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, and mor...

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 (Bild Makro Mikro S. 8) 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 emploiyes) \- 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 a. *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) a. *General purchasing policies:* will determine the practise of the company when purchasing from supplier; affects the sort of pricing and bidding methods b. *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 8\. Situational factors  supplier sells something that is significant for the buyer urgency (fast fashion high urgency; slow fashion  low urgency); they have the ease to search for suppliers \- the SUE approach: **Significance** for the customers business; **Urgency** in terms of the requirement; and **Ease** with which the search and purchase process can be executed Purchases with high SUE  more analytical Purchases with low SUE  more emotional 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 (Bild STP Marketing Model S. 25) (Bild Targeting S. 27) \- 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 (Bild S.3) 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 (Bild S.12) 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 adaptiation for niche costumers (Bild S18) 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 (Bild break even S. 8) \- 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) (Bilder S. 11) 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: *- Visual Identity:* Logos, colours, and designs used consistently across platforms *- Brand Purpose:* The organization\`s core values and missions *- Brand Personality:* Human traits associated with the brand (e.g., creativity, collaboration) *- Brand Relationship:* trust and consistency in interactions with stakeholders *- Brand Communication*: e.g. communicate through events (Christmas events; Meetings) *- Brand experience:* provides a means through which costumer memories can be strengthened (**cognitive response:** costumer gets to know and recognises the company; **affective response:** costumer develops positive feelings for our brand; **behavioural response:** costumer buys the product -- contact company -- comes to events) *- Brand Communities:* Groups that share positive beliefs about the brand, fostering interaction and loyalty 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 (Bild S.12) 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 (Bild S. 17) 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 (Bild S. 3) 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 \- Ensure order accuracy and contract fulfilment but do not focus on securing new business 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 a. 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: \- Technologies like to IoT and blockchain streamline processes and enhance collaboration \- E-commerce platforms (e.g., Amazon, Alibaba) foster global, data-driven partnership 4\. B2B Branding - Digital Shift \- Brand build legitimacy and trust while influencing perceptions and actions \- Social media facilities co-created branding through interactive costumer engagement \- Storytelling by customers replaces traditional marketing messages 5\. Servitization - *Definition:* Transition from product-focused to service-oriented offerings - Digitalization\`s Role: \- Enables digital servitization, offering services tied to physical products \- Challenges: Low cost of digital services may reduce perceived value and cannibalize traditional products 6\. Innovation Networks - *Description:* Loosely connected firms collaborating on R&D and commercialization - Impact of Digitalization: \- Lowers communication costs, enhances connectivity, and increases knowledge sharing \- Expands innovation capabilities across industries and geographies 7\. Relationship Dynamics - Transformation through Digitalization: \- Enables hybrid models blending traditional and digital sales channels \- Reduces transaction costs and enhances supply chain connectivity - *Challenges:* Over-reliance on digital tools may reduce personal interaction and affect relationship quality 8\. Power and Trust in Digitalization - Data\`s Role: \- Access to big data enhances competitive advantage but may compromise trust \- Blockchain enables secure, trust-free transactions - *Ethical Considerations:* Balancing data use with maintaining interorganizational trust