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Business-to-Business Marketing

Fri - 19 Mar Written by Administrator

Most marketing is business-to-business (B2B) marketing even
though textbooks and business magazines devote most of their attention
to business-to-consumer (B2C) marketing. The disproportionate
attention to B2C has been justified by saying that (1) B2C is
where most of modern marketing concepts first arose, and (2) B2B
marketers can learn a lot by adopting B2C thinking. While these two
statements are true, B2B is having its own renaissance, and maybe
B2C marketers have a lot to learn from B2B practices. B2B, in particular,
has focused more on individual customers, and B2C is increasingly
moving into one-to-one customer thinking.

But brand price premiums today are shrinking

Fri - 19 Mar Written by Administrator

. A leading brand in
the past could safely charge 15 to 40 percent more than the average
brand; today it would be lucky to get 5 to 15 percent more. When
product quality was uneven, we would pay more for the better brand.
Now all brands are pretty good. Even the store’s brand is good. In fact,
it probably is made by the national brand to the same standards. So why
pay more (except for show-off brands like Mercedes) to impress others?
In recessionary times, price loyalty is greater than brand loyalty.
Customer loyalty may reflect nothing more than inertia or the absence
of something better. As someone observed, “There is nothing
that a 20 percent discount won’t cure.”

Line extension

Fri - 19 Mar Written by Administrator

Line extension makes sense in that the company can coast on the
goodwill that it has built up in the category and save the money that it
would otherwise have to spend to create brand awareness of a new
name and offering. Read more...

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