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An Evaluation of the Marketing Process in B2B and B2C Startups

A case study of Software as a Service Startups

Written by F. Madosh, B. Ålander

Paper category

Master Thesis

Subject

Business Administration>Entrepreneurship

Year

2019

Abstract

Master Thesis: Organizations that directly sell B2B and B2CA to consumers are defined as B2C companies that provide products to the consumer market (Iankova et al., 2018; Kotler & Keller, 2016). Companies that sell directly to businesses are called because B2B companies and their products are available on the commercial market (Iankova et al., 2018; Kotler & Keller, 2016; Coviello & Brodie, 2001). Although the overall dynamics are the same, with the participation of people who assume the purchasing role and make purchasing decisions to meet demand (Kotler, 2014), the B2B and B2C markets are considered to have multiple differences, especially regarding the problems encountered and deployment Method (Kotler & Keller, 2016; Coviello & Brodie, 2001; Webster, 1978; Lilien, 1987; Simkin, 2000). These differences between B2B and B2C markets are shown below. The B2B market is characterized by a highly complex purchase process and a long purchase cycle, requiring multiple people to participate in the purchase decision (Lilien, 1987; Webster, 1978)). As long-term buyer-seller relationships develop, these B2B organizations often have multiple business customers that must be dealt with separately (Ford et al., 2003; Hakansson et al., 1976). This explains why B2B sales have traditionally been considered staff-intensive and relationship-driven (Iankova et al., 2018). In contrast, B2C organizations are using mass communication to use brand development as a key function to reach a large number of individual consumers with low levels of relationship development (Reed et al., 2004). It is also believed that purchasing decisions in the B2B market are influenced by more sources than B2C decisions, which further increases the complexity of companies that provide services to other companies (Simkin, 2000). 2.2 Marketing Marketing practice has been used for a long time, but academic interest did not appear until the 20th century (Oliya et al., 2012). Marketing is about identifying and satisfying human and social needs. It is defined by the American Marketing Association as "a set of institutions and processes used to create, communicate, deliver, and exchange valuable activities to customers, customers, partners, and society as a whole" (Keefe , 2008; Kotler & Keller, 2016). In addition to identifying and satisfying needs, marketing is also about building sustainable relationships in order to obtain value from customers in return (Bickho et al., 2014) Marketing is about establishing or increasing the demand for products or services provided by the company by the company (Kotler and Keller, 2016). 2.3 Marketing process The marketing process is defined as a series of activities used by the company to achieve marketing goals, that is, to create value for customers and establish a strong relationship to obtain value from them in return (Kotler & Armstrong, 2013; Sanchez, 1999) ). The management of marketing activities and the entire marketing process is becoming more and more difficult for companies due to the large amount of data and information available and the many tools and tool changes available (Bickho et al., 2014). Therefore, this section will introduce the main components of the marketing process and their interactions. The components included in the marketing process have been defined by multiple researchers (Kotler, 2000; Simkin, 2000; Oliya et al., 2012; Bickho et al., 2014). However, three common themes can be identified as: 1. Understand the market through analysis2. 3. Develop marketing strategies based on analysis. In addition to these broad common themes for the implementation and control of marketing strategy plans, Bickho et al. (2014) Divide the marketing process into more detailed sub-components. These sub-components are shown in Figure 2.1, including evaluation, segmentation, positioning, positioning, and execution. Each of these sub-components will be explained in more detail below. 2.3.1 Evaluation The first step in the marketing process is evaluation, which is done through market analysis (Bickho et al., 2014). The purpose of market analysis is to understand the market in depth and determine whether there are potential opportunities (Kotler, 2000). This step mainly focuses on understanding the market environment, market trends, competitors and customers and their behaviors, perceptions and needs (Simkin, 2000; Kotler, 2000). Market analysis can be divided into different steps (Bickho et al., 2014; Kotler and Keller, 2016). First, the goals of market analysis must be defined and an information collection plan must be developed (Kotler & Keller, 2016). Information can then be collected in a variety of ways, such as observational research, focus groups, and survey methods (Bickho et al., 2014). Then you can use statistical techniques to test hypotheses and theories to analyze the collected information, or you can use sensitive analysis to test the validity of the hypotheses and conclusions (Kotler & Keller, 2016; Bickho et al., 2014). Based on the results of market analysis, company managers must make marketing decisions (Bickho et al., 2014). Read Less