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BUSINESS TO BUSINESS MARKETING

BUSINESS TO BUSINESS MARKETING. Ing. Lucia Bar tková, PhD. PRICE IN B2B MARKETING. PRICE. as equivalent , has to be paid for product reward to company for product or service supply monetary expression of product value instrument for value measuring and comparison.

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BUSINESS TO BUSINESS MARKETING

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  1. BUSINESS TO BUSINESSMARKETING Ing. Lucia Bartková, PhD.

  2. PRICE IN B2B MARKETING

  3. PRICE • as equivalent, has to be paid for product • reward to company for product or service supply • monetary expression of product value • instrument for value measuring and comparison

  4. PRICE MIX COMPONENTS • price setting process • price actualization • discounts • price strategies • payment tools • payment methods • price differentiations

  5. PRICE AS… • rent • school fee • charge • interest • road tool • insurance • transport charge • royalty • salary • deposit • tax • membership fee • commission

  6. FACTORS OF PRICE DECISION • internal factors • marketing goals • costs • marketing mix strategy • organization of price setting

  7. FACTORS OF PRICE DECISION • external factors • market and demand character • competition • value perceived by customer • another factors

  8. PRICE ADAPTATION • geographic aspect • price discounts • advertising pricing • discriminatory pricing • marketing mix pricing

  9. GEOGRAPHIC ASPECT • distant locality, finance shortage… • barter • compensation deal • redeem (re-purchase) • counter-claim

  10. PRICE DISCOUNTS • cash discounts given to everybody • cash discounts • bulk discounts • functional discounts • charge deduction

  11. ADVERTISING PRICING • early purchase support • free service, guaranty extension • payment with low interest running • psychological price

  12. DISCRIMINATORY PRICING • according to the segment • according to the product variant • according to the time • according to the place

  13. MARKETING MIX PRICING • price of special supplements • fixed products • packages • secondary product • capitation

  14. PAYMENT TOOLS • documentary credit • documentary collection • clear payment • bill of exchange • cheque • advance payment • leasing payment • e-commerce • bank guaranty • bank loan • supply loan • factoring, forfeiting

  15. PRICE SPECIFICS • bigger sensibility to price • bigger amount of money • individual price calculation • price as result of compromise • price as result of relationships • price set by competition, tender • discounts providing • many payment tools • price is not always competing tool • price according to the law • state regulations

  16. DISTRIBUTION IN THE B2B MARKETING

  17. DISTRIBUTION • distribution = all activities allowing transfer of physical and dispositional right for product from one subject to another • distribution channels = groups of independent organizations participate in accessing products for another usage or end consumption • middlemen = members of distribution channel helping producers to search and obtain customers and to realize transactions

  18. ARGUMENTS FOR USING DISTRIBUTION CHANNELS • economical advantages (spanning of distance, product completion) • solution of weaknesses in organization (lack of finance, lack of staff, lack of know-how, enterprise risk elimination) • customers’ expectations fulfilling

  19. FUNCTIONS OF DISTRIBUTION CHANNEL • market research • marketing communication • contact obtaining • negotiations • range of goods transformation • physical distribution • risk acceptance • financing

  20. producer consumer producer retail consumer producer wholesale retail consumer producer wholesale middleman retail consumer DISTRIBUTION CHANNEL CREATION ON B2C MARKET

  21. TRENDS IN WHOLESALE • agreement with producer about expected functions of wholesaler • information obtaining about producer by visit, conference, sales exhibition • fulfilling obligations in payment discipline and in information providing towards producer • searching and offering services to customers remaining customer value

  22. TRENDS IN RETAIL • new forms of retail and its combination • shorter life-cycle of some forms of retail • fast increase retail without selling places • increase of competition among the same and among different types of retail • wide-range of goods offering or specialty retailer ???

  23. TRENDS IN RETAIL • shopping centers considered to be suite for “purchase under one roof” => • services as coffee-bars, tea-houses, children corners, bookshops, cinemas, restaurants • distributional channels are better and more professional managed • IT as important competing tool • big retailers with strong brands expansion from foreign countries

  24. B2B consumer producer B2B consumer B2B distributor producer B2B distributor sales department B2B consumer producer sales agent B2B distributor B2B consumer producer DISTRIBUTION CHANNEL CREATION ON B2B MARKET

  25. SUBJECT OF DISTRIBUTION CHANNEL ON B2B MARKET • producer = producing and delivering product • sales department = organization division of producer • sales agent = individual company • b2b distributor = businessman with industrial goods and raw materials with a network of b2b customers • b2b consumer = company buying raw materials and semi-products for another production or buying product for own consumption

  26. FACTORS OF DISTRIBUTION CHANNEL SELECTION • purchase frequency • product differentiation • value of purchase unit • credit of brand • purchase bulk • technical complexity of product • investments to storehouses • consumers’ arrangement • type of market (b2b, b2c) • size of market • competition • consumers with specific requests

  27. DISTRIBUTION CHANNELS ORGANIZATION • traditional • vertical • close • administrative • contractual • horizontal • multi-channel

  28. DISTRIBUTION CHANNELS ORGANIZATION • traditional • individual producer, wholesaler and retailer • each of them try to maximize own profit • each of them works independently and don’t have dominant control in system

  29. DISTRIBUTION CHANNELS ORGANIZATION • vertical • producer, wholesaler and retailer as one system, one is dominant (e. g. owner) • close (production and distribution in one owner unit) • administrative (size and power of one subject in system) • contractual

  30. DISTRIBUTION CHANNELS ORGANIZATION • horizontal • two or more organizations connection • they don’t have enough capital, know-how or production capacities for individual business • permanent or temporary cooperation

  31. DISTRIBUTION CHANNELS ORGANIZATION • multi-channel • combination of vertical and horizontal distribution channels • better market covering • lower distributional costs • comfortable purchase for customers • more efficient selling

  32. LOGISTIC • physical distribution • orders processing • storage • inventories managing • carriage (speed, availability, safety, capacity, frequency, costs)

  33. CARRIAGE • truck, air, railway, ship, sea • carriage by pipeline • combined carriage • piggyback (railway and truck) • fishyback (ship and truck) • trainship (train and ship) • airtruck (air and truck)

  34. COVERING • railway wagons • oil-ducts, gas-ducts, pipelines • tanks, cisterns • barrels • pallets • boxes • ferryboats • containers • electrical networks • by air • technical progress

  35. INCOTERMS • international trade • E (removal) – EXW • F (main carriage not paid) – FCA, FAS, FOB • C (main carriage paid) – CFR, CIF, CPT, CIP • D (arrival) – DAF, DES, DEQ, DDU, DDP

  36. SPECIFICS OF DISTRIBUTION IN B2B MARKETING • more direct and shorter distributional channels • specific distributional channels • higher demand for capacity and type of carriage • higher demand for territorial covering by distributor • untraditional covering • direct sale require higher demands for selling staff

  37. PROMOTION IN THE B2B MARKETING

  38. MARKETING COMMUNICATION • informing about products, their attributes, benefits, quality, value, usage, utility • listening, receiving suggestions and request of consumers

  39. MARKETING COMMUNICATION MIX • integrated and controlled system of communication tools and methods for presentation of organization and its products to consumers • advertising, sales promotion, public relations, personal selling and direct marketing

  40. ADVERTISING • any paid form of impersonal presentation and promotion of ideas, goods or services to target market • advertising strategy: • advertising goals setting • advertising message creation • media plan • budget for advertising plan realization • advertising effectiveness measuring

  41. ADVERTISING STRATEGY • advertising goals setting • informative advertising • persuasive advertising • reminding advertising • supporting advertising

  42. ADVERTISING STRATEGY • advertising message creation • according to the goals • effort to attract consumers’ interest • product attributes, features, usage presentation • profit achieving or costs saving for consumer • end b2b consumer or retailer

  43. ADVERTISING STRATEGY • media plan • reach, frequency, effect, advantages, weaknesses of every medium • newspaper, journals, TV, radio, internet, address mail, bulletins, catalogues, brochure, folders, telephone, 3D items, untraditional forms (trucks, hot-air balloons, airships, transparent hung after airplane)

  44. ADVERTISING STRATEGY • budget for advertising plan realization • goal of advertising campaign • product life-cycle stage • market share • competition and its communication • advertising frequency • substitute product influence

  45. ADVERTISING STRATEGY • advertising effectiveness measuring • advertising effect on informedness, knowledge or preferences • advertising effect in relation to expenses and achieved results or to goals fulfilling • marketing research

  46. SALES PROMOTION • package of motivational tools with short-term character created for faster of bigger purchase stimulation • sales promotion for customers • sales promotion for trade systems • other forms of sales promotion

  47. SALES PROMOTION • sales promotion for customers • samples • coupons • discounts • presents • free trying of goods • product guarantees • product exhibiting and demonstration

  48. SALES PROMOTION • sales promotion for trade systems • discount • charge deduction • free goods

  49. SALES PROMOTION • other forms of sales promotion • trade fairs and exhibitions • selling competitions • advertising presents

  50. PUBLIC RELATIONS • communication focused on forming of attitudes towards organization • goal is to create positive relationships of customer to organization and its products • programs focused on organization presentation, defense of organization's image or image of products

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