Professional Documents
Culture Documents
B2B Marketing Concepts
B2B Marketing Concepts
Product
Price
Promotion
LEARNING DIARY
Distribution
Penetration Pricing
Segmentation
Page 2 of 9
LEARNING DIARY
Ideal Market Segment
It must be large enough to earn profit & must be stable enough that it does
not vanish after some time.
It should be possible to reach potential customers via the organization's
promotion and distribution channel.
It should be internally homogeneous (potential customers in the same
segment prefer the same product qualities) & externally heterogeneous
(potential customers from different segments have different quality
preferences).
It responds consistently to a given market stimulus & can be reached by
market intervention in a cost-effective manner.
Price Skimming
A pricing strategy wherein the marketer sets a relatively high price for a
product/service then lowers the price over time.
Allows a firm to recover sunk costs quickly before competition steps in and
lowers the market price.
Product pricing strategy by which the firm charges the highest initial price
that customers are willing to pay. As demand of the first customers is
satisfied, the firm lowers the price to attract other, more price-sensitive
segment.
Occurs in technological markets as firms set high prices during the first stage
of the product life cycle.
Product Life Cycle (from a marketing standpoint)
LEARNING DIARY
Page 4 of 9
LEARNING DIARY
Case A-One Starch Products Limited
Knowledge
Objectives of A-One Starch Products Limited
Increase the ROE for improving shareholders value
Page 5 of 9
LEARNING DIARY
Case: ABB Caterpillar (A): Key Account Management
Knowledge
Objectives
Get Support from ABB Management
Reinstate faith in Caterpillar
Attitude
Application of available knowledge
ABB dictated Caterpillar for Quality, price of the product, schedule of delivery of
turbochargers and this has created a disharmony amongst ABB and Caterpillar.
Caterpillar had alternate suppliers and this has resulted in loss of $40 million sales.
Steering committee (Top Management) has been constituted which shall
monitor the working groups and provide the direction for achieving the
planned/ projected progress
Working Committee: Actual project execution team who provide feedback
to steering committee
Skills
How to apply the knowledge
The most difficult marketing challenge we are facing is about understanding the
market.
Identify possible options Selection
Identify competitors and other potential new entrants - Evaluation
Design , reputation, service, reliability Product Formulation
Economy & Pricing
Page 6 of 9
LEARNING DIARY
Case: Tetra Pack- A
Pontero is a branded milk supplier who has positioned his product based on natural
content of milk with no added contents but has recently experienced loss in sales of
2.5% (56 Millions).
The reason of drop in sales is attributable to the below mentioned points
Competitors have launched new enriched milk with added minerals and
vitamins which has affected Ponteros sales.
Ponteros products are being used as a Loss leader (which is a pricing
strategy where a product is sold at a price below its market cost to stimulate
other sales of more profitable goods or services).
Due to entry of new product in the market, Children are now being fed with
enriched milk, Middle aged group is being drawn towards soft drinks & old
aged group is reluctant to consume milk due to which Ponteros sales has
gone down.
To identify the root cause we need to analyze the situation in the following manner;
Situation to be diagnosed: Loss of sales
1. What accounts for it?
Industry effect?
Product category effect?
Communication?
Looked Distribution?
Price?
Customers?
Why what is happening to customers?
2. What will happen if we do not do anything?
3. Is the outcome acceptable? Set objectives.
4. Segment the market on the basis of values and targets. Prioritize segments.
5. Decide value positioning
6. Design offer
7. Design delivery
8. Design Communication
9. Check whether the objectives are likely to be met
Key Accounts Manager
An account manager (Sales) is a person who works for a company and is
responsible for the management of sales, and relationships with particular
customers. Key accounts provide the most business because they contain a small
number of clients which contribute a large portion of the company's sales.
The purpose of an account manager: To maintain the company's existing
relationships with a client or group of clients, so that they will continue using the
company for business
Its Main Objectives are,
Identify growth potential prospects
Aligning of strategies and meeting of minds
Commitment
Page 7 of 9
LEARNING DIARY
How to build relationship with customer?
First need an entry into the business with the customer
Initiator : who aid in initiating the business/ service
Gatekeeper : Entry barrier to the business/ service
Purchaser
End User
Page 8 of 9
LEARNING DIARY
Case: Turner Construction Company
Identify and locate the prospects
Meet the decision makers
Send proposal and reference
30-45 min presentation to board or development committee
Pricing (Lump Sum vs. Negotiated)
Key Decisions in Marketing plan:
Positioning of product / service (w.r.t. Specialization, segment, standards)
Pricing (Based on product positioning)
Communication about the specialization
Budgeting (Current position w.r.t Goal)
Learning
SWOT analysis should be done at Company/segment level
Porters 5 Force Analysis should be done at Industry level
BCG Matrix should be used for product and Marker Analysis
Page 9 of 9