Business to Business

In today’s lesson we looked at business to business marketing. Business to business marketing is all about selling to other business. There four main differences between business to business marketing and marketing to a consumer the main four differences are …

Business to business decision making process is far more complex that that of marketing to a customer. This decision making process could involve lots of different stakeholders because they have to make the right decision, it also can take months and possibly years to sometimes make a decision on weather or not they will purchase a product.

Business to business products are more generally more complex than consumer products. By this I mean that they tend to be more complex I.e. a mri scanner as opposed to a printer

The video below shows how business to business marketing has changed due to the internet

Business to business marketers address a much smaller number of consumers who are very much larger in their consumption. By this I mean coke would sell to Tesco on a much larger scale, so it is one consumer purchasing on a much larger scale this could be up to hundred’s of thousands rather than selling directly to the individual customer who may only buy a few at any one time

Business to Business marketing tends to be more face to face rather than advertising. This is important for the company to build a good relationship because it will be spending a lot of money and they need to know they can trust the company it is buying off of.

the diagram bvelow shows all of the steps nessceary in b2b marketing

During the lecture we also looked at FTPEPS which I touched upon during the gift giving lecture.
Using the FTPEPS we then analysed the risks for… Coca-Cola, Software Supplier and a MRI Scanner Manufacturer.


Coca - cola = (1)
Software supplier =(2)
MRI Scanner = (3)

Financial
high 1
high 2
high 3

Time
high 1
high 2
high 3

Performance
high 1
high 2
high 3

Ego
high 1
high 2
high 3

Physical
low 1
high 2
high 3

Social
low 1
high 2
high 3


After this we looked at demand of a product and how elastic it is, by this I mean when coca cola is in high demand the products that are needed to make that one product also become in high demand. The more substitutes the more elastic demand will be. Elasticity refers to the amount that can be spent on a particular good or service so the more substitute products there are the more elastic the price could be.