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B2B Marketing 
Sunil Chandra Saha 
sunilchandrasaha@gmail.com 
Lecturer- IMT Ghaziabad CDL 
Work ex: 
Bharti Airtel, Aditya Birla MFL, Bestseller India, Network 18, 
Healthcare Start Up- Spinalogy Clinic
B2B Marketing 
• What is B2B Marketing 
• Business Vs Consumer Marketing (B2B Vs B2C) 
• NATURE of B2B Demands and B2B Promotions 
• B2B Markets and Environment 
– Types of Business Customers & Industrial Products 
– Environmental Analysis 
• Organizational Buying and Behaviour 
– Purchase , Buying Process and Buying Situations 
– BuyGrid Framework 
– Multiple Buying Influence and Buying Behavior Models 
• Case Study
B2B Marketing Vs B2C Marketing 
• Complex and High Risk 
• Less in No. and Bigger Size 
of Purchase 
• Limited 
• Lead Generation and 
Relationship Management 
• Improve Cust. acquisition 
by Converting prospective 
interactions 
• Increase Volume, Higher 
Lead Quality and Faster 
Sales Cycle 
• Simple and Low Risk 
• Huge in No. and Small Size of 
Purchase 
• Spread across 
• Brand Building 
• Marketing Programs to improve 
campaign engagement and 
communicate to larger market 
effectively 
• Higher Frequency of purchase 
and increased brand recall 
Decision 
Making Process 
No. Of 
Consumers/Size 
of Purchase 
Geographical 
Area 
FOCUS 
METHOD 
GOAL
B2b B2c e- Promotion Focus Areas
Channels of B2B Business
NATURE and TYPES of DEMAND is B2B 
• Derived Demand 
– Dependent on the Customer’s Product 
– Eg. Textile Industry 
• Fluctuating Demand : Recession: Ship Wrecking Business 
• Stimulating Demand – Eg. Intel ads 
• Joint Demand : Smartphone- Amoled Screen 
• Cross Elasticity Demand : 
• Characteristics of B2B Demand 
– Price Sensitivity is Less 
– Ability to Pass on Cost 
– Dependent on Business Operations Variable
NATURE of PROMOTION is B2B 
• Personal Selling 
• Industry Relations 
• Exhibition and Meets 
• Product Details Sharing is Important
TYPES of B2B MARKETS 
2. B2B RESELLER MARKET 
i. Whole-seller 
- Inventory control and mgmt 
- Quantity & Quality Uniformity 
ii. Retailer 
- Ordering Flexibility 
- Seasonal Demand 
1. B2B PRODUCT MARKET 
i. Manufacturer (Product) 
- Criteria: Quality & Dependability 
- Eg. AIRBUS 
ii. Service Provider 
- Timely Service 
- Unique Quality 
- Eg. Audit Services, Corporate 
Training , HR Recruitment Firms 
3. GOVT. ORGANISATIONS 
- Key is to maintain relations 
- Lowest Bid 
- And Adherence to Rules
B2B Types Of 
Customers
B2B BUYING SITUATIONS 
• Straight Re-Buy 
– Reorder 
– Role of Sales Person is Minimum 
• Modified Re-Buy 
– Change of Order New Product and Qty 
– Higher Role of PR and Sales person and CRM 
Process 
• New Buy 
– Huge role of Sales Person
Understanding B2B Buying 
BuyGrid Framework
Multiple Buying Influence
Buying Decision
Industry Environment
CASE STUDY : Amazon.com And India 
Amazon.com the global giant and 475 billion dollar Revenue co. is all set to fight to 
the top spot in India. The world's largest online retailer is also expanding the 
range of products that will be delivered to customers within a day, displaying 
the trademark aggression that marks its global operations nearly 10 months 
after launching services in India in 2012. 
The company already has a roster of 4,000 sellers in the Online Marketplace model 
which has been operating in US and many other markets. These moves, coming 
days after the company launched a high-voltage advertisement campaign 
including television spots during the last edition of the IPL-2013, was aimed at 
getting the largest number of merchants and the widest variety of products for 
Amazon customers. 
Market leader Flipkart, which just reached the milestone of $1 billion (over Rs 6,000 
crore) in sales, also has about 4,000 sellers on its marketplace. But it follows an 
invite-only model to sign on sellers which is more time-consuming. India is 
about to have 16.5 cr internet users by 2014. And marketsize is about $3.5 
billion (INR 18000 Cr) which is growing at an extreme pace. 
Industry estimates Amazon India's sales at over $200 million (Rs 1,200 crore).At 
current growth rates, Amazon is capable of clocking sales of $1 billion (Rs 6,000 
crore) by the end of March 2016. Amazon has come up with $2 Billion 
Investment in India in its operations. Its currently operating through 2 huge 
warehouses.
The company's latest delivery service, 'easy ship', will allow sellers to ask for a product 
to be picked up and shipped by Amazon. It will also provide cash-on-delivery for 
these sellers' orders, an option so far available only to those who stocked products 
with Amazon. The service, which has 400 sellers already registered, will be 
available in 30 cities to start with. 
Merchants too are happy with their experience on the site. "Margin cut at Amazon is 
about 6-7%, compared with 10-12% at Flipkart" 
While these indicate that Amazon is chipping away at the fortress that Flipkart has 
built, overtaking the market leader will take some doing. 
Flipkart has the people and has built processes and technology. They are fighting back 
powerfully. Flipkart has taken over a few smaller player as like Snapdeal. To 
improve the operations and range Amazon bought, a major fashion e retailer 
Jabong.com for a reported INR 1800 Cr to counter Flipkart-Myntra JV.
Questions 
• Analyse the b2b strategies of Flipkart and Amazon and 
recommend Flipkart that what more than they do? 
• What is your recommendation for Amazon for their $ 2 
billion investment
B2b Strategy 
AMAZON.in 
• Marketplace operational 
experience 
• More Sellers> More 
Products range and 
options> Products sale 
• Lesser Margin Charged 
from Merchants 
• State of Art Ware houses 
across Globe which has 
efficient system of 
merchant communication 
FLIPKART.com 
• Seller selection only by 
invitation 
• Rate of Signing Vendors 
is Lesser 
• Higher Margin 10-12% 
charged 
• Have to deal with 1 day 
delivery which Amazon is 
doing 50% of their 
deliveries
Recommendations for 2 Billion $ 
• More Warehouses 
• Client Engagement tools 
• Knowledge imparting in B2B sellers to stay put 
Platform for relatively lesser knowledge Indian 
merchants
Lecture 2 
• Buyer Seller Relationship Types and Tools and 
Methods to Manage 
– RM/CRM 
– CRM+CLV 
– Customer Service 
• STP in B2B : Vs 
• Industrial Product 
– PLC and Product Strategies- NPD and Branding B2B Product 
– Brand Auditing: BRAND Report Card 
• Marketing of B2B Services 
• Case Study : VOLVO Email Marketing and CRM 
Integration
Buyer Seller Relationship Types
3 Approaches to RM: Berry and Parasuraman 
• Financial RM 
Relationship Management 
– Financial Benefits by Giving Discounts on Volumes 
– Special Pricing 
– But can be copied and cant be a part of Long Term Strategy 
• Social Benefits RM 
– Personalization 
– Including the Customers in Social Circles 
• Structural Ties RM 
– Changes in Structure of Customer Organization to fit the product 
for a longer Term 
• Eg. ABB and Indian Railways 
• Russia and INS Vikrant
CRM 
CRM PROCESS in B2B marketing: 
1. Linking CRM > Customer Database 
2. Selecting Customers 
3. Developing Relations 
4. Implementing Relationship Strategy 
5. Evaluating Relation Objectives and 
Strategies 
B2B
Modes of CRM 
CRM 
360°
SOCIAL CRM: New Age 24x7 CRM 
MACRO 
Auto 
Mated 
MICRO 
Human
Special Dealings Between Buyer and Seller 
1. Reciprocity 
- Buying from Customer Itself 
- Eg. Petroleum Products 
2. Dealing with Customer’s Customers 
- Eg. Rolls Royce Aircraft engine to Singapore Airlines to 
Induce Demand in Boeing and Airbus
Segmentation and Targeting- B2B 
1. 
Data 
•Research on Buying Firms 
•Competition Market 
2. 
Identify 
•Based On Research Data/ Primary findings 
3. 
Select 
•Macro-segmentation/Broad Classification 
•According to Co. Objectives and Resources 
4. 
Evaluat 
e 
• Each Macro-segment is analyzed on 
Attractiveness/ Buying Behavior 
5. 
Segmentat 
ion 
• Meaningful Micro segment 
• Buying Situation/ Purchase 
Criteria 
• Personal Characteristics of DMU 
6. Select 
Target 
• Based On Analysis of 
Microsegment 
• Select the Target Market based 
on Co. Objective Criteria 
7. 
Profiling 
• Profile Target Market 
1. Measurable 2. Substantial 3. Accessible 
4. Differentiable 5. Actionable
Positioning Strategy 
CONTENT AUDIENCE RELEVANCE EVALUATION
STP Example- Tyre Industry 
MRF Vs BRIDGESTONE 
Indian Tyre 
Industry 
Commercial 
Vehicles 
MHCV HCV LCV 
Passenger 
Vehicles 
Cars 
Motorc 
ycles 
Scooters 
Others 
Farm Industrial 
Vehicles 
MHCV : Medium Heavy Commercial Vehicles 
HCV Heavy Commercial Vehicle 
LCV Light Commercial Vehicle 
OTR Off the Road
Bridgestone - Market Specialization 
M1 
(Cars) 
M2 
(Trucks) 
M3 
(2-wheelers) 
P1 Touring Tyres 
P2 Sport Tyres 
P3 Economy 
Tyres 
Bridgestone India has focused on the Passenger Car 
Segment exclusively as it offers only radial tyres. 
30
MRF : Compete Market Coverage 
M1 
(Cars) 
M2 
(Trucks) 
M3 
(2-wheelers) 
P1 Touring Tyres Economy Tyres High Grip Tyres 
P2 Sport Tyres Mileage Tyres Touring Tyres 
P3 Economy Tyres Endurance 
Tyres 
Best Fit Tyres 
MRF holds a diversified portfolio of products spanning 
the entire tyre market.
Positioning 
Communication : Superior Endurance, 
Strength, Sporty & Home-Grown 
Punch line: Tyres with Muscle 
Sponsors Cricket & Rally racing to 
position as high endurance and sporty 
32 
Communication : High Performance, 
Top Quality & International standard. 
Punch line: Passion for Excellence 
This communication is substantiated by 
association to F1 racing
PLC 
Break Even
PLC – Technology Products
Customer Lifetime Value-CLV 
Time>>
New Product Development- Management Process 
Test 
Marketing 
LAUNCH 
DEVELOP
B2B Product Branding Strategy
B2B Branding- Why is the Need to Brand 
B2B 
Branding 
Risk 
Reduction 
Easy Info 
Image 
Creation
B2B Brand Auditing 
Brand 
Audit 
Objective 
of Audit 
Internal 
Description 
Ext. Data: 
Research 
analysis 
Findings 
and Report 
Brand Score Card 
B2B Service Marketing Characteristics
B2B SERVICE MARKETING 
Steel PC Hotels Transport Legal/ IT 
Tangible Intangible 
B2B SERVICE MARKETING: Strategy 
B2B Services Marketing Strategy 
Service Pricing 
Service 
Promotion 
Service 
Distribution
Case Study: VOLVO Construction Equipments 
One of the success stories of B2B marketing is Volvo Heavy Construction Equipments. Volvo 
has a huge range of Construction Equipments. Volvo understood the research reports in 
2008 that Emails will be the most effective tools for marketing of it’s products. And hence 
Volvo designed the whole Branding program focused on emails. It revolutionized the way 
emails were sent to customers and increased the click-through by 21% and saw an increase 
of 9% increased email subscription. 
Volvo opted for very strong SEO of its website and it paid off. With the help of dynamics, 
the revolutionary data analyzing capabilities, It enabled Volvo team to analyse, every visitor 
to the website, and cater to with much more efficiency and affectivity with his own needs. 
Volvo used alongside social media very effectively to engage and communicate back to 
customer. Which is in sync with website. It helps Volvo to attract customers who are looking 
for a specific machine for his own construction business. 
Volvo, focused on lead generation through website. It invites the visitors to fill up the form 
for subscription and Dynamics CRM helps to give the best possible result based on data 
entered by the customer. Quick response, Personalised approach and dedicated CRM gave 
the company much needed push in sales. Volvo is expecting 57% of new business to come 
through the websites in coming years. 
Extending the CRM activities, Volvo managed Email marketing by Pre Sales and Post sales 
startegies. Volvo runs the bi monthly, email campaigns for reselling pre-owned construction 
equipments which is absolutely in sync with customer’s need.
Case Study: VOLVO Cont. 
Volvo also sends and bi monthly remarketing emails to customers who opts for it. This 
email list the products with necessary stats which the customer may look into as 
options! 
These initiatives helps the dealers of Volvo equipments immensely as the company 
single marketing campaigns result in better sale of Equipments. 
Volvo’s email strategy helps to nurture customer’s need effectively. The email contents 
are dynamic in nature and invite customers to click through for more interactive 
functional platform of website with vedio links. The perspective buyer’s decision is 
hugely affected by the kind of content they have provided on website. 
So, by use of effective SEO, great Email Strategy execution in place with specific need 
based wesbite with tremendous navigation tools with social network engament Volvo 
has become market leader in B2B construction equipments.
Question 
IF YOU THE MARKETING MANAGER Of VOLVO Construction 
Equipments: 
• What Email Strategy is used in Volvo to make it success wrt 
to Website Clicks/ Dymanics CRM and Pre and Post Purchase 
• How do you plan to integrate 
– Website and SEO 
– Emails 
– Social Media Engagement
Email Focused Marketing
MOBILE 
Devices 
Focused 
Email 
Marketing
Business to business  b2b marketing  IMT Ghaziabad CDL
WEBSITE- ERP Integration Strategy for CRM 
Sales Rep 
Click 
Browsing 
Time on Page
WEBSITE Strategy for CRM
Lecture 3 
• SCM 
– Framework 
– Components of SCM and Integration 
– Logistics 
– Total Cost Approach of SCM 
– Optimal Order 
• SCM Integration 
• B2B Planning Control Startegy 
• Diversification Strategy in B2B- Vertical Integration 
• Global Market Entry Strategy 
• B2B Pricing Strategy 
• B2B SBU 
• BCG Matrix 
• B2B E commerce: EDI, Process and models 
• Case Study- Jaguar and Landrover TATA Take Over
Supply-Chain Management 
SCM is to coordinate activities between components within the Value 
chain to maximize the competitive advantage, by adding value 
(Cost Advantage- Leadership Advantage) and benefits to the ultimate 
consumer 
Kapoor’s Furniture CHAIN 
60% of sales in supply chain 
Current gross profit = INR 1,00,000 
TARGET : Increase profits to INR1,50,000 (50%) 
CURRENT 
SITUATION 
SUPPLY CHAIN 
STRATEGY 
SALES STRATEGY 
Sales INR 10,00,000 INR10,00,000 INR12,50,000 
Cost of materials INR 6,00,000 (60%) INR 5,50,000 (55%) INR7,50,000 (60%) 
Production costs INR2,00,000 (20%) INR 2,00,000 (20%) INR2,50,000 (20%) 
Fixed costs INR1,00,000 (10%) INR 1,00,000 (10%) INR1,00,000 (8%) 
Profit INR1,00,000 (10%) INR 1,50,000 (15%) INR1,50,000 (12%)
B2B Marketing Strategy Impacts Supply Chain Decisions 
LOW COST 
STRATEGY 
RESPONSE 
STRATEGY 
DIFFERENTIATION STRATEGY 
Primary supplier 
selection criteria 
• Cost • Capacity 
• Speed 
• Flexibility 
• Product development skills 
• Willing to share information 
• Jointly and rapidly develop 
products 
Supply chain 
inventory 
• Minimize 
inventory to 
hold down 
costs 
• Use buffer stocks 
to ensure speedy 
supply 
• Minimize inventory to avoid 
product obsolescence 
Distribution 
network 
• Inexpensive 
transportation 
• Sell through 
discount 
distributors/ret 
ailers 
• Fast 
transportation 
• Provide premium 
customer service 
• Gather and communicate 
market research data 
• Knowledgeable sales staff 
Product design 
characteristics 
• Maximize 
performance 
• Minimize cost 
• Low setup time 
• Rapid production 
ramp-up 
• Modular design to aid 
product differentiation
SCM Components
Business to business  b2b marketing  IMT Ghaziabad CDL
OPTIMAL ORDER: CB analysis 
Time 
(a) Response Time 
Response time 
1 2 3 4 5 
Number of facilities 
INR 
(b) Cost INR 
Lowest cost 
1 2 3 4 5 
Number of facilities 
Total logistics cost 
Facility costs 
Inventory costs 
Transportation costs 
i. Response Time 
ii. Cost 
iii. Profit- Revenue- Cost
OPTIMAL ORDER 
(c) Cost, Revenue, and Profit 
INR 
1 2 3 4 5 
Number of facilities 
Revenue 
Total 
logistics 
cost 
Max 
profit 
i. Response Time 
ii. Cost 
iii. Profit- Revenue- Cost
Customer Service In Supply Chain 
During Sale Service 
Keeping Adequate Stocks 
Speed and Accuracy of 
Delivery 
Product Substitution 
Post Sale Service 
Product Warranty 
Maintenance Contract 
Installation 
Repair 
Damage Handling 
Customer Training 
Pre Sales Service 
Advising Serv 
Technical Serv 
Ordering Serv 
Patronage Awards
SCM Components: ERP integration 
GPS, Tracking Systems, 
Replenishment 
POS System WMS 
Request Processing Sys 
Order Processing Sys 
Stock Mgmt 
Quality Mgmt 
Data Mgmt Sys 
Efficient Demand 
Prediction Sys 
ERP
B2B Planning and Control Business Marketing: 
Motive and Modes of Diversification 
1. Growth 
Location, Markets and Globalisation 
2. Risk Reduction 
- Economic slowdown and recession 
- Lesser dependability on one sector 
3. Value Creation 
- Produce products at lower cost 
- Better technology for customers 
4. Change in Competitive Structure 
Remove comp. and economies of scale 
5. Improve Capabilities 
Technology, Innovation and Access to 
talent pool
EXAMPLE : Forward Vertical Integration 
EXAMPLE : Horizontal Integration
B2B STARTEGIC PLANNING and CONTROL: 
MODES of ENTRY in OVERSEAS Market 
1. TRANSACTION 
1. 
Transaction 
Exporting 
Spot Sales Foreign Agent 
Long Term 
Contract 
Licensing 
Licensing 
Patents and 
IPs 
Franchising
MODES of ENTRY in OVERSEAS Market 
2. Direct Investment 
2. DIRECT 
INVESTMENT 
JV 
Marketing and 
Distribution 
Only 
Fully 
Integrated 
WHOLLY 
Owned 
Marketing and 
Distribution 
Only 
Fully 
Integrated
PRICING Strategy: New influences of Decision making
Pricing Strategy 
1. Cost Based Pricing 
– Cost-plus pricing 
– Target return pricing 
– Mark-up pricing 
– Break-even pricing 
– Demand(Willingness to Pay and Price Elasticity) Along with Competition is 
Ignored 
2. Competition based Pricing 
– Competitive price levels or on anticipated 
– Observed Actions of Actual/Potential competitors 
3. Customer Value Based Pricing 
– Perceived customer value of the product
B2B Strategy: SBUs 
CORPORATE 
OFFICE 
SBU SBU 
Marketing Finance
Unit IV: Portfolio Approach & Analysis- BCG Matrix
MULTIFACTOR PORTFOLIO (MFP) MATRIX by GE
B2B E commerce- EDI
B2B E Commerce Process
B2B E Commerce Models
Case Study 
The Tata acquisition of Jaguar Land Rover is a superb example to include in research notes on 
takeovers and mergers. At the time (early 2008), Tata’s investment in JLR seemed to be 
poorly timed and there were many critics who questioned the strategic logic of the move as 
well as its timing. Shortly after the takeover, demand in the global market for luxury cars 
collapsed as a result of the financial crisis and Tata was forced to refinance to support its 
investment. 
Several years later, however, the takeover appears to be a compelling example of a successful 
acquisition which is generating substantial shareholder value for Tata as well as continued 
support from JLR’s many stakeholder groups in the UK. 
Background- Jaguar Land Rover (JLR): 
Jaguar Cars and Land Rover bought by Ford from BMW for $1.4bn in 1989. A difficult 
relationship between the UK firm and its US owners ;saw the worst times of extremely 
respectable brand under US firm leadership. Jaguar fell into heavy losses whilst owned by 
Ford (reaching up to $600million per year). However, Ford invested heavily in new model 
development 
Tata Group: 
One of India’s largest private conglomerates - used to investing in the UK. Tata Bought Tetley Tea 
in 2000 And also Bought Corus Steel - a big supplier to JLR - in 2007 which raised eyebrows 
across globe. Tata made its presence felt in almost every economy by taking over Corus. Tata 
Motors - was already India’s third largest car-maker, but struggling with a poor image and 
hampered by rising raw material costs.
The Deal 
Ford sells JLR to Tata in March 2008, just over £1bn - just a few months before a collapse in global 
demand in the international car market. Tata financed the takeover with $3bn of new long-term 
loans. The price paid by Tata was approximately half of what Ford paid to buy Jaguar and Land 
Rover.; + Ford had continued to incur heavy losses in Jaguar as it failed to turn the business 
around. The deal took over a year to agree - which may have helped with the post-merger 
integration. Tata recognised that it would continue to need support from Ford who are a main 
supplier of car components to the two brands. No significant change proposed to the businesses 
by Tata. They claimed that staff, trade unions and the UK government had been kept informed 
about the proposed takeover and supported the move. The deal has been endorsed by trade 
unions, which secured a commitment from Tata to continue with JLR’s production plans until the 
end of 2011. This includes development of new models. 
What happened next? 
Significant slump in new car sales in late 2008 as a result of the credit crunch; Tata had to refinance in 
order to keep JLR solvent. UK government considered a financial aid package, indicating the 
strategic importance of JLR to the UK economy. In February 2010: Tata secures a £340million loan 
from the European Investment Bank to support JLR through recession. And in May 2011: Tata 
announces £5b five year investment programme in JLR - focused on new product development & 
new equipment at JLR three UK plants + investment in a planned factory in China. November 
2011: JLR announces 1,000 new jobs a Land Rover plant in Solihull boosted by rising demand for 
SUVs in China, Russia, India and Brazil. February 2012: Soaring sales of Jaguar and Land Rover cars 
have helped Indian firm Tata Motors to a huge rise in profits (up 41% on 2010). JLR arm saw sales 
rise 37%, helped by selling 32,000 of its new RangeRover Evoque. China overtakes the UK as JLR’s 
biggest market. April 2012: JLR announces that it will build a successor to its previous sports cars 
called the F-type at its factory in Birmingham.
By 2014 Under Tata ownership, Jaguar Land Rover has launched new vehicles including 
the Range Rover Evoque, Jaguar F-Type, the Jaguar XF, the latest Jaguar XJ the Second-generation 
Range Rover Sport, the Fourth-generation Land Rover Discovery and the fourth-generation 
Range Rover. 
Jaguar Land Rover delivers best ever full year global sales performance retailing 425,006 
vehicles in 2013, up 19%. Jaguar is the fastest growing brand in Germany, India and the USA in 
8 countries. 
Questions 
• ENLIST the Key drivers of motives for the takeover of Financially 
broken JLR during RECESSION by Tata in 2007-08 w.r.t. 
– Product Process Innovation Strategy 
– Global Strategy and Entry In Overseas Market
Key drivers of / motives for the takeover: 
i. Acquiring JLR giving Tata greater international distribution, broader 
product range and better customer service skills – Horizontal 
Integration 
ii. Tata gains access to world-class engineering capability 
iii. Strengthens relationship between Tata’s steel and motoring 
businesses: Vertical Integration 
iv. LR also to link closer with Tata Steel to provide new lightweight steel 
alloys for new car models: Vertical Integration 
v. March 2012: JLR and Chery Automobile agree a joint venture that 
should pave the way for production of Jaguar and Land Rover cars in 
China.
The Content Info 
• The Structure of presentation is directly taken from 
IMT Ghaziabad- CDL course- material 
• The Content used in form of Pictures and content is 
taken from various education and business websites. 
• The creation is to be used for education purpose only 
and not for business
Thank You 
Sunil Saha 
Lecturer, IMT Ghaziabad CDL 
Corporate Exp: 
Bharti Airtel, Aditya Birla MFL, Bestseller India, Healthcare Start Up- Spinalogy Clinic 
Email: sunilchandrasaha@gmail.com 
Websites: www.candidreviewstreet.com and www.sportslolz.com 
Facebook: 
https://www.facebook.com/pages/Sports-Lolz/447024152105002 
https://www.facebook.com/pages/Candid-Reviews/1377145209191670 
Youtube: 
https://www.youtube.com/channel/UC6NNG-nxqk73mtKLculnbvQ

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Business to business b2b marketing IMT Ghaziabad CDL

  • 1. B2B Marketing Sunil Chandra Saha sunilchandrasaha@gmail.com Lecturer- IMT Ghaziabad CDL Work ex: Bharti Airtel, Aditya Birla MFL, Bestseller India, Network 18, Healthcare Start Up- Spinalogy Clinic
  • 2. B2B Marketing • What is B2B Marketing • Business Vs Consumer Marketing (B2B Vs B2C) • NATURE of B2B Demands and B2B Promotions • B2B Markets and Environment – Types of Business Customers & Industrial Products – Environmental Analysis • Organizational Buying and Behaviour – Purchase , Buying Process and Buying Situations – BuyGrid Framework – Multiple Buying Influence and Buying Behavior Models • Case Study
  • 3. B2B Marketing Vs B2C Marketing • Complex and High Risk • Less in No. and Bigger Size of Purchase • Limited • Lead Generation and Relationship Management • Improve Cust. acquisition by Converting prospective interactions • Increase Volume, Higher Lead Quality and Faster Sales Cycle • Simple and Low Risk • Huge in No. and Small Size of Purchase • Spread across • Brand Building • Marketing Programs to improve campaign engagement and communicate to larger market effectively • Higher Frequency of purchase and increased brand recall Decision Making Process No. Of Consumers/Size of Purchase Geographical Area FOCUS METHOD GOAL
  • 4. B2b B2c e- Promotion Focus Areas
  • 5. Channels of B2B Business
  • 6. NATURE and TYPES of DEMAND is B2B • Derived Demand – Dependent on the Customer’s Product – Eg. Textile Industry • Fluctuating Demand : Recession: Ship Wrecking Business • Stimulating Demand – Eg. Intel ads • Joint Demand : Smartphone- Amoled Screen • Cross Elasticity Demand : • Characteristics of B2B Demand – Price Sensitivity is Less – Ability to Pass on Cost – Dependent on Business Operations Variable
  • 7. NATURE of PROMOTION is B2B • Personal Selling • Industry Relations • Exhibition and Meets • Product Details Sharing is Important
  • 8. TYPES of B2B MARKETS 2. B2B RESELLER MARKET i. Whole-seller - Inventory control and mgmt - Quantity & Quality Uniformity ii. Retailer - Ordering Flexibility - Seasonal Demand 1. B2B PRODUCT MARKET i. Manufacturer (Product) - Criteria: Quality & Dependability - Eg. AIRBUS ii. Service Provider - Timely Service - Unique Quality - Eg. Audit Services, Corporate Training , HR Recruitment Firms 3. GOVT. ORGANISATIONS - Key is to maintain relations - Lowest Bid - And Adherence to Rules
  • 9. B2B Types Of Customers
  • 10. B2B BUYING SITUATIONS • Straight Re-Buy – Reorder – Role of Sales Person is Minimum • Modified Re-Buy – Change of Order New Product and Qty – Higher Role of PR and Sales person and CRM Process • New Buy – Huge role of Sales Person
  • 11. Understanding B2B Buying BuyGrid Framework
  • 15. CASE STUDY : Amazon.com And India Amazon.com the global giant and 475 billion dollar Revenue co. is all set to fight to the top spot in India. The world's largest online retailer is also expanding the range of products that will be delivered to customers within a day, displaying the trademark aggression that marks its global operations nearly 10 months after launching services in India in 2012. The company already has a roster of 4,000 sellers in the Online Marketplace model which has been operating in US and many other markets. These moves, coming days after the company launched a high-voltage advertisement campaign including television spots during the last edition of the IPL-2013, was aimed at getting the largest number of merchants and the widest variety of products for Amazon customers. Market leader Flipkart, which just reached the milestone of $1 billion (over Rs 6,000 crore) in sales, also has about 4,000 sellers on its marketplace. But it follows an invite-only model to sign on sellers which is more time-consuming. India is about to have 16.5 cr internet users by 2014. And marketsize is about $3.5 billion (INR 18000 Cr) which is growing at an extreme pace. Industry estimates Amazon India's sales at over $200 million (Rs 1,200 crore).At current growth rates, Amazon is capable of clocking sales of $1 billion (Rs 6,000 crore) by the end of March 2016. Amazon has come up with $2 Billion Investment in India in its operations. Its currently operating through 2 huge warehouses.
  • 16. The company's latest delivery service, 'easy ship', will allow sellers to ask for a product to be picked up and shipped by Amazon. It will also provide cash-on-delivery for these sellers' orders, an option so far available only to those who stocked products with Amazon. The service, which has 400 sellers already registered, will be available in 30 cities to start with. Merchants too are happy with their experience on the site. "Margin cut at Amazon is about 6-7%, compared with 10-12% at Flipkart" While these indicate that Amazon is chipping away at the fortress that Flipkart has built, overtaking the market leader will take some doing. Flipkart has the people and has built processes and technology. They are fighting back powerfully. Flipkart has taken over a few smaller player as like Snapdeal. To improve the operations and range Amazon bought, a major fashion e retailer Jabong.com for a reported INR 1800 Cr to counter Flipkart-Myntra JV.
  • 17. Questions • Analyse the b2b strategies of Flipkart and Amazon and recommend Flipkart that what more than they do? • What is your recommendation for Amazon for their $ 2 billion investment
  • 18. B2b Strategy AMAZON.in • Marketplace operational experience • More Sellers> More Products range and options> Products sale • Lesser Margin Charged from Merchants • State of Art Ware houses across Globe which has efficient system of merchant communication FLIPKART.com • Seller selection only by invitation • Rate of Signing Vendors is Lesser • Higher Margin 10-12% charged • Have to deal with 1 day delivery which Amazon is doing 50% of their deliveries
  • 19. Recommendations for 2 Billion $ • More Warehouses • Client Engagement tools • Knowledge imparting in B2B sellers to stay put Platform for relatively lesser knowledge Indian merchants
  • 20. Lecture 2 • Buyer Seller Relationship Types and Tools and Methods to Manage – RM/CRM – CRM+CLV – Customer Service • STP in B2B : Vs • Industrial Product – PLC and Product Strategies- NPD and Branding B2B Product – Brand Auditing: BRAND Report Card • Marketing of B2B Services • Case Study : VOLVO Email Marketing and CRM Integration
  • 22. 3 Approaches to RM: Berry and Parasuraman • Financial RM Relationship Management – Financial Benefits by Giving Discounts on Volumes – Special Pricing – But can be copied and cant be a part of Long Term Strategy • Social Benefits RM – Personalization – Including the Customers in Social Circles • Structural Ties RM – Changes in Structure of Customer Organization to fit the product for a longer Term • Eg. ABB and Indian Railways • Russia and INS Vikrant
  • 23. CRM CRM PROCESS in B2B marketing: 1. Linking CRM > Customer Database 2. Selecting Customers 3. Developing Relations 4. Implementing Relationship Strategy 5. Evaluating Relation Objectives and Strategies B2B
  • 24. Modes of CRM CRM 360°
  • 25. SOCIAL CRM: New Age 24x7 CRM MACRO Auto Mated MICRO Human
  • 26. Special Dealings Between Buyer and Seller 1. Reciprocity - Buying from Customer Itself - Eg. Petroleum Products 2. Dealing with Customer’s Customers - Eg. Rolls Royce Aircraft engine to Singapore Airlines to Induce Demand in Boeing and Airbus
  • 27. Segmentation and Targeting- B2B 1. Data •Research on Buying Firms •Competition Market 2. Identify •Based On Research Data/ Primary findings 3. Select •Macro-segmentation/Broad Classification •According to Co. Objectives and Resources 4. Evaluat e • Each Macro-segment is analyzed on Attractiveness/ Buying Behavior 5. Segmentat ion • Meaningful Micro segment • Buying Situation/ Purchase Criteria • Personal Characteristics of DMU 6. Select Target • Based On Analysis of Microsegment • Select the Target Market based on Co. Objective Criteria 7. Profiling • Profile Target Market 1. Measurable 2. Substantial 3. Accessible 4. Differentiable 5. Actionable
  • 28. Positioning Strategy CONTENT AUDIENCE RELEVANCE EVALUATION
  • 29. STP Example- Tyre Industry MRF Vs BRIDGESTONE Indian Tyre Industry Commercial Vehicles MHCV HCV LCV Passenger Vehicles Cars Motorc ycles Scooters Others Farm Industrial Vehicles MHCV : Medium Heavy Commercial Vehicles HCV Heavy Commercial Vehicle LCV Light Commercial Vehicle OTR Off the Road
  • 30. Bridgestone - Market Specialization M1 (Cars) M2 (Trucks) M3 (2-wheelers) P1 Touring Tyres P2 Sport Tyres P3 Economy Tyres Bridgestone India has focused on the Passenger Car Segment exclusively as it offers only radial tyres. 30
  • 31. MRF : Compete Market Coverage M1 (Cars) M2 (Trucks) M3 (2-wheelers) P1 Touring Tyres Economy Tyres High Grip Tyres P2 Sport Tyres Mileage Tyres Touring Tyres P3 Economy Tyres Endurance Tyres Best Fit Tyres MRF holds a diversified portfolio of products spanning the entire tyre market.
  • 32. Positioning Communication : Superior Endurance, Strength, Sporty & Home-Grown Punch line: Tyres with Muscle Sponsors Cricket & Rally racing to position as high endurance and sporty 32 Communication : High Performance, Top Quality & International standard. Punch line: Passion for Excellence This communication is substantiated by association to F1 racing
  • 34. PLC – Technology Products
  • 36. New Product Development- Management Process Test Marketing LAUNCH DEVELOP
  • 38. B2B Branding- Why is the Need to Brand B2B Branding Risk Reduction Easy Info Image Creation
  • 39. B2B Brand Auditing Brand Audit Objective of Audit Internal Description Ext. Data: Research analysis Findings and Report Brand Score Card B2B Service Marketing Characteristics
  • 40. B2B SERVICE MARKETING Steel PC Hotels Transport Legal/ IT Tangible Intangible B2B SERVICE MARKETING: Strategy B2B Services Marketing Strategy Service Pricing Service Promotion Service Distribution
  • 41. Case Study: VOLVO Construction Equipments One of the success stories of B2B marketing is Volvo Heavy Construction Equipments. Volvo has a huge range of Construction Equipments. Volvo understood the research reports in 2008 that Emails will be the most effective tools for marketing of it’s products. And hence Volvo designed the whole Branding program focused on emails. It revolutionized the way emails were sent to customers and increased the click-through by 21% and saw an increase of 9% increased email subscription. Volvo opted for very strong SEO of its website and it paid off. With the help of dynamics, the revolutionary data analyzing capabilities, It enabled Volvo team to analyse, every visitor to the website, and cater to with much more efficiency and affectivity with his own needs. Volvo used alongside social media very effectively to engage and communicate back to customer. Which is in sync with website. It helps Volvo to attract customers who are looking for a specific machine for his own construction business. Volvo, focused on lead generation through website. It invites the visitors to fill up the form for subscription and Dynamics CRM helps to give the best possible result based on data entered by the customer. Quick response, Personalised approach and dedicated CRM gave the company much needed push in sales. Volvo is expecting 57% of new business to come through the websites in coming years. Extending the CRM activities, Volvo managed Email marketing by Pre Sales and Post sales startegies. Volvo runs the bi monthly, email campaigns for reselling pre-owned construction equipments which is absolutely in sync with customer’s need.
  • 42. Case Study: VOLVO Cont. Volvo also sends and bi monthly remarketing emails to customers who opts for it. This email list the products with necessary stats which the customer may look into as options! These initiatives helps the dealers of Volvo equipments immensely as the company single marketing campaigns result in better sale of Equipments. Volvo’s email strategy helps to nurture customer’s need effectively. The email contents are dynamic in nature and invite customers to click through for more interactive functional platform of website with vedio links. The perspective buyer’s decision is hugely affected by the kind of content they have provided on website. So, by use of effective SEO, great Email Strategy execution in place with specific need based wesbite with tremendous navigation tools with social network engament Volvo has become market leader in B2B construction equipments.
  • 43. Question IF YOU THE MARKETING MANAGER Of VOLVO Construction Equipments: • What Email Strategy is used in Volvo to make it success wrt to Website Clicks/ Dymanics CRM and Pre and Post Purchase • How do you plan to integrate – Website and SEO – Emails – Social Media Engagement
  • 45. MOBILE Devices Focused Email Marketing
  • 47. WEBSITE- ERP Integration Strategy for CRM Sales Rep Click Browsing Time on Page
  • 49. Lecture 3 • SCM – Framework – Components of SCM and Integration – Logistics – Total Cost Approach of SCM – Optimal Order • SCM Integration • B2B Planning Control Startegy • Diversification Strategy in B2B- Vertical Integration • Global Market Entry Strategy • B2B Pricing Strategy • B2B SBU • BCG Matrix • B2B E commerce: EDI, Process and models • Case Study- Jaguar and Landrover TATA Take Over
  • 50. Supply-Chain Management SCM is to coordinate activities between components within the Value chain to maximize the competitive advantage, by adding value (Cost Advantage- Leadership Advantage) and benefits to the ultimate consumer Kapoor’s Furniture CHAIN 60% of sales in supply chain Current gross profit = INR 1,00,000 TARGET : Increase profits to INR1,50,000 (50%) CURRENT SITUATION SUPPLY CHAIN STRATEGY SALES STRATEGY Sales INR 10,00,000 INR10,00,000 INR12,50,000 Cost of materials INR 6,00,000 (60%) INR 5,50,000 (55%) INR7,50,000 (60%) Production costs INR2,00,000 (20%) INR 2,00,000 (20%) INR2,50,000 (20%) Fixed costs INR1,00,000 (10%) INR 1,00,000 (10%) INR1,00,000 (8%) Profit INR1,00,000 (10%) INR 1,50,000 (15%) INR1,50,000 (12%)
  • 51. B2B Marketing Strategy Impacts Supply Chain Decisions LOW COST STRATEGY RESPONSE STRATEGY DIFFERENTIATION STRATEGY Primary supplier selection criteria • Cost • Capacity • Speed • Flexibility • Product development skills • Willing to share information • Jointly and rapidly develop products Supply chain inventory • Minimize inventory to hold down costs • Use buffer stocks to ensure speedy supply • Minimize inventory to avoid product obsolescence Distribution network • Inexpensive transportation • Sell through discount distributors/ret ailers • Fast transportation • Provide premium customer service • Gather and communicate market research data • Knowledgeable sales staff Product design characteristics • Maximize performance • Minimize cost • Low setup time • Rapid production ramp-up • Modular design to aid product differentiation
  • 54. OPTIMAL ORDER: CB analysis Time (a) Response Time Response time 1 2 3 4 5 Number of facilities INR (b) Cost INR Lowest cost 1 2 3 4 5 Number of facilities Total logistics cost Facility costs Inventory costs Transportation costs i. Response Time ii. Cost iii. Profit- Revenue- Cost
  • 55. OPTIMAL ORDER (c) Cost, Revenue, and Profit INR 1 2 3 4 5 Number of facilities Revenue Total logistics cost Max profit i. Response Time ii. Cost iii. Profit- Revenue- Cost
  • 56. Customer Service In Supply Chain During Sale Service Keeping Adequate Stocks Speed and Accuracy of Delivery Product Substitution Post Sale Service Product Warranty Maintenance Contract Installation Repair Damage Handling Customer Training Pre Sales Service Advising Serv Technical Serv Ordering Serv Patronage Awards
  • 57. SCM Components: ERP integration GPS, Tracking Systems, Replenishment POS System WMS Request Processing Sys Order Processing Sys Stock Mgmt Quality Mgmt Data Mgmt Sys Efficient Demand Prediction Sys ERP
  • 58. B2B Planning and Control Business Marketing: Motive and Modes of Diversification 1. Growth Location, Markets and Globalisation 2. Risk Reduction - Economic slowdown and recession - Lesser dependability on one sector 3. Value Creation - Produce products at lower cost - Better technology for customers 4. Change in Competitive Structure Remove comp. and economies of scale 5. Improve Capabilities Technology, Innovation and Access to talent pool
  • 59. EXAMPLE : Forward Vertical Integration EXAMPLE : Horizontal Integration
  • 60. B2B STARTEGIC PLANNING and CONTROL: MODES of ENTRY in OVERSEAS Market 1. TRANSACTION 1. Transaction Exporting Spot Sales Foreign Agent Long Term Contract Licensing Licensing Patents and IPs Franchising
  • 61. MODES of ENTRY in OVERSEAS Market 2. Direct Investment 2. DIRECT INVESTMENT JV Marketing and Distribution Only Fully Integrated WHOLLY Owned Marketing and Distribution Only Fully Integrated
  • 62. PRICING Strategy: New influences of Decision making
  • 63. Pricing Strategy 1. Cost Based Pricing – Cost-plus pricing – Target return pricing – Mark-up pricing – Break-even pricing – Demand(Willingness to Pay and Price Elasticity) Along with Competition is Ignored 2. Competition based Pricing – Competitive price levels or on anticipated – Observed Actions of Actual/Potential competitors 3. Customer Value Based Pricing – Perceived customer value of the product
  • 64. B2B Strategy: SBUs CORPORATE OFFICE SBU SBU Marketing Finance
  • 65. Unit IV: Portfolio Approach & Analysis- BCG Matrix
  • 68. B2B E Commerce Process
  • 69. B2B E Commerce Models
  • 70. Case Study The Tata acquisition of Jaguar Land Rover is a superb example to include in research notes on takeovers and mergers. At the time (early 2008), Tata’s investment in JLR seemed to be poorly timed and there were many critics who questioned the strategic logic of the move as well as its timing. Shortly after the takeover, demand in the global market for luxury cars collapsed as a result of the financial crisis and Tata was forced to refinance to support its investment. Several years later, however, the takeover appears to be a compelling example of a successful acquisition which is generating substantial shareholder value for Tata as well as continued support from JLR’s many stakeholder groups in the UK. Background- Jaguar Land Rover (JLR): Jaguar Cars and Land Rover bought by Ford from BMW for $1.4bn in 1989. A difficult relationship between the UK firm and its US owners ;saw the worst times of extremely respectable brand under US firm leadership. Jaguar fell into heavy losses whilst owned by Ford (reaching up to $600million per year). However, Ford invested heavily in new model development Tata Group: One of India’s largest private conglomerates - used to investing in the UK. Tata Bought Tetley Tea in 2000 And also Bought Corus Steel - a big supplier to JLR - in 2007 which raised eyebrows across globe. Tata made its presence felt in almost every economy by taking over Corus. Tata Motors - was already India’s third largest car-maker, but struggling with a poor image and hampered by rising raw material costs.
  • 71. The Deal Ford sells JLR to Tata in March 2008, just over £1bn - just a few months before a collapse in global demand in the international car market. Tata financed the takeover with $3bn of new long-term loans. The price paid by Tata was approximately half of what Ford paid to buy Jaguar and Land Rover.; + Ford had continued to incur heavy losses in Jaguar as it failed to turn the business around. The deal took over a year to agree - which may have helped with the post-merger integration. Tata recognised that it would continue to need support from Ford who are a main supplier of car components to the two brands. No significant change proposed to the businesses by Tata. They claimed that staff, trade unions and the UK government had been kept informed about the proposed takeover and supported the move. The deal has been endorsed by trade unions, which secured a commitment from Tata to continue with JLR’s production plans until the end of 2011. This includes development of new models. What happened next? Significant slump in new car sales in late 2008 as a result of the credit crunch; Tata had to refinance in order to keep JLR solvent. UK government considered a financial aid package, indicating the strategic importance of JLR to the UK economy. In February 2010: Tata secures a £340million loan from the European Investment Bank to support JLR through recession. And in May 2011: Tata announces £5b five year investment programme in JLR - focused on new product development & new equipment at JLR three UK plants + investment in a planned factory in China. November 2011: JLR announces 1,000 new jobs a Land Rover plant in Solihull boosted by rising demand for SUVs in China, Russia, India and Brazil. February 2012: Soaring sales of Jaguar and Land Rover cars have helped Indian firm Tata Motors to a huge rise in profits (up 41% on 2010). JLR arm saw sales rise 37%, helped by selling 32,000 of its new RangeRover Evoque. China overtakes the UK as JLR’s biggest market. April 2012: JLR announces that it will build a successor to its previous sports cars called the F-type at its factory in Birmingham.
  • 72. By 2014 Under Tata ownership, Jaguar Land Rover has launched new vehicles including the Range Rover Evoque, Jaguar F-Type, the Jaguar XF, the latest Jaguar XJ the Second-generation Range Rover Sport, the Fourth-generation Land Rover Discovery and the fourth-generation Range Rover. Jaguar Land Rover delivers best ever full year global sales performance retailing 425,006 vehicles in 2013, up 19%. Jaguar is the fastest growing brand in Germany, India and the USA in 8 countries. Questions • ENLIST the Key drivers of motives for the takeover of Financially broken JLR during RECESSION by Tata in 2007-08 w.r.t. – Product Process Innovation Strategy – Global Strategy and Entry In Overseas Market
  • 73. Key drivers of / motives for the takeover: i. Acquiring JLR giving Tata greater international distribution, broader product range and better customer service skills – Horizontal Integration ii. Tata gains access to world-class engineering capability iii. Strengthens relationship between Tata’s steel and motoring businesses: Vertical Integration iv. LR also to link closer with Tata Steel to provide new lightweight steel alloys for new car models: Vertical Integration v. March 2012: JLR and Chery Automobile agree a joint venture that should pave the way for production of Jaguar and Land Rover cars in China.
  • 74. The Content Info • The Structure of presentation is directly taken from IMT Ghaziabad- CDL course- material • The Content used in form of Pictures and content is taken from various education and business websites. • The creation is to be used for education purpose only and not for business
  • 75. Thank You Sunil Saha Lecturer, IMT Ghaziabad CDL Corporate Exp: Bharti Airtel, Aditya Birla MFL, Bestseller India, Healthcare Start Up- Spinalogy Clinic Email: sunilchandrasaha@gmail.com Websites: www.candidreviewstreet.com and www.sportslolz.com Facebook: https://www.facebook.com/pages/Sports-Lolz/447024152105002 https://www.facebook.com/pages/Candid-Reviews/1377145209191670 Youtube: https://www.youtube.com/channel/UC6NNG-nxqk73mtKLculnbvQ