Lecture 1
B2B marketing
B2B marketing = companies selling products or services to other companies.
• Focuses on creating value and long-term relationships
• More complex, strategic, and involve more people than B2C marketing
• Connects company resources to the right customer demand
Companies are part of a network of many connected organizatins.
“No business is an island”
Who are the B2B customers?
Derived demand
Demand in B2B comes from end users. Companies must forecast demand carefully.
If customers buy more cars → car producers need more parts → suppliers get more
demand
,Why do firms exist?
Based on transaction cost theory:
• Firms exist to reduce costs of doing business
• Working through markets can be expensive (contracts, risks, coordination)
• Companies organize activities internally to be more efficient
Governance in B2B relationships
SAM framework = explains why cooperation between companies can be difficult.
• Safeguarding (protection problem) = partners may act in their own interest
(opportunism), this happens when investments are specific (hard to replace).
Companies need to protect themselves.
• Adaptation (flexibility problem) = the future is uncertain, unexpected changes can
happen.
Companies must be able to adapt and adjust agreements over time.
• Measurement (information problem) = it’s hard to see or measure what the partner
is doing, there is information asymmetry.
Companies need ways to monitor and evaluate partners.
,Key behavioral assumptions
• Bounded rationality = managers can’t know or process everything, the world is too
complex
• Opportunism = people may act in self-interest in a dishonest way
Customer Value Marketing
Value for the customer → value of the customer
Approach: designing, organizing, branding, and delivering a superior value to targeted
customer segments.
Results: customers experience a superior value, are satisfied, have a trust-based relationship,
and are committed and loyal towards the supplier.
CVM principle 1
Three business approaches
, 1) Product-based approach
• Traditional marketing
• Focus on selling products
• Inside-out thinking
• Reactive
• Less effective today in B2B markets
2) Value-based approach
• Most common
• Focus on customer needs
• Outside-in approach
• Proactive
• Important in many B2B markets
3) Co-creation approach
• Work together with customers
• Create value together
• Outside-in approach
• Proactive
• Future of B2B
B2B marketing
B2B marketing = companies selling products or services to other companies.
• Focuses on creating value and long-term relationships
• More complex, strategic, and involve more people than B2C marketing
• Connects company resources to the right customer demand
Companies are part of a network of many connected organizatins.
“No business is an island”
Who are the B2B customers?
Derived demand
Demand in B2B comes from end users. Companies must forecast demand carefully.
If customers buy more cars → car producers need more parts → suppliers get more
demand
,Why do firms exist?
Based on transaction cost theory:
• Firms exist to reduce costs of doing business
• Working through markets can be expensive (contracts, risks, coordination)
• Companies organize activities internally to be more efficient
Governance in B2B relationships
SAM framework = explains why cooperation between companies can be difficult.
• Safeguarding (protection problem) = partners may act in their own interest
(opportunism), this happens when investments are specific (hard to replace).
Companies need to protect themselves.
• Adaptation (flexibility problem) = the future is uncertain, unexpected changes can
happen.
Companies must be able to adapt and adjust agreements over time.
• Measurement (information problem) = it’s hard to see or measure what the partner
is doing, there is information asymmetry.
Companies need ways to monitor and evaluate partners.
,Key behavioral assumptions
• Bounded rationality = managers can’t know or process everything, the world is too
complex
• Opportunism = people may act in self-interest in a dishonest way
Customer Value Marketing
Value for the customer → value of the customer
Approach: designing, organizing, branding, and delivering a superior value to targeted
customer segments.
Results: customers experience a superior value, are satisfied, have a trust-based relationship,
and are committed and loyal towards the supplier.
CVM principle 1
Three business approaches
, 1) Product-based approach
• Traditional marketing
• Focus on selling products
• Inside-out thinking
• Reactive
• Less effective today in B2B markets
2) Value-based approach
• Most common
• Focus on customer needs
• Outside-in approach
• Proactive
• Important in many B2B markets
3) Co-creation approach
• Work together with customers
• Create value together
• Outside-in approach
• Proactive
• Future of B2B
