What is business marketing?

B2B marketing is used to describe the marketing activities of any kind of organization which has exchanged relationships with other
organizations and business.
Business marketing is marketing practice of individuals or org (including commercial, businesses, govt. and institutions)
It allows them to sell product and services to other organizations or companies that resell them use them in their product and services and use
them to support their products and services.
The development of B2B marketing discipline
Industrial marketing B2B marketing organizational marketing

1960s 1980s-1990s 2000s

How business marketing is unique?

1) Buyers seller relationship: there is much more focus on relationship building in buyer seller relationship. Because many people or
organization or partner are involved in buying selling process.
2) Shorter Distribution channel: Advances----
 Closer Relation between buyers and sellers
 More direct import into the product planning process
 Direct relationship between functional areas.
3) Emphasis on personal selling: personal selling is more emphasized in B2B marketing than the B2C marketing.
Why it is used in B2B?
 Stronger relationship
 Shorter channel
 Direct communication
4) Greater web integration: This is an era of technology. Marketers need much more sell in technology.
5) Unique promotional strategies: Strategies is logic to gather objectives. Tactics is implementation of strategy into tactics.
6) Buyers are different: In B2B marketing business personnel’s have to face much more difficulties.

04.04.17
Business buying process:
1. Problem recognition
2. General need description: In the second stage the buyers need to identify general need description. So that the buyers can understand
the need.
3. Product specification: Buyers need to be specific in product specification. Ex- quantity
4. Suppliers search
 Internet
 trade show
 Good competitor
 Internal employees
5. Proposal solicitation: buyers will solicit the selected suppliers to meet the supplier who will specifically provide the need of buyers.
Here supplier gives presentation to their product.
6. Suppliers selection
7. Order routine specification: Buyers order the product. Specifically how much do the buyers need.
8. Performance review: Buyers analyze their satisfaction level according to the performance of the product. If buyers are satisfied they
will go for further purchase.

Classification of business product:

There are the following types of business product:
1) Capital equipment and investment:
 Land, Building and other companies
 Single purpose equipment: single purpose equipment includes customs mate for only one company/ industry. A certain leather
stretching machine. ( it only serve in shoe industry)
 Multipurpose equipment: It seems across the industry. Ex- Compressor
2) Accessory equipment: It includes such readily moveable items. Ex- Handheld drills, pc, furniture in an office. Characteristics: They
have resell value. They are frequently purchase.
3) Components parts: components parts are manufactured items/completely assembled items. Ex- tire, Head Light. Characteristics: they
don’t lose their identity in the final product.
4) Process materials: Process materials are manufacturing materials they tend to lose their identity and may even be indistinguishable in
the main product. Ex- fuel or chemicals
5) Maintenance repair and operating suppliers (MRO): They are used to facilitate the operation of the organization but do not become
the part of the final product in the way the component parts and process material do. Ex- envelope, printer , fax machine
6) Raw materials: Row materials are the fishing ,hunting, agricultural and extractive materials
7) Business service: it is the fastest growing segment of the present business era.
06.04.17
Demand:
Direct demand: direct demand is generated by individual who buy goods and services for satisfying their personal need.
Customer direct demand is origin of all other demand.
Derived demand: purchases made by business buyers, institution and organization are expression of derived demand------ that is, they are
derived from the demand generated by customers or clients of the organization.
The chain of derived demand:
 Chemical Manufacturing Company

Plastic Liners Companies

Matal Frums Manufacturing Companies

Eloctrate Acid Manufacturing Company

Batary Manufacturing Company

Automobile Oem(original Equipment Manufacturing

End Users)

The chain of derived demand of ice-cream:

suppliers of raw materials

producer

wholwsaler

retailer

consumer

Some major characteristics of organizational market:

1) Size of the organizational market: business market is bigger. It produces huge opportunities. Volume of spending is larger than
B2C market.
2) Concentration of buyer process: If we looked at the consumer market we see millions of consumer but in business market number of
buyers are fewer but surprisingly the amount of purchase is much more than the consumer market.
3) International aspects: every country or nation has its unique culture. Today’s why consumer markets don’t show the similar kind of
buying behavior. But in business market there is a very similar kind of buying behavior in business market across the world. Here
technology plays a vital role to have the similarities in business market.
4) Nature of demand: The nature of business market is derived demand.
5) Buying process and decision making process: the decision making process in consumer market is notas complex as the business
market. Because the organizations have to face a very complex situation due to having number of factors or actors in case of decision
making.
11.04.17
Differences between B2C and B2B buying behavior:
B2C B2B
1.Number of buyers Normally very large Normally small
2.Size of order It is small It is large
3.Value of order Normally low Normally high
4.Evaluation criteria Social ego and utility Price value and utility
5.Purchase initiation Normally self Normally others
6.Level of risk Low to medium Medium to high
7.Complexity of decision making Low to medium Medium to high
8.Information search Normally short Normally long

Characteristics/factors that affect business buying behavior/influences on organizational demand:

1. External factors/influencers
a. Socio economic changes
b. Globalization of business
c. Customer power
d. Market stagnation--- competition is so high
e. Process mentality------- sti a process rather than a product. Today’s buyers looking for siwtion rather than a single product. They
prefer package product.
2. Internal factors/influencers
a. Nature of firms business
b. Structure of purchasing
c. Purchasing policy
d. Purchasing ethics
e. Purchasing systems and technology
3. Individual influencers
a. Perception of consequences
b. Extent of personal influences
c. Social relationship
4. Relational influencers
a. Relational approaches to inter firm relationship
b. Transformational approaches to inter firm relationship
 18.04.17
Internal factors that influences business buying:
1. Nature of firms business: A company may focus on unique or mass production. The firm that focuses on unique production targets
specific layers requirements. In case of mass production firm think of all of the buyers. Example: FMCG product.
2. Structure of purchasing: who will be responsible to buy a product? There are two type of buying.
a. Centralized buying: The manager makes decision from where they will purchase so that cost would be maintained.
b. Decentralized buying: Here buying decisions are made by the individual department like HRM, Finance.
3. Purchasing policy: Preplanned policy to buy.
4. Purchasing ethics: Each and every firm has ethical culture. Example: Uniliever maintain good environment how they will treat their
sub-ordinates.
5. Purchasing systems: Convenience buying. How easily consumer can buy from suppliers.
6. Purchasing technology: Each and every steps organization has to depend on internet ( technology)
20.04.17
Participant in the buying center or decision making unit:
1. Initiators: Initiators are the people who make first request for purchasing for the organization.
2. Buyers: Buyers/Purchasers are the people who are the actual buyers with the authority to order the products and services.
3. Influencers: Influencers affect the decision making process by providing information and sometime criteria for evaluating alternative.
4. Deciders: Deciders have the authority or power to approve purchases.
5. Users: Users are the people who will ultimately use the product or services.
6. Gatekeepers: Gatekeepers can control the flow of information to the other manager within the buying organization

Compression between transactional marketing and relationship marketing:

1. Transactional Marketing 1. Relationship Marketing
2. It focuses on single sales. 2. It focuses on customer relationship.
3. Transactional marketing focuses on volume. 3. Relationship marketing focuses on customer value.
4. Transactional marketing is short time oriented. 4. Relationship marketing is long time oriented.
5. It focuses on products, features and quality. 5. It focuses on relationship quality.
6. It has little emphasis on customer service. 6. It has high emphasis on customer service.
7. Transactional marketing moderated but discontinues contact. 7. Relationship marketing has high level of continues customer
contact.

27.04.17
Key elements of relationship marketing/ Key issues of B2B relationship marketing.
1. Long-term perspective: Business wants to achieve long term relationship. In a sophisticated B2B business world, business must have
to achieve long term relationship. A fundamental concept is to retain the existing customer rather than attracting new customers.
Relationship marketing is a long-term perspective.`
2. Trust: Trust appears to reduce risk perception in relationship; in other words, each party believes that the other will not take unfair
advantage. Without trust any relationship can’t be sustained. That’s why business people need to maintain trust by delivering promises.
3. Commitment: Commitment is a deepen relationship of trust. Business people need to assure the commitment.
4. Communication: Businesses need to have a consistent communication with their partner. Without proper communication no
relationship will be sustained in long-term.
5. Customer service: Customer service is the service for what no money is to pay by the customers. In B2B world businesses emphasis
largely on after sale service.
6. Mutual benefit: In B2B world there is a win-win relationship. Sony and Ericson combine together to have the mutual benefit. Because
every party in B2B world wants to get win-win situation.

A relationship ladder of loyalty:

1. Partner: Partner has mutual partnership with the organization.
2. Member: Member has great affinity to organization and who is truly loyal.
3. Advocate: Advocate recommends organization’s products and services to others.
4. Supporter: Supporter is positive towards organization, but only passively.
5. Client: Client has done repeat business but may be neutral or even negative towards organization.
6. Customer: Customer has done business only once.
7. Prospect: prospects are persuaded to do business with organization.
09.05.17
Strategy is a logic or way to gain objectives. Strategy is a game plan of objectives.
What are the elements of business strategy?
1. Product markets: Product market expansion grid/ Ansoff’s
a. Market penetration: A strategy for company growth by increasing sales of current products to current market without
changing the product.
b. Product development: A strategy for company growth by offering modified or new products co current market segments.
Ex: Sharif umbrella
c. Market development: A strategy for company growth by identifying and developing new market segments for current
company product. EX: PRAN RFL
d. Diversification: A strategy for company growth through starting up or acquiring business outside the company’s current
product and market.
 Concentric
 Conglomerated
 Horizontal
2. Resources: Resources can be financial or non-financial. The sources of resources----------
a. Internal
b. external
3. Objective and plans:
 4. Resources allocation: which department requires how much resource that needs to be considered. Organization should focus on
integration approach.
5. Synergy: It is a creation of a whole that is greater than the simple sum of its parts. If I want to achieve the overall organizational goals
and objectives, organization must work together. Synergy implies teamwork.

Five forces model of Micheal Porter:

1. Threat of new comers/ Entrance
2. Industry segment rival
3. Threats of buyers growing burning power
4. Threat of supplier bargaining power
5. Threat of substitutes

Difference among buyer’s market and seller’s market and mutual market.
Buyer market: when the bargaining power of buyer is greater than seller is called buyer market.
Seller marker: when the bargaining power of seller is greater than byer is called seller market.
Mutual market: when the bargaining power of buyer and seller is similar is called mutual market.

What are the barriers to entry?

1. Product differentiation: the companies which are innovative in nature, they are constantly changing their product. The biggest barrier
is product differentiation.
2. Economics of stale: whenever a company lasts business for long time it gains economics of scale.
3. Capital requirement: There are many companies which fear to invest more in a market.
4. Access to distribution channel: how to distribute the products to the ultimate user by using distribution channel and how to
communicate with supplier.
5. Cost advantage?
6. Government policies: Government has many rules, policies, regulation in market. Ex: cell phone market.
20.0517
The ability to disrupt markets:
We can analyze in 3 ways----- What are the 7s of disrupting market
1. Vision for disruption: To avail ne opportunity to avail new position in the market. Visionary companies replace new ideas to create
new opportunity for people. Ex: Apple IPhone
a. Stake holder satisfaction: Marketer needs to satisfy the stakeholder.
b. Strategic sooth-saying: Bring a new product that will sustain in the long term.
2. Capability for disruption: to sustain in the market every organization must have uniqueness in providing market.
a. Speed: Marketer must implement their new technologies within the short time otherwise it will be copied by other
companies.
b. Surprise: Communicate people with the point of difference. Make them surprise. Ex: Apple makes people always surprise
with their need product features.
3. Tactics for disruption:
a. Shifting the rules: Companies need to create new rules.
b. Signaling
c. Simultaneous and sequential strategic trust

Organizational types:
There are four types of organization
1. Prospectors: They are oriented to new opportunities. They like to be the first mover. Detect early signals of opportunities and move
on. They like to take risk. They compete in the new market. They are very high innovative firm. Ex: jonson and jonson, Apple
2. Defender:
 They try to defend their market share and position.
 The offer limited range of products.
 They avoid risk.
 They do not adopt new technology.
 They ignore dynamic events.
 They defend market position with low product price and quality.
3. Analyzer:
 Analyzer is the combination of prospector and defender.
 They are bit less aggressive with innovation and technology.
 They are not so attached to sustainability and efficiency like defender.
 They are very selective in developing new product.
 They are seldom a first mover rather they are second or third firm in the market.
 Before taking any decision they conduct cost and benefit analysis. Ex: IBM
4. Reactor:
 Reactors lack a well-defined strategy.
 Their product mix is inconsistent.
 They are not a risk taker, they are not aggressive.
 They only change when they are forced to change. Ex: Hazi Beriani

Market orientation:
Market orientation is the systematic process of gathering knowledge about customers and the systematic analysis of developing new markets.
The systematic use of such knowledge to guide strategy recognition and understanding creation and formulation of the strategy or creating
strategies to satisfy the market.
What is learning? What are the requisite for learning organization?
Learning is when we connect to new information to what we actually know. Some requisite for organization:
1. Visionary leadership: A visionary leader is a true inspire by his vision to reach his goal. Ex: Steave jobs has such leadership.
 2. Target and trajectory: organization needs to set target where it wants to go itself.
3. Information systems: organization must adopt huge information to sustain in the competitive market.
4. Creating and striving: organization must look for creativity. If organizations are not creative it’s impossible they must market out.
5. Execution: Everything would be executed in action.

There are five level of product:

1. Core product
2. Generic product
3. Expected product
4. Augmented product
5. Potential product
How to manage product?
1. Product
2. Product line
3. Product technology platform
4. Product category
Product life cycle
1. Introduction
2. Growth
3. Maturity
4. Decline

What are the different characteristics, objectives and different strategies for each stage?
Characteristics Introduction Growth Maturity Decline
Sales Low sales Rapidly rising sales Peak sales Declining sales
Costs High cost per customer Average cost per Low cost per customer Low cost per customer
customer
Profits Negative Rising profit High profits Declining profit
Customers Innovators Early adapters Middle majority Laggards
competitors Few Growing number Stable number beginning Declining number
to decline
Marketing objectives
Create product awareness Maximize market share Maximize profit while Reduce expenditure and
and trial defending market share milk the business
Strategies
Product Offer a basic product Offer product extensions, Diversify brand and Phase out weak items
service, warranty models
Price Use cost-plus Price to penetrate market Price to match or beat Cut price
competitors
Distribution Build selective Build intensive Build more intensive Go selective: phase out
distribution distribution distribution unprofitable outlets
Advertising Build product awareness Build awareness and Stress brand differences Reduce to level needed to
among early adopters and interest in mass market and benefits retain hard-core loyal
dealers
Sales promotion Use heavy sales Reduce to take advantage Increase to encourage Reduce to minimal level
promotion to entice trail of heavy customer brand switching
demand

What are the success features of a product?

1. Close ties in the well-defined market
2. High integrated and market oriented company
3. Competitive advantage in technology and production
4. Strong market proficiency
5. Strong financial support

Accelerating the new product development process

1. Streamline each stage
2. Develop products in parallel
3. Lunch product worldwide
4. Use upgrade strategically

Challenges to new product success

Many companies are lack of market orientation. They don’t meet the customer requirement- Poor packaging, style, flavor, color etc.
 Poor marketing
 Inappropriate design of 4ps
 Service is different from product
 Customers understand about what a potential service can provide

CRM: As those process that address all aspect of identifying customers, creating customers knowledge, building customer relationship, shaping
the perception of organization and product.

CRM process: CRM involves 4 steps

1. Segmenting and profiling to market
 2. Design strategies
3. Implement
4. Evaluate
Some of the fetchers of IMC:
1. Integrated marketing communication strategy
2. IMC is a two way
3. IMC meats customers’ needs

The IMC strategic planning process:

1. Set communication goals
a. Who is the audience
b. What should communication say and do
2. Determine for each goal and median
3. Create measures
4. Place message inappropriate media
5. Measures result
6. Make adjustment in message and or media

Hierarchy of effect model:

1. Awareness
2. Interest
3. Desire
4. action