CHAPTER 1: WHAT IS BUSINESS MARKETING1?
1.1 BUSINESS VS CONSUMER MARKETING
AREAS OF B2B MARKET CONSUMER MARKET
DIFFERENCE
MARKET Geographically concentrated Geographically disbursed
CHARACTERISTICS Vb. Bakker, we willen ze dicht en
verspreid
Relatively fewer buyer Mass market
(het is ook normaal om minder klanten te (heel veel klanten nodig)
hebben, je kan succesvol zijn met 10 klanten)
PRODUCT Technical complex Standardize
CHARACTERISTICS (enorm veel technologie omdat je
precies moet maken wat de klant wil)
Customized
SERVICE Service, time availability very important Somewhat important
CHARACTERISTICS (afterward service => heel belangrijk
BUYING BEHAVIOUR Involvement of various functionalarea Involvement of family members
from both the ends (speciale nood) (je koopt wat je nodig hebt en kiestdan ook
Vb. Printer, je zal 1 kopen die snelkan wat er is, je laat je beïnvloeden door
printen, met een bepaalde kwaliteit technische specificaties
print, … ≠ niet customized)
Je kan je laten beïnvloeden door Je kan je laten beïnvloeden door je
technische specificaties familie
Purchase decisions are performance Purchase decisions are mostly
based and rational based on physiological/social needs
Technical expertise Relatively less technical expertise is
required
Stable interpersonal relationship Non-personal relationship
(je hebt een goeie band met het bedrijf (je koopt wat je nodig hebt en waar ze
waaraan je koopt omdat je zeook veel nodig het hebben, maar je hebtdaarom geen
hebt voor onderhoud) band met de verkoper)
CHANNEL More direct (face-to-face, band met ander Indirect
CHARACTERISTICS bedrijf omdat je ze nodig hebt)
Fewer intermediaries Multiple layer of intermediaries
PROMOTIONAL Emphasis on personal selling Emphasis on mass media (advertis-
CHARACTERISTICS ing)
PRICE Competitive bidding and negotiated List price (fixed prices)
CHARACTERISTICS price (geen vaste prijzen want ieder
product is eigenlijk anders doordat
het customized is)
List price for standard products
1
Business Marketing is the practice of individuals, or organizations, including commercial businesses, governments and
institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell
them, use them as components in products or services they offer, or use them to support their operations”
2
, lOMoAR cPSD| 13057305
Most of what? B2C or B2B? → B2B
Which group is geographically most concentrated? → B2B
Who’s buying on an international level? → B2B
Who’s has a steady relationship with its supplier? → B2B
Who can switch most easily towards another supplier? →consumer market
B2C = NOT LOYAL TO BRANDS
1.2 B2B DISTRIBUTION CHANNELS
20% => B2C (alleen de groene balk onderaan, customers
buying)80% => B2B (alle kanalen behalve groen)
→ het grootste deel van de marketing is B2B
1. 3 CHARACTERISTICS OF B2B DEMAND
DERIVED DEMAND:
= the demand for a good or service that results from the demand for another good or service
(kind of chain, demand starts with the customer and the on to the market. Travelling by plain
=> consumer wants a cheap flight, but there aren’t enough airplanes so they (ex. Ryanair)
have to buy new planes and start producing new ones who are made from a lot of things and
must be combined)
- New homes increases the demand for steel
- Labour (werk) is a derived demand
- Take up of e-cars increases demand for charging stations
- More digital devices lifts demand for cloud servers
You don’t buy shoes on a daily basis, but in B2B you
have to buy the parts of the shoes you want on a
daily basis
PRICE ELASTICITY:
= a change in price causes a bigger % change in demand
- A good is price elastic when an increase in prices causes a bigger % fall in demand
Ex. if price falls 20% and demand increases 80%, the PED = -0.4
↳ = Price Elasticity of Demand
Ex. E-bikes battery; the price of e-bikes increases with 20%, but the demand for e-bikes is nevertheless
increasing with 50%.
Vb. De elektriciteit staat hoog dus we letten meer op met de elektriciteit waardoor de V zakt
3
, lOMoAR cPSD| 13057305
PRICE INELASTICITY:
= a change in price causes a smaller % change in demand because there are few alternatives
Ex. if price of petrol falls 30%, but demand for petrol only decreases 10%
Vb. De diesel staat heel hoog qua prijs, maar we blijven nog steeds altijd even veel rijden = inelasticity
JOINT DEMAND:
= demand for product or services is interdependent on each other
Ex. price for fuel lowers => more cars will be bought Ex; Coffee, sugar and milk in making coffee
1.4 WHO ARE THE B2B BUYERS?
1 Commercial business (making profit)
• industry
• services
Ex. heavy industry that is disappearing => mines
2 Government
• local
Ex. creating roads, bridges,…
• national and supra national
Ex. The Belgian state also buys fighter jets, military equipment
3 Institutes
Ex. Medical equipment, computers at Artevelde
1.5 UNDERSTANDING B2B MARKET
1. product based
2. software based
3. service based
4
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