Wednesday, May 1, 2019
4 P's of Marketing as they Apply to B2B
To lower risks and improve opportunities for success company usually conduct analysis before they jump all in on a product. They must know which product they are going to sell, the price they are going to sell, how they are going to promote it, and where their product fits into the market. We can say they are evaluating the "4 P's of Marketing".
The 4 P's apply to Business-to-Business sales as much as they do in retail. There are some differences in the volume, amounts, services, and competitors. With B2B relationships there is a longer commitment and contracts that ensure both parties are protected. Interactions are much more personalized as people develop individual relationships with businesses.
Product: Products are the center of the marketing approach. Some products are physical and some are intellectually based. Services are also products that can be sold traded and bartered. In B2B transactions the product warranties, stocking ease, just in time delivery, etc... are part of the product offering. They are purchased together to raise the value of the supplier.
Price: The price is found through evaluating the total product and its offerings against competitive products. If such products are not found the business will need to find a utility cost above and beyond the cost of manufacturing. When the perceived value of the product doesn't meet the company's profit potential the product is taken off of the market.
Promotion: If no one knows about your product you are unlikely to get many sales. Advertising gets your voice heard in a sea of competing messages. B2B sales are more focused and intense because there are greater amounts of money and longer-term established relationships. The way in which you find candidates will also vary from phone calls and cold calling.
Place: Place can be viewed as physical in nature, such as a place on a store shelf or a place of a store, but includes position within the market. Where your product is located in comparison to its competitors is helpful in determining which type of clients offer the greatest prospects for marketing efforts.