B2B-1Unit II (1) study for mba and psgm student.pptx

Unit II (1) study for mba and psgm student

1. B2B Marketing PGM 33 Term III Dr. Sunita Chowdhury

2. Course Structure Unit I: Introduction to B2B Marketing Unit II: Organizational Buying and Buyer Behavior Unit III: B2B Marketing Strategy Unit IV: Pricing and Distribution Strategies Unit V: Sustainability, Sales, and Emerging Trends

3. Unit I - Introduction to B2B Marketing Overview of B2B Marketing Definition: Marketing products or services to other businesses or organizations rather than individual consumers. Purpose: Build long-term relationships, provide value, and meet the specific needs of businesses. Example: Intel: Markets processors to computer manufacturers like Dell and HP. Honeywell: Supplies automation systems to industries like oil, gas, and aerospace.

4. B2B vs. B2C Marketing Aspect B2B Marketing B2C Marketing Target Audience Businesses and organizations Individual consumers Buying Process Rational, long, multi-step Emotional, shorter, simpler Focus Relationship building, ROI-driven Branding, Emotional Appeal Example: Salesforce (B2B): Markets CRM software to businesses to improve customer relationship management. Nike (B2C): Focuses on emotional branding for individual consumers.

5. Nature of B2B Products and Markets Products are often customized and have longer sales cycles. Requires high-level expertise and value-driven solutions. Smaller customer base but higher transaction value. Example: GE Aviation: Sells jet engines to airline companies and provides customized maintenance solutions.

6. Types of B2B Customers Commercial Customers: Businesses purchasing goods for production or resale (e.g., Ford buying steel). Institutional Customers: Schools, hospitals, NGOs requiring bulk services or goods (e.g., Cisco providing networking solutions to universities). Government Customers: Public sector organizations (e.g., Boeing supplying aircraft to the U.S. government).

7. Strategic Focus of B2B Operations Building long-term relationships and trust. Aligning operations with customer-specific goals. Adopting account management to focus on key clients. Example: Amazon Web Services (AWS): Focuses on strategic partnerships with companies like Netflix for cloud solutions and ensures scalability for their operations.

8. Key Elements of Account Management Personalized services and communication. Tracking and managing customer lifecycles. Resolving complex issues with tailored solutions. Example: Microsoft Azure: Offers account managers who work closely with enterprise clients to deploy and optimize cloud infrastructure.

9. Buying, Procurement, and Supply Chain Orientation Definition and Importance Example: Procter & Gamble's strategic partnerships with suppliers to ensure cost efficiency and product quality. Supply chain integration for operational excellence (e.g., Toyota’s Just-in-Time inventory system). Key Characteristics of B2B Buying Multi-level decision-making process ( Example: Boeing’s procurement of specialized components requiring input from engineering, finance, and operations teams). Long-term focus and relationship management ( Example: IBM's supplier engagement programs).

10. Procurement Strategies Example: Unilever’s centralized procurement strategy, enabling cost savings across global operations. Strategic sourcing for vendor selection ( Example: General Motors’ rigorous supplier vetting process). Supply Chain Orientation Example: Amazon’s supply chain agility through real-time data tracking and automation. Collaborative demand forecasting with partners ( Example: Coca-Cola’s supply chain synchronization with bottling partners).

11. Value Analysis and Strategic Focus in Account Management Value Analysis Example: GE Healthcare’s cost-benefit approach to customizing medical equipment for hospital clients. Lifecycle costing techniques used by Siemens for evaluating long-term value in industrial machinery.

12. Strategic Account Management (SAM) Example: Salesforce’s tailored CRM solutions for enterprise clients, addressing unique industry challenges. Building trust through collaborative projects ( Example: Accenture’s co-innovation initiatives with key clients).

13. Drivers of Strategic Focus Example: DHL prioritizing high-value logistics clients with premium services and advanced tracking. Data-driven insights enabling personalized strategies ( Example: Microsoft leveraging client usage data to optimize Azure offerings).

14. Examples and Best Practices Proactive communication ( Example: Cisco’s regular feedback loops with enterprise clients to refine networking solutions). Case Study: Apple’s long-term supplier relationships, ensuring component quality and delivery reliability. Co-creation of value ( Example: BASF’s joint R&D projects with automotive manufacturers to develop sustainable materials).

15. Case Study: Apple’s Long-Term Supplier Relationships Background Apple Inc., a global leader in technology, is renowned for its high-quality, innovative products. A critical factor behind Apple's success is its meticulously managed supplier relationships, which ensure the seamless production of components that meet exacting standards. Key Practices in Supplier Relationship Management Strategic Supplier Selection Apple partners with a small number of high-quality suppliers. Example: Foxconn and TSMC (Taiwan Semiconductor Manufacturing Company) are long-term partners providing assembly and chip manufacturing services. Quality and Reliability Assurance Apple enforces strict quality control standards. Example: Regular audits and on-site inspections ensure suppliers meet product specifications and production timelines.

16. Long-Term Contracts and Collaboration Apple offers multi-year contracts to build supplier loyalty and stability. Example: Pre-purchasing key components like microchips to secure priority supply in high-demand periods. Innovation Through Collaboration Apple works closely with suppliers to co-develop innovative solutions. Example: Collaborating with Corning to develop the durable and scratch-resistant Gorilla Glass for iPhones. Risk Mitigation and Diversification Apple diversifies its supply chain to minimize disruptions. Example: Shifting some production from China to countries like India and Vietnam to manage geopolitical risks.

17. Outcomes and Benefits Component Quality: Superior product reliability and performance due to stringent quality standards. Supply Chain Stability: Reliable delivery schedules enabling consistent product launches. Cost Efficiency: Economies of scale through long-term supplier partnerships. Innovation Edge: Cutting-edge technology advancements through collaborative R&D.

18. Lessons for Other Businesses Prioritize Supplier Relationships: Invest in trust and collaboration for mutual benefits. Maintain High Standards: Enforce strict quality control for consistent output. Adapt to Risks: Diversify supply chains to manage global uncertainties. By leveraging its supplier relationships, Apple has not only ensured component quality and delivery reliability but also fortified its position as a market leader in technology.