“The Environment of Business Marketing”

 The marketing environment is a confluence of internal and external variables that affects a company's capacity to
build relationships with and provide for its clients. An organization's marketing environment is made up of both
internal and external factors.

Business Marketing
 Business marketing is a type of marketing used by corporations or people (including commercial businesses,
governments and institutions). It enables users to sell goods or services to businesses or nonprofits who then resell
them, incorporate them into their own goods or services, or use them to fund their endeavors.

4 types of Business Marketing

 The marketing mix, which includes the four Ps of marketing (product, pricing, location, and promotion), is
frequently used. These are the main factors that go into creating and promoting a good or service, and they
interact heavily.

Purpose of Business Marketing

 Marketing's goal is to bring in money for a brand, business, or organization. In close coordination with their sales
team, marketing professionals and teams do this by implementing smart digital initiatives that increase traffic,
quality leads, and revenues.

FIGURE 1.1

Business Marketing Management

 Controlling the marketing components, establishing corporate objectives, structuring plans step-by-step, making
decisions for the company, and putting those decisions into action are all parts of the marketing management
process, which aims to maximize revenue by satisfying customer needs.

Role of Marketing Management in Business

- The work of turning potential clients into real customers is handled by marketing management. This is made
possible by meeting the requirements and desires of the client by providing them with the proper goods and
services in accordance with their needs and desires, at the proper time, and through a suitable channel.

Dell, Inc.
 is an American multinational technology company that develops, sells, repairs, and supports computers and
related products and services and is owned by its parent company, Dell Technologies. Provider of desktop
personal computers, software, and accessories is Dell Technologies Inc. The business creates, develops, produces,
distributes, and maintains the infrastructure of information technology, including laptops, desktops, mobile
devices, workstations, storage devices, software, cloud solutions, and notebooks.

B2C - is a retail business model where things are delivered directly to the customer who has bought the
product or service for personal use. A style of business deal in which a corporation offers its goods or
services directly to customers who will ultimately utilize them. (i.e. Supermarket, McDonald’s)
 B2B - A business-to-business transaction takes place between two businesses, such as online merchants
and wholesalers. The exchange of goods, services, or information between businesses rather than between
businesses and customers is a type of electronic commerce (e-commerce) (B2C). (i.e. a tire manufacturer
might sell merchandise to a car manufacturer)

Business Market Customers

 Business clients, sometimes referred to as industrial clients, buy goods or services to use in the manufacture of
other goods. These sectors include, among others, those in agriculture, industry, construction, transportation, and
communication.

Business Markets versus Consumer-Goods Markets

 Business markets are groups, companies, or other entities that buy goods and services to utilize in the creation of
additional goods and services. Consumer markets, on the other hand, are those where manufacturers or firms offer
their goods or services directly to the ultimate customers.

Difference between Business and Market

 Due to the tasks they undertake and the obligations they have, marketing and business development are distinct
from one another. Corporate development prioritizes strategic alliances and business ties from a broad
perspective. Communication and customer targeting are the main themes of marketing.

Distinctive Capabilities - the specific abilities and qualities a company possesses that serve as the foundation for
long-term competitive advantages over competitors. The qualities that make up an organization's distinctive capabilities
come from a trait that other businesses do not possess.

Managing Customers as Assets - Customers are actually an asset portfolio that has to be actively maintained
by a corporation. Customers must be managed for maximum return in a manner akin to managing any other investment
portfolio by striking a balance amongst customers with various return/quality characteristics.

Marketing Tasks: What Managers Do - Marketing managers are in charge of creating, planning, and
carrying out strategic marketing strategies for the entire company (or for individual business units and brands within a
company) in order to draw in new clients and keep hold of current ones.

Partnering for Increased Value - Through partnerships, you may access more information, skills, and resources
that can help you create better goods and reach a wider market. When combined with 360-degree feedback, all of these
may help your business reach new heights. The perfect business alliance will strengthen your company's philosophy.

Benefit from Partnerships - Gaining a competitive edge, profit and risk sharing, the pooling of development and
resource expenses, a shorter time to market, and access to new markets are some benefits.

Purpose of a Partnership - A partnership agreement (or partnership contract) is a legally binding agreement
between two or more people or other legal entities with the aim of establishing a business entity. The rights and
obligations of each partner or corporation are outlined in this partnership agreement.

Customer Value Proposition - A corporation will use a customer value proposition (CVP) to persuade a
consumer to choose its goods or services over competing ones. Its goal is to persuade customers that this company's
product offers greater value than that of rivals. (i.e. apple iphone, Uber)

Value Proposition Illustrated - Your value proposition, in a summary, is a brief justification or example of why
a client should work with you. The promise of what you'll provide for your consumers should be one of the three
components of your value offer. The advantages that your clients will experience. A statement that clearly identifies the
benefits a company's products and services will deliver to its customers. (i.e. headline, subheadline, or short paragraph
etc.)

Marketing’s Cross-Functional Relationships - Teams made up of members from many firm functional
areas are known as cross-functional teams. individuals from different areas of a firm, such as marketing, product
development, quality assurance, sales, and finance, who collaborate to accomplish a shared objective. (i.e. city planning
team, marketing team, data science team)

FIGURE 1.3
Business Marketing Planning
 The advertising technique a company will use to advertise and sell its goods or services is called a marketing plan.
The target market, the best way to reach them, the price point at which the good or service should be sold, and the
method by which the business will evaluate its performance will all be determined by the marketing strategy.
Example of Marketing Plan:
- General will launch the Spree watch after analyzing the watch market and our advantages. The average age of
brand-name fashion watch customers is between 18 and 34 years old. This cohort is our main target sector
since they buy more timepieces on average than those who are older do.

Basic Marketing Planning - A marketing strategy details your anticipated marketing and promotional efforts for a
predetermined timeframe, often the following 12 months. It outlines your strategy for reaching, luring, and convincing
people to purchase your goods or services, along with specific objectives, activities, and due dates.

Working Relationship - a relationship with a colleague, boss or employee.

4 Main Working Relationship - The four basic types of working connections in health and social care are: 1)
people and their friends and family, 2) your coworkers and supervisors, and 3) people from other professions, such as
advocates. volunteers and neighborhood associations.

Characteristics of Business Markets

 Business marketplaces frequently cater to a more niche consumer market with substantial purchasers. Business
marketplaces can help organizations who are geographically separated from one another conduct business.
Business markets' demand is constant and unaffected by price variations.

Derived Demand - A desire for an item or service that arises from the demand for a separate, or related, good or
service is referred to as derived demand in economics. Derived demand only refers to the need for a thing or service to be
able to purchase or create another good or service.

Fluctuating Demand - Demand that fluctuates significantly in reaction to shifting macroeconomic factors and
consumer spending patterns is referred to as fluctuating demand.

Stimulating Demand - Demand stimulation is the technique of boosting or stimulating consumer demand in a
market for a certain good or service. It is a method of product promotion. Many businesses use demand stimulation to
advertise and boost the sale of their products.

Price Sensitivity - The degree to which the cost of products and services influences consumers' propensity to
purchase them is known as price sensitivity.
Demand Elasticity - A demand that is elastic experiences a significant shift in quantity required as a result of a
price adjustment. When the amount sought changes little as a result of a price adjustment, the demand is said to be
inelastic.

A Global Market Perspective - A global marketing strategy is a comprehensive marketing plan used to extend a
company into international markets. It serves as a guide for regionalized marketing strategies that target new markets. A
global marketing strategy goes beyond only cross-border product sales.

Business and Consumer Marketing: A Contrast

 Business markets are groups, companies, or other entities that buy goods and services to utilize in the creation of
additional goods and services. Consumer markets, on the other hand, are those where manufacturers or firms offer
their goods or services directly to the ultimate customers.

Smucker: A Consumer and Business Marketer

 JM Smucker is a producer and distributor of branded foods, drinks, pet food, and snacks. US Retail Coffee, US
Retail Consumer Foods, and US Retail Pet Foods are the three reportable business areas into which the company
divides its activities.

Smucker Known for

- Jam, peanut butter, drinks, shortening, ice cream toppings, oils, and other goods are produced by Smucker's.
On the back of his horse-drawn wagon, Jerome Smucker (born on December 5, 1858 in Orrville, Ohio) started
out by going door to door and selling apple butter and cider.

Distinguishing Characteristics
 a peculiar or uncommon quality. similar words: distinguishing quality, uniqueness. calling card kinds a distinctive quality or
habit. (i.e. short nose, narrow nose, broad nose).

A Relationship Emphasis
 a focus on facilitating work. emphasis on encouraging interaction Emphasize organization, responsibilities, and
duties. Place an emphasis on your connections, wellbeing, and drive.

FIGURE 1.4
Characteristics of Business Marketing Customers
 Nature and Size of Customers: Number of customers in business markets is small.
 Complexity of Buying.
 Economic and Technical choice criteria.
 Risks
 Buying to specific requirements.
 Derived demand
 Negotiation

FIGURE 1.5
The Supply Chain - A supply chain is the network of all the people, businesses, resources, tasks, and technological
advancements involved in the production and distribution of a good. An entire supply chain, from the distribution of raw
materials from the supplier to the producer to the final delivery to the customer, is included.

3 Basic Supply Chain - The product flow, the information flow, and the financial flow are the three primary flows
in supply chain management. The transfer of items from a supplier to a client is known as the "product flow." Customer
returns and service requirements are also covered by this supply chain management cycle.

Supply Chain Management - The handling of a products or service's full manufacturing flow, from the raw
materials through the delivery of the finished product to the customer, is known as supply chain management. A supply
chain is the network of all the people, businesses, resources, tasks, and technological advancements involved in the
production and distribution of a good. An entire supply chain, from the distribution of raw materials from the supplier to
the producer to the final delivery to the customer, is included. (i.e. farming, refining, design, manufacturing, packaging,
and transportation).

Managing Relationships in the Supply Chain - Supplier relationship management (SRM) is a methodical
process for assessing the suppliers of goods, materials, and services to a company, figuring out how each supplier
contributes to success, and creating plans to raise performance levels.

FIGURE 1.6
Supplier’s Philosophy Must Fit With Toyota’s - Be diligent and innovative at all times, trying to remain
ahead of the curve. Always be practical and steer clear of frivolity. Always make an effort to create a welcoming, homey
atmosphere at work. Always be respectful of spiritual concerns, and always keep gratitude in mind.

Commercial Enterprises as Consumers - indicates a person (other than an individual) who engages in
commercial operations related to the production, trading, transportation, or use of forest risk commodities in any country.
any business or legal body, including a corporation, partnership, limited liability company, association, state agency,
political subdivision of the state, public corporation, or any other.

Original Equipment Manufacturers (OEMs) - The term "original equipment manufacturer" (OEM) in the
hardware sector often refers to a business that produces a product intended for end customers, such as a PC, laptop, or
printer. Among original equipment makers are Apple, HP, Dell, Canon, and Brother.

Dealers and Distributors - A dealer purchases things from his or her own stock in the course of conducting
regular business. In contrast, a distributor merely buys goods from producers and distributes them to merchants or
retailers.

Overlap of Categories - The ability to assign an object membership in more than one semantic category is a
crucial component of the categorization process. In earlier research on how individuals select whether an object belongs in
one of multiple alternative categories, rigid hierarchical categories have been utilized most frequently (e.g., bird-canary).

Understanding Buying Motivations - Simply expressed, purchase motives are the fundamental elements that
interact to persuade a potential consumer to acquire your good or service. It's crucial to recognize variables on both ends
of the emotional and rational spectrums since there are a variety of both driving causes for purchases (source).

FIGURE 1.7
CLASSIFYING GOODS FOR THE BUSINESS MARKET - Convenience items, shopping items,
speciality items, and unsought items are the four primary subcategories of consumer goods. This article will explore
pertinent marketing methods, define the qualities of products in each category, and present examples.

Entering Goods - There are three primary features of "entry goods." In most cases, end users cannot buy
them. They are chosen by industrial clients before being incorporated into the manufacturing process. They
are physically supplied in a way that prevents end users from using them.
 Raw Material - The inventory or input commodities that a business requires to make its products are known as
raw materials. Steel, oil, corn, grain, gasoline, timber, forestry resources, plastic, natural gas, coal, and minerals
are a few examples of raw materials.
 Manufactured Materials and Parts - Component materials (such as iron, yarn, cement, and wires) and
component parts are the two types of manufactured materials and parts (small motors, tires, castings). Typically,
component materials are further processed; for example, pig iron is transformed into steel and yarn is woven into
fabric.

Foundation Goods - These are commodities that are utilized in the production of the finished item but are
not included in it (like the entering goods and services). These consist of INSTALLATIONS like
BUILDINGS, FIXED EQUIPMENT like a huge crane or conveyor belt, LAND RIGHTS, etc.
 Installations - The technique of employing artistic installations to advertise or market a product, spread a
message, or increase brand recognition is known as installation marketing. This type of marketing, sometimes
referred to as ambient outdoor advertising or experiential marketing installations, is applicable to both indoor and
outdoor public locations.
 Accessory Equipment - An accessory that may be attached to or removed from a product or device without
endangering it or the product or device to which it can be attached.

Facilitating Goods - the goods the customer provides, whether they are things they have bought or eaten.
Food, vehicle components, legal paperwork, and golf clubs are a few examples.
 Supplies - The quantity of products or services a provider is willing and able to offer to the market at a given
price is referred to as supply in the study of economics. Stock availability and the factors influencing the supply
have an impact on the willingness and capacity to make items available to the market.
 Services - The defining elements of a service are: Intangibility: Services are intangible and do not have a
physical presence. Benefits and Satisfactions: Services are "activities, benefits and satisfactions which are offered
for sale or are supplied in conjunction with the sale of products."

Business Marketing Strategy

- A company's entire plan for reaching out to potential customers and converting them into buyers of its goods
or services is referred to as a marketing strategy. The value proposition of the business, critical brand
messages, information on target consumer demographics, and other important components are all included in
a marketing plan.
 Illustration: Manufactured Materials and Parts
- Keep in mind that manufactured components and materials end up in the purchasing organization's own
product. The type of marketing strategy is frequently determined by whether a part is standard or customized.
Personal selling and customer relationship management initiatives play a significant role in the marketing
strategy for customized components.
 Illustration: Installations
- Installations like fixed equipment were formerly categorized as foundation goods as they are capital assets
that have an impact on the buyer's operational scale. Direct manufacturer-to-user methods of distribution are
the norm in this case, and the product or technology itself, together with the company's service skills, are the
 key components of the marketing plan. Through marketing middlemen, less expensive, more standardized
installations, like a drill press, may be offered.
 Illustration: Supplies
- The final example focuses on supplies, a facilitating good. Once more, we discover several marketing trends.
The majority of supply products are used by a wide range of businesses across several sectors. A wide range
of marketing intermediates are necessary to fully serve this enormous and diversified market, despite the fact
that some significant consumers are served directly.

FIGURE 1.8
A Framework for Business Marketing Management
- Your marketing framework is a graphic depiction of how marketing is carried out in your company. It shows
the logical relationship between the numerous elements that make up your insights, strategy, plan, tactical
execution, and measurements in order to realize your vision.