BtoB Marketing Séance 1/
06/09/24
4/12/2024 = Evaluation, QCM maybe we can have the test in French
Le marketing B2B
Les spécificités des marchés et du marketing B2B
- Déf et importance du marketing B2B
- Des clients moins nombreux qu’en B2C, souvent hétérogènes et influents
- la notion de filière
- l’influence de l’aval sur l'amont: la demande dérivée
- L’influence de l’amont sur l’aval
(B to B exchange represent almost ⅔(60%) of all the amount of the exchange of all the country in the E.u
Few products look out of hand off customers cause they need to be transformed.
For example the raw materials or secondary products like paper paste, financial investment
that are too high, like planes, machines.)
Difficile voir impossible de connaitre les échanges inter entreprise y compris les distributeurs, qui représenterait approximativement ⅔ des échanges commerciaux de l’union européennes
La différence s’effectue sur les caractéristiques des produits échangés car ils demandent:
- une transformation complexe: le pétrole, le charbon
produit dit secondaire (qui n’existe pas en tant que telle) ex: le papier détruit dans le processus de production
- Des investissement financier trop élevé:
- Des maintenances continue ex: les machines, fourneaux
Cette différenciation atteint vite ses limites pour les particuliers qui doivent acheter leur propre produit ex: le sable, l’eau, les voitures, la banque, l’assurance.
Définition et importance du marketing B2B
B. Des clients moins nombreux qu’en B2C , souvent hétérogènes et influents
En B To B l’échelle est considérablement réduite et certaines entreprises ont un nombre très restreint de clients (Loi de pareto).
- Alstom par exemple a principalement les sociétés des réseaux ferroviaire par ex SNCF
- Pour Dassault l’aviation française et étrangère.
En BtoB une entreprise peut n’avoir qu’une dizaine de clients, mais ils ont en règle générale..
Ce qui suppose donc des solutions adaptées. (one to one)
En BtoB on aura de la segmentation mais celle-ci va être beaucoup plus dure à réaliser.
Les clients en B2B ont un gros pouvoir de négociation. cf voir tableau porter
Pouvoir déséquilibrer , car les entreprise B2B peuvent détenir qu’1 seul client et doivent donc le garder, tous ceux- ci peuvent à cause du gros pouvoir faire baisser les marges d'une entreprise.
C- The concept of the supply Chain
(Cours sur Ametice)
Metso provides mineral processing systems (grinding, separation, etc.
general contract= grossiste
copper productuction = cuivre
wire= cable, fils
transformers: Transformateurs électriques
Rouleau de cuivre ultra fin pour créer des transformeurs
the importance of this example is to show that we are in the marketing core
(Pour comprendre un marché en BTOB il faut une cartographie précise de la chaîne de valeur (supply chain) du marché btob pour comprendre qui est upstream or downstream)
To analyze the btob market, we need to do a supply chain to understand who is downstream (en aval) and upstream (en amont).
The concept of this supply chain refers (or link) to the entirety of processes, actors and relationships involved in the production, transformation and the distribution of a product or a service considered in a particular industry.
Understanding the supply chain is essential as it allows companies to identifies their roles within the larger ecosystem, the needs of upstream suppliers and downstream customers and this interdepencies that shape market dynamite
shape : cartographié une chaîne de valeur qui permet de comprendre la fonction de filière et interdépendance.
D- The influence of Downstream on Upstream ( Derived Demand)
Un effet sur la consommation peut tout faire chambouler au niveau de l’impact upstream on downstream.
any change on the upstream can impact the downstream whether in good or bad
however
In order to anticipate qualitative and quantitative changes in demand, upstream actors must interpret the signals provided by downstream.
Insérer le schéma ↓
PNB: Produit National Brut = GDP = Good national brut
The refers to the machines used to extract
We can see in this graph that the GDP changes very slowly compared to the other curves
that means that the overalls wealth produced by the country evolve quite steadily (stable)
What this graph shows is that demand of machines happen much faster and are more unpredictable compared to aggregate production to averal in simple terms even in the economy changes slowly that all will change slowly too
requirely company to pay close attention to this changin
Even in the economy, GDP changes slowly, the demand for certain equipments
requiring companies to pay close attention to changes or variation
Insérer schéma n°2 ↓
1-Company develops expertise on it’s client’s customers,
Arcelor essaye d’influencer les clients de Renault afin de pousser les clients à demander de nouveaux produits.
BtoB companies are not only focused on their direct clients.
This business market strategy can take 2 forms:
- the company believe is better to serve client by gaining a deeper understanding of the need and behavior of its clients customers
The first approach the company believes that it will best serve is its client by gaining a deeper understanding of the need and behavior of its client customers so this market studies who are business. Their analysis can be good for them and Renault.
The goal is weather to provide better advices to its client these going further to this thunky solution or to adapt this own offering and convince intermediate
In both cases the company uses knowledge of downstream actors to influence relationships between final client and direct client.
2- Company addresses its client’s customers directly
Insérer schéma ↓
inversement du 2 et du 3
Du coup Dupont va promouvoir sa marque à chacune des échelles de sa chaîne de production.
- Du client au distributeur, à son client direct
La pub ne prend qu’une seule forme, selon à quel interlocuteur il s'adresse.
3- Obstacles to the downstream influence strategy
Commoditization (something that can limit the access of the upstream or the downstream) barriers
La hausse du prix peut être expliquée par des spéculateurs qui font artificiellement monter les prix. Elle n’est pas seulement expliquée par la véritable demande.
La hausse du prix du cuivre par exemple est dû à la spéculation faite sur le marché de la bourse, qui va influencer le prix.
While the demand for copper certainly influences its price on the commodities market, there are other factors at play that can cause fluctuations, and one of the most significant ones is speculation. When investors believe that the price of copper will rise in the future, they may buy futures contracts or the commodity itself, driving up demand and consequently, the price. This can create a speculative bubble, where the price increases are not necessarily justified by the underlying fundamentals of the market.
( rappel: more the chain is long more the effect take time, is weak) Longest is the chain, weakest is the exchange, plus un produit est commun plus l’influence est difficile parce que ca ne dépend pas que d’un acteur sur la chaîne )
Two reasons for the limits or brake of influence of upstream and downstream :
- Commoditations barriers
- Size of the chain (supply)
In this case, the possible downstream marketing stop in the cooper producer (Codelco), Metso, can't influence intermediates under CODELCO.
La barrieres de banalisation “stoppe” l’influence car l’opération de marketing ne sera pas rentable. C’est-à-dire que Metso peut essayer d’influencer Castorama mais cela ne serait pas rentable financièrement parlant pour lui.
La barrière s’arrête avant que le produit soit transformé et devienne traçable. C’est pour cela que ça se nomme “commoditization”.
Metso ne peut pas influencer la qualité du cuivre. Il vend juste son produit à un grossiste et n’aura donc plus la main sur son produit. Il ne saura pas la qualité et à qui le produit sera délivré.
If you have a project that influence the downstream you have to be sure that the marketing study be effective ( and not just a waste of money)
The company can break the commoditization barrier through associate services, by thinking of all sources of income.
Purchasing Decisions and Segmentation in B2B
- The importance of Purchases for the Company
- Purchasing Decision Processes in Companies are Collective
- The interests of the Company and the Individual in Corporate Purchasing Decisions
- B2B Market Segmentation
A. The importance of Purchases for the Company
Purchasing decisions : When you are in a B to B marketing, the second job is to find who is the buyer. Purchasing decisions are not that obvious because the buyer is not the one who thinks. Bc he has the power to decide.
In B to C when someone enters a shop it’s obvious.
In B to B is not obvious, because the buyer doesn’t have the purchasing decisions. The buyer is not always the decisional.
En BtoB, l’acheteur n’a pas la décision d’achat. L'acheteur n’est pas toujours celui qui décide.
You can differentiate offers with the companies who buy at a seller price.
Ex: In the Luxury Market, if we want to help them you can go to these luxury shops and sell them a better quality ( leather for exemple..)
The purchasing policy allows the company to:
- Differentiate the offer
- Lower production costs
- Reduce additional costs
B2B buyers follow organized procedures to select suppliers, purchase, and pay.
They must be able to justify the economic, operational, and technical logic
behind their choices.
B - Purchasing Decision Processes in Companies are Collective
The purchasing decisions aren’t collective. In B to B (most of the time) you can been in contact with the users, for instance, you are selling tools for companies you have the users (the person who use the tools) the buyer, and the manager ( between this two) Sometimes, eventually with the quotations are huge, the decision maybe collection ( the buyer the manager and the user ) can be united in a meeting to decide if it will going to buy.
In french we have “appels d’offre”, so we manage "un appel avec devis" and we have a real list of criteria. So the company is publishing a list with all the criteria. So all the potential suppliers realized this call with quotations with stricts proposals.
Les appels d’offres ce sont quand une entreprise avec des besoins va publier une liste de critères très spécifiques et d’autres entreprises vont répondre à cet appel d'offre.
In the B to B market of .
The buying center is an important concept which can be represented in a form of matrix. “Organizational buying behavior”
There are different types of people and different steps in the decision process:
Users: For example doctors in hospitals are drivers when purchasing a heavy duty truck..
Advisors : These are individuals whether within or outside the company who can influence the final decision with their opinions. They are often hard to identify but they can have a significant impact on the purchasing decisions.
Specifiers : they impose their choices, like an architect choosing specific construction materials. Or it can be the company’s engineering department selecting a component to integrate it into a part. (partie intégrante, ex pièces détachées d’une machine)
Filters : They are individuals who by the virtue of their position are in an attempt to assert power, try to intervene between suppliers, specifiers and users
Exemples: you can have the quality department, financial department. They are generally the filters.
Individus qui ont une volonté d’avoir une volonté de pouvoir, vont tenter de se mettre entre les grossistes et les autres acteurs. Ils sont embêtants mais il faut les prendre en compte.
Decision makers: they are two kind of decision makers:
- Those involved in the purchase decision, such as deciding on an investment in a new production line. Which means that decision makers can impact the functionnement of the new production line
- Those who are involved in the supplier's selections.
Buyers : Surprisingly often the purchasing department is not always the decision makers. They often execute decisions made elsewhere, buyers insure compliance with suppliers selection procedure and they manage older renewals to avoid shortages (rupture de stock). However in many companies buyers are not always administrative purchase agents.
The Webster and Wayne theory: highlights the idea that each stage of the purchasing decision process is influenced by these different actors each with their own interest and priorities.
BtoB purchasing decisions are therefore complex and require a certain understanding of the dynamics of power and require an understanding of power and influence within the company. This buying center is not formally represented on a organizational charts (organigramme)
But consist of people playing a key role at each phase of the decision-making process. This allows a better alignment of the sales strategy and the ability to gather the needs of the different stakeholders (partie prenante) which are involved.
Relational : Meaning that the relationship between the buyer and the seller is based on long term collaboration with a high degree of trust and interaction.
Transactional : Where the relationship is easier you may write lighter (léger) focused on the transaction itself without aiming to build a lasting relationship (relation qui dure).
Simple purchase : Referring to products or services that are easy to buy often standardized without needing customization or close collaboration.
Complex purchase: When the purchase is more complicated and requires deeper exchanges and closer corporation. For example : customize products or complex solutions such as industrial.
Simple purchase and transactional relationship :
- This is a standardized purchase with little long term relationship between the buyer and the seller.Price and availability are often the main criteria.
- Even though the purchase is complex, the relationship between the two actors remains limited to the transaction. There may be more technical exchanges but their relationship is not necessarily built on long term trust.
- Complex purchase with a complex relationship. In this case the purchase is complex & the relationship between the two is also stronger. The companies work closely together to meet specific needs through a long term trust based relationship.
- Simple purchase even though the purchase is simple it’s mainly a relational relationship. This can happen when a company frequently buys destandardized products but values a long term relationship with its supplier.
⇒ This diagram shows that the purchasing can either be purely transactional or based on a deeper trust based and understand who are your customers and what are their needs
Reasons for Purchase or Desired Benefits
- The criteria on which a B2B purchase is based are always much more numerous and often more sophisticated than in B2C
- The individual consumer typically seeks to simplify their life and avoid major mistakes, whereas the B2B manager must optimize the purchases for which TJC is responsible.
The seller’s effort should therefore focus on understanding and defining the specific needs of their prospects. These needs vary significantly from one client to another , which will result “tailor made” ( Fait main) approach or an adaptation of the offer to the client
(Les ventes en B to B sont souvent très personnalisées).
……..
(contrôle après les holidays )
Range : c’est la portée,
Un autre exemple de critère : for the company who offers Geneva Switzerland, the plane is making for some destinations is important ??? il a dit ça mais pq jsp
C. The company’s interest and the Individual’s Interest in Corporate Purchasing Decisions
Rational or Irrational?
Sometimes, decisions are not made in the best interest of the company and are instead driven primarily by the selfishness of decision-makers or in internal dysfunctions.
If the buyer is corruptible all the interests are individuals.
Ex: Rituals can say if you’re buying from us, we can give u a trip in the Bahamas. The buyer says yes so he is corrupted.
All the decision making process is run by a lot of criteria which influence the way of purchase decision.
- Power struggle within the Company (problème de gestion de pouvoir)
This occurs when an original manager refuses to follow the recommendation of the head office's purchasing department.
- Pressure from Shareholders and the Stock Market
This leads to advantageous investments when the price of raw materials is/ low. even though these industry are cyclical by such investment have a life spend of several decades
Privilégiez les investissement quand le prix des matières de premières sont basses malgré le fait que ces industries sont dans un environnement cycliques
- Judgment Errors and Other Flaws from Which Companies are not Exempt
For example the swedish the CEO of multinational after a solid presentation from one of these italian executives decide to hire a major american consulting firm for a study
Par exemple, le PDG suédois d’une multinationale à des travailleurs italiens. Il va quand même décider d’embaucher une entreprise américaine pour faire une étude de marché.
Il est possible d'émettre des faux jugements en lien avec la nationalité, par exemple une entreprise qui refuser des latins car ils sont considérés comme “ fainéants “
- The influence of supplier reputation
For some decision makers choosing a prestigious supplier, is a way to avoid risking their career. In the USA, it was often said “ nobody ever got fired for choosing ABM”. This was a testament to ABM power and expertise but did it always lead to the best choice?
Les critères de choix quand on fait de l’achat doivent être solides, basé sur l'expertise et le sérieux de l’entreprise…
- Emotion in Products
Industrial design improves the ergonomics and performance of products but also helps communicate their promises.
Le design d’un produit peut rendre le produit plus ergonomique et améliorer les performances du produit. Il peut aussi dégager des émotions qui peuvent influencer le futur acheteur.
- Decision makers “Pet project”
To sell to a small company, the distributor agreed to paint the machine bright red because the company’s owner was a ferrari fan. This type of irrational decision can also be found in large highly structured companies with strict control over purchasing decisions.
Even CEO’s of the largest corporation can have their “pet product” as evidenced by certain investment in sponsorship or philanthropy projects.
- Hidden Distorsions (mean corruption)
It's a common issue in certain regency and parts of the world (ex: in Africa). In reality, it would be more accurate to speak of average or hierarchy of corrupt practices as the boundaries between acceptable, tolerable and reprehensible behavior are often blurred.. Many companies forbidden their employees from receiving gifts from suppliers above a certain value.
Par exemple, certaines entreprises créent des chartes ( d’achat ou de bonne conduite) pour empêcher les employés de recevoir des cadeaux au-dessus d’un certain montant.
Some markets are only accessible by paying commissions that are described as hidden. (ex: weapons, military products
Though they may be in some cases recognised unexpectedly by company and tax authorities.
D- B2B Market Segmentation
The principles of segmentation are similar in both B2B and B2C, but the methods, criteria, and practices differ.
What is segmentation ?
Segmentation is grouping customers into subgroups with similar expectations and behavior in order to optimize the company’s strategy and marketing to better serve each market segment.
- Segmentation:Grouper les consommateurs dans des petits groupes avec des caractéristiques similaires pour rendre la stratégie de l'entreprise et le marketing plus efficace le pour chaque segment du marché.
The more heterogeneous the markets, the more segmentation is justified. B2B markets are much more heterogeneous than B2C markets. Therefore, segmentation is fundamentally essential in B2B, but its practice, and especially the segmentation criteria, are different.
Three differents approaches for segmentation :
- The one-to-one key account approach, or completely individualized treatment of each prospect and/or client.
⇒ When the number of current and potential clients is very limited. And each client is economically significant, each prospect or client is treated individually with customized products, services and marketing.
You may have a one to one approach or full, hybrid (= like one to one or segmented approach )
The spirits of segmentation is fully realized through this one to one approach,
- The dual approach: key accounts treated one-to-one, while other clients are resegmented
⇒ It is common for a company to have a market with client and prospect who’s nature and business potential vary greatly in this case segmentation begins by industry sector then within each sector, key accounts are isolated to be treated in a completely individualized manner while the other client , and prospect are further self-segmented.
- The segmentation of the potential market and the segmentation of clients.
In some cases, segmentation is primarily used for analyzing the potential market in other to guide prospecting and to adapt the offer one client are acquire they are treated individually,
B2B Segmentation criteria :
Such as gender, household income, age, personality, lifestyle of buyers and consumers are obviously not appropriate to analyze the market of B2B.
1 - B2C segmentation criteria cannot be directly applied in B2B.
2 - Economic criteria (industry, business potential, size, etc.) are much more significant in B2B than in B2C. The revenue a company can generate in B2C may vary by a factor of 1 to 3 between its largest and smallest clients. This difference is minor compared to the gap between a large corporation (like Saint-Gobain) and a small business with 5 employees in B2B.
3 - Desired benefits
Reasons for purchase or client benefits are crucial in B2B segmentation. The main benefits sought by each customer category are listed, and then weighted according to their importance for each type of client.
4 - Behavioral segmentation and segmentation based on Usage Situation
This includes factors such as purchase frequency, loyalty level or usage conditions
For a mind in operations it lasts 24h sur 24h, 7j/7
That kind of customer need all products all the time, and then you aree doing marketing for your productions based on your segment
5- Customers relationship : Nature and Intensity
You can also segment your market by distinguishing between transactional clients and relational clients, who seek a long-term trust-based relationship.
Maybe your company needs to get rid of the transactional customers. Because it costs a lot of money to have many customers.
A transactional customers can be in the future a relational customer
6- Personality and Lifestyle Criteria Used in B2C cannot be Applied as is in B2B
However, these criteria can be somewhat transposed to concepts like corporate culture, management styles, decision-making processes, and market, country, or regional-specific cultures.
Consigne:
Lister tous les bénéfices que pourrait engendrer notre cible et les peser afin de les classer entre elles.
Cours du 13/11/2024
Main categories of segmentation Criteria in B2B
1- Economic and Strategic Interest Criteria for Potential and Current Clients
- Industry sector
- Size and potential of revenue and profitability per client
- Transactional and relational clients
- Reference clients
The consumer can buy it in the future, mais pour l'instant ils n’achètent pas ni à nous ni aux concurrents. Les non consommateurs relatifs pourraient mais n’achètent pas.
2- Accessibility Criteria for Potential Clients
- Location : distance, impact on costs and service
- Familiarity with the cultural (languages), human, political, administrative, and technical environment of potential clients
- Barriers to entry : regulation (such as standards), competition
- The buyer’s sensitivity to the seller’s brand (the notoriety of the brand)
- The relationship that can be built
3- “Desired Benefits” Criteria for Buyers
- The strategic importance of the product or service in the client’s value chain.
- The alignment between the benefits sought by buyers and the characteristics of the seller's standard offering: performance, quality/reliability, price, safety, associated services...
- Characteristics related to the usage context.
- The level of customization (products, services, payment methods...) desired by the buyer.
- The nature of the benefits sought based on the buyer's status: technological level, types of equipment.
4 - Criteria Related to Clients' Management Systems and Culture
- Management styles: centralized / decentralized.
- The purchasing decision process. Segmentation of the decision-making sphere: decision-makers, influencers, filters.
- The values of the companies and their leaders.
Cours du 14/11/2024
The marketing Mix of B2B Companies
- Product policy in B2B
- Pricing policy in B2B
- Communication policy in B2B
- Distribution policy in B2B
- Product policy in B2B :
- Product are very often accompanied by service (ex: technical expertise)
- Goods are manufactured , services are provided , but solutions are sold.
(Sell better by solve a customer problem ex: during a sale interview, hey I can solve your problem )
- Helping to define the need is often an essential part of the offer > (Free process of the sales)
- B2B goods are produced in factories but the B2B offer is often shaped in the field in collaboration with the buyer.
- The offer creates value for the client and sometimes for the client’s customers
B. Pricing policy in B2B
- The significance of price for the buyer
- The challenges of defining a pricing policy
- The main pricing methods
- Payment terms
- Warranties and additional services
How a buyer buys in B2B (how he chooses a supplier than another): they make a list (price, delivery, reliability, reformers.ivery, reliability) and they do a scoring system on each criteria. We put some coefficient because for example, the buyer cares more about performance than price. They look if they make their freakkk (à prendre avec des pincettes)
It’s hard to define a pricing policy because there are a lot of negotiations.
All the intel in your market, for example if you’re selling something with steal, the buyer will tell you why there is this steal? Why is the price getting low?
Les grilles de prix sont la méthode standard.
Pricing schedule is the standard method.
Then you have the tenders ( appels d’offres) in this case the buyer will specify consumers to submit a proposal, a method proposal, a method or criteria used to determine the best offer.
The last method is the most used in B2B.
4. In B to B you can pay after 40 days after the shipment. This delay affects 6 33the non payment risk and affects their cash flow.
In France the 2008 law on the modernization of the economy is known as an “LME law“. Impose a maximum payment terms of 45 days at the end of the month or 66 days from the invoid days.
Negotiation warranties is an important e for complex and strategic transactions. Several warranties may be required.
Manufacturing defect warranties , the buyers often demand a free extension of the standard warranties and the a paid option for a warranty extension
2/ Delivery time warranty, with possibility of late penalties = warranties the delay of delivery
C - Communication (Promotion) Policy in B2B
1 - Adapting communication policies to B2B challenges
- B2B communication is often less spectacular than B2C communication but more interpersonal
- Not all communication efforts are budgeted and aggregated, which often leads to underestimating their actual importance
- Information rather than persuasion
- Types of contacts with highly variable costs depending on the degree of personalization in the communication
Foire\Salon :
2- B2B Communication Media & Channels
- Trade fairs
- Specialized press
- Corporate publishing, both online & offline
- Event-based communication, bradley defined
- “Corporate academies”
D- Distribution Policy in B2B
1- The challenges of B2B distribution
- The distribution network plays an essential and critical role in B2B
- The balance of power often favors producers
- Various channel choices: short or long channels
Raison pour lequel un B2B devrait développer un canal de distribution long plutôt que court:
- Geographical coverage reaching…. segment client or peripheral segment not already served
- U need to compliment the offer w/ services that can be delivered in the field
le besoin de compléter une offre tangible par des services pouvant être seulement efficacement délivrer sur le terrain à proximité des distributeur.
The distribution options are always numerous. Fully integrated or non integrated distribution subsidiaries multiline agence exclusive distributors…….
Direct channel : the integrated sales network is better controlled, however it often happens that a polite managed salesforce leads to opposite results. The search for performance and a maximization of bonus is a powerful motivator for goods sales people. The direct channel gives the company a better choice of control, if the direct channel is wellmage the company will fully benefit from the market by recovering the distribution margin.
Problem is in the case of a market downturn, the company has to handle all the cost of the direct channel and the associated expensive