Marketing Application & Practices

1
B2B MARKETING ( INDUSTRIAL)
INDUSTRIAL PRODUCT (Def
n
)
It is the Product or Service which is offered to
Manufacturing, Trading or Service
Organisations or to Professionals or
Professional Institutions for their use in
functioning towards their business objective/s.

INDUSTRIAL MARKETING (Def
n
)
It refers to the process of marketing such
industrial products or services


Marketing Application & Practices
2
B2B MARKETING (INDUSTRIAL)
INDUSTRIAL PRODUCTS
Core Product : functional performance
Augmented Product : peripheral product
Additional features
Packaging
Sales Promotion
Before / After Sales Service
Company Reputation
Availability / Reliability of delivery commit.
Prices
Payment Terms
Warranty
Marketing Application & Practices
3
B2B MARKETING (INDUSTRIAL)
CLASSIFICATION OF INDUSTRIAL
GOODS
Equipments :
Equip organisations for their stated purpose
Materials & Supplies :
Used in Production for resale
Services :
Facilitate the functioning of the organisation
Marketing Application & Practices
5
B2B MARKETING
MARKET SEGMENTATION OF
INDUSTRIAL PRODUCTS
1. What is brought ?
Type of Product
Range of Product Full Line / Niche
What need does the Product satisfy
Std Product / variance / Non Std
Capital Goods / Consumables
High Value / Low Value


Marketing Application & Practices
6
B2B MARKETING
MARKET SEGMENTATION OF
INDUSTRIAL PRODUCTS
2. Who buys it ?
Offices / Manufacturing Industries / Service
Industries / Professionals
Type of Industry / Service
Geographical location
Customer Govt / Public / Private
Size of Customer
Heavy User / Light User


Marketing Application & Practices
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B2B MARKETING
MARKET SEGMENTATION OF
INDUSTRIAL PRODUCTS
3. Why is it bought ?
Price Lowest / Value for Money / Premium
Product
Technology Latest / Proven
Aspects determining Customers perception of
quality
e.g. Aesthetics, Durability etc

Marketing Application & Practices
8
B2B MARKETING
INTERNAL CUSTOMERS
1. Operators ( ease of use)
2. User dept (Up time)
3. Maintenance dept ( less / no maintenance)
4. R & D dept ( Technology - New / Old)
5. Materials / Purchase (Cost / delivery)
6. Finance dept (actual cost)
7. Personal ( how safe is product)
8. C.E.O. ( value for money)

Marketing Application & Practices
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B2B MARKETING
THE BUYING PROCESS
1. Recognition of Need receipt of requisition
2. Make or Buy Decision
3. Purchase
From single supplier
On the basis of past purchase
On the basis of fresh negotiations
From multiple suppliers
On the basis of past purchase
On the basis of fresh negotiations
On the basis of Tenders
Marketing Application & Practices
10
B2B MARKETING
THE BUYING PROCESS
4. Tenders :
Open (Advertised / Public Openings)
Closed (Advertised / No public opening)
Limited (By invitation only)
5. Selection among Supplier
Integrity
Meeting / Exceeding Specs
Quality
Delivery Time
Pre / After Sales Service
Company Reputation
Commercial Terms
Marketing Application & Practices
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B2B MARKETING
THE BUYING PROCESS
6. Information Sources :
Own company record
Other company reference / Published literature
Catalogues / Exhibitions / Seminars /
Presentations
7. Placement of Order
8. Order Follow up
9. Receipt & Inspection of Products &
Documents
10. Payment
Marketing Application & Practices
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B2B MARKETING
TYPES OF PROMOTION
1. Telephone Directory / Yellow Pages
2. Trade Directories / Publications
3. Journals
4. Press Advertising
5. Direct Marketing
6. Tele Marketing
7. Catalogue / Company Literature
8. Seminars / Exhibitions
9. Give Away

Marketing Application & Practices
15
B2B MARKETING
STRATEGY
ACTIONS AIMED DIRECTLY AT ALTERING
THE STRENGTH OF THE ORGANISATION
RELATIVE TO THAT OF ITS
COMPETITORS
Not included are all actions aimed at
improving operational effectiveness
WITHOUT COMPETITION THERE WOULD
BE NO STRATEGY
Analysis is the critical starting point of
Strategic Thinking

Marketing Application & Practices
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B2B MARKETING
CORPORATE STRATEGY
M
a
r
k
e
t

A
t
t
r
a
c
t
i
v
e
n
e
s
s

Corporate Strength
A
B
C
A Prevent or Minimise Loss
B Select Opportunities &
Consolidate resources
C Defend & Increase Mkt Share
Marketing Application & Practices
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B2B MARKETING - DISTRIBUTION
WHY REQUIRED ?
1. Cost of Contacting Customers
2. Channel reach selling support
3. Channels influence
4. Faster response
5. Faster Order Execution
6. Easy Payment
7. Better Pre-sales/After sales service



Marketing Application & Practices
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B2B MARKETING - DISTRIBUTION
TYPES OF CHANNELS
1. Sales Agent
2. Wholesaler
3. Retailer
4. Authorised Service Center
5. C & F / Storage



Marketing Application & Practices
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B2B MARKETING
KEY PERFORMANCE INDICATORS
OF SALES ACTIVITIES
1. Sales / Target (%)
2. Orders / Quotations (%)
3. Margins / Sales (%)
4. Cost of Sales / Sales (%)
5. Sales Value / Number of Order (%)
6. Orders / Calls (%)
7. Key Account Contact
8. New Customer Orders / Orders
Marketing Application & Practices
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B2B MARKETING
KEY PERFORMANCE INDICATORS
OF SALES ACTIVITIES (cont.)
1. Calls per day / Face to face time
2. New Prospects called
3. Credit Orders / Total Orders (%)
4. Calls to build Customer Relationship
5. Discounts / Sales (%)
6. Timely Submission of reports
7. Timely submission of Itineraries




Marketing Application & Practices
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B2B MARKETING - NEGOTIATION
Def
n
: Negotiation is the process of
determining what the other side really desires
and reaching an agreement so that they get
what they want while you get what you want
Pre Requisites :
1. Is the issue negotiable
2. Are the negotiators interested in
compromise trading value for value ?
3. Do they trust each other, at least to some
extent
4. Do they have the authority to come to an
agreement ?
Marketing Application & Practices
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B2B MARKETING - NEGOTIATION
Styles of Negotiation :
Lose Lose (No desire for agreement)
Win Lose (Competitive)
Lose Win (Lose now for future)
Win Win (Co operative, problem solving)
Modified Win Win (Both feel they have won)
5 Ps of Negotiation :
Positive attitude The will to succeed
Preparation before negotiation
Problem solving approach
Probing during negotiation
Promote yourself, company & product




Marketing Application & Practices
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B2B MARKETING - NEGOTIATION
Crucial Factors :
Information / preparation required
Evaluating bargaining power
Opening the Negotiation
Rules of Conduct
Handling difficult personality types
Understanding devious negotiation
tactics
Follow - up