(11th March 2018) BFBM Seminar တြင္ ဆရာဦးတင္ဇံေက်ာ္ ေဟာေျပာခဲ့သည့္ Presentation Slides

1. z

2. Introduction

3. 1. B 2 C
2. B 2 G
3. B 2 B
4. F 2 B
5. F 2 C
6. B 2 E
7. C 2 C
8. G 2 C
9. P 2 P
Type of Business

4. B2B vs B2C Marketing
B2C = Business-to-Consumer Market
Businesses sell products and services to consumers for household or
personal use
B2B = Business-to-Business Market
Businesses sell products and services to other businesses for use in
their daily operations or for making other products and services

5. Defining B2C Marketing
B2C Marketing – Business-to-Consumer
 Product driven
 Maximize the value of the transaction
 Large target market
 Single step buying process, shorter sales cycle
 Brand identity created through repetition and imagery
 Merchandising and point of purchase activities
 Emotional buying decision based on status, desire, or price

6. Defining B2B Marketing
B2B Marketing – Business-to-Business
 Relationship driven
 Maximize the value of the relationship
 Small, focused target market
 Multi-step buying process, longer sales cycle
 Brand identity created on personal relationship
 Educational and awareness building activities
 Rational buying decision based on business value

7. B2C Marketing Channels
Consumer Consumer Consumer Consumer
Retailer Retailer Retailer
Wholesaler Wholesaler
Agent / Broker
Producer Producer Producer Producer

8. B2B Marketing Channels
Business or
Government
User
Business or
Government
User
Business or
Government
User
Business or
Government
User
Agent/Broker
Industrial
Distributor
Industrial
Distributor
Agent/Broker
Producer Producer Producer Producer

9. Examples of B2C vs B2B Marketing

10. Overview
1. Business Marketing Definition
2. B2B Marketing Mix
3. B2B Marketing Communications
4. Size of Business Marketing
5. Business Vs Consumer Market

11. Business Marketing Definition1

12. B2B Definition
A transaction that occurs between two companies, as
opposed to a transaction involving a consumer.
 The term may also describe a company that provides
goods or services for another company.

13. Business to Business Commerce.
When one business sells to another business rather than to
an end user.
This term usually is used in connection with sales: B2B
sales or B2B Sales reps.
Any business providing products / services / information for
any other business can be called business 2 business or B2B.
B2B Definition

14.  Commerce transactions between businesses - a manufacturer and a
wholesaler, or between a wholesaler and a retailer
 Business-to-consumer (B2C); business-to-government (B2G)
 Volume of transactions much higher than the B2C transactions
Business - to - Business (B2B)

15. Supply chain - transactions involving sub components or raw
materials
Automobile manufacturer - buying tires, glass for
windscreens, and rubber hoses, etc.
Business - to - Business (B2B)

16. Communication and Collaboration
Using social media to connect with one another
"B2B" communication
Business - to - Business (B2B)

17. Business Marketing
 Individuals, or organizations (commercial businesses, governments
and institutions), facilitating sale of products or services to other
companies or organizations
 Industrial marketing
 Business-to-Business marketing
 B2B marketing

18. One purveyor of goods doing trade with another
Old as Commerce itself
Industrial marketing - mid-19th century
Origins

19. Took a back seat to consumer marketing
Change in the 1970 s
Courses at many universities
More marketing majors begin their careers in Business
marketing today than in Consumer marketing
Business Marketing

20. Business marketing shorter and more direct channels of
distribution
Consumer marketing aimed at large groups through mass
media and retailers
Negotiation between the buyer and seller more personal in
business marketing
Business Marketing Vs. Consumer Marketing

21. Business Marketing
4 P’s of marketing (Marketing Mix)
1. Product
2. Price
3. Place
4. Promotion

22. SolutionProduct
AccessPlace
ValuePrice
EducationPromotion
4 P’s of marketing (Marketing Mix)
Business Marketing

23. 1. Companies that consume products or services,
2. Government agencies,
3. Institutions
4. Resellers
4 categories of Business Categories

24. Original equipment manufacturers
Large automakers buy gauges to put in their cars
Small firms purchase products to run their business
Companies That Consume Products Or Services

25. The biggest
U.S. government - more than $300 billion annually
Regional/State and local governments
Government Agencies

26.  Schools
 Hospitals and nursing homes
 NGOs
 Charities
Institutions

27.  Wholesalers
 Brokers
 Industrial distributors
Resellers

28. B2B Marketing Mix
2

29. Unique
Complexity of business products and services
Diversity of demand
Differing nature of the sales itself (fewer customers
buying larger volumes)
Broken down beyond the original 4 P’s
B2B Marketing Mix

30. Different from B2C
Align Corporate Brands, divisional brands and
product/service brands
Apply brand standards to “informal” material such as
email and other electronic correspondence - large scale
compared with B2C
B2B Branding

31. B2B Marketing
Communications
3

32. Support organizations' sales effort
Improve Company profitability
Advertising, public relations, direct
mail, trade show support, sales
collateral, branding, and interactive
services
B2B Marketing Communications

33. What you do
How you do it
Differently and better and more efficiently than
competitors
Positioning Statement

34. Best return on investment (ROI)
Infrastructure in place
Entire Organization geared up
Campaign Plan

35. Standard briefing document
Focusing the agency on what's important
Checklist
Objectives, target market, target audience, product, campaign
description, product positioning, graphical considerations,
corporate guidelines, and supporting material and distribution
Briefing an Agency

36. Tying the marketing campaign to Business Results
Measure Impact upon desired objectives - Cost per Lead
or tangible changes in customer perceptions
Measuring Results

37. Size of Business Marketing4

38. Purchases made by companies, government agencies and
institutions,
account for more than half of the economic activity in
industrialized countries,
such as the United States, Canada and France

39. The Business Marketing Association
Size and credibility of the industry in 1922
Trade organization
Marketing communications agencies largely or exclusively
B2B-oriented
B2B Marketing Professionals
Certification programs, research services, conferences, industry
awards and training programs

40. What's driving growth in B2B Marketing?
Three “Revolutions”
1. Technological - unprecedented pace, Internet; hand-in-hand with
business strategy
2. Entrepreneurial - adaptability, flexibility, speed, aggressiveness and
innovativeness
3. Marketing - new frameworks, theories, models and concepts -
relationships, partnerships and alliances; customizing marketing
programs

41. Meaningful differences between
B2B and B2C Marketing
A B2C sale to a "Consumer"
i.e. a single person who pays for the transaction
A B2B sale is to a "Business“
i.e. organization or firm - multiple decision makers

42. B2B vs B2C Marketing
B2C ‘low Involvement’ B2B ‘High Involvement’
Target Market
Purchaser (s)
Buying Process
Sales Cycle
Sales Driver
Larger Smaller, Niche
Single Multiple
Single step Multiple step
Shorter Longer
Recognition and
Repetition
Relationship and
Detailed Information

43. 5 Business Vs Consumer Market

44. Business vs. Consumer Markets
Characteristic Business Market Consumer Market
Demand Organizational Individual
Volume Larger Smaller
# of Customers Fewer Many
Location Concentrated Dispersed
Distribution More Direct More Indirect
Nature of Buy More Professional More Personal
Buy Influence Multiple Single
Negotiations More Complex Simpler
Reciprocity Yes No
Leasing Greater Lesser
Promotion Personal Selling Advertising

45. Industrial Vs Consumer Marketing
Areas of Difference B2B Market Consumer Market
Market Characteristics
Product Characteristic
Service Characteristic
Buying Behavior
Geographically Concentrated Geographically Disbursed
Relatively Fewer Buyer Mass Market
Technical Complex Standardize
Service, timely Availability
extremely Important
Somewhat Important
Involvement of Various functional
area from both the ends
Involvement of family members
Purchase Decisions are performance
based and rational
Purchase decisions are mostly based
on Physiological
/social/psychological needs
Technical Expertise Relatively less technical expertise is
required
Stable Interpersonal relationship Non- Personal relationship

46. Industrial Vs Consumer Marketing
Areas of Difference B2B Market Consumer Market
Channel Characteristic
Promotional Characteristic
Price Characteristic
More Direct
Fewer Intermediaries
Emphasis on Personal Selling
Competitive Bidding and
Negotiated Prices
List Price
Indirect
Multiple layer of Intermediaries
Emphasis on Mass Media (Advertising)

47. B2B Distribution Channel Characteristics
Manufacturer
Company Sales
Force
Representative
Agency
Customer Customer Customer
Distribution
Dealer

48. B2B Marketing – What is Different?
B2B: Business to Business B2C: Business to Consumer
Based on relationships with business buyers Products more important than relationships
Often small & focused market Usually larger markets
More complex & longer buying process
Single step buying process; often short
(e.g. impulse purchase
More sophisticated buyers Less sophisticated buyers
Aim is to turn prospects into buying
customers
Emotional considerations affect buying
behaviour
Educational element to promotion Brands very important

49. Characteristic B2B Market B2C Market
Sales volume
Purchase volume
Number of buyers
Size of individual buyers
Location of buyers
Buyer-seller relationship
Nature of channel
Buying influences
Type of negotiations
Key promotion method
B2B Versus B2C Marketing
Greater
Greater
Fewer
Larger
Concentrated
Closer
More direct
Multiple
More complex
Personal Selling
Smaller
Smaller
Many
Smaller
Diffuse
More Impersonal
Less direct
Single
Simpler
Advertising

50. B2B vs B2C – Marketing Approaches
Industry Consumer
Driven by trust-based relationships
Built on a small, focused audience
Designed to maximize long-term sales
A multi-step buying process and longer sales cycle
Aimed at building brand identity based upon trust
Focused on educating target audience
Designed for rational buying decisions based upon
business value
Aimed at increasing and generating leads – top
objective
Product driven
Aimed at a large target audience
Designed to maximize individual sales
A singe-step buying process with a shorter sales
cycle
Intended to promote brand identity through
promotion
Built around products and services
Emotional buying decisions
Aimed at increasing awareness of brands and
products – top objective

51. Differences in Emphasis: B2B vs B2C
Industrial Markets Consumer Markets
1. Market Selection and
Development
2. Market Segmentation
3. Advertising
The emphasis in the early part of
the life cycle is clearly on market
development
Market selection and
segmentation are often more
important than market
development.
Tends to be along demographic
variables, such as size or
industry.
Usually along personality or
lifestyle variables.
Rarely used to create demand.
Some manufacturers use it to
convey product information.
Extensively used to
create demand and
brand differentiation.

52. Differences in Emphasis: B2B vs B2C
Industrial Markets Consumer Markets
4. Pricing
5. Product Policy
6. Channels of Distribution
7. Marketing Research
Pricing is usually geared to
customer needs and
competitive situation.
Pricing is usually a standard
from which promotional
discounts and quantity
allowances may be made.
Product positioning is
usually based on
functions/features.
Product positioning is often
based on psychological
attributes.
Fairly extensive use of
direct sales force to
reach customers.
Wholesales and retailers are
dominant modes of
reaching consumers.
Tends to emphasize technical
development more than customer
research.
Extensive feedback from
consumers sough in design of new
products as well as repositioning
of mature products.

53. Review
1. Business Marketing Definition
2. B2B Marketing Mix
3. B2B Marketing Communications
4. Size of Business Marketing
5. Business Vs Consumer Market

54. Thank You