Samenvatting Business Marketing
Chapter 1 – What is business marketing?
WHAT IS BUSINESS MARKETING? (MET EIGEN WOORDEN KUNNEN UITLEGGEN)
“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”
Recticel: isolation
BUSINESS VS CONSUMER MARKETING (NIET VANBUITEN LEREN, ALS JE ÉÉN LEEST WETEN BIJ WAT HET HOORT)
It is not about the product itself it is about the service mass market: Zalando
,B2B DISTRIBUTION CHANNEL - CHARACTERISTICS
Only distribution to customer is consumer marketing. All the rest is Business Marketing. B2C:
first one (green: less complexer) (20%) / B2B: all the rest 80% (most of B2B: complex)
There is always a switching cost. This is when you change from distributor.
Which group is geographically most concentrated?
Who’s buying on an international level?
Who’s has a steady relationship with its supplier?
Who can switch most easily towards another supplier?
CHARACTERISTICS B2B
CHARACTERISTICS OF B2B DEMAND
Derived demand: (afgeleide vraag)
The demand for a good or service that results from the demand
for another good or service.
- A lot of people want to fly with Ryanair because the tickets
are cheap, so Ryanair has to invest in more Airplanes. This is
an example of a demand that results from another demand.
The people buying the seats is the direct demand, all the rest is derived demand.
2
,The chain of derived demand: (Exam: explain the derived demand of an example?)
Everything that comes before the shirt is B2B. Cotton is a raw material, low level of design…
Before you have a finished product it has to go through a couple of stages. (flour and bread)
Price Elasticity:
A change in price causes a bigger % change in demand. A product is price elastic
when an increase in prices causes a bigger % fall in demand. Prices up sales
will go down. For example: if price falls 20% and demand increases 80%, the PED
(Price Elasticity of Demand) = -4.0.
Remarkable example: E-bikes battery → When the price of e-bikes increases with
20%, but the demand for e-bikes is nevertheless increasing with
50%. This is special!
Joint Demand:
Demand for product or services is interdependent (afhankelijk van)
on each other. When the price for fuel lowers, more cars will be
bought. When the fuel-prices rise, less cars will be bought. Ex:-
Coffee Powder, Sugar & Milk in Making Coffee; Razor, shaving
cream, razor top attachment (Gillette)
Price Inelasticity:
A change in price causes a smaller % change in demand because there are few
alternatives. If price of petrol increases 30%, the demand for petrol only falls
10%, because there are few alternatives. When the price of a loaf of bread rises
10%, the same % will still buy it. Prices are high, but we really need it, so we buy
it anyway.
WHO ARE THE B2B BUYERS?
- Commercial businesses
Such as industries, services (Google) / Apple is service industry not a production
industry: they develop new products and then China produce it
- Governments:
Could be local (city hall asks for roadworks), national and supranational (Belgian
parliament asks for joint strike fighter) (huge budget)
- Institutes
Such as hospitals (they need machines to operate), schools (we need infrastructure,
3000 dell computers)
3
, UNDERSTANDING B2B MARKET & ENVIRONMENT WITH BUYERS PERSPECTIVE (geen
definities leren, gewoon verstaan)
In Belgium we don’t have many productive industry anymore. There used to be a lot of
factories in Wallonia but it all closed down so now most jobs are in the Flemish part which is
most service based.
Product based: Software based: it’s all about technology activities
Service based:
4
Chapter 1 – What is business marketing?
WHAT IS BUSINESS MARKETING? (MET EIGEN WOORDEN KUNNEN UITLEGGEN)
“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”
Recticel: isolation
BUSINESS VS CONSUMER MARKETING (NIET VANBUITEN LEREN, ALS JE ÉÉN LEEST WETEN BIJ WAT HET HOORT)
It is not about the product itself it is about the service mass market: Zalando
,B2B DISTRIBUTION CHANNEL - CHARACTERISTICS
Only distribution to customer is consumer marketing. All the rest is Business Marketing. B2C:
first one (green: less complexer) (20%) / B2B: all the rest 80% (most of B2B: complex)
There is always a switching cost. This is when you change from distributor.
Which group is geographically most concentrated?
Who’s buying on an international level?
Who’s has a steady relationship with its supplier?
Who can switch most easily towards another supplier?
CHARACTERISTICS B2B
CHARACTERISTICS OF B2B DEMAND
Derived demand: (afgeleide vraag)
The demand for a good or service that results from the demand
for another good or service.
- A lot of people want to fly with Ryanair because the tickets
are cheap, so Ryanair has to invest in more Airplanes. This is
an example of a demand that results from another demand.
The people buying the seats is the direct demand, all the rest is derived demand.
2
,The chain of derived demand: (Exam: explain the derived demand of an example?)
Everything that comes before the shirt is B2B. Cotton is a raw material, low level of design…
Before you have a finished product it has to go through a couple of stages. (flour and bread)
Price Elasticity:
A change in price causes a bigger % change in demand. A product is price elastic
when an increase in prices causes a bigger % fall in demand. Prices up sales
will go down. For example: if price falls 20% and demand increases 80%, the PED
(Price Elasticity of Demand) = -4.0.
Remarkable example: E-bikes battery → When the price of e-bikes increases with
20%, but the demand for e-bikes is nevertheless increasing with
50%. This is special!
Joint Demand:
Demand for product or services is interdependent (afhankelijk van)
on each other. When the price for fuel lowers, more cars will be
bought. When the fuel-prices rise, less cars will be bought. Ex:-
Coffee Powder, Sugar & Milk in Making Coffee; Razor, shaving
cream, razor top attachment (Gillette)
Price Inelasticity:
A change in price causes a smaller % change in demand because there are few
alternatives. If price of petrol increases 30%, the demand for petrol only falls
10%, because there are few alternatives. When the price of a loaf of bread rises
10%, the same % will still buy it. Prices are high, but we really need it, so we buy
it anyway.
WHO ARE THE B2B BUYERS?
- Commercial businesses
Such as industries, services (Google) / Apple is service industry not a production
industry: they develop new products and then China produce it
- Governments:
Could be local (city hall asks for roadworks), national and supranational (Belgian
parliament asks for joint strike fighter) (huge budget)
- Institutes
Such as hospitals (they need machines to operate), schools (we need infrastructure,
3000 dell computers)
3
, UNDERSTANDING B2B MARKET & ENVIRONMENT WITH BUYERS PERSPECTIVE (geen
definities leren, gewoon verstaan)
In Belgium we don’t have many productive industry anymore. There used to be a lot of
factories in Wallonia but it all closed down so now most jobs are in the Flemish part which is
most service based.
Product based: Software based: it’s all about technology activities
Service based:
4
