1. Introduction to business-to-business (B2B) marketing

Definition of business-to-business marketing

“At the center of business-to-business marketing are transactions between companies and organizational customers”

→ Constitutive core: Buyers are companies and not individual end customers (consumers)

→ B2B marketing is now the common term for what used to be industrial marketing

→ Broader understanding as it includes

→ Marketing of consumer goods to wholesalers and retailers

→ Relationships between pharmaceutical firms and both hospitals and physicians

→Marketing of services to organizational customers

B2B vs. B2C hidden champions

Hermann Simon - “Only few … European Hidden Champions will emerge (in the consumer-oriented digital markets). ... I see the perspective a lot more positively in industrial B2B markets.’’

business 2 business - pharmaceutical products

he is saying: b2c - USA + China - amazon, tiktok, Facebook difficult for european companies to catch up. but in b2b it is possible

The hidden champions concepts

Fulfilling 3 criteria to be classified as a “Hidden champion” company

1. Top 3 in its market worldwide and number 1 on its continent

2. Revenues smaller than 5 billion EUR

3. Small level of awareness in the general public

→ Many B2B companies fall within this categorization (especially due to criterion number 3)

Typology of organizational customers

Basic characteristics of business-to-business marketing

Characteristics of B2B marketing:

Derivative character of the demand

High degree of interaction

Long-term nature of business relationships

Particular relevance of services

High degree of individualization

Multiple buying influences → See 2.2 Multi-organizational participation High degree of formalization

Illustration of the derived demand

Example of a synthetic materials manufacturer:

A conceptual framework for approaching the customers’ customers in B2B markets

Illustration of multi-organizational participation

there is not only 1 organisation that is relevant but now more

Selected characteristics of B2B marketing (1)

High degree of formalization

• Extent to which purchasing decision processes are governed by written procedural guidelines

• Examples:

• How many alternative offers from different suppliers

• Evaluation criteria

• Involved stakeholder

High degree of individualization

• Very specific requirements by many organizational customers

• “Standard products” are a rarity

Particular relevance of services

• Especially for complex products or high level of investment

• After sales services (e.g., maintenance)

• Training

• Financial services

Selected characteristics of B2B marketing (2)

Long-term nature of the business relationship

• Longevity of products

• Importance of ongoing services

• High specific investments by one or both parties

High degree of interaction

• Personal contacts key success factor

• Important role of

• Personal selling

• Systematic customer relationship management

Business types in B2B marketing