XIME / PGDM–RS–0105-January-2010 Welcome to B2B Marketing PGDM Class of PGDM–RS–01 Amarnath Krishnaswamy

XIME / PGDM–RS–0105-January-2010 Plan for this Session About Your Instructor About this Course B2B – an overview

XIME / PGDM–RS–0105-January-2010 Amarnath Krishnaswamy Visiting Professor, XIME & IIMB B.Tech (Chemical) : IIT Madras, 1971 PGDM : IIM Calcutta, 1974 Experience – More than 30 years Marketing of industrial and consumer goods Greenfield projects Business Head

XIME / PGDM–RS–0105-January-2010 Contact Me Location Telephone –XIME: Extn. –Res: , –Mobile: For submissions and queries

XIME / PGDM–RS–0105-January-2010 Course Schedule Regular Sessions –Tuesdays1510 – 1655 hrs –Thursdays1510 – 1655 hrs Session details in Course Description Document

XIME / PGDM–RS–0105-January-2010 Course Administration Course Administrator: Dean’s Office Functions: (Information relating to) Submissions, handouts, schedules

XIME / PGDM–RS–0105-January-2010 Course Material Reading Material and Handouts –Will be given to you as the course progresses Text Books/ Recommended Reading –Business Marketing Management: B2B. Michael D. Hunt & Thomas W. Speh Cases for discussion: –Will be intimated at appropriate times. Slide ware –You will receive softcopies of the slides used by mail after every session

XIME / PGDM–RS–0105-January-2010 Grading & Evaluation … (1) Grading Scheme –As per the “Course Description” document Submissions and Assignments –Schedule as per “Course Description” –Hardcopy to be submitted to the Office – address for soft copy submission:

XIME / PGDM–RS–0105-January-2010 Grading & Evaluation … (2) Submissions and Assignments (Continued) –Give Roll No-Name-Assignment No in the Subject Line of the message e.g. xxx-Vinay Kumar-Assignment 1 –Late Submissions will be penalized Ethical Practices –Will be dealt with sternly –If in doubt, ask! –The intention is for you to learn, not to lean..

XIME / PGDM–RS–0105-January-2010 Student Representatives Volunteer: ? Roll # : Mob: Team Reps: One for each team Volunteers ? Team 1: Roll # : Mob: Team 2: Roll # : Mob: Team 3: Roll # : Mob:

XIME / PGDM–RS–0105-January-2010 What is B2B Marketing?

XIME / PGDM–RS–0105-January-2010 B2B … Market –Buyers & Sellers –Exchanging goods, services, money Market system has 3 elements –Participants –Channels –Relationships B2B marketing –Customers restricted to organizations Businesses Governments Institutions

XIME / PGDM–RS–0105-January-2010 B2B – In this session we’ll look at Business Marketing Management Factors that influence the demand for business goods & services Types of customers Types of goods Buying processes Basic characteristics of the products and services

XIME / PGDM–RS–0105-January-2010 B2B - Marketing Management … analysis, planning, implementation and control... of the B2B marketing system Philip Kotler

XIME / PGDM–RS–0105-January-2010 B2B – ‘Demand’ … (1) What is the single characteristic that defines the demand for ‘business’ goods & services? It is ‘derived’!

XIME / PGDM–RS–0105-January-2010 B2B – ‘Demand’ … (2) Consequently it’s important to monitor final consumption Important to understand ‘derived’ demand to –Forecast –Stimulate Price sensitivity

XIME / PGDM–RS–0105-January-2010 B2B – ‘Demand’ … (3) Final consumption influenced by these factors: –Competitive : Domestic and global –Economic –Political –Legal

XIME / PGDM–RS–0105-January-2010 Discussion! B2b vs. Consumer Marketing 1.Type of selling  Business - Personal  Consumer- Advertising 2.Service  Business- ‘Service’: large proportion  Consumer- ‘Service’: relatively small 3.Focus  Old- Transactional  New- Relationship

XIME / PGDM–RS–0105-January-2010 B2B – Types of Customers Broadly 4 categories –Users –Original Equipment Manufacturers (OEM) –Distributors / Dealers –Others Government Institutions Categories can overlap Categories determine motivation for buying

XIME / PGDM–RS–0105-January-2010 B2B – Types of Goods Broadly, 3 categories 1.Entering goods –Raw materials –Components 2.Foundation goods –Buildings & Installations –Accessories 3.Facilitating goods –Supplies, including maintenance & repair –Services

XIME / PGDM–RS–0105-January-2010 B2B – Buying processes Characteristics of the good determines the ‘buying’ process What would you use for XIME ‘selling’ seats in the college to you, and why? –Personalized vs. mass media –Own organization vs. contracted –Any other?

XIME / PGDM–RS–0105-January-2010 Moving Forward Next Class PGDM-RS-02: Thursday, Jan 07, 2010 Read: –Business Marketing Management: Hunt & Speh Chapter 2: The Business Market Chapter 3: Building Relationships Chapter 4: Organizational Buying Behavior

XIME / PGDM–RS–0105-January-2010 Finally … on a lighter note! Hanlon’s Law Never attribute to malice that which can be adequately explained by stupidity. Sturgeon’s Second Law Ninety percent of everything is crud!!!!

XIME / PGDM–RS–0105-January-2010