B2B Marketing in Asia Pacific Region

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B2B Marketing in Asia Pacific Region Presented by Md. Abid Hasan Rahat Abid Hasan Rahat

Transcript of B2B Marketing in Asia Pacific Region

Page 1: B2B Marketing in Asia Pacific Region

Abid Hasan Rahat

B2B Marketing in Asia Pacific Region

Presented byMd. Abid Hasan Rahat

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Abid Hasan Rahat

B2B Marketing

Business marketing is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies

or organizations that in turn resell them, use them as components in products or services they offer,

or use them to support their operations.

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Key point about B to B

• Relationship driven• Maximize the value of the relationship• Small, focused target market• Multi-step buying process, longer sales cycle• Brand identity created on personal relationship• Educational and awareness building activities• Rational buying decision based on business value

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Some characteristics of B2B

B2B Buyers Are Longer-Term Buyers• The long-term products and services required

by businesses are more likely to require service back-up from the supplier than is the case in consumer markets. A computer network, a new item of machinery, a photocopier or a fleet of vehicles usually require far more extensive after sales service than a house or the single vehicle purchased by a consumer.

• For example, 1.China import oil from Russia, Sudan, Iran, and Saudi Arabia and become a long time buyer.

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Personal Relationships Are More Important In B2B Markets

• An important distinguishing feature of business-to-business markets is the importance of the personal relationship. The importance of personal relationships is particularly pronounced in emerging markets such as China and Russia,

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Business Transaction• Business-to-business (B2B) describes

commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. B2B (Business to Business) Branding is a term used in marketing.

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Supply Chain of B2B Business• A typical supply chain involves multiple business

to business transactions, as companies purchase components and other raw materials for use in its manufacturing processes. The finished product can then be sold to individuals via business to consumer transactions.

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Distribution Channels-B2B goods • Most producers use intermediaries to bring

their products to market. They try to develop a distribution channel (marketing channel) to do this. A distribution channel is a set of interdependent organizations that help make a product available for use or consumption by the consumer or business user.

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Some transaction that's driving growth in B2B Marketing

• Technology is changing at an unprecedented pace, and these changes are speeding up the pace of new product and service development. A large part of that has to do with the Internet.

• the business strategy is also helpful in technology development.

• For example, at present social network (facebook, linkedin, twitte) b2b are heavily growing. If your company makessoftware and you want to show it to the Microsoft then you can easily do this by internet, social network.

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B2B transaction through the internet• Businesses to business or electronic commerce (e-

commerce) transaction through the internet are gaining increasing in the Asia pacific region. One of the key drivers of e-commerce is the penetration of internet usage. All the Asia pacific region countries are registering a rapid growth of internet usage,

Country Internet Users Percentage

Bangladesh 0.45 million 0.3%

Pakistan 12 million

Sri Lanka 0.35 million

India 42 million 3.7%

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Amar Desh Amar Gram

Amar Desh Amar Gram; an initiative, Where by establishing an ICT based network connecting rural life with city life and vice versa. Amar Desh Amar Gram platforms nine

pillars which not only covers ecommerce through e-shop, but also covers aspects such as culture, tourism, press,

government services, education, entertainment hubs, etc bringing aspects of city lifestyles to the rural people which

they never dreamt of.

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Ataur Rahman CEO, director

Sadequa Hassan Sejuti, managing

directoir

Sharifun Hassan Bithi,Vice Chairman

Nurur Rahman Khan, Chairman

Note able awards: 1.ICT Summit Eurasia 2012Date: 11th September 2012 6.Digital Innovation Fair Organized 2.FSB won the jury's special award by Government Won the National 3.World Summit Youth Award 2011 Digital Innovation Award Date: 12th November 2011 on e-commerce, 4.Manthan Award, South Asia Business and FinanceDate: 2nd December 2011 5.E-asia 2011 AwardDate: 2nd December 2011

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B2B impact on Asia pacific region

• B2B market is to help other business. There is less relation with customer. That’s why you have to give all the facilities that other business need. So you should know that what actually a buyer or other business need. As they have to fulfill the promises that they given to their customers, so they need speed delivery, good quality and low price.

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Marketing Mix for B2B

• The term “marketing mix” Was started in the 1940s; James Culliton described the position of marketing manager as someone who is a “mixer of ingredients.” More than a decade later, Neil H. Borden published an article The Concept of the Marketing Mix, which was an adaptation of James Culliton’s original theory,

• The marketing mix included product pricing, planning, branding, distribution channels, advertising, promotions, personal selling, packaging, display, servicing, physical handling, and fact finding and analysis.

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Product (or Service)• The implications for business-to-business marketers are

clear – packaging, like product, plays a primarily functional role. Resources are far better directed towards developing relationships and expertise.

• If the product isn't being sold successfully elsewhere or is only being sold successfully by companies with a very different company profile from yours you need to make a realistic assessment of the extra marketing and sales costs that are likely to be incurred before your new product can become profitable.

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For example, Chanel fashion house cannot lunch those women dresses in Bangladesh such dresses they lunched in America. Because Bangladeshi people are more conservatives and they don’t ware open dresses.

Bangladeshi women dress

American women dress

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Pricing• The business market can be convinced to pay premium

prices more often than the consumer market if you know how to structure your pricing and payment terms well. This price premium is particularly achievable if you support it with a strong brand.

• For example, Tata Motors, maker of the world's cheapest car, is turning to China to buy auto-parts unavailable in India. Because, china offering them auto-parts in very cheapest rate. Chairman Ratan Tata said,

The maker of trucks, sedans and utility vehicles may benefit from "unbelievable" prices at Chinese

component makers

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Place (Sales and Distribution)

• The importance of a knowledgeable, experienced and effective direct sales force is often critical in the business market. If you sell through distribution channels also, the number and type of sales forces can vary tremendously and your success as a marketer is highly dependent on their success.

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Hasa

n R

ahatFigure 1 – B2B distribution for consumer product

Figure 1 – B2B distribution for industrial product

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Promotion• Promotion planning is relatively

easy when you know the media, information seeking and decision making habits of your customer base, not to mention the vocabulary unique to their segment. Specific trade shows, analysts, publications, blogs and retail/wholesale outlets tend to be fairly common to each industry/product area.

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B2B marketing tools to promote business

• A brand name • A distinctive logo • Yellow pages• Email newsletters• Trade shows • Radio and TV

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B 2 B market segmentation for Asia pacific region:

• Segmentation variables represent the criteria which influence the behavior of buying companies in some way, and are also in the frame of their behavior significantly different. According to (Lošťáková 2005) these criteria can be split into so called firmographic variables such as end use segment or customers´ company size, situational variables such as preferred benefits and production variables such as customers´ sales volume or competitive position of customer.

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Companies can consider several different variables in their segmentations.

• Behavior• Profitability / Lifetime

Customer Value• Benefit / Attribute

[Conjoint Analysis]• Use or Application• Product Class• Price/Quality Demands• Competitor

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B2B markets have fewer behavioral And Needs-Based Segments

• A price-focused segment: Companies in this segment are often small, working to low margins and regard the product/service in question as of low strategic importance to their business.

• A quality and brand-focused segment: which wants the best possible product and is prepared to pay for it

• A service-focused segment: which has high requirements in terms of product quality and range, but also in terms of after sales, delivery, etc.

• A partnership-focused segment: usually consisting of key accounts, which seeks trust and reliability and regards the supplier as a strategic partner

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Target market Segmentation of B2B

• Geographic Target Market Segmentation — for instance, a target audience that does business in a particular language, city, state/province, or country

• Firmographic Target Marketing Segmentation — a company’s number of employees, industry or income bracket can define a target audience

• Psychographic Target Market Segmentation — this kind of target market segmentation is especially useful for repeat clients, who may be drawn to anything from the price range, quality levels or the delivery terms

• Need-Driven Target Market Segmentation - this can be the most difficult target audience to assess, but also one of the most fruitful. Ask, what is the motive behind a purchasing decision? What factors play into a company’s decision-making?Z

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Conclusion B2B and B2C transactions are considered as the

modern foundation of trade affairs as the magnitude of such transactions surpasses any

other forms. Now a days, In the Asia Pacific region it is notable as most of the world‘s leading

productions are taking place in here to do b2b. B2b has a bright future. Future of B2b is

promising but there are some ongoing and upcoming challenges. But if we could overcome

them, B2b will remain the ultimate form of trade transactions as current and future prediction

suggests that.