B2B Marketing Class Two 4P’s of Marketing Kent Lewis

Class Two Agenda Class Project Guest Speaker Marketing Mix Product Price Place/Distribution Promotion

Project & Presentation Overview Assignment Requirements Timeline Guest Speaker

Marketing Environment External market forces Economic Sociocultural Political Competitive Legal and regulatory Technological

Marketing Planning Marketing plan Research SWOT analysis Objectives Strategies Implementation Evaluation Marketing information systems (MIS) Internal and external data Sales, costs, inventory, marketing activities

B2B Buying Behavior Evaluation of product attributes Quality – industrial strength Price – quantity discounts Service – dedicated 24/7 support Buying process Description Inspection Sampling Negotiation

Product Definition Tangible and intangible attributes and expected benefits resulting from the purchase of a good, service or idea Industrial product classifications Raw material Major and accessory equipment Component part Process material Support supplies and services

Product Product line Individual – house of brands Family – branded house Product mix Width – number of lines Depth – average number within each line Packaging – container Labeling – information presentation

Pricing Supply and demand curves Price competition – priority over cost Non-price competition – quality, service, packaging, promotional distinctions Pricing Objectives Survival Profit maximization Target return on investment Market share Status quo

Pricing Pricing methods Cost-based – cost plus markup Demand-based – variable through cycle Competition-based – dynamic or static Pricing strategies New product – skimming vs. penetration Psychological – odd, multi-unit, prestige, lining Geographic – FOB origin or destination Discounting – trade, quantity, cash

Place/Distribution Distribution channels Producer Agent/middleman/representative Wholesaler Retailer Consumer/business user Market Coverage Intensive – all available outlets Selective – portion of outlets Exclusive – single outlet

Place/Distribution Supply chain management – partnership Manufacturing Research Sales Marketing Shipping/logistics Vertical marketing systems – integration of one or more stages of distribution channel to decrease costs or increase profits

Place/Distribution Non-store Retailing Direct selling – door-to-door, personal Direct marketing – non-personal media Catalog Direct response Telemarketing Internet Physical distribution Inventory management – 28% of costs (carrying) Order processing Warehousing – 25% of costs Materials handling Transportation – 35% of costs

Promotion Definition Communication about an organization and its products that is intended to inform, persuade or remind target market Promotion mix Sales promotion – sales incentives Personal selling – product sales Public relations – brand preference (class 4) Advertising – brand awareness (class 4) Marketing media Print, outdoor, broadcast, Internet

Promotion Marketing objectives Providing information Increasing market share Positioning the product or service Stabilizing sales

Sales Promotion Methods Rebates Coupons Samples Premiums Affinity programs Point-of-purchase displays Trade shows Buying allowances Cooperative advertising

Resources Ad Age – AMA – Cooler – DMA – Forbes – Fortune – Inc. – MarketingSherpa – PAF – PRSA – PR Week –

B2B Marketing Read Silverstein Bring in news, questions and comments See you next week Kent Lewis