Business-to-Business (B2B) Marketing Zusammenfassung PDF

1\. Fundamentals of Business-to-Business Marketing **1. Characteristics of Business Markets** **[a) Distinctive Features ]** \- the main difference between B2B and consumer markets is that the **costumer is an organization, not an individual** \- demand in B2B is often **derived, less elastic, a...

1\. Fundamentals of Business-to-Business Marketing **1. Characteristics of Business Markets** **[a) Distinctive Features ]** \- the main difference between B2B and consumer markets is that the **costumer is an organization, not an individual** \- demand in B2B is often **derived, less elastic, and more volatile** compared to consumer markets \- B2B markets are **more fragmented**, have **fewer buyers per seller**, and are **geographically concentrated** **[b) Market structure:]** **- Derived Demand:** demand for something **only exists** so long as there is a demand for the **goods** or services that it **helps to produce** **- Demand Elasticity:** business demand is likely to be less price elastic (**less responsive to price changes**) **[c) Buying Behaviour]** \- B2B transactions are influenced by multiple factors, involve **longer purchase cycles**, **higher transaction values, and more complex processes** \- **Relationships** and interdependence between **buyers** and **sellers** are critical in B2B settings **[d) Marketing Practices ]** \- Focuses on **systems selling**, extensive use of **personal relationship**, and tailored promotional strategies \- **Market research and branding** are **less** sophisticated than consumer markets **[2. Industrial Products ]** [- Industrial **manufacturing** products**:**] **infrastructure design and construction** (buildings; chemical treatment plants...) [- Industrial **heavy** equipment]: large **capital** requirements and a **long expected lifespan**; **special** **request** and made to order for the costumer (machinery) [- Industrial, **light** equipment:] auxiliary **machinery** and tools or even accessories; cheaper and with a **shorter lifespan** [- Industrial materials and suppliers for the handling of **Maintenance, Repair and Operation** (MRO):] low in unit value and do **not form part of the finished product**; low in unit cost and purchased in large volumes (e.g. Printer) **2. Classification of Business Products** - Products are categorized based on their role in production: - [Installation:] Major investment items (e.g., heavy machinery) - [Accessory Equipment:] Smaller tools with shorter lifespan - [Maintenance, repair, and operating (MRO) Supplies:] Essential minor items like lubricants and office supplies - [Raw Materials:] Unprocessed inputs like coal and crude oil - [Manufactured Materials and Parts:] Ready-to-use components - [Business Services:] Maintenance, repair, and advisory services **3. Evolution of B2B Marketing** **[a) Early Development]** \- the discipline emerged alongside industrialization in the **early 20^th^ century** -\> 40s-60s \- Initial studies focused on industrial purchasing **behaviours and developing marketing science** **[b) Growth in the *1960s- 70s*]** \- Key milestones include the launch of **academic journals** and **new methodologies**, especially by **European researchers** emphasizing **interorganizational dynamics** **[c) Paradigm Shift in the 1980s]** \- Shift from transactional to **relational approaches** \- Behavioural science became integral to understanding B2B relationships **[d) Modern Advances]** \- Since the 2000s, focus areas have included **branding, service-oriented logic, networked market relationship, and leveraging new technologies** 2\. Inter-firm Relationship and Networks **[1. Traditional B2B Marketing Challenges ]** \- The traditional "**4Ps**" model (**Product, Price, Promotion, Place**) assumes conflicting goals between marketers and customer, with marketers being active and costumers passive \- in practice, B2B markets require **collaboration**, as both parties economic well-being often depends on the relationship **[2. Matching Uncertainties and Abilities ]** - Business face uncertainties: - [**Need** Uncertainty:] Difficulty in determining **exact requirements** - [**Market** uncertainty:] Challenges in **evaluating suppliers** - [**Transaction** Uncertainty:] Risk post-transaction, such as **delays or damages** - Suppliers and costumers can mitigate these uncertainties by fostering clear **communication**, **trust** and **collaboration** **[3. Key Relationship Variables ]** [- Exchange Risk:] Risk like late delivery or quality issues can be managed through **formal contracts and trust-building** [- Dependence and Power:] Relationships often feature **asymmetrical dependence**, leading to varying levels of power and influence [- Trust and Commitment:] Trust is central in **long-term collaboration**, while commitment reflects the intention to maintain the relationship **[4. The Interaction Process ]** - Relationships are **dynamic**, involving continuous interaction between firms and individuals - Exchanges occur across multiple dimensions: - [Product/Services:] **Central** of the relationship - [Financial:] Signifying relationship **importance** - [Informational:] Sharing technical or commercial **data** - [Social:] Building **personal bonds** over time **[5. From Relationship to Network]** - Companies operate within **broader networks**, where relationships are interconnected and influence one another - Network analysis: Evaluating a firms position within the network helps identify **strategic opportunities** and constraints - The **ARA Framework** (**Actors, Resources; Activities**) provides tools to **analyze** and improve network positioning 3\. Business Market Segmentation **[1. Consumer market segmentation -- quick recall]** a\) Market **Segmentation**: distinct groups of buyers who have different needs, characteristics, or behaviours b\) Market **targeting**: evaluating each market segments attractiveness and selecting c\) Market **Differentiation**: differentiating the firms market offering to create a superior costumer value d\) Market **Positioning**: arranging for a market offering to occupy a clear, distinctive, and desirable place **[2. Market segmentation criteria (b2c)]** **1. Geographic** **2. Demographic** **3. Psychographic** **4. Behavioral** **[3. Business Market Segmentation]** Ein Bild, das Text, Kreis, Screenshot, Logo enthält. Automatisch generierte Beschreibung **[4. 5 Bases of business market segmentation ]** a\) Customer Demographics (**Firmographics**): Industry; Company Size; Location b\) **Operating Characteristics**: Technology; User/nonuser status; Customer capabilities c\) **Purchasing Approaches**: Purchasing function; Power structure; Nature of existing d\) **Situational factors**: Urgency; Specific application; Size of order e\) **Personal Characteristics**: Buyer-seller similarity; Attitudes toward risk; Loyalty **[5. Firmographics]** \- Segmentation by **industry sector** (type of industry) \- Segmentation by **organisation size** (number of employees) \- Segmentation by **location** (cultural indicator) **[6. Operating variables ]**  more **precise** description; relatively easily observed; visible beyond the firm a. [Company technology:] costumer in the same industry might produce similar products but use different technologies to do this [ ] b. [Product and brand use status:] companies segment in order to establish targets for their products (use the behaviour of costumers with respect to products or brands to aid their segmentation) c. [Customer capabilities:] matching the abilities and uncertainties of buyers and sellers (once you have started the collaboration with the costumer) **[7. Purchasing approach]**  how buying companies are organized to buy and the influences in terms of policies and **buying criteria** a. [Purchasing function organization:] in **smaller firms** there may not be an identifiable group or department with purchasing responsibility; customer with **global operations** or **multiple divisions** might use a central purchasing group to handle the sourcing b. [Power structures:] the **influence** of different departments within the firm may well have an impact on the buying process; marketer will have to alter the communication of the strength of its offering to make it more meaningful to this department c. [Buyer-seller relationship:] the relationship between the buyer and the seller will affect how they interact; customers either behave **transactionally** or **relationally** **Transactionally:** focus on the **current sale**, switch suppliers often and do not want a relationship **Relationally:** want a **relationship** and see the value in working **longer term** with suppliers (complex products) d. [General purchasing policies:] will determine the practise of the company when purchasing from supplier; affects the sort of pricing and bidding methods e. [Purchasing criteria:] they may be **financial**, such as purchase price or total life cost; they may focus on the **technical performance characteristics** of the specified product (weight, speed, power, durability); additionally, the **quality of the service** might be important **[9. Personal characteristics ]** marketers can segment in terms of the characteristics of the people, such as what drives their buying behaviour **[10. Tests to establish the quality of segmentation]** [a) Measurable/distinctive:] the criteria of segmentation **must be clearly measurable**; it must be possible to establish the **size of the firm**; if it is not clearly measurable, it is the best to avoid its use; there i8s the risk of offerings that are not adequately tailored [b) Accessible:] a segment needs to be accessible; it is not accessible if it is not possible to reach costumers in the segment (not able to communicate with that segment; you: small business, company: big business), Reach: **physical ease** of getting offerings [c) Substantial/profitable:] the size and **potential profitability** of segments are also important qualities; the segment needs to be big enough; costumers must be prepared to pay enough, to justify the costs of serving the segment [d) Actionable:] the extent to which the company can put together **effective marketing** programmes for it **[11. Targeting]**  making choices about those segments that should be pursued; devising the most appropriate strategies for pursuing them  Ein Bild, das Diagramm, Text, Plan, Reihe enthält. Automatisch generierte Beschreibung **- Three targeting strategies:** [1. **Undifferentiated** targeting:] make the **same offer** to all segments; likely to be followed by companies that do not engage in any segmentation; standard offering has many advantages and is particularly appealing when large volumes can also produce economies of scale; **RISK: over-generalized** offerings [2. **Differentiated** targeting:] involves choosing a **variety of different segments** and providing offerings that are focused on meeting the needs of those targets; it should precisely fit the needs of costumers [3. **Niche** targeting:] concentrates costumer focus on the **more small number of segments**; particular capability in an area; **HIGH RISK** **[12. Business-to-business positioning]**  how the company occupies the mind of the costumer (Diagram malen) 4. Managing product offerings **[1. Definition and Importance of Product offering]**  a product offering is a **mix of elements** designed to **solve costumer problems**, delivering **core benefits** alongside **additional features** Successful offerings align with costumer needs and **adapt to market and environmental changes**  **[2. B2B Product Features]** \- Basic offerings meet **threshold requirements** (e.g., minimum specification or performance) \- Augmented offerings include added services or elements to create **competitive advantages**, such as **tailored solutions** **or cost reductions** for costumers Ein Bild, das Text, Reihe, Diagramm, Steigung enthält. Automatisch generierte Beschreibung **[3. Life-Cycle Management of product offerings: ]** [a**) Pre-launch** stage:] Significant development and preparation occur, often tailored to **specific** costumer needs [b) **Introduction** stage:] **High costs** with **marketing**, **training**, and costumer **awareness** campaigns [c) **growth** stage:] Market acceptance increases, requiring **differentiation** and investment to sustain growth [d) **Maturity** Stage:] Growth slows, and strategies focus on cost reduction and maintaining market share [e) **Decline** stage:] Products face reduced profitability, necessitating **cost-cutting** or **adaptation** for niche costumers  **[4. Portfolio Management: ]**  Tools like Boston Consulting Group (BCG) matrix help evaluate products offerings based on market share and growth potential, categorizing them as: **[- Stars:]** High growth and market share, **requiring investments** **[- Cash Cows:]** Mature, profitable offerings with **stable markets** **[- Question Marks:]** High-growth markets with low market share, requiring **careful strategic** decisions **[- Dogs:]** Low market growth and share, often candidates for **elimination** **[5. Innovation in B2B Contexts]**  Continuous **adaptation** and **innovation** are vital for competitive advantage, involving **idea generation**, **development**, and **collaboration with partners** to surpass market expectations \- Example: Airbus A350\`s development highlight innovations in materials, design, and collaboration with partners to surpass market expectations **[6. Stages in New Product Development]** [1. **Idea** Generation:] Sources include costumers, competitors, and internal teams [2. **Screening** and Investigation:] Evaluating ideas for feasibility and alignment with market needs [3. **Prototyping** and Trials:] Developing prototypes, testing functionality, and trial marketing [4. Commercial **Launch**:] Depending on the product and market, launches may be big bang or phased rollouts 5\. Price-setting in B2B markets **[1. Introduction]** \- Pricing is a critical but often neglected aspect of B2B marketing, despite its significant **impact on profitability** \- A small price increase (e.g. 5%) can substantially improve earnings before interest and taxes (EBIT) more than a similar increase in sales or cost reductions **[2. Challenges influencing pricing in B2B markets include:]** a\) **global inflation**/deflation b\) **deregulation** of many markets c\) **Availability of low-cost manufacturing** capacity (China, Mexico, India) d\) Reduction of **international trade barriers** e\) the **internet\`s impact** on price **transparency** f\) increasingly skilled **purchasing managers** **[3. The 3 Cs of Pricing]** [1. **Costs:**]  Determine the price floor (**minimum** acceptable price) [2. **Costumers:** ]  The value perceived by customers sets the price ceiling (**maximum** willingness to pay) [3. **Competitors:** ]  Influence the feasible pricing **range** between cost and customer value **[4. Key Pricing Approaches and Concepts]** **[1. Cost-Plus Pricing: ]** \- Calculates prices by **adding a profit margin** to production costs \- Tough common, this approach **ignores customer value** and **competitive dynamics** **[2. Break-even Analysis: ]** \- Helps answer key questions like **how much sales volume** must increase after a price cut or how much **sales can decrease** after a price hike to maintain profitability Ein Bild, das Screenshot, Reihe, Text, Diagramm enthält. Automatisch generierte Beschreibung \- BEV= FC/(P-VC) \% Breakeven sales change = -Price change/CM + Price change **[5. Customer Demand and Price Sensitivity]** [1. Demand Elasticity:] \- Measures **how changes in price affect demand** \- Elastic demand (curve A): A **small price change** leads to a **large change in demand** \- Inelastic demand (curve B9): Price changes have **little effect on demand** \- Perverse demand (curve C): **Higher prices** may **attract customers** (e.g., signalling high quality)  **[2. Factors leading to inelastic demand: ]** \- **Urgent** costumers **needs** \- Strong **product differentiation** \- High **switching costs** \- Products that account for a **small proportion of buyer expenses** **[6. Customer relationships and pricing]** \- [**Strong** supplier-customer relationships] can **[reduce price sensitivity]**, especially through superior service quality \- [**Long-term** relationships] offer benefits like [increased **sales stability**] and [costumer loyalty] but may [also lead to demands for **price reductions**] **[7. Pricing in Oligopolistic markets ]** \- B2B markets often operate in oligopolies, where pricing decisions are **independent** among competitors \- to avoid price wars: - **Price Leadership:** A market leader sets price trends that others follow - **Price stability:** Prices remain "sticky" and firms adjust production volumes instead of pricing 6\. Market communication (part 1) **[1. Introduction to communication in marketing]** - Communication in marketing involves both **process** (**how** a message is transmitted) and **outcome** (the **impact** of the message) - **Effective communication** (between a **sender and a receiver)** ensures the intended message is understood as designed, requiring clear and **decoding** of information - Marketing communication is vital for creating dialogue with markets and achieving business success, emphasizing **accurate targeting**, **clear messaging**, and **audience engagement** **[2. Key components of the communication process ]** [- Transmitter:] The **source of the message**, requiring credibility and competence [- Encoding:] Transforming **ideas into symbols**, sounds, or languages for effective delivery [- Message:] **Content** that may be informational or emotional [- Channel:] The **medium** (e.g., digital, print) used to deliver the message, chosen based on the target audience [- Decoding:] How the receiver **interprets** the message [- Receiving:] The **target audience**, which may include unintended audiences (halo effect) [- Feedback:] **Reaction** from the audience indicating the message\`s effectiveness [- Noise:] External factors that **disrupt** the communication process **[3. Business brand and communication]**  Brands play a critical role in competitive B2B markets, often representing corporate identity - Components of a B2B brand include: **[4. Integrated Marketing Communication (IMC) ]** - **IMC ensures consistency and synergy** across communication channels, combining **advertising**, **PR**, **sales** **promotion**, and **direct** **response** for maximum impact - Digital tools offer flexibility and real-time feedback but may exclude audiences without access to technology - **Effective** **IMC** involves strategic planning, setting objectives, determining role for each communication component, and aligning with overall marketing strategies Ein Bild, das Text, Schrift, Screenshot enthält. Automatisch generierte Beschreibung **[5. Communication strategy]** 1. Setting **communications objectives** 2. Deciding on the role of each component to be used in the **communications** **mix** 3. Determining the **communication budget** 4. Selecting **specific strategies** for each component of the communication mix **[6. Communication Objectives ]**  1. **Awareness**: Ensuring **potential costumers** are familiar with a product or brand using broad-reach tools like **advertising** and PR 2. **Interest**: Capturing the **target audience\`s attention** and encouraging them to learn more through targeted campaigns and landing pages 3. **Desire**: Establishing the product or brand as the **preferred option** during the evaluation stage 4. **Action**: Converting **interest into purchases** via personal selling, trials, and direct marketing **[7. Budgeting for communication ]** [1. Percentage of sales:] Allocating a **fixed percentage** of **past sales revenue** to the communication budget  PROBLEM: sales grow -- budget increases (maybe too much; overestimate your budget); sales decline -- increase your communication activities (reach more costumers) [2. Competitive Parity:] Matching competitors spending levels [3. Affordability:] Spending based on what the organization can afford (all that a company can afford) [4. Objective and Task:] Defining communication objectives and estimating associated costs 7\. Market Communication **[1. Communication Mix]** Ein Bild, das Text, Screenshot, Schrift, Kreis enthält. Automatisch generierte Beschreibung **[2. Key tools and their strategic use]** [1. Website Optimization ] \- A company\`s website servers as a critical first impression, supporting credibility and decision-making \- Enhancements include clear organizational identity, easy navigation, frequent updates, and showcasing expertise [2. SEO (**Search Engine Optimization**) and SEM (**Search Engine Marketing**)] \- SEO focuses on **organic traffic by optimizing keywords**, user experience, and page rankings \- SEM leverages **paid ads** to target motivated buyers, offering precise timing and audience targeting [3. Content Marketing] \- Formats: Blogs, podcast, webcast, and white papers \- Purpose: Share expertise, build trust, and engage audiences with valuable, up-to-date information [4. Public Relations (PR)] \- Activities: Press release, events, and seminars to align customer perception with brand identity \- Example: Using PR to enhance reputation or launch new initiatives [5. Sponsorships] \- Effective for emotional resonance and brand visibility -Example: DHL\`s global sponsorships demonstrating logistical expertise **[3. Advertising and Sales Promotion]** [1. Advertising] - Objectives include **creating awareness**, **positioning** the brand, and supporting personal selling efforts - Media selection: TV (high reach but costly), radio, newspapers, magazines, and digital platforms [2. Sales Promotion] - Tools: Incentives for sales teams and promotional pricing for intermediaries to boost short-term sales - Challenges: Balancing short-term targets with long-term relationship building **[4. Trade Shows ]** [1. Significance ] \- **Crucial** for B2B communication, with 20% of marketing budgets often allocated to them \- Function: Networking, generating leads, gathering market intelligence, and showcasing products [2. Planning and Execution] \- Pre-show: **Promotions** and invitations to attract visitors \- During the show: **Stand design,** staff behaviour, and product displays to maximize engagement \- Post-show: Follow-ups and evaluations to measure success 8\. Relationship Communication **[1. Relationship Communication Overview ]** \- Emphasizes **interactive communication** methods (e.g., direct marketing and personal selling) over impersonal tools \- Focuses on acquiring, retaining, and developing customer relationships **[2. Direct marketing ]** **a) Key Features** \- Direct, one-to-one interactions using online and offline channels \- Activities include customer information analysis, strategy formation, and engagement **b) Tools:** [1. Social Media: ] \- Used for brand development and customer interaction (e.g., LinkedIn, Facebook, Twitter) \- Must ensure integration, consistency, control, and conversational tone [2. Direct Mail: ] \- Personalized, timely campaigns, often triggered by customer behaviour, enhanced by AI [3. Telemarketing: ] \- Used for account management, field support, and lead qualification \- Increasing reliance on virtual agents for customer interaction **[3. Personal Selling]** **a) Key Aspects:** \- **Direct interaction** between supplier representatives and customer managers \- Enables **tailored solutions**, information exchange, and relationship development **b) Types of Sale Roles:** [1. **Missionary** Salespeople: ] \- Focus on influencing **decision-makers** rather than direct sales [2. **Frontline** Salespeople ] \- Secure orders and **renegotiate contracts** with existing/new customers [3. **Internal** Salespeople ] **[4. Relationship Communication Process ]** **1. Phases:** [a) Lead Generation and Qualification: ] \- **Identifying potential customers** through digital tools and **CRM** systems [b) Selling: ] *-Low-priority prospects:* **Transactional** approach *- High-priority prospects:* **Consultative** selling for complex, high risk-needs [c) Order Fulfilment:] \- Focus on effective product delivery and minimizing discrepancies d\) [Relationship Building:] \- Ongoing tasks include managing contracts, acting on feedback, expanding business, and resolving issues **[5. Key Insights ]** \- Communication is pivotal in understanding customer needs and tailoring interactions \- Integrating traditional and digital tools strengthens customer engagement \- Personal selling remains crucial for high-value and complex purchases 9\. Digital Marketing and Digitalization for B2B Companies **[1. Digital Marketing in B2B ]** [- Definition:] Marketing products and services through digital platforms [- Key Platforms:] Social media platforms like LinkedIn and Twitter are essential for distributing content [- Challenges:] Include integrating digital tools effectively, maintaining brand consistency, and ensuring data security **[2. Coopetition ]** - Concept: **Simultaneous** cooperation and competition between B2B partners - Role of Digitalization: \- Enables **virtual collaboration**, reducing dependency on physical co-location \- Minimizes sunk costs and interdependencies associated with geographic clustering **[3. Value Co-Creation]** - [Definition:] Collaboration between suppliers and costumers to create superior value - [Digital Enablers: ] **[4. B2B Branding]** - [Digital Shift ] **[5. Servitization]** - [Definition:] Transition from product-focused to **service-oriented** offerings - [Digitalization\`s Role:] **[6. Innovation Networks]** - [Description:] Loosely connected firms collaborating on R&D and commercialization - [Impact of Digitalization:] **[7. Relationship Dynamics ]** - [Transformation through Digitalization:] - [Challenges:] Over-reliance on digital tools may reduce personal interaction and affect relationship quality **[8. Power and Trust in Digitalization ]** - [Data\`s Role: ] - [Ethical Considerations:] Balancing data use with maintaining interorganizational trust