Business-to-Business Internet Marketing - PowerPoint

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					Business-to-Business Internet
           Week 14
• 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
      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 to the B-to-B
  Target the right customers
• Own the customer’s total experience
• Streamline business processes that affect the
• Provide a 360-degree view of the customer
• 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
Barrier            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
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
• 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
• Cisco excels in pre-sales and after-sales customer
• UK DCS uses online monitoring to reduce costs
  and improve customer services

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