Business Vs Consumer Market

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

1. z

2. Introduction

3. B 2 C B 2 G B 2 B F 2 B F 2 C B 2 E C 2 C G 2 C 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 Business Marketing Definition B2B Marketing Mix B2B Marketing Communications Size of Business Marketing Business Vs Consumer Market

11. Business Marketing Definition 1

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. C ommerce 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 I ndividuals , 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 O ld 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 M ore 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) Product Price Place Promotion

22. Solution Product Access Place Value Price Education Promotion 4 P’s of marketing (Marketing Mix) Business Marketing

23. Companies that consume products or services, Government agencies, Institutions 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 G overnment A gencies

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 A lign 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 Marketing 4

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” Technological - unprecedented pace, Internet ; hand-in-hand with business strategy Entrepreneurial - adaptability, flexibility, speed, aggressiveness and innovativeness 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 Involve ment’ 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 Business Marketing Definition B2B Marketing Mix B2B Marketing Communications Size of Business Marketing Business Vs Consumer Market

54. Thank You