B2B Marketing PDF

The Marketing B2B : Marketing inter enterprise A - the buyers are not buying in their own wallets, B-B exchange represent almost ⅔ (60%) of the total exchanges of all the EU Some products seem to reach from B To C because its future transformation is very complex for example : - - - Cett...

The Marketing B2B : Marketing inter enterprise A - the buyers are not buying in their own wallets, B-B exchange represent almost ⅔ (60%) of the total exchanges of all the EU Some products seem to reach from B To C because its future transformation is very complex for example : - - - Cette différenciation atteint vite ses limites : l'eau le sable le bois de chauffage par exemple de plus des besoins couvrent ceux des entreprises et des particuliers En BtoC l'échelle est considérablement réduite par rapport au BTB ALSTOM : sociétés de transport ferroviaire mme SNCF... Dassault aviation : armée de l'air comme les avions de chasses En BTB une entreprise peut avoir quelques dizaines de clients mais ils ont en général des problématiques très variées ce qui sollicite des... DÉFINITION : sous ensemble homogène d'individus classé selon le sexe C - when u come from the mining store (cooper) to key jsp network , commerce , retail , value, product, success BTB : - - - - - - - - - - Upstream and downstream = amont aval Supply chain = chaîne d'approvisionnement General contractor = grossiste,a wholesaler copper or : cuivre wire = cable VOIR THE WIRE TV SHOW Definition and Importance of B2B Marketing **C - The Concept of the Supply Chain** METSO = Provides a mineral processing system ( grinding, separation, etc..) to Bechtel Inc, a general contractor. It\'s useless rip If you want to analyze a btb market, you need a mind map to understand who is upstream and who is downstream. The concept of the supply chain is linked with the entirety of actors, processes and relationships involved in the production transformation and distribution of a product or service with a specific industry. Understanding the supply chain is essential as it allows companies to identify their rules within the large ecosystem, the needs of **upstream suppliers and downstream customers** and the interdependencies that shape (considérer la forme) market dynamics. **D - The Influence of Downstream on Upstream (Derived Demand)** Any changes entering upstream and downstream is very important. In order to anticipate quantitative and qualitative changes in demand, upstream actors must interpret the signal provided by downstream actors. In this graph we can see that the GDP change very slowly compared to the other curves that mean that the (overalls) wea richesse globale product by the If there\'s an increase in the of production, more machine will work Si la chaîne de valeur amorti les What the graph shows is changes in demand for career machines popper faster and more indedictible compared to aggregate production of all the overall economy. Even if the economy changes slowly, the demand for certain equipment requires companies to pay close attention to changes or variations. **E - The Influence of Upstream on Downstream** Arcelormittal (entreprise de production de fer) essaye d'influencer les clients de Renault afin de pousser les clients à demander de nouveaux produits : plus de demande donc un meilleur rendement 2 forms : - In both cases the company uses knowledge of downstream actors to influence its relationship for direct actions. L\' entreprise qui produit du cuivre va faire de la pub chez Castorama pour valoriser sa marque. A pull strategy = pulling downstream demands **3 - Obstacles to the downstream influence strategy part 1** Exercice : Farmer = Barilla = Harrys = Moelleux et responsable = Boulanger = customers Producteur de blé 650 = contrats plus intéressants s'ils se mettent à des pratiques écolo 3 levels = or ( frein à la rentabilité) argent bronze 100% des achats de blés sont sous filiere responsable boulanger elimine des pratiques inutiles Prime a partager entre les maillons de la filiere **3 - Obstacles to the downstream influence strategy part 2** Commoditization barriers limits on access to downstream actors Commoditization barrier : barrière de banalisation There is a possible downstream marketing (marketing aval) Longest is the chain, a lower will be the influence between up/downstream (et inversement) Because of 2 reasons : - - More a product is common, more the influence is difficult Its why nutella have the whole supply chain Commoditization barrier Common product = wheat GRAU trigo blé Exercice : Farmer / Wheat Harvest \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-----\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- Producer (Barilla) / Industrial assembler=\>Flour \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-----\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- Producer (Harry\'s) / Production of bread "Moelleux et responsable" Logistic Bakery / Distribution of bread products Customers Purchasing decisions and segmentation in B2B A - The importance of purchases for the company B- Purchasing decision processes in companies are collective C- The interests of the company and the individual in corporate purchasing decisions D- B2B Market segmentation The Importance of Purchasing for the Company The purchasing policy allows the company to : - - - B2B buyers follow organized procedures to select suppliers, purchase, and play. They must be able to justify the economic, operational and technical logic behind their choices. B- Purchasing decision processes in companies are collective **Users** : Les utilisateurs **Advisors** : These are individuals and work outside or inside of the company, we can influence the final decisions or their opinions. They are often hard to identify but they can have a significant impact **Specifiers** : They impose their choices like an architect chooses his specific materials. (or it can be the companies engineering selecting a component for integrate into a part ) **Filters** : Individuals who by the virtue of their position are in an attempt to assert power try to indevine between suppliers or users/ customers. Examples ; you can have the quality department purchasing financial department Decision Makers : They are to kind of decision maker does involved to the purchase decision such as deciding on an investissment in a new production line. Buyers : surprisingly often the purchasing department is not always the decision maker, they often execute decisions made elsewhere (ailleur).............decision they well have..... they manage olders and new roles to avoid stock shortages However in many companies, buyers are not always administrative purchase agencies The webster and wes highlights the idea that each stages of the purchasing decision process is influenced by different actors each with their own interest priorities BTB purchasing decisions are therefore complex and require understanding of the dynamics of power and influence with the company. This company is not formally represented on an organizational chart (organigramme). But it consists of people playing a key role at each phase of the decision-making process. This allows a better alignment of the sales strategy and the ability to gather the needs of the different stakeholders which are involved **Evolution of B2B relations**.........this is based on a long term collaboration with the high degree of (trust)confidence and interaction.........bottom, transactional where the relationship is easier you may right lighter, focused on the transactions without aiming to build a lasting relationship (relation durable) that was the relation there is simple purchase referring to products or services that are easy to buy often standardized without needing customization or close collaborations baby On the right there is complex purchase where purchases are more complicated and require deeper exchanges and closer cooperations for example customize products or space products. Simple purchase and transactional relationship, this is a standardized purchase with little long term relationship between the buyers and the sellers. Price and availability are often the main priority even though the purchase is complex, the relationship between the two actors remains limited to the transactions there may be more technical exchanges but the relationship is not necessarily built on long term trust. **Complex purchase with a relational relationship** In this case the purchase is complex and the relationship between the two is also stronger. The companies work closely together to meet specific needs through a long term trust based relationship. Finally simple purchase with the relationship even though even if the purchase is simple between two parts they maintained a relational relationship. This can happen when a company frequently buys standardized products but values a long term relationship with its suppliers. This diagram shows that purchasing can be simple or complex but also the relationship between the buyers and the sellers can either be purely transactional or based on a deeper trust-based relationship. **Reasons for purchased or desired benefits** The criteria on which a B2B purchase is based are always much more numerous and often more sophisticated than in B2C. The individual consumer typically seeks to simplify their life and avoid major mistakes, whereas the B2B manager must optimize the purchases for which they are responsible. The seller\'s effort should therefore focus on understanding and defining the specific needs of their prospects. These needs can vary significantly from one client to another, which will result in a \"tailor-made\" approach or an adaptation of the offer to the client. **C- The Company's Interest and the Individual\'s Interest in Corporate Purchasing Decisions** **A - Power Struggles Within the Company** Sometimes, decisions are not made in the best interest of the company and are instead driven primarily by the selfishness of decision-makers or internal dysfunctions. If the buyers. If the professional buyers don't have the company\'s interest fully in mind during the purchasing decision they stop being rational and start to be irrational. The managers refuse to follow the recommendations of the head office\'s purchases department. **B - Pressure from Shareholders and the Stock Market** Pressure from shareholders and the stop market. This leads to advantage using necessary when the price of materials are low even though these industries are cyclical by nature, Investments ? have several **C - Judgment Errors and Other Flaws from Which Companies are Not Exempt** For instance, the Swedish CEO of after a solid presentation one of Italian executives decided to hire a major american consulting firm for a study. **D - The influence of Supplier Reputation** For some decision makers, choosing a prestigious supplier is a way to avoid risking their careers. In the US, it was often said " nobody ever got fired for choosing IBM". This was a testament to......... but did it always lead to the best choices. **E - Emotion in Products** Industrial design improves the industrial design who proves the ergonomics, performance of product and also communicates the promise. **F - Decision-Makers \"Pet Projects\"** Decision-Makers \"Pet Projects\" to sell, to a small company the distributor agreed to paint a machine bright red because the company's owner was a Ferrari fan. also be found in highly structured companies with strict control over the purchase decisions Even the CEO of the largest corporation can have their pet project as evidence... **G - Hidden Distortions** Hidden Distortions mean corruption, it's a common issue in............Many companies prohibits their company to receive gifts from suppliers about a certain value Some markets are only accessible by paying commissions that are describe like hidden They may be in some cases accepted by companies. The principles of segmentation are similar in both B2B and B2C, but the methods, criteria, and practices differ. **What is segmentation** The more heterogeneous the markets, the more segmentation is justified. B2B markets are much more heterogeneous than B2C markets. Therefore, segmentation is fundamentally essential in B2B, but its practice, and especially the segmentation criteria, are different. 3 different approaches to segmentation 1. a few clients but with a big economicals stake 2. in this case segmentation begins by industry sector then within each sector key account are isolated to be treated in a completely individualized manner while the other clients and prospects are further sub segmented 3. In some cases, segmentation is primary used for analyzing the potential market in order to guide prospecting and to adapt the offer the B2C criteria (age, csp, revenu..) are not the same in B2B 1 - B2C segmentation criteria cannot be directly applied in B2B. 2 - Economic criteria (industry, business potential, size, etc.) are much more significant in B2B than in B2C. The revenue a company can generate in B2C may vary by a factor of 1 to 3 between its largest and smallest clients. This difference is minor compared to the gap between a large corporation (like Saint-Gobain) and a small business with 5 employees in B2B. 3 - Desired benefits Reasons for purchase or client benefits are crucial in B2B segmentation. The main benefits sought by each customer category are listed, and then weighted according to their importance for each type of client. 4 - Behavioral Segmentation and Segmentation Based on Usage Situation This includes factors such as purchase frequency, loyalty level, or usage conditions. 5 - Customer Relationship : Nature and Intensity You can also segment your market by distinguishing between transactional clients and relational clients, who seek a long-term trust-based relationship. The cost of the transactional customer cost more money, so they could be better customers 6 - Personality and Lifestyle Criteria Used in B2C Cannot Be Applied as Is in B2B However, these criteria can be somewhat transposed to concepts like corporate culture, management styles, decision-making processes, and market, country, or regional-specific cultures. **Main Categories of Segmentation Criteria in B2B** 1. \- Industry sector \- Size and potential of revenue and profitability per client \- "Transactional\" and \"relational\" clients \- Reference clients 2. \- Location: distance, impact on costs and service\... \- Familiarity with the cultural (languages), human, political, administrative, and technical environment of potential clients \- Barriers to entry: regulations (such as standards), competition\... \- The buyer\'s sensitivity to the seller\'s brand \- The relationship that can be built 3. \- The strategic importance of the product or service in the client\'s value chain. \- The alignment between the benefits sought by buyers and the characteristics of the seller\'s standard offering: performance, quality/reliability, price, safety, associated services\... \- Characteristics related to the usage context. \- The level of customization (products, services, payment methods\...) desired by the buyer. \- The nature of the benefits sought based on the buyer\'s status: technological level, types of equipment. 4. \- Management styles: centralized/decentralized. \- The purchasing decision process. Segmentation of the decision-making sphere: decision-makers, influencers, filters. \- The values of the companies and their leaders. 1/ Economic and Strategic Interest Criteria for Potential and Current Customers - - - - - 2\. Critères d'Accessibilité pour les Clients Potentiels - - - - - 3\. Critères des Bénéfices Souhaités par les Acheteurs - - - - - 4\. Critères Liés aux Systèmes de Gestion et à la Culture des Clients - - - Exemples : - - - 1. - For example, a restaurant or hotel would be a typical customer for Metro. - - 2\. Accessibility criteria for potential customers - - - - - 3\. Buyer\'s Desired Benefit Criteria - - - - - 4\. Criteria related to Management Systems and Customer Culture - - - Examples: - - - - 2\. For the Accessibility criteria for potential customers Metro favors customers near its warehouses, adapting to local needs and regulations. Its strong brand attracts businesses seeking reliability, with some aiming for long-term partnerships while others prefer one-time transactions. Metro privilégie les clients situés à proximité de ses entrepôts et s\'adapte aux besoins et aux réglementations locales. Sa marque forte attire les entreprises en quête de fiabilité, certaines visant des partenariats à long terme tandis que d\'autres préfèrent les transactions ponctuelles. 3\. Buyer\'s Desired Benefit Criteria Luxury shoppers are looking for high-end products and personalized services, while retailers favor competitive pricing and bulk purchases. Metro meets these needs with a wide range of quality products, suitable for restaurants and hotels, offering reliability and attractive prices for different customer segments. the marketing Mix of B2B Companies : A. Product policy in B2B B. Pricing Policy in B2B C. Communication policy in B2B D. Distribution policy in B2B The Marketing Mix of B2B Companies A. 1 - Products are very often accompanied by services. 2 - Goods are manufactured, services are provided, but solutions are sold. 3 - Helping to define the need is often an essential part of the offer. collaboration with the buyer. 4 - B2B goods are produced in factories, but the B2B offer is often shaped in the field, in 5 - The offer creates value for the client and sometimes for the client\'s customer. The Marketing Mix of B2B Companies B - Pricing Policy in B2B 1 - The significance of price for the buyer 2 - The challenges of defining a pricing policy 3 - The main pricing methods - - - 4 - Payment terms 45 days at the end of the month or 60 days from the invoice date 5 - Warranties and additional services several warranties may be required Manufacturings defect garanties The buyer often demands free extansions of the jsp ecrivez bande de pd the seller can propose a paid option for the warranty option Delivery time guarantee with a possibility late pend on assure un delai de livraison Areva build a epr plant at the olkiluoto sit in finland the initial cost of the project was 3 billions euros has been tripled orano are shifting responsibilities and demand billion of euros for as much as possible the seller try to cap penalties The Marketing Mix of B2B Companies C - Communication (Promotion) Policy in B2B 1 - Adapting communication policies to B2B challenges a\. B2B communication is often less spectacular than B2C communication but more interpersonal b\. Not all communication efforts are budgeted and aggregated, which often leads to underestimating their actual importance c\. Information rather than persuasion d\. Types of contacts with highly variable costs depending on the degree of personalization in the communication \*\*Communication (Promotion) Policy for Metro in B2B\*\* 1\. \*\*Adapting Communication to B2B Challenges\*\* a\. \*\*Less Spectacular, More Interpersonal\*\*: Unlike B2C, Metro's B2B communication is focused on building close, interpersonal relationships with clients rather than using eye-catching ads. This approach increases trust and long-term loyalty with business customers, such as restaurants, hotels, and retailers. b\. For the second step, "Underestimated Importance" : Many of Metro\'s communication efforts with clients aren't always fully accounted for in the marketing budget, which can lead to underestimating their actual value. This includes smaller interactions, such as check-ins and personalized service, that play a crucial role in nurturing client relationships. c\. \*\*Information-Centric\*\*: Metro prioritizes delivering clear, detailed information rather than persuasive messaging. The goal is to inform clients about product offerings, services, and benefits that directly meet their business needs, helping them make informed purchasing decisionsto And Finally, for the Variable Contact Costs : The cost of Metro\'s communication varies depending on the level of personalization. A highly customized meeting with a large hotel chain requires more resources than general communications but aligns with Metro's goal of building tailored, meaningful connections with key clients. BtoB Marketing : direct marketing and corporate edition CES Trade fairs Specialized press Join venture = entreprise en partenariat avec les distributeurs locaux, geographucal coverage reaching a fragmented clientele or peripheral segments qui ne sont pas drja servis par les reseaux traditionnels le besoind de compléter une offre tangible par un offre qui peut être delivree sur le terrain a proximité des usagers par un reseau de bons distributeurs pourquoi cest mieux un canal long qu'un canal court Distribution options are always nombreuses,fully integrated or non integrated distributions subsidiaries multilines agents exclusives distributors However integrated often happens salefalls lead to opposit results the such of performances and maximisation of bonuses is a powerful motivator for good sells people direct = mieuc controller la force de vente et mieux motiver les vendeurs fully benefits by the market by recovering distributions margin in a case of a market dfdfef the company has to handle all the costs of the direct chanel and the associated expenses allowing great transparency allow to success because the info from the market directly company is able to optimize marketing strategy as well as the supply chain a distributor snide and sells them to various type of clients the missions of a distributor are generally the same to does subsidiary it mist fully contribute to value creatio particularly by handling logistic inventory in commercial activities aswell isddnakfajkvn mblfhkladvjñgvkhadjlgvkhoifvjoñdbif YEYE UNDERSTAND UEBUBFUFB MANAGE CORRECTLY THE DISTRIBUTOR CAN SURVIVE A DIFFICLT MARKET THANKS TO THE DIVERSITY OF THE PRODUCTS SOLD share olders sustainability CHINA AND FIVE B FRACNCHISING MISSIN MORE ATTACTIBE BCS IT COMBINES IDONOW KCNDNCECNEICNEIFNE DIRECT CHANNEL