WEEK 4: Business to Business Marketing

"Business customer buying decisions are made within the framework of a strategic, problem-solving partnership. “We love the challenge of a customer’s problem,” says the company on its GE Transportation Web site." (Marketing an Introduction 10th Edition by Armstrong and Kotler, page 158)

GE's consumer products only contribute approximately one-third of its company sales. Most of its business comes from its commercial & industrial customers. It understands customer needs in order to create superior customer value. In stead of selling to large numbers of small buyers, it sells to a few very large customer buyers. GE locomotives performance plays an important role in the big-ticket purchases by buyers. Their buyers are looking for cost & fuel efficiency with reliability. GE has a proven track record over a long period of time of years the superior quality of their products.
They adopted new environmentally friendly products with their diesel-electric locomotives.

Business demand is derived from  the demand for consumer goods.Consumers like to research & compare a product before they buy it. When a part from one product is needed to make the whole product complete, then both Companies are in demand by the consumers.

"GE wins contracts by partnering with business customers to help them translate that performance into moving their passengers and freight more efficiently and reliably. CSX Transportation(CSXT), one of GE Transportation's largest customers, has purchased more than 300 GE Evolution locomotives since they were launched in 2005." (Marketing an Introduction 10th Edition by Armstrong and Kotler, page 158)

Stages in the buyer success in business-to-business markets involves more than just developing and selling superior products and technologies.The business buying decision process evaluates cost factors first. Then environmental impact, fuel consumption, reliability, serviceability and the Value of an ongoing partnership with GE.

"The changing nature of digital and social media has its own set of distinct challenges for business-to-business (B-to-B) marketers." Edelman

Web searches have affected sales and reports of approximately 90 percent of B-to-B buyers use social media for purchasing decisions. One source is by using social tools to change Public Relations. They may help enhance customer loyalty, spark new lead generation and  industry reputation a mix for marketplace success.