Prompt and Competent Service Required

Somewhat Important

Buyer Behaviour Involvement of various functional Areas in both Buyer and the Suppliers

Firm

Merely involvement of Family Members or The

Peer Groups

Purchase Decision Based on Rational and Requirement

Based on Social / Culture / Psychological

Needs

Difference between Industrial and Consumer Marketing

PARAMETERS INDUSTRIAL MARKETING CONSUMER MARKETING

Technical Competence Needs Technical Advice Less or generally not required

Interpersonal Relationship Stable Generally Non Personal

Distribution Channel More Direct Channel Generally indirect Channel of Distribution

Market Intermediaries Fewer Middleman and Intermediaries

Multiple Layers of Intermediaries

Market Promotion Personal Selling Emphasis on Advertising

Pricing Strategy Competitive Bidding, Tender or Negotiation

Based on MRP or List Price

Mass Promotion Trade or Technical Journals

Always on Mass Media

Direct Mail Most Suitable Not Viable Always

Loyalty Program Mostly ERP rarely CRM Mostly CRM & Rarely ERP

Commissioned Agents Often Hired Sometimes Needed