Business-to-Business Internet Marketing

Week 14

Objectives

• Business to business versus business to consumer markets

• The nature of business to business market

• International business to business marketing

• Case studies of best practice

Market Structure

• Fewer but larger buyers

• Suppliers are well known

• Correspondingly small number of competitors

Nature of the Buying Unit

• Users

• Influencers

• Buyers

• Deciders

• Gatekeepers

Type of Purchase

• Low volume high value orders – low internet involvement

• High volume low value orders – more suitable for the internet

E-commerce benefits

• Easy for purchaser to assess whether item is in stock

• Order can be completed at any time of day or night

• Re-buys or repeat orders are easy to specify

• Delivery can be tracked online

• Purchasing history can be reviewed

Communication Differences

• Balance of communication mix is different, with advertising and sales communication often merely being vehicles to support personal selling – internet will not change this mix

• Below the line techniques tend to be more common easily supported by the internet

• Business product tend to be higher involvement, the internet can provide greater depth

Applying the Principles of Customers.com to the B-to-B

Market• Target the right customers• Own the customer’s total experience• Streamline business processes that affect the customer• Provide a 360-degree view of the customer

relationship• Let customers help themselves• Help customers do their jobs• Deliver personalized service• Foster community

Transactional E-commerce

• Businesses are familiar with using the similar techniques of EDI

• There is more pressure on businesses to trade using e-commerce

• Business-to-Business relationships are often long term, making it more worth while for businesses to set up links between business partners

• The volume of transactions is often higher, thereby justifying the outlay

• Significant cost saving can arise through use of B-to-B e-commerce

International B-to-B marketing

• ‘a 24 hour order taking and customer service response capability

• Regulatory and customs-handling experience to ship internationally

• In-depth understanding of foreign marketing environments to assess the advantages of its own products and services

The Role of the Internet in Overcoming SME Resistance to

ExportingBarrier How the Internet can assist

1 Psychological Can help increase knowledge of overseas markets. Provides success stories of companies that have become exporters. International enquiries to prototype web sites can highlight demand

2 Operational E-commerce facilities can simplify the handling of international transactions. Can supply information on export issues

3 Organizational Overcomes lack of financial and staff resources for selling abroad. Provides knowledge of international markets and cultures. Creates networks of partners

4 Product/market Feedback from customers or market research facilitated by internet may indicate the suitability of products for the overseas market

B-to-B Case studies of Best Practice

• e-STEEL enables trading between buyers and sellers in a virtual marketplace

• Product evaluation and selection – Marshall Industries product

• Boeing uses PART web site to streamline ordering process

• Cisco excels in pre-sales and after-sales customer service

• UK DCS uses online monitoring to reduce costs and improve customer services