2.7 B2B: Place Marketing Part1

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From the course by Yonsei University

International B2B (Business to Business) Marketing

139 ratings

Yonsei University

International B2B (Business to Business) Marketing

139 ratings

Course 3 of 6 in the Specialization International Marketing & Cross Industry Growth

This course offers a unique perspective into the differentiating aspects of business to business (B2B) marketing that can be contrasted to traditional business to consumer (B2C) marketing that is the subject of most other marketing curricula. Moreover, as one of the courses in the Specialization: International Marketing & Cross Industry Growth, here too there is an emphasis on how companies can expand by cross-country and cross-industry innovation. By taking this course learners will obtain the following outcomes: (1) understand the differences between B2C and B2B marketing. (2) approach marketing problems from an inter-organizational perspective, in particular, learn about decision making at buying centers. (3) innovate B2B marketing via a CCCI, i.e. Cross Country & Cross Industry Innovation approach. (4) gain insights about CCCI Innovation and best practices via interviews with top B2B industry experts.

From the lesson

B2B Marketing Mix

During Week 2, learners will begin to dive more in depth to the specific B2B marketing elements, i.e. product, price, place and promotion. For product marketing, the key emphasis will be on how customer needs are defined in the organization during the total buying process. For price marketing, given the B2B2C nature of including the end-user, price and value, as well as costs, can be varied depending on the application. For place marketing, based on the principle that distribution is the analysis of service or functions demanded by the customer, learners will understand when and how the total channel can be designed by the various channel members including the manufacturer. For promotion marketing, boxing is used as an analogy of the combination and sequence of communication tools that a marketer can use to gain attention, instill interest, stir desire and finally move customers to action. There is a practice quiz and a graded quiz in Week 2 for learners to accustom themselves to a formal evaluation of B2B marketing mix knowledge acquisition.

2.1 B2B: Product Marketing Part18:26

2.2 B2B: Product Marketing Part27:04

2.3 B2B: Price Marketing Part17:24

2.4 B2B: Price Marketing Part29:23

2.5 B2B: Promotion Marketing Part18:25

2.6 B2B: Promotion Marketing Part26:47

2.7 B2B: Place Marketing Part16:49

2.8 B2B: Place Marketing Part27:23

Meet the Instructors

Dae Ryun Chang
Professor of Marketing
School of Business

Welcome to this segment, B2B Place Marketing.

In this segment, we'll talk about what place means on a very fundamental level,

almost as a recap.

We'll talk about the type of service, or

function add-ons that can be made available by middle men.

We can think of a channel like a travel route and

finally I will conclude by offering a very easy way for

you to organize your channel strategy, so let's get started.

Okay, so what is place?

So simply put, place of course means distribution, and

distribution can be thought of as being like service add-ons,

and by that, neither of the type of services that a middle

man can offer to smooth out the gaps that exist between a seller and

a buyer whether it's in the B2C realm or in the B2B realm.

And services can also even be seen as being an augmented product.

So I think service marketing and solution marketing have many things in common.

Okay, so by services, what type of services are we referring to?

Well, it could be related to how to make the consumption of our products better and

again in here it could be in the B2C realm.

Because all B2B is B2B2C.

So we can think in terms of how to make, the consumption by end users better.

And given the fact as we'll see later the end users sometimes reached by us,

it's not just middle men we're talking about.

But it could also be us.

How to make the product easier, in terms of time, in terms of location,

in terms of having a better assortment of products,

in terms of making the quantity in some cases smaller but in some cases larger and

also in terms of customizing the product better to the ultimate end use.

We can also think in terms of how to make the production easier.

Let say if you are middle man you can help in terms of selling.

You can help in terms of assembling of the product locally,

and this is especially true in the case of international B2B.

It could also be being the on-site

provider of technical support, if you have that competency.

It could also be providing a consistent level of service, again, on site.

Which a small manufacturer of course cannot do everywhere.

So as we can see there is this host of a services or

function add-ons that a middle man can help you provide.

So I think a good analogy of distribution or place is that of

travelling because if you're going from one place, and

let's say that place is being the manufacturer, to another.

The shortest distance between two points is a straight line but

that's not always possible.

That's not always possible.

But in the case of B2B, it can be, more so than in a B2C situation.

Especially, given that you have fewer and larger buyers.

But even in B2B, sometimes you may have many buyers.

Many buyers abroad, so that direct kind of channel cannot always be achieved.

So, you may have to go indirect, and

get the help that you need, such as the functions that I alluded to before.

And, in some cases, you may have even more tiers,

not just middleman that helps you, but

another tier middleman that helps you as well.

So given the situation that you're in and given the kind of demand of

service add-ons or functions that's demanded by the market,

there may be a variety of travel routes that can be taken.

So it's like how we travel.

Depends on time, how much time we have,

and if we have a lot of time, we take a roundabout route but

if we're in a hurry, we have to, again, take the shorter route.

But it's also a function of resources.

Because doing something direct may require you to have

much more personnel, much more expertise, much more money.

As we saw in distribution, you have two major types.

You have direct channels.

And it helps nowadays that you can do direct selling online.

So e-commerce is becoming a huge area within B2B marketing.

But if you need a physical presence that requires direct selling.

But you can again, given your situation do it indirect.

And we see here that, as a subset of indirect channels,

we have full function middlemen and you have so

called limited function middlemen.

So depending on the amount of help that you need,

in cases where you need a lot of help, that's where you have to avail yourself of

full-function middlemen, but if your needs are more limited or

specialized, then you have the luxury of choosing a middleman

that can just help you with that one specialized need.

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