MODULE B — BUSINESS-TO-BUSINESS (B2B) MARKETING

B2B Marketing

marketing activities between businesses — where the customer is an organization, not an end consumer. It includes goods, services, and solutions sold from one company to another.

Derivative Character of Demand

B2B demand depends on consumer demand downstream.

→ If people stop buying cars, demand for tires and steel also drops.

Multiple Buying Influences

Many people are involved in the buying decision (technical experts, finance, procurement, etc.).

This creates multi-stage decision-making and complex evaluations.

Multi-Organizational Participation

Several organizations may influence the transaction: Buying firm, Vendor, Consultants, Regulators

Long-Term Nature of Business Relationships

B2B deals often lead to multi-year contracts, ongoing support, and future upgrades.

High Degree of Personal Interaction

Business relationships involve frequent meetings, negotiations, and relationship-building.

Salespeople and Key Account Managers (KAMs) play a crucial role.

Decision-Making Unit (DMU)

the group of roles involved in the B2B purchase decision. Also called the buying center

Initiator

Recognizes the need (e.g. department manager)

User

Operates the product/service

Influencer

Affects decision criteria (e.g. technical expert)

Gatekeeper

Controls information flow (e.g. assistant, IT admin)

Buyer

Handles formal purchasing

Decider

Final decision maker (e.g. CEO, CFO)

Brand equity

= the value a brand adds beyond product features

Buying Process

problem recognition, need analysis & vendor selection, system specification, purchase decision, purchase completion

hidden champion

strong leadership with ambition goals = depth, innovation, focus, competitive advantage, closeness to customer, global orientation