B2B Marketing

UNIT
INTRODUCTION TO B2B MARKETING
Names of Sub-Units
Business marketing and Business market customers, Market structure, Environment and
Characteristics of Business Marketing, Classification of Business Products and Markets
Overview
This module will introduce students to the concept of business marketing, which involves
the promotion and sale of products or services to businesses rather than individual
consumers. It will also cover the unique characteristics of business marketing, including
the use of longer and more complex sales cycles, larger transaction sizes, and more
specialized products and services.
Specifically, students will learn about:
 The basics of B2B marketing and its key differences from consumer marketing
 The characteristics and features of B2B markets, including the types of customers and
their buying behavior
 The different types of business products and markets, including their unique
characteristics and how they are classified
 The business marketing environment, including the various external factors that can
impact marketing efforts and decision-making
JGI JAIN
D EE M E D- T O -B E U N I V E R S I T Y
UNIT 1: Introduction to B 2B Marketing
 Overall, this course should provide students with a solid foundation in B2B marketing
and give them the skills and knowledge necessary to effectively plan and execute
marketing strategies in a business-to-business setting.
Learning Objectives
In this Unit you will learn –

 Understand the fundamentals of business marketing and how it differs from
consumer marketing.
 Identify the key characteristics and environment of business marketing.
 Understand the different types of business products and markets and how to classify
them.
 Learn how to develop and implement effective marketing strategies and tactics for
business markets.
Learning Outcomes
At the end of this unit, you would:

 Be able to explain the key principles and concepts of business marketing and how
they apply in real-world situations.
 Analyze and evaluate business marketing strategies and tactics.
 Be able to identify and classify different types of business products and markets.
 Understand the market structure and customers in the business market and how to
effectively target and serve them.
Pre-Unit Preparatory Material
 B2B Introduction:
i. Watch a video or read an overview of what B2B marketing is and how it differs
from consumer marketing
ii. Look up examples of B2B companies and their marketing strategies
 Business Marketing and Business Market Customers:
2
UNIT 1: Introduction to B 2B Marketing JGI JAIN
i. Read about the key characteristics of business customers and how they differ
from consumer customers
ii. Research different types of business markets and the factors that influence their
buying behavior
 Market Structure:
i. Review the different types of market structures (e.g. perfect competition,
monopolistic competition, oligopoly, monopoly) and their key features
ii. Consider how market structure can impact firms' pricing and marketing
strategies
 Environment and Characteristics of Business Marketing:

i. Research the various external factors that can impact business marketing efforts
(e.g. economic conditions, technological advances, legal and regulatory
environment)
ii. Look up examples of how businesses have had to adapt their marketing
strategies in response to changes in the external environment
 Classification of Business Products and Markets:

i. Review the different types of business products (e.g. goods, services, intellectual
property) and how they are classified
ii. Consider the unique characteristics of different types of business markets (e.g.
global, domestic, emerging) and how they might impact marketing efforts.
It may also be helpful for students to review basic marketing concepts, such as the
marketing mix (product, price, promotion, place), the marketing process, and the role of
market research in marketing decision-making.
1.1 Introduction to B2B Marketing
B2B marketing is a specialized form of marketing that involves promoting products or

services to other businesses, rather than to individual consumers. B2B marketing is a crucial
component of the overall business landscape, as businesses rely on a wide range of
products and services to support their operations and production processes.
There are several key differences between B2B and B2C (business-to-consumer) marketing.
3
JGI JAIN
i. B2B marketing often involves higher value transactions, as businesses are typically
purchasing products or services in larger quantities or with more specialized requirements.
ii. B2B sales cycles are also typically longer and more complex, as businesses may need to
evaluate and compare multiple options before making a purchasing decision.
iii. In addition, B2B marketing tends to focus more on the unique needs and preferences of
business customers, as opposed to the general consumer market.
1.1.1 Definition of B2B Marketing
B2B marketing, also known as business-to-business marketing, refers to marketing efforts

that are directed towards other businesses, rather than towards individual consumers. B2B
marketing involves promoting products or services to other businesses that can use them
as inputs in their own production processes, or as part of their own business operations.
Examples of B2B products and services include raw materials, office equipment, software,
consulting services, and other business-specific products or services.
1.1.2 Buyer Behaviour in B2B Marketing
In B2B markets, buyer behavior refers to the way that businesses make purchasing decisions
for products or services that will be used as inputs in their own production processes or as
part of their business operations. Understanding buyer behavior in B2B markets is
important for businesses that are looking to develop and implement effective marketing
strategies.
There are several factors that can influence buyer behavior in B2B markets, including:
i. Organizational objectives: Businesses will typically make purchasing decisions based on

how the product or service aligns with their overall business objectives and strategy. For
example, a company may prioritize purchasing materials that are more cost-effective, or
that can help improve efficiency or productivity.
ii. Decision-making process: The decision-making process in B2B markets is often more
complex and involves more stakeholders than in B2C markets. Businesses may need to
4
consider the opinions and preferences of multiple decision-makers and influencers, such as
department heads, purchasing agents, and engineers.
iii. Price: Price is an important consideration in B2B markets, as businesses need to balance
the cost of the product or service with the expected benefits. However, price is not always
the main deciding factor, as businesses may prioritize other factors such as quality,
reliability, and after-sales service.
iv. Personal relationships: Personal relationships can play a significant role in B2B markets,
as businesses may be more likely to purchase from suppliers that they have a long-standing
relationship with, or that have a reputation for providing high-quality products and services.
v. Brand reputation: The reputation and trustworthiness of a brand can be a key factor in
B2B purchasing decisions, as businesses want to ensure that they are working with
reputable and reliable suppliers.
By understanding the various factors that can influence buyer behavior in B2B markets,
businesses can develop and implement marketing strategies that are tailored to the needs
and preferences of their business customers.
1.1.3 Sales Management in B2B Marketing
Sales management in B2B markets involves overseeing and coordinating the sales activities
of a business that are directed towards other businesses. This can include setting sales goals
and targets, developing sales strategies and plans, managing sales staff and resources, and
analyzing sales data and performance.
There are several key considerations when it comes to sales management in B2B markets:
i. Sales process: The sales process in B2B markets is often more complex and longer than in
B2C markets, as businesses may need to evaluate and compare multiple options before
making a purchasing decision. As such, it is important for sales managers to have a clear
understanding of the stages of the sales process, and to develop strategies and plans that
are tailored to the specific needs of business customers.
5
JGI JAIN
ii. Sales staff: In B2B markets, sales staff often play a more consultative role, as they need to
understand the unique needs and preferences of business customers and be able to provide
tailored solutions. As such, sales managers need to ensure that they have the right staff in
place, with the necessary skills and expertise to effectively engage with business customers.
iii. Sales goals and targets: Setting clear and achievable sales goals and targets is an
important part of sales management in B2B markets. This can help to ensure that sales staff
have a clear understanding of what is expected of them, and can help to motivate and
incentivize them to meet or exceed these targets.
iv. Sales data and analysis: Analyzing sales data and performance is an important part of sales
management in B2B markets, as it can help to identify trends, patterns, and opportunities
for improvement. By regularly reviewing sales data, sales managers can make informed
decisions about how to optimize sales strategies and activities.
Overall, effective sales management in B2B markets is crucial for businesses that are looking
to grow and succeed in this competitive environment. By understanding the key
considerations and strategies involved in sales management in B2B markets, businesses can
develop and implement successful sales plans that are tailored to the needs and
preferences of their business customers.
1.2 Business Market & Business Marketing Customers
1.2.1 Types of Business Markets
There are several different types of business markets that businesses can target in their
marketing efforts. These include:
i. Manufacturer markets: Manufacturer markets refer to businesses that produce goods that
are used as inputs in the production of other goods. Examples of manufacturer markets
include businesses that produce raw materials, such as steel or plastics, or intermediate
goods, such as machinery or equipment.
ii. Reseller markets: Reseller markets refer to businesses that purchase goods from
manufacturers or wholesalers and then resell them to other businesses or consumers.
Examples of reseller markets include wholesalers, distributors, and retailers.
6
iii. Government markets: Government markets refer to businesses that sell products or
services to government agencies at the local, state, or federal level. Examples of government
markets include businesses that sell equipment or services to government agencies, such
as military contractors or IT consultants.
iv. International markets: International markets refer to businesses that sell products or
services to customers in other countries. These markets can include businesses in a variety
of industries, and may require businesses to adapt their marketing strategies to meet the
unique needs and preferences of international customers.
v. Service markets: Service markets refer to businesses that sell services, rather than physical
goods. Examples of service markets include consulting firms, legal services, and marketing
agencies.
By understanding the different types of business markets, businesses can develop and
implement marketing strategies that are tailored to the specific needs and preferences of
their business customers.
1.2.2 Business Market Segmentation
Business market segmentation refers to the process of dividing a larger business market
into smaller, more specific groups of customers based on shared characteristics or needs.
Business market segmentation is a useful tool for businesses looking to develop and
implement targeted marketing strategies, as it allows businesses to identify and focus on
specific segments of the market that are most likely to be interested in their products or
services.
There are several different ways that businesses can segment business markets, including:
i. Demographic segmentation: Demographic segmentation involves dividing the market

based on characteristics such as industry, company size, location, and purchasing power.
ii. Behavioral segmentation: Behavioral segmentation involves dividing the market based on
how customers behave when making purchasing decisions, such as how often they make
purchases, how much they spend, and what motivates them to make a purchase.
7
JGI JAIN
iii. Psychological segmentation: Psychological segmentation involves dividing the market
based on psychological characteristics such as attitudes, beliefs, and values.
iv. Needs-based segmentation: Needs-based segmentation involves dividing the market

based on the specific needs or problems that customers are looking to solve with the
product or service.
By understanding the different ways that business markets can be segmented, businesses
can develop and implement targeted marketing strategies that are tailored to the specific
needs and preferences of their business customers.
1.2.3 Business Market Analysis
Business market analysis refers to the process of examining and evaluating the various
factors that can influence the demand for a business's products or services in the market.
Business market analysis is an important tool for businesses looking to develop and
implement effective marketing strategies, as it allows businesses to identify opportunities,
understand the competitive landscape, and make informed decisions about how to position
and market their products or services.
There are several key components of business market analysis, including:
i. Market size and growth: Understanding the size and growth potential of the market can
help businesses to gauge the potential demand for their products or services.
ii. Customer needs and preferences: Identifying the specific needs and preferences of
business customers can help businesses to tailor their products or services to meet the
needs of the market.
iii. Competition: Analyzing the competitive landscape can help businesses to understand the
strengths and weaknesses of their competitors, and to identify opportunities to differentiate
themselves in the market.
iv. Market trends: Examining market trends can help businesses to identify emerging
opportunities or challenges, and to adapt their marketing strategies accordingly.
8
By conducting thorough market analysis, businesses can develop a better understanding of

the market and make informed decisions about how to position and market their products
or services in order to meet the needs and preferences of their business customers.
1.3 Market Structures, Environment & Characteristics of Business Marketing
1.3.1 Market Structure
Business market structure refers to the way that businesses within a particular market are
organized and interact with each other. Business market structure can be influenced by a
variety of factors, including the number and size of businesses in the market, the level of
competition, and the nature of the products or services being offered.
There are several different types of business market structures, including:
i. Monopoly: A monopoly is a market structure in which there is only one supplier of a

particular product or service. Monopolies can be natural, such as when there are high
barriers to entry in the market, or they can be created through government regulation.
ii. Oligopoly: An oligopoly is a market structure in which a small number of firms dominate
the market and there is a high level of interdependence between them. Oligopolies can be
characterized by intense competition and strategic behavior, as firms try to differentiate
themselves from their competitors.
iii. Monopolistic competition: Monopolistic competition is a market structure in which there

are many firms in the market offering slightly differentiated products or services. Firms in
monopolistic competition face competition from both substitutes and other firms in the
market, and as such may need to engage in marketing efforts to differentiate themselves
from their competitors.
iv. Perfect competition: Perfect competition is a theoretical market structure in which there
are many firms in the market offering identical products or services, and there are no
barriers to entry or exit. In perfect competition, firms are price takers and cannot influence
the market price of the product or service.
9
JGI JAIN
By understanding the different types of business market structures, businesses can develop
and implement marketing strategies that are tailored to the specific competitive
environment in which they operate.
1.3.2 PESTEL environment in B2B scenario
The acronym PESTEL stands for Political, Economic, Social, Technological, Environmental,
and Legal, and these categories represent the key areas that businesses need to consider
when analyzing the external environment.
In a B2B scenario, the PESTEL environment can have a significant impact on a business's
operations and performance. Some of the key considerations in a B2B PESTEL environment
include:
i. Political: Political factors refer to the policies and regulations that can impact a business's
operations. In a B2B scenario, political factors can include trade policies, tax laws, and
regulatory requirements that affect how businesses operate and interact with each other.
ii. Economic: Economic factors refer to the overall state of the economy and the impact that
this has on businesses. In a B2B scenario, economic factors can include things like interest
rates, inflation, and exchange rates, which can all impact the demand for a business's
products or services.
iii. Social: Social factors refer to the cultural and demographic characteristics of a market, and
how these can impact business operations. In a B2B scenario, social factors can include
things like changing consumer preferences, cultural values, and demographic trends, which
can all impact the demand for a business's products or services.
iv. Technological: Technological factors refer to the impact of technology on business

operations and performance. In a B2B scenario, technological factors can include things like
advances in production processes, new software or hardware products, and changes in the
way that businesses communicate and collaborate.
v. Environmental: Environmental factors refer to the impact of the natural environment on

business operations and performance. In a B2B scenario, environmental factors can include
10
things like climate change, resource depletion, and environmental regulations, which can
all impact the demand for a business's products or services.
vi. Legal: Legal factors refer to the laws and regulations that can impact a business's
operations. In a B2B scenario, legal factors can include things like employment laws,
contract laws, and intellectual property laws, which can all impact the way that businesses
operate and interact with each other.
By considering the PESTEL environment in a B2B scenario, businesses can develop and
implement marketing strategies that are tailored to the specific external factors that are
impacting their operations.
1.3.3 Characteristics of Business Marketing
There are several key characteristics that distinguish business marketing from other types
of marketing, such as consumer marketing. These characteristics include:
i. Relationship focus: Business marketing often involves developing long-term

relationships with business customers, rather than one-off transactions. As such,
businesses may need to focus on building trust and establishing a strong level of
communication and collaboration with their business customers.
ii. Complex products and services: Businesses often sell complex products or services
that require a high level of customization or customization. As such, businesses may
need to devote more time and resources to understanding the specific needs and
preferences of business customers and tailoring their products or services to meet these
needs.
iii. Large, long-term contracts: Businesses often enter into large, long-term contracts
with their business customers, which can involve significant negotiation and
coordination. As such, businesses may need to have a strong understanding of contract
law and be able to manage complex relationships with their business customers.
iv. Fewer, larger customers: Businesses often have fewer, larger customers compared to
consumer-focused businesses, which can impact the way that they market and sell their
11
JGI JAIN
v. Higher price points: Business products or services often have higher price points
compared to consumer products or services, which can impact the way that businesses
approach pricing and marketing.
1.4 Classification of Business Products and Markets
1.4.1 Types of products
Business products are products or services that are purchased by businesses for use in their
operations or production processes, rather than for personal consumption. Business products
can be classified into several different categories, including:
i. Raw materials: Raw materials are unprocessed materials that are used as inputs in the
production of other goods. Examples of raw materials include steel, lumber, and oil.
ii. Intermediate goods: Intermediate goods are partially processed goods that are used
as inputs in the production of other goods. Examples of intermediate goods include
machinery, equipment, and components.
iii. Capital goods: Capital goods are durable goods that are used in the production of
other goods, but are not consumed in the process. Examples of capital goods include
factories, buildings, and equipment.
iv. MRO (maintenance, repair, and operations) goods: MRO goods are products or
services that are used to maintain, repair, or operate other goods. Examples of MRO
goods include spare parts, tools, and maintenance services.
v. Business services: Business services are services that are provided to businesses to
support their operations or production processes. Examples of business services include
consulting, legal services, and marketing services.
1.4.2 Market targeting
Business market targeting refers to the process of identifying specific groups of business
customers that a business wants to target with its marketing efforts. Business market
12
targeting is an important part of the marketing process, as it helps businesses to focus their
resources and efforts on specific segments of the market that are most likely to be interested
in their products or services.
There are several different approaches that businesses can use to target business markets,
including:
i. Mass targeting: Mass targeting involves targeting a large, diverse group of business
customers with a general marketing message. This approach is often used when a
business's products or services have a wide appeal and can be used by a variety of
different businesses.
ii. Niche targeting: Niche targeting involves targeting a specific, narrow segment of the
market with a specialized marketing message. This approach is often used when a
business's products or services have a specialized appeal and are only relevant to a
small group of businesses.
iii. Segment targeting: Segment targeting involves targeting specific segments of the
market with tailored marketing messages based on the unique characteristics of each
segment. This approach is often used when a business's products or services can be
customized to meet the specific needs and preferences of different business segments.
1.4.3 Market trends and positioning
Understanding business market trends and positioning is an important part of the marketing
process, as it allows businesses to identify opportunities and challenges in the market and
adjust their marketing strategies accordingly. Some of the key considerations when examining
business market trends and positioning include:
Market size and growth: Understanding the size and growth potential of the market can help
businesses to gauge the potential demand for their products or services.
i. Customer needs and preferences: Identifying the specific needs and preferences of
business customers can help businesses to tailor their products or services to meet the
needs of the market.
13
JGI JAIN
ii. Competition: Analyzing the competitive landscape can help businesses to understand
the strengths and weaknesses of their competitors, and to identify opportunities to
differentiate themselves in the market.
iii. Market trends: Examining market trends can help businesses to identify emerging
opportunities or challenges, and to adapt their marketing strategies accordingly.
iv. Positioning: Understanding how a business's products or services are perceived in the
market compared to its competitors can help businesses to identify opportunities to
differentiate themselves in the market and to develop targeted marketing strategies.
Summary
 The key principles and concepts of business marketing, including the characteristics and
environment of business marketing.
 The classification of business products and markets, and the market structure and
customers in the business market.
 Discuss the role of marketing research in business marketing and how to develop and
implement effective marketing strategies and tactics for business markets.
 Importance of relationship marketing in business markets and the role of ethical and
social responsibility in business marketing.
 The market structure and customers in the business market can vary significantly
depending on the industry and the target market.
 By the end of this module, you should have a strong foundation in business marketing
and be able to effectively analyze and evaluate business marketing strategies and
tactics.
Self-Practice
Choose a business or organization that you are familiar with (it could be your own business
or one that you have worked for in the past). Then, using the topics covered in this module
(business marketing and business market customers, market structure, environment and
characteristics of business marketing, and classification of business products and markets),
complete the following tasks:
 Identify the business's target market and classify it according to the type of product or
service, the size of the business, the stage of the product life cycle, and the degree of
complexity.
14
 Analyze the market structure and customers in the business market, including the
industry, competitors, and customer needs and preferences.
 Evaluate the business's marketing strategies and tactics, considering the environment
and characteristics of business marketing and the importance of relationship marketing.
Once you have completed these tasks, review your work and consider any areas where you
could improve your understanding or analysis of the business's marketing efforts.
1.6 Case Study: Fashion Brand Order Fulfilment
A fashion brand was started with a vision to create men’s formal shirts. It developed into a
global lifestyle brand for men and women with sales activities spread over 50 countries. The
company offers apparel and footwear.
Challenge for the company is to create rapid time-to-market performance to capture retail
sales when customers are buying. When the new management team for the company saw
turn-around times from order to delivery of nearly three weeks, they knew something had
to change. Too much old inventory and too great an emphasis on airfreight were affecting
profitability. In addition, the team had been charged with changing the supply chain
department’s role in the supply chain from supporting nearly exclusively the company’s
wholesale functions to a balance of wholesale and retail channel.
The brand capitalized on the retail expertise and capabilities of a 4PL provider, including the
robust warehouse management technologies and local capacity. The benefits of greater
inventory visibility and control to cascade into other supply chain functions including
transportation, warehousing, distribution and customer service. Implementation of the
solution started- the fashion label moved its warehouse operations into the 4PL warehouse
facility. This LSP runs the warehouse management system for integrating warehouse, labor,
transportation and inventory logistics. The Logistics transportation services were based on a
“cost-plus” structure, making transportation expenses transparent to the fashion brand while
reducing their actual cost-per-shipment charges. This solution also enabled the logistics
provider to provide on-site, real-time customer service for the brand, answering their
customers’ questions and resolving their issues on the spot. Since the initial implementation,
the 4PL provider identified and implemented additional efficiencies throughout the
distribution process.
Fashion brand was able to build on the success with continuous year-over-year cost savings,
15
JGI JAIN
and the brand has completely given the packaging part for its products in major market
operations and implemented a retail-specific e-commerce process.
The result was phenomenal. The brand was able to cut its reliance on airfreight by 70 percent
in the first year and achieved greater visibility and better control over its inventory. At the
same time, the turnaround time from order to delivery went from approximately three weeks
to less than seven days. Overall, the logistics provider saved the fashion brand approximate
20 percent on transportation and warehousing in year one, and an additional 10 percent in
year two and continued to implement innovative solutions that improved the fashion label’s
supply chain.
Case Objective
This case study aims to explain the importance of inventory management and order
fulfilment, integrated with the complete logistics system, through the specialised logistic
service provider.
Questions:
1) What are the logistics problems identified by the fashion label in order deliveries?
(Hint: overstocking, expensive airfreight, lengthy concept-to-market time)
2) What do you think are the inventory control approaches the logistic service provider
would have applied?
(Hint: pull and JIT-based inventory control)
3) How did the logistic service provider tackle the inefficiencies in the logistics function?
(Hint: warehouse management expertise, inventory capacity enhancement, greater inventory
visibility and control)
Self-Assessment Questions and Hints
A . Answer in paragraphs.
i. Short Answers
1. What is the main difference between business marketing and consumer marketing?
2. How does market structure impact the behavior of businesses in the B2B market?
3. What are some key characteristics of business marketing?
4. Can you give examples of different types of business products?
5. How do businesses segment the business market?
16
ii. Medium Answers
1. How do environmental factors such as economic conditions or legal requirements

impact the behavior of businesses in the B2B market?
2. How do businesses evaluate and select suppliers in the B2B market?
3. What role does customer needs and preferences play in the classification of business
products?
4. How do businesses target and position themselves in the business market?
5. Can you discuss the role of sales management in the B2B market and how it differs from
consumer marketing?
iii. Long Answers
1. How does the organizational structure of a business impact its purchasing decisions in
the B2B market?
2. Can you discuss the various purchasing orientations that businesses may adopt in the
B2B market and provide examples of businesses that fit each orientation?
3. How do businesses evaluate the environmental and sustainability considerations of
products or services when making purchasing decisions in the B2B market?
4. Can you discuss the role of marketing communications in the B2B market and provide
examples of effective marketing strategies?
5. How do businesses use digital marketing tools and techniques to reach business
customers in the B2B market?
1.7 POST-UNIT READING MATERIAL
 Business Marketing Management: B2B by Michael D. Hutt and Thomas W. Speh: This
textbook covers the key principles of business marketing, including customer behavior,
market research, and pricing strategies.
 "Understanding Business Markets" by John L. Stanton and Charles R. Futrell: This article,
published in the Journal of Marketing, discusses the key characteristics of business
markets and how they differ from consumer markets.
 "The External Environment and Its Effect on Strategic Marketing Planning: A Case Study
for McDonald's" by David L. Loudon and Bruce D. Hoyer: This case study examines how
17
JGI JAIN
McDonald's has adapted its marketing strategies in response to changes in the external
environment.
 "Classification of Industrial Products" by E. Jerome McCarthy and William D. Perreault
Jr.: This article, published in the Journal of Marketing, discusses the different
classification systems for industrial products and their implications for marketing
strategy.
18
UNIT
PERSPECTIVES ON ORGANIZATIONAL BUY
Names of Sub-Units
The nature of buying, Factors affecting purchasing decisions, purchasing orientation
Overview
Organizational customers are businesses or other organizations that purchase goods or

services for use in their operations. There are several types of organizational customers,
each with its own unique characteristics:
 Commercial enterprises: These are for-profit businesses that sell goods or services to
other businesses or consumers. Examples include retail stores, manufacturers, and
wholesalers. Commercial enterprises are driven by the need to make a profit and may
be motivated by factors such as cost, quality, and delivery time.
 Government agencies: These organizations purchase goods and services to support the
needs of their constituents. They may be motivated by factors such as price, quality,
and the ability to meet specific requirements or standards.
 Nonprofit organizations: These organizations are not driven by profit and may include
charities, schools, and hospitals. They may be motivated by factors such as cost, social
impact, and the ability to meet their mission or goals.
JGI JAIN
DEEM ED-T O-BE UNI VE R SI TY UNIT 2 : Perspectives on Organizational Buy
The nature of buying for organizational customers is typically more complex than for
individual consumers. Organizational customers often have more resources and may
be more strategic in their purchasing decisions. They may also involve multiple
decision-makers and may have more formalized processes for evaluating and selecting
suppliers.
There are several factors that can affect purchasing decisions for organizational
customers. These include the availability and cost of raw materials, the level of
competition in the market, economic conditions, and changes in consumer demand.
Purchasing orientation refers to the approach that an organization takes when making
purchasing decisions. Some organizations may be more cost-conscious and focused
on finding the lowest price, while others may prioritize quality and be willing to pay a
premium for it.
Specifically, students will learn about:
 Factors affecting purchasing decisions, purchasing orientation, and segmenting

purchase categories, a learner will gain a deep understanding of the various types of
businesses and organizations that make up the market for goods and services, and the
unique characteristics and needs of each type.
 They will learn about the factors that influence purchasing decisions for organizational
customers and the different approaches that organizations may take when making
these decisions. They will also learn about the importance of segmenting purchase
categories and how it can help organizations manage their purchasing more effectively.
 Overall, a learner will gain a comprehensive understanding of the business-to-business
purchasing process and be better equipped to make informed decisions when working
with organizational customers.
Learning Objectives

 Understand the different types of organizational customers and their unique
characteristics.
 The nature of buying for organizational customers and the factors that influence their
purchasing decisions.
2
UNIT 2 : Perspectives on Organizational Buy JGI JAIN
DEEM ED-T O-BE UNI VE R SI TY
 The concept of purchasing orientation and the different approaches that organizations
may take when making purchasing decisions.
 The importance of segmenting purchase categories and how it can help organizations
manage their purchasing more effectively.
Learning Outcomes

 B Have a solid understanding of the different types of organizational customers and
their unique characteristics.
 Be able to describe the nature of buying for these customers and the factors that
influence their purchasing decisions.
 Define and explain the concept of purchasing orientation and the different approaches
that organizations may take when making purchasing decisions.
 Overall, learners should have a comprehensive understanding of the business-to-
business purchasing process and be better equipped to make informed decisions when
working with organizational customers.
Types of organizational customers and their unique characteristics of Commercial

enterprise:
 A glossary of business terms: This could include terms such as "profit," "revenue,"
"supply chain management," and other key concepts related to business and
economics.
The nature of buying:

 An overview of marketing and sales: This could include information on the different
types of marketing and sales techniques, as well as the role of marketing and sales
in the overall business process.
 Case studies or real-world examples: These could provide useful context for
understanding the concepts and principles covered in the course. They could
3
JGI JAIN
include examples of businesses or organizations making purchasing decisions and
the factors that influenced those decisions.
Factors affecting purchasing decisions, purchasing orientation, Segmenting purchase
categories.
 An explanation of the concept of purchasing orientation: This could include a
description of the different approaches that organizations may take when making
purchasing decisions, such as a focus on cost or quality.
 Additionally, learners may find it helpful to review basic business and economics
concepts, as well as marketing and sales techniques. It may also be useful to review
communication and problem-solving skills, as these will be important when working
with organizational customers
2.1 Decision Making in Commercial Enterprises
2.1.1 Decision-Making Processes
The decision-making process in a commercial enterprise refers to the way that decisions
are made within the organization. The specific decision-making process that a commercial
enterprise uses will depend on the size and complexity of the organization, as well as the
nature of the decision being made.
Some common approaches to decision-making in commercial enterprises include:
i. Top-down decision-making: In a top-down decision-making process, decisions are made

by top-level management and then communicated to lower-level employees. This
approach is often used in hierarchical organizations with clear lines of authority.
ii. Bottom-up decision-making: In a bottom-up decision-making process, decisions are made

by lower-level employees and then communicated to upper management. This approach is
often used in organizations with a flatter structure and a higher level of employee
autonomy.
iii. Consensus-based decision-making: In a consensus-based decision-making process,

decisions are made through a process of consultation and negotiation among different
stakeholders, including employees, management, and customers. This approach is often
4
used in organizations that value collaboration and seek to involve multiple perspectives in
decision-making.
2.1.2 Marketing to Commercial Enterprises
Some key considerations when marketing to commercial enterprises include:
i. Understanding the needs and preferences of business customers: Business customers

often have different needs and preferences compared to individual consumers, and as such
B2B marketers need to understand these needs and preferences in order to effectively
promote their products or services.
ii. Developing long-term relationships: B2B marketing often involves developing long-term
relationships with business customers, rather than one-off transactions. As such, B2B
marketers may need to focus on building trust and establishing strong lines of
communication and collaboration with their business customers.
iii. Customizing products or services: Businesses often sell complex products or services that
require a high level of customization or customization. B2B marketers may need to devote
more time and resources to understanding the specific needs and preferences of business
customers and tailoring their products or services to meet these needs.
Managing large, long-term contracts: Businesses often enter into large, long-term contracts
with their business customers, which can involve significant negotiation and coordination.
B2B marketers may need to have a strong understanding of contract law and be able to
manage complex relationships with their business customers.
2.1.3 Procurement & Supplier Selection
Procurement refers to the process of acquiring goods or services that are needed by a
business, while supplier selection refers to the process of identifying and choosing suppliers
to provide these goods or services. In the context of B2B marketing, procurement and
supplier selection are important considerations for businesses as they can have a significant
impact on the quality and cost of the products or services being purchased.
5
JGI JAIN
Some key considerations when it comes to procurement and supplier selection in B2B
marketing include:
i. Identifying the specific needs and preferences of the business: Before selecting a
supplier, it is important for businesses to have a clear understanding of their specific needs
and preferences, including the type and quantity of goods or services needed, the desired
delivery time, and any quality or performance requirements.
ii. Evaluating potential suppliers: Once the business has identified its specific needs and
preferences, it can begin evaluating potential suppliers. This may involve reviewing the
supplier's track record, assessing the quality and reliability of their products or services, and
negotiating terms such as price and delivery times.
iii. Managing the procurement process: Once a supplier has been selected, the business will
need to manage the procurement process, which may involve placing orders, tracking
deliveries, and managing any issues that arise.
2.2 Factors Affecting Purchasing Decisions
2.2.1 Economic Factors
Key economic factors to consider include:
i. Cost: The cost of goods or services is often a major factor in B2B purchasing decisions, as
businesses aim to minimize their expenses and maximize their profits. Businesses may
consider a variety of factors when evaluating the cost of goods or services, including the
price of the product or service itself, as well as any associated costs such as shipping or
installation.
ii. Return on investment: Businesses may also consider the potential return on investment
(ROI) when making purchasing decisions. This may involve evaluating the potential benefits
of a product or service, such as increased efficiency or productivity, and comparing these
benefits to the cost of the product or service.
iii. Economic conditions: The overall economic conditions, such as inflation, unemployment,
and GDP growth, can also impact B2B purchasing decisions. During times of economic
6
uncertainty or downturn, businesses may be more cautious in their spending and may be
more likely to delay or cancel purchases.
iv. Financial stability: The financial stability of the business itself can also impact purchasing
decisions. For example, a business that is struggling financially may be less likely to make
significant purchases, while a business that is financially secure may be more willing to
invest in new products or services.
2.2.2 Legal and Regulatory Factors
In addition to economic factors, there are also a number of legal and social factors that can
impact the purchasing decisions of businesses in the B2B market. Some of the key legal and
social factors to consider include:
i. Legal requirements: Businesses may be subject to a variety of legal requirements when

making purchasing decisions, such as requirements related to procurement, competition,
and antitrust laws. These requirements can impact the way that businesses evaluate and
select suppliers, as well as the terms of any contracts that are entered into.
ii. Social responsibility: Many businesses are also concerned about their social responsibility
and may consider factors such as the environmental impact of products or services, the
working conditions of employees at the supplier, and the supplier's corporate social
responsibility policies when making purchasing decisions.
iii. Customer preferences: The preferences of the business's own customers can also impact
purchasing decisions. For example, if a business's customers are concerned about
sustainability, the business may be more likely to choose suppliers that have a strong track
record in this area.
1.2.3 Social and Cultural Factors
Social and cultural factors can have a significant impact on the purchasing decisions of
businesses in the B2B market. Some of the key social and cultural factors to consider
include:
7
JGI JAIN
i. Culture: The culture of an organization can influence the way that purchasing decisions are
made. For example, a business with a risk-averse culture may be more likely to choose
established suppliers with a proven track record, while a business with a more
entrepreneurial culture may be more willing to take risks and try new suppliers.
ii. Social norms: The social norms and values of an organization can also influence purchasing
decisions. For example, a business that values diversity and inclusion may be more likely to
choose suppliers that have a diverse workforce or that are owned by underrepresented
groups.
iii. Customer preferences: The preferences of the business's own customers can also impact
purchasing decisions. For example, if a business's customers are concerned about
sustainability, the business may be more likely to choose suppliers that have a strong track
record in this area.
By understanding the social and cultural factors that can impact B2B purchasing decisions,
businesses can develop and implement strategies that are tailored to the specific needs and
preferences of their business customers.
2.2.4 Environmental and Sustainability Considerations
Environmental and sustainability considerations are becoming increasingly important in the

B2B market, as businesses look to minimize their impact on the environment and meet the
growing demand for eco-friendly products and services. Some of the key environmental
and sustainability considerations that businesses may take into account when making
purchasing decisions include:
i. Energy efficiency: Businesses may consider the energy efficiency of products or services
when making purchasing decisions, as energy-efficient products or services can help to
reduce energy consumption and lower operating costs.
ii. Carbon emissions: The carbon emissions of products or services may also be a factor in
purchasing decisions, as businesses look to reduce their carbon footprint and meet
sustainability targets.
8
iii. Recyclability and waste reduction: Businesses may also consider the recyclability and
waste reduction potential of products or services when making purchasing decisions. For
example, businesses may prefer products that are made from recycled materials or that can
be easily recycled at the end of their lifecycle.
iv. Water conservation: The water conservation potential of products or services may also be
a factor in purchasing decisions, particularly in areas where water resources are limited.
2.3 Purchasing Orientation
Purchasing orientation refers to the approach that businesses take when making purchasing
decisions:
2.3.1 Types of Purchasing Orientation
In the B2B market, there are several different purchasing orientations that businesses may
adopt, including
i. Cost orientation: A cost orientation refers to a focus on minimizing costs when making
purchasing decisions. Businesses with a cost orientation may prioritize price over other
factors such as quality or sustainability when evaluating suppliers and products.
ii. Quality orientation: A quality orientation refers to a focus on purchasing high-quality

products or services. Businesses with a quality orientation may be willing to pay a premium
for products or services that meet strict quality standards.
iii. Service orientation: A service orientation refers to a focus on purchasing products or

services that are accompanied by strong levels of customer service. Businesses with a
service orientation may prioritize suppliers that offer a high level of support and assistance.
iv. Sustainability orientation: A sustainability orientation refers to a focus on purchasing

products or services that are environmentally friendly and have a low impact on the
environment. Businesses with a sustainability orientation may prioritize suppliers that have
a strong track record in sustainability
9
JGI JAIN
2.3.2 Factors that influence Purchasing Orientation
i. Business goals and objectives: The specific goals and objectives of a business can
influence its purchasing orientation. For example, a business that is focused on minimizing
costs may adopt a cost orientation, while a business that is focused on sustainability may
adopt a sustainability orientation.
ii. Industry and market conditions: The specific industry and market conditions that a
business operates in can also influence its purchasing orientation. For example, businesses
operating in industries with high levels of competition may be more focused on minimizing
costs, while businesses operating in industries with strong sustainability requirements may
be more focused on sustainability.
iii. Customer preferences: The preferences of the business's customers can also influence
purchasing orientation. For example, if a business's customers are particularly concerned
about sustainability, the business may adopt a sustainability orientation in order to meet
these preferences.
iv. Internal resources and capabilities: The internal resources and capabilities of a business
can also impact its purchasing orientation. For example, a business with a strong focus on
research and development may adopt a quality orientation in order to support these efforts.
Summary
 Organizational customers are businesses, government agencies, and nonprofit

organizations that purchase goods and services for their operations.
 The nature of buying for organizational customers is typically more complex than for
individual consumers, as it involves multiple decision-makers and may have more
formalized processes for evaluating and selecting suppliers.
 Purchasing orientation refers to the priorities and values that influence an organization's
purchasing decisions. These can include cost-consciousness, quality-consciousness, and
service-consciousness.
10
 Factors that can influence purchasing decisions for organizational customers include the
availability and cost of raw materials, the level of competition in the market, economic
conditions, and the organization's financial performance.
 Segmenting purchase categories involves grouping purchases based on characteristics such

as the type of product or service, the supplier, or the purpose of the purchase. This can help
organizations better manage purchasing processes and enhance control over costs.
 Procurement is the process of identifying and evaluating potential suppliers and

negotiating terms and conditions with them. It is a key part of the purchasing process for
organizational customers.
 Marketing and sales techniques can be used to effectively communicate with and
understand the needs of organizational customers. This includes identifying the needs and
pain points of the customer and demonstrating the value of the product or service.
 Strong communication and problem-solving skills are essential for effectively serving and
working with organizational customers. This includes being responsive and timely in
addressing issues or questions and being proactive in finding solutions to problems.
Self-Practice
1. Case study analysis: Choose a real-life case study of an organization that has faced a
challenge in the purchasing process. Analyze the problem and suggest potential solutions
based on the concepts and skills learned in the course.
2. Role-play: Work with a partner to role-play a negotiation scenario between an

organizational customer and a supplier. Practice using negotiation strategies and
techniques to secure favorable terms and conditions for the customer.
3. Research project: Choose a specific industry (e.g. healthcare, manufacturing, retail) and
research the purchasing trends and challenges faced by organizations in that industry. Use
the research to create a presentation or report on the topic.
11
JGI JAIN
4. Simulation exercise: Use a purchasing simulation tool or software to practice managing the
purchasing process for an organizational customer. The tool should allow learners to make
decisions about supplier selection, budget management, and risk management.
5. Marketing plan: Develop a marketing plan for a product or service that is targeted at
organizational customers. The plan should include strategies for identifying the needs and
pain points of the customer, demonstrating the value of the product or service, and building
relationships with the customer.
Answer in Paragraphs
i. Short Answers
1. What are the different types of organizational customers?
2. What are the factors that influence purchasing decisions for organizational customers?
3. What is the concept of purchasing orientation and how does it impact purchasing
decisions?
4. What are the benefits of segmenting purchase categories?
5. How can organizations effectively work with and serve organizational customers in a
business-to-business context?
ii. Medium Answers

6. How can organizations identify opportunities for cost savings through segmenting
purchase categories and negotiating with suppliers?
7. What strategies can organizations use to mitigate the risks associated with organizational
purchasing?
8. How can organizations use marketing and sales techniques to effectively communicate with
and understand the needs of organizational customers?
9. How can organizations develop strong communication and problem-solving skills to
effectively serve and work with organizational customers?
10. How does the business-to-business purchasing process vary across different industries?
iii. Long Answers

11. How can organizations stay up-to-date on industry trends and best practices related to
organizational customers and purchasing?
12. How can organizations use the concepts and skills learned in the course to make informed
and strategic decisions when working with organizational customers?
13. How can organizations use segmenting purchase categories and other techniques to
effectively manage purchasing processes and achieve cost savings over time?
12
14. How can organizations use communication and problem-solving skills to build long-term
relationships with organizational customers and contribute to the success of the
organization?
15. How do the needs and expectations of organizational customers change over time, and
how can organizations adapt to these changes?

 "The Purchasing Process: How Organizations Buy Goods and Services" by the University of
California, San Diego. This article provides an in-depth overview of the purchasing process for
organizational customers, including the roles of procurement and sourcing.
 "The Top 7 B2B Marketing Strategies for 2021" by Neil Patel. This article provides practical tips
and strategies for marketing to and selling to organizational customers in the current business
environment.
 "10 Tips for Effective Business-to-Business Communication" by Forbes. This article offers advice
on how to effectively communicate with organizational customers, including tips on how to
build trust, establish rapport, and handle difficult situations.
 "The Role of Procurement in Supply Chain Management" by the University of Maryland. This
article discusses the role of procurement in the supply chain management process, including
the responsibilities of procurement professionals and the importance of building strong
relationships with suppliers.
 "Purchasing and Supply Chain Management" by the Chartered Institute of Procurement and
Supply. This book provides a comprehensive overview of purchasing and supply chain
management for organizational customers, including topics such as procurement strategy,
supplier selection, and risk management.
2.5 TOPICS FOR DISCUSSION FORUMS
13
UNIT
MANAGING SERVICE FOR BUSINESS

MARKETS
Names of Sub-Units
Delivering effective customer solutions, Marketing of solutions Pricing in B2B marketing,

Pricing process, Competitive bidding Managing marketing communications for business
markets
Overview
Understanding the customer experience involves understanding the needs, preferences,

and behaviors of business customers, as well as the various touchpoints and interactions
they have with a company or brand. Delivering effective customer solutions involves
identifying and meeting the specific needs and pain points of business customers, and
offering solutions that are tailored to their unique requirements. Marketing of solutions
involves promoting the benefits and value of the solutions to business customers through
various channels, such as advertising, social media, and content marketing.
Pricing in B2B marketing involves determining the value and price of products or services
based on factors such as the costs of production, the level of competition in the market,
and the perceived value of the solution to the customer. The pricing process may involve
setting prices at a level that is competitive with other similar solutions in the market, while
also ensuring that the company is able to generate a sufficient profit margin. Competitive
JGI JAIN
DEEM ED-T O-BE UNI VE R SI TY UNIT 3 : Managing Service for Business Markets
bidding involves the process of soliciting proposals or bids from multiple suppliers and
evaluating them based on factors such as price, quality, and delivery time.
Managing marketing communications for business markets involves developing and

implementing effective marketing campaigns and tactics that are tailored to the needs and
preferences of business customers. This may involve using various channels, such as email,
direct mail, and social media, to reach and engage with business customers. B2B
advertising involves promoting products or services to other businesses through various
channels, such as print and online advertising, trade shows, and industry events. Digital
marketing involves the use of online channels, such as websites, social media, and email,
to reach and engage with business customers.
By studying the topics of understanding the customer experience, delivering effective

customer solutions, marketing of solutions, pricing in B2B marketing, competitive bidding,
managing marketing communications for business markets, and B2B advertising and
digital marketing, learners will gain a comprehensive understanding of the key
considerations and strategies involved in successful B2B marketing. This includes learning
how to:
 Understand the needs, preferences, and behaviors of business customers: Learners will
learn how to conduct market research and gather customer insights to better
understand the needs and preferences of business customers, as well as the various
touchpoints and interactions they have with a company or brand.
 Identify and meet the specific needs of business customers: Learners will learn how to
identify the specific needs and pain points of business customers and offer solutions
that are tailored to their unique requirements.
 Promote the value of solutions to business customers: Learners will learn how to
effectively communicate the benefits and value of products or services to business
customers through various marketing channels, such as advertising, social media, and
content marketing.
 Determine competitive prices: Learners will learn how to set prices for products or
services based on factors such as the costs of production, the level of competition in
the market, and the perceived value of the solution to the customer.
 Soliciting and evaluating bids from suppliers: Learners will learn how to solicit
proposals or bids from multiple suppliers and evaluate them based on factors such as
price, quality, and delivery time.
2
UNIT 3 : Managing Service for Business Markets JGI JAIN
 Effectively reach and engage with business customers through marketing channels:
Learners will learn how to develop and implement effective marketing campaigns and
tactics that are tailored to the needs and preferences of business customers, using
various channels such as email, direct mail, and social media.
 Use B2B advertising and digital marketing channels: Learners will learn how to use
various channels, such as print and online advertising, trade shows, and industry
events, to reach and engage with business customers. They will also learn how to use
online channels, such as websites, social media, and email, to reach and engage with
business customers.
Learning Objectives

 Develop a comprehensive understanding of the key considerations and strategies
involved in successful B2B marketing.
 Learn how to identify and meet the specific needs and pain points of business
customers through tailored solutions.
 Develop the skills to effectively communicate the value and benefits of products or
services to business customers through various marketing channels.
 Understand the various factors that can impact the success of B2B marketing efforts,
such as the level of competition in the market, the perceived value of the solution, and
the preferences and behaviors of business customers.
Learning Outcomes

 Identify and understand the needs, preferences, and behaviors of business customers.
 Develop and deliver effective customer solutions that are tailored to the specific
needs and pain points of business customers.
 Promote the value and benefits of products or service
 Identify and understand the needs, preferences, and behaviors of business customers.
 Develop and deliver effective customer solutions that are tailored to the specific
needs and pain points of business customers.
 Promote the value and benefits of products or service
3
JGI JAIN
 Online articles: "5 Tips for Delivering a Great Customer Experience," "Marketing
Solutions: An Overview," "Pricing Strategies in B2B Markets," "The Competitive Bidding
Process in B2B Markets," "Effective Marketing Communications for Business Markets"
3.1 Delivering effective Customer Solution
Delivering effective customer solutions in B2B markets involves understanding the needs
and preferences of business customers and developing solutions that address their
problems and meet their expectations.
This involves a range of activities:

i. Identifying and analyzing customer problems and needs: This involves gathering data
and insights about business customers, their challenges and goals, and their preferences
and expectations. This can be done through various methods, such as market research,
customer surveys, focus groups, and customer interviews.
ii. Developing customer-centric solutions: Based on the customer insights gathered,

businesses can develop solutions that are tailored to the needs and preferences of business
customers. This can involve creating new products or services, adapting existing ones, or
offering customized solutions.
iii. Implementing and managing customer solutions: Once a solution has been developed,
it needs to be effectively implemented and managed. This can involve coordinating with
internal teams and external partners, setting up systems and processes to deliver the
solution, and providing training and support to customers.
iv. Evaluating the effectiveness of customer solutions: It's important to regularly assess
the effectiveness of customer solutions to ensure that they are meeting the needs and
expectations of business customers. This can involve collecting data and feedback from
customers, analyzing performance metrics, and making adjustments as needed.
v. Improving customer solutions: Based on the results of the evaluations, businesses can
make improvements to their customer solutions to better meet the needs and preferences
4
of business customers. This can involve updating products or services, streamlining

processes, or introducing new features or benefits.
3.1.1 Identifying & Analyzing Customer Problems and Needs in B2B Markets
Identifying and analyzing customer problems and needs in B2B markets is an essential step
in the process of delivering effective customer solutions. This involves gathering data and
insights about business customers, their challenges and goals, and their preferences and
expectations.
Methods used to analyze the customer problem:
i. Market research: This involves collecting and analyzing data about the market, industry,
and competitors to understand the needs and preferences of business customers. This can
be done through various methods, such as surveys, focus groups, and interviews.
ii. Customer surveys: Surveying business customers directly can provide valuable insights
into their needs and preferences. Surveys can be conducted online, via email, or by phone,
and can cover a wide range of topics, such as product or service satisfaction, customer
experience, and future needs and preferences.
iii. Focus groups: Focus groups involve bringing together a group of business customers to
discuss and provide feedback on a specific product, service, or issue. This can provide more
in-depth and qualitative insights into customer needs and preferences.
iv. Customer interviews: One-on-one interviews with business customers can provide more
detailed and personalized insights into their needs and preferences. These interviews can
be conducted in person, via phone, or online, and can cover a range of topics.
3.2 Pricing in B2B Market
Pricing is an important aspect of marketing in B2B markets, as it can impact the demand
and profitability of products and services.
There are several factors that businesses should consider when setting prices in B2B
markets, including:
5
JGI JAINDEEM ED-T O-BE UNI VE R SI TY UNIT 3 : Managing Service for Business Markets
i. Cost: The cost of producing and delivering products or services is an important factor in
pricing. Businesses need to consider the cost of raw materials, labor, and overhead
expenses when setting prices.
ii. Demand: The demand for a product or service will impact the price that a business can
charge. If demand is high, businesses may be able to charge a higher price, whereas if
demand is low, they may need to lower their prices to attract customers.
iii. Competition: The prices charged by competitors can also influence a business's pricing
decisions. If competitors are charging higher prices, a business may be able to charge a
similar or slightly lower price and still be competitive.
iv. Value: The value that a product or service provides to a business customer should also be
considered when setting prices. If a product or service offers significant value, businesses
may be able to charge a higher price.
v. Customer relationship: The nature of the relationship with the customer can also impact
pricing. For example, long-term customers may be more willing to pay a higher price, while
new customers may require lower prices to build a relationship.
3.2.1 Marketing of Solutions pricing in B2B Marketing
Marketing of solutions pricing in B2B marketing involves developing pricing strategies that
are aligned with the marketing and positioning of the product or service. Key
considerations when developing solution pricing strategies in B2B markets include:
i. Value proposition: The value proposition of the product or service should be reflected in
the pricing. For example, if a product or service offers significant cost savings or efficiency
improvements, it may be possible to charge a higher price.
ii. Target market: The target market for the product or service should be considered when
setting prices. Different segments may have different price sensitivity and willingness to
pay.
6
iii. Differentiation: The product or service should be differentiated from competitors in terms
of its features, benefits, and value proposition. This can allow a business to charge a higher
price and justify the value that it provides.
iv. Packaging and bundling: Packaging and bundling products and services can also impact
pricing. For example, bundling several products or services together and offering them at
a discounted price may be more attractive to business customers.
v. Price elasticity: The price elasticity of the product or service should also be considered.
This refers to the degree to which demand for the product or service changes in response
to changes in price. If demand is highly elastic, small changes in price can have a significant
impact on demand.
By taking these factors into account, businesses can develop pricing strategies that are
aligned with their marketing and positioning goals in B2B markets.
3.2.2 Pricing Process
The pricing process in B2B markets involves a series of steps that businesses go through
to determine the prices at which they will sell their products and services.
Steps in B2B pricing:
i. Determine the value proposition: The first step in the pricing process is to identify the
value proposition of the product or service. This involves understanding the benefits and
features of the product or service and how they meet the needs and preferences of
business customers.
ii. Determine the target market: The next step is to identify the target market for the
product or service. This involves understanding the characteristics and needs of the
business customers that the product or service is intended to serve.
iii. Analyze costs: The third step is to analyze the costs associated with producing and
delivering the product or service. This includes both direct costs, such as materials and
labor, and indirect costs, such as overhead expenses.
7
JGI JAIN
iv. Determine pricing objectives: The fourth step is to determine the pricing objectives for
the product or service. This involves considering factors such as the target market,
competition, demand, and the overall goals of the business.
v. Develop pricing strategies: Based on the value proposition, target market, costs, and
pricing objectives, businesses can develop pricing strategies that will be competitive and
profitable. This may involve setting a list price, offering discounts or promotions, or
bundling products or services.
vi. Implement and review pricing: The final step in the pricing process is to implement the
pricing strategies and regularly review and adjust them as needed. This may involve
collecting data on sales and customer feedback, analyzing performance metrics, and
making adjustments to the pricing strategies as needed.
3.3 Competitive Bidding Managing Marketing Communications for Business Markets
Competitive bidding refers to the process of submitting a proposal or offer to a potential

business customer in response to a request for proposal (RFP) or invitation to tender (ITT).
This process is commonly used in B2B markets, particularly for large contracts or projects.
Key considerations when managing competitive bidding in B2B markets include:
i. Identifying and evaluating opportunities: The first step in the competitive bidding
process is to identify and evaluate potential business opportunities. This involves
identifying relevant RFPs or ITTs and analysing the requirements and criteria to determine
if the business is capable of meeting them.
ii. Developing a bidding strategy: Once a business has identified a potential opportunity, it
can develop a bidding strategy to maximize its chances of success. This may involve
identifying key differentiators and value propositions, negotiating terms and conditions,
and developing a pricing strategy.
iii. Preparing and submitting a bid: The next step is to prepare and submit a bid in response
to the RFP or ITT. This typically involves completing a detailed proposal that outlines the
8
business's capabilities, experience, and approach to meeting the requirements and criteria
set out in the RFP or ITT.
iv. Negotiating and closing deals: If a business's bid is successful, it may be required to
negotiate the terms and conditions of the contract or project. This can involve discussing
and agreeing on issues such as pricing, delivery schedules, and performance metrics.
3.3.1 Identifying and Evaluating Potential business opportunities in B2B Markets
Identifying and evaluating potential business opportunities in B2B markets is an important

step in the competitive bidding process.
i. Networking: Networking with industry professionals and participating in industry events
can help businesses learn about potential business opportunities. This can involve joining
industry associations or attending trade shows and conferences.
ii. Subscribing to industry publications: Many industry publications and websites publish
information about business opportunities, such as RFPs and ITTs. Businesses can subscribe
to these publications or visit relevant websites to stay informed about potential
opportunities.
iii. Partnering with other businesses: Businesses can also identify potential opportunities by
partnering with other businesses. For example, they may team up with complementary
businesses to submit joint bids on projects or contracts.
Once potential opportunities have been identified, businesses can evaluate them to
determine if they are a good fit. This can involve analyzing the requirements and criteria
set out in the RFP or ITT, assessing the business's capabilities and resources, and
considering the potential profitability of the opportunity.
By regularly identifying and evaluating potential business opportunities, businesses can
increase their chances of success in the competitive bidding process.
3.3.2 Developing a Competitive bidding for B2B Market
Developing a competitive bidding strategy for B2B markets involves identifying the key
differentiators and value propositions of the business and using them to maximize the
chances of success in the competitive bidding process.
9
JGI JAINDEEM ED-T O-BE UNI VE R SI TY UNIT 3 : Managing Service for Business Markets
Steps in developing a competitive bidding strategy include:
i. Identify key differentiators: The first step is to identify the key differentiators of the
business, such as its unique products or services, expertise, experience, or reputation.
These differentiators can be used to differentiate the business from competitors and
highlight the value it brings to customers.
ii. Understand the customer's needs and preferences: It's important to understand the
needs and preferences of the potential business customer and tailor the bid to meet those
needs. This can involve analyzing the requirements and criteria set out in the RFP or ITT
and highlighting how the business's products or services meet those needs.
iii. Develop a pricing strategy: The pricing strategy should be based on the value
proposition of the business and the customer's needs and preferences. This may involve
setting a list price, offering discounts or promotions, or bundling products or services.
iv. Negotiate terms and conditions: The terms and conditions of the contract or project
should be negotiated to ensure that they are favorable to the business. This can involve
discussing issues such as pricing, delivery schedules, and performance metrics.
v. Develop a project plan: It's important to develop a detailed project plan that outlines
how the business will deliver on the requirements and criteria set out in the RFP or ITT.
This should include milestones, deliverables, and resources needed.
By following these steps, businesses can develop a competitive bidding strategy that
maximizes their chances of success in B2B markets.
3.3.3 Preparing & Submitting Competitive bids in B2B Markets
Preparing and submitting competitive bids in B2B markets involves developing a detailed
proposal that outlines the business's capabilities, experience, and approach to meeting the
requirements and criteria set out in the request for proposal (RFP) or invitation to tender
(ITT).
Important considerations when preparing and submitting competitive bids include:
i. Review the RFP or ITT carefully: It's important to carefully review the RFP or ITT to ensure
that the business fully understands the requirements and criteria that need to be met. This
can involve highlighting any questions or concerns and seeking clarification from the
customer if needed.
10
ii. Tailor the bid to the customer's needs: The bid should be tailored to the specific needs
and preferences of the customer. This can involve highlighting the differentiators and value
proposition of the business, and how its products or services meet the customer's needs.
iii. Develop a detailed proposal: The proposal should be detailed and comprehensive,
outlining the business's capabilities, experience, and approach to meeting the
requirements and criteria set out in the RFP or ITT. This should include a project plan,
milestones, deliverables, and resources needed.
iv. Proofread and edit the proposal: The proposal should be carefully proofread and edited
to ensure that it is free of errors and clearly communicates the business's capabilities and
approach.
v. Meet the submission deadline: It's important to meet the submission deadline set out in
the RFP or ITT to ensure that the bid is considered.
By following these steps, businesses can prepare and submit competitive bids that increase
their chances of success in B2B markets.
3.3.4 Negotiating and Closing Deals in B2B Market
Negotiating and closing deals in B2B markets involves discussing and agreeing on the
terms and conditions of a contract or project with a potential business customer. Some
Steps in negotiating and closing deals in B2B markets include:
i. Understand the customer's needs and preferences: It's important to understand the
needs and preferences of the business customer and tailor the negotiation process to meet
those needs. This can involve analyzing the requirements and criteria set out in the request
for proposal (RFP) or invitation to tender (ITT) and identifying areas where the business
can offer value.
ii. Develop a negotiation strategy: The negotiation strategy should be based on the
business's objectives, capabilities, and the customer's needs and preferences. This may
involve identifying key issues to negotiate, such as pricing, delivery schedules, and
performance metrics.
1
1
JGI JAIN
iii. Prepare for negotiations: It's important to prepare for negotiations by gathering
information about the business customer, such as their negotiation style, budget, and key
decision makers. This can help the business anticipate and respond to the customer's
concerns and needs.
iv. Communicate effectively: Effective communication is key to successful negotiations. It's

important to listen actively to the customer's concerns and needs and communicate the
business's value proposition and approach clearly and concisely.
v. Close the deal: Once the terms and conditions have been agreed upon, the deal can be
closed. This typically involves signing a contract or other legal agreement.
Summary
1. Managing service for business markets involves developing and implementing strategies
to effectively meet the needs of business customers.
2. Understanding the customer experience in B2B markets involves gathering and analyzing
data and insights about business customers, their challenges and goals, and their
preferences and expectations.
3. Delivering effective customer solutions in B2B markets involves identifying and analyzing
customer problems and needs, and developing solutions that are tailored to their specific
needs and preferences.
4. Marketing of solutions pricing in B2B markets involves developing pricing strategies that
are aligned with the marketing and positioning of the product or service, taking into
account factors such as value proposition, target market, differentiation, and packaging
and bundling.
5. Pricing process in B2B markets involves a series of steps that businesses go through to
determine the prices at which they will sell their products and services, including
determining the value proposition, target market, analyzing costs, determining pricing
objectives, and developing and implementing pricing strategies.
12
6. Competitive bidding in B2B markets involves submitting a proposal or offer to a potential

business customer in response to a request for proposal (RFP) or invitation to tender (ITT).
7. Managing marketing communications for business markets involves developing and

implementing strategies to effectively reach and engage business customers through
various marketing channels.
8. Identifying and evaluating potential business opportunities in B2B markets involves

identifying relevant RFPs or ITTs and analyzing the requirements and criteria to determine
if the business is capable of meeting them.
9. Developing a competitive bidding strategy for B2B markets involves identifying the key
differentiators and value propositions of the business and using them to maximize the
chances of success in the competitive bidding process.
10. Preparing and submitting competitive bids in B2B markets involves developing a detailed
proposal that outlines the business's capabilities, experience, and approach to meeting the
requirements and criteria set out in the RFP or ITT. Negotiating and closing deals in B2B
markets involves discussing and agreeing on the terms and conditions of a contract or
project with a business customer.
Self-Practice
i. Identify a business that you believe could benefit from improved customer service. Analyze
the current customer service strategy of the business, and identify areas that could be
improved. Develop a plan to improve the customer service strategy, including specific
goals and tactics that could be implemented.
ii. Research different customer service technologies, such as customer relationship

management (CRM) systems, chatbots, and social media monitoring tools. Identify the
pros and cons of each technology and consider how they could be used to improve
customer service for a specific business.
iii. Consider a business that you have personally had a positive or negative customer service
experience with. Analyze the factors that contributed to the positive or negative
13
JGI JAIN
experience, and identify ways that the business could improve its customer service strategy
to better meet the needs and preferences of customers.
Self-Assessment Questions
i. Short questions:
1. How do businesses understand the customer experience in B2B markets?

2. What are some strategies for delivering effective customer solutions in B2B markets?
3. How does pricing impact the marketing of solutions in B2B markets?
4. What is the pricing process in B2B markets?
5. How can businesses effectively manage marketing communications for business markets?
ii. Medium questions:
1. How can businesses identify and analyze customer problems and needs in B2B markets to
deliver effective solutions?
2. What factors should be considered when developing pricing strategies for products or
services in B2B markets?
3. What is involved in developing a competitive bidding strategy for B2B markets?
4. How can businesses measure the effectiveness of their marketing communications in
business markets?
5. What is the role of customer segmentation in marketing communications for business
markets?
Long questions:
1. How can businesses use customer feedback and market research to continuously improve
the customer experience in B2B markets?
2. How can businesses use customer segmentation to identify and target specific groups of
business customers with tailored solutions?
3. How can businesses effectively balance the need for profitability with the need to meet the
needs and preferences of business customers in the pricing process for B2B markets?
4. How can businesses use packaging and bundling to differentiate their products or services
and potentially justify higher prices in competitive bidding for B2B markets?
5. How can businesses use a combination of various marketing channels and tactics to
effectively reach and engage business customers in managing marketing communications
14
for business markets?
 Books: "The Customer Experience Revolution" by Jeanne Bliss, "The Experience

Economy" by B. Joseph Pine II and James H. Gilmore, "The Marketing of Solutions" by
Paul W. Farris
 Online articles: "5 Tips for Delivering a Great Customer Experience," "Marketing
Solutions: An Overview," "Pricing Strategies in B2B Markets," "The Competitive Bidding
Process in B2B Markets," "Effective Marketing Communications for Business Markets"
 Websites: American Marketing Association (AMA), Customer Experience Professionals
Association (CXPA), Marketing Solutions Association (MSA)
 Industry reports: "The State of Customer Experience Management," "B2B Marketing

Outlook," "B2B Pricing Strategies and Tactics"
 Case studies: "Improving the Customer Experience at XYZ Corporation," "Implementing

a Solution Marketing Approach at ABC Company," "Successfully Managing Marketing
Communications in the B2B Market"
3.5 TOPICS FOR DISCUSSION FORUMS
15
UNIT
B2B STRATEGY AND MARKET

SEGMENTATIONS
Names of Sub-Units
Process, approach. Responsible strategy-CSR and sustainability, Customer value and

strategy. Researching B2B markets. Standard industrial classification.
Overview
The process and approach to developing a responsible strategy for corporate social
responsibility (CSR) and sustainability in business-to-business (B2B) markets involves
identifying the values and priorities of the business, as well as the needs and expectations
of its stakeholders, such as customers, employees, suppliers, and communities. This can
involve conducting market research to understand the current and emerging trends in CSR
and sustainability, as well as the impact of these trends on the business and its customers.
In order to create customer value and develop a strategy that meets the needs and
preferences of business customers, it is important to understand the target market and the
specific needs and preferences of different customer segments. This can involve using tools
such as the Standard Industrial Classification (SIC) system to classify and segment
businesses based on industry and size.
JGI JAIN
DEEM ED-T O-BE UNI VE R SI TY UNIT 4: B 2B Strategy and Market Segmentation
Conducting market research is a crucial step in understanding B2B markets and identifying
potential business opportunities. This can involve collecting and analyzing data on market
trends, customer needs and preferences, competition, and market potential. Market
research can be conducted through a variety of methods, including surveys, focus groups,
and interviews with industry experts and business customers.
Researching B2B markets involves understanding the standard industrial classification of

different industries and the specific needs and preferences of business customers within
those industries. This information can be used to inform the development of marketing
strategies and tactics, as well as pricing and competitive bidding strategies. By aligning
business activities with customer needs and values, businesses can create long-term value
for both the business and its customers
Learning Objectives

 Understanding the process and approach for identifying and analyzing customer
problems and needs in B2B markets.
 Developing strategies for delivering effective customer solutions in B2B markets.
 Understanding the role of corporate social responsibility (CSR) and sustainability in
business markets and how to integrate these considerations into business strategies.
 Developing an understanding of customer value and how it can be created in B2B
markets.
 Learning how to research B2B markets, including understanding the standard
industrial classification of different industries and the specific needs and preferences
of business customers within those industries.
Learning Outcomes

 Have a thorough understanding of the role of corporate social responsibility (CSR)
and sustainability in business markets and how to integrate these considerations into
business strategies.
2
UNIT 4: B 2B Strategy and Market Segmentation JGI JAIN
 Enhance skills to research B2B markets, including understanding the standard

industrial classification of different industries and the specific needs and preferences
of business customers within those industries.
 Learn to effectively communicate with business customers, including managing
marketing communications and negotiating and closing deals.
 "The Customer Experience: A Practitioner's Guide" by Paul Magee and David Wilson
 "Creating Customer Value: Concepts and Cases" by George Day and Robin Wensley
4.1 Process and Approach
In B2B markets, businesses typically follow a process and approach that involves identifying
and analyzing customer problems and needs, developing strategies for delivering effective
customer solutions, and continuously improving the customer experience.
i. Identifying and analyzing customer problems and needs: This process involves
understanding the specific needs and preferences of business customers, as well as any
problems or challenges they are facing. This may involve gathering and analyzing data from
various sources, including market research, customer feedback, and interactions with
customers. By understanding customer problems and needs, businesses can develop
strategies for delivering effective customer solutions that meet the needs of their customers.
ii. Developing strategies for delivering effective customer solutions: This involves
identifying the most appropriate products or services to meet customer needs, as well as
the most effective ways to deliver those products or services. This may involve developing
new products or services, or adapting existing ones to meet changing customer needs.
iii. Continuously improving the customer experience: This involves ongoing efforts to
improve the overall customer experience, including the quality of products and services, the
convenience of the customer experience, and the overall customer journey. This may involve
implementing changes to processes, systems, or products and services based on customer
feedback and market research. By continuously improving the customer experience,
businesses can create long-term value for their customers and build strong, long-term
relationships with them.
3
JGI JAIN
In addition to these core processes and approaches, businesses in B2B markets may also
consider other factors such as corporate social responsibility (CSR) and sustainability, pricing
and bidding strategies, and marketing communications when managing service for business
markets.
4.1.1 Identifying and Analyzing Customer Problems and Needs
Identifying and analyzing customer problems and needs in B2B markets involves
understanding the specific needs and preferences of business customers, as well as any
problems or challenges they are facing. This process is important because it helps businesses
develop strategies for delivering effective customer solutions that meet the needs of their
customers and create value for both the business and the customer.
To identify and analyze customer problems and needs in B2B markets, businesses may use
a variety of methods and techniques, including:
a) Market research: This involves gathering and analyzing data about the market,
customers, and competitors. Market research can be conducted through various
methods, such as surveys, focus groups, and interviews, and can help businesses
understand the needs and preferences of their customers.
b) Customer feedback: Gathering feedback from customers can provide valuable
insights into their needs and preferences, as well as any problems or challenges they
are facing. This can be done through customer surveys, focus groups, or one-on-one
interviews.
c) Interactions with customers: Businesses can also gather valuable information about
customer needs and preferences through interactions with customers, such as sales
calls, customer service inquiries, and product demonstrations.
By combining data from these various sources, businesses can develop a detailed
understanding of customer problems and needs and use this information to develop
strategies for delivering effective customer solutions.
4.1.2 Developing Strategies for Delivering Effective Customer Solutions
Developing strategies for delivering effective customer solutions in B2B markets involves
identifying the most appropriate products or services to meet customer needs, as well as
4
the most effective ways to deliver those products or services. This process is important
because it helps businesses create value for their customers and build long-term
relationships with them.
To develop strategies for delivering effective customer solutions in B2B markets, businesses
may consider the following steps:
a) Identify customer needs and preferences: By understanding the specific needs

and preferences of business customers, businesses can identify the products or
services that will best meet those needs and create value for the customer.
b) Evaluate product and service offerings: Businesses should evaluate their current
product and service offerings to determine if they meet the needs of their
customers. This may involve adapting or enhancing existing products or services, or
developing new ones.
c) Determine the most effective delivery methods: Businesses should consider the
most effective ways to deliver their products or services to customers, taking into
account factors such as cost, convenience, and customer preferences.
d) Implement and monitor the strategy: Once the strategy for delivering effective
customer solutions has been developed, businesses should implement and monitor
the strategy to ensure that it is meeting the needs of their customers and creating
value for both the business and the customer.
By following these steps, businesses can develop strategies that effectively meet the needs
of their customers and create long-term value for both the business and the customer.
4.2 Responsibility Strategy
4.2.1 Corporate Social Responsibility (CSR) and Sustainability in Business Markets
Corporate social responsibility (CSR) refers to the ethical and social responsibilities that
businesses have to their stakeholders, including customers, employees, shareholders, and
the community. CSR activities can include initiatives such as environmental sustainability,
philanthropy, and ethical business practices.
5
JGI JAIN
Sustainability refers to the ability to meet the needs of the present without compromising
the ability of future generations to meet their own needs. In the context of business,
sustainability involves considering the environmental, social, and economic impacts of
business activities and striving to minimize negative impacts and maximize positive ones.
In B2B markets, corporate social responsibility (CSR) and sustainability can be important
considerations for businesses. Customers in B2B markets may place a high value on socially
and environmentally responsible practices, and may be more likely to do business with
companies that demonstrate a commitment to CSR and sustainability. In addition, a strong
CSR and sustainability program can help businesses attract and retain employees, build a
positive reputation, and mitigate risks.
To integrate CSR and sustainability into business strategies in B2B markets, businesses can
consider the following steps:
a) Identify stakeholders: Identify the key stakeholders that are impacted by the
business's activities, including customers, employees, shareholders, and the
community.
b) Assess impacts: Assess the environmental, social, and economic impacts of the
business's activities and identify areas where improvements can be made.
c) Develop and implement a CSR and sustainability strategy: Develop a strategy that
addresses the identified impacts and aligns with the business's values and goals.
Implement the strategy through specific actions and initiatives.
d) Monitor and report on progress: Regularly monitor and report on the progress of the
CSR and sustainability strategy to ensure that it is effectively addressing the identified
impacts and meeting the needs of stakeholders.
4.2.2 Integrating CSR and Sustainability into Business Strategies
Integrating corporate social responsibility (CSR) and sustainability into business strategies
involves considering the ethical and social responsibilities that businesses have to their
stakeholders, as well as the environmental, social, and economic impacts of business
6
activities, and incorporating these considerations into the overall business strategy. This can
help businesses create long-term value for their stakeholders and build a positive reputation.
To integrate CSR and sustainability into business strategies, businesses can consider the
following steps:
a) Identify stakeholders: Identify the key stakeholders that are impacted by the
business's activities, including customers, employees, shareholders, and the
community.
b) Assess impacts: Assess the environmental, social, and economic impacts of the
business's activities and identify areas where improvements can be made.
c) Develop and implement a CSR and sustainability strategy: Develop a strategy that
addresses the identified impacts and aligns with the business's values and goals.
Implement the strategy through specific actions and initiatives.
d) Monitor and report on progress: Regularly monitor and report on the progress of the
CSR and sustainability strategy to ensure that it is effectively addressing the identified
impacts and meeting the needs of stakeholders.
By following these steps, businesses can effectively integrate CSR and sustainability into
their overall business strategies and create long-term value for their stakeholders.
4.3 Customer Value and Strategy
4.3.1 Creating Customer Value in B2B Markets
Creating customer value in B2B markets involves developing and delivering high-quality
products and services that meet the needs and preferences of business customers and
provide them with value. This can be achieved through a variety of strategies and
approaches, including:
 Understanding customer needs and preferences: By understanding the specific

needs and preferences of business customers, businesses can develop products and
services that meet those needs and create value for the customer.
7
JGI JAIN
 Developing high-quality products and services: Businesses should strive to develop

products and services that are of high quality and meet the needs of their customers.
This may involve continuous improvement efforts to enhance the quality and
performance of products and services.
 Delivering products and services efficiently: Businesses should consider the most
efficient and convenient ways to deliver products and services to their customers. This
may involve using technology or automation to streamline processes, or developing
partnerships to facilitate delivery.
 Providing excellent customer service: Providing excellent customer service is an

important part of creating customer value in B2B markets. This may involve developing
processes to quickly and effectively resolve customer issues, as well as providing helpful
and knowledgeable customer service representatives.
By focusing on these strategies, businesses can create value for their customers and build
long-term relationships with them.
4.4 Researching B2B Markets
4.4.1 Understanding the Standard Industrial Classification of Different Industries
The Standard Industrial Classification (SIC) system is a standardized system for classifying
industries based on the type of business activities they engage in. The SIC system was
developed by the United States government in the 1930s and is used to classify businesses
for various purposes, including statistical analysis and business research.
The SIC system divides industries into 10 broad categories, with each category further
divided into subcategories. The 10 broad categories are:
 Agriculture, forestry, and fishing

 Mining
 Construction
 Manufacturing
 Transportation, communications, and utilities
8
 Wholesale trade
 Retail trade
 Finance, insurance, and real estate
 Services
 Public administration
Each industry is assigned a four-digit code based on its classification in the SIC system. For
example, the manufacturing industry is classified as SIC code 2000, while the retail trade
industry is classified as SIC code 5300.
Understanding the SIC classification of different industries can be useful for businesses in
B2B markets as it can provide insights into the types of products and services that businesses
in those industries may be interested in, as well as the competitive landscape and market
trends within those industries.
4.4.2 Identifying Business Customers within Specific Industries
Identifying business customers within specific industries involves understanding the specific
needs and preferences of businesses within a particular industry and determining how the
business's products or services can meet those needs and create value for the customer. This
process is important because it helps businesses target their marketing and sales efforts
effectively and build long-term relationships with customers.
To identify business customers within specific industries, businesses can consider the
following steps:
 Research the industry: Gather and analyze data about the industry, including market
trends, competitive landscape, and customer needs and preferences.
 Identify potential customers: Use the data gathered from industry research to identify
potential business customers within the industry. Consider factors such as size of the
business, location, and type of products or services they may be interested in.
 Evaluate customer fit: Evaluate whether the business's products or services are a good
fit for the identified potential customers. Consider factors such as the customer's needs
and preferences, as well as the business's capabilities and resources.
9
JGI JAIN
 Develop a marketing and sales plan: Develop a marketing and sales plan that targets
the identified potential customers within the industry. This may include developing
marketing materials and sales approaches that are tailored to the specific needs and
preferences of businesses within the industry.
By following these steps, businesses can effectively identify and target potential business
customers within specific industries and build long-term relationships with them.
4.4.3 Gathering and Analyzing Market Data
Gathering and analyzing market data involves collecting and analyzing information about
the market in which a business operates, including customer needs and preferences,
competitive landscape, market trends, and economic conditions. This process is important
because it helps businesses make informed decisions about their marketing and sales
strategies, product and service offerings, and business operations.
To gather and analyze market data, businesses can consider the following steps:
 Determine the scope of the market data: Identify the specific market data that is
relevant to the business and will be used to inform business decisions. This may include
data about the industry, competitors, customers, and economic conditions.
 Collect market data: Gather market data from a variety of sources, such as market
research reports, customer feedback, industry data, and economic data.
 Analyze market data: Use data analysis techniques, such as statistical analysis or
qualitative analysis, to identify trends and patterns in the market data.
 Use market data to inform business decisions: Use the insights gained from the
analysis of market data to inform business decisions about marketing and sales
strategies, product and service offerings, and business operations.
By gathering and analyzing market data on a regular basis, businesses can stay up-to-date
on market trends and conditions and make informed decisions that are aligned with the
needs and preferences of their customers and the overall market.
10
4.5 Standard Industrial Classification
industries based on the type of business activities they engage in. The SIC system was
developed by the United States government in the 1930s and is used to classify businesses
for various purposes, including statistical analysis and business research.
4.5.1 Understanding the Different Industries and Sectors within the Standard Industrial
Classification System
industries based on the type of business activities they engage in. The SIC system divides
industries into 10 broad categories, with each category further divided into subcategories.
Understanding the different industries and sectors within the SIC system can be useful for
businesses in B2B markets as it can provide insights into the types of products and services
that b usinesses in those industries may be interested in, as well as the competitive landscape
and market trends within those industries.
The 10 broad categories of industries within the SIC system are:
 Agriculture, forestry, and fishing: This category includes businesses that are involved
in the production of crops, livestock, and forestry products, as well as the fishing
industry.
 Mining: This category includes businesses that are involved in the extraction of
minerals and other raw materials from the earth.
 Construction: This category includes businesses that are involved in the construction
of buildings, highways, and other infrastructure.
 Manufacturing: This category includes businesses that are involved in the production
of goods, such as furniture, clothing, and electronics.
 Transportation, communications, and utilities: This category includes businesses

that are involved in the transportation of goods and people, as well as businesses that
provide communication and utility services, such as electricity and water.
11
JGI JAIN
 Wholesale trade: This category includes businesses that buy and sell goods to other
businesses, rather than to individual consumers.
 Retail trade: This category includes businesses that sell goods and services to
individual consumers, such as department stores and grocery stores.
 Finance, insurance, and real estate: This category includes businesses that are
involved in financial services, such as banks and investment firms, as well as businesses
that provide insurance and real estate services.
 Services: This category includes businesses that provide services, such as legal,
consulting, and healthcare services.
 Public administration: This category includes government agencies and other

organizations that are involved in the administration of public affairs.
Summary
1. Process and approach:

Process and approach refer to the steps and methods that businesses use to identify and
analyze customer problems and needs, develop strategies for delivering effective customer
solutions, and continuously improve the customer experience. This may involve gathering
and analyzing market data, conducting customer research, and using data analysis
techniques to identify trends and patterns.
2. Responsible strategy-CSR and sustainability:

Corporate social responsibility (CSR) and sustainability refer to the ethical and social
responsibilities that businesses have towards their stakeholders, including customers,
employees, shareholders, and the wider community. This may involve implementing
environmentally-friendly practices, supporting social causes, and engaging in fair and
transparent business practices. Integrating CSR and sustainability into business strategies
can help businesses create value for their stakeholders and enhance their reputation.
3. Customer value and strategy:

Creating customer value in B2B markets involves developing and delivering high-quality
12
products and services that meet the needs and preferences of business customers and
provide them with value. This may involve understanding customer needs and preferences,
developing high-quality products and services, and continuously improving products and
services.
4. Researching B2B markets:

Gathering and analyzing market data is an important step in researching B2B markets. This
involves collecting and analyzing information about the market in which a business operates,
including customer needs and preferences, competitive landscape, market trends, and
economic conditions. This process helps businesses make informed decisions about their
marketing and sales strategies, product and service offerings, and business operations.
5. Standard industrial classification:

industries based on the type of business activities they engage in. Each industry is assigned
a four-digit code based on its classification in the SIC system. Understanding the SIC
classification of different industries can be useful for businesses in B2B markets as it can
provide insights into the types of products and services that businesses in those industries
may be interested in, as well as the competitive landscape and market trends within those
industries.
By understanding these concepts and strategies, businesses can develop effective

approaches to operating in B2B markets, create value for their customers, and build long-
term relationships with business customers.
Self-Practice
 Develop a CSR and sustainability strategy: Identify the ethical and social
responsibilities that the business has towards its stakeholders, including customers,
employees, shareholders, and the wider community. Develop a strategy for
integrating CSR and sustainability into the business's operations and decision-making
processes.
 Identify customer needs and preferences: Choose a specific customer segment and
conduct research to identify their needs and preferences. Use this information to
13
JGI JAIN
develop products or services that meet those needs and preferences, and
continuously improve products and services based on customer feedback.
 Evaluate the competitive landscape: Identify the key competitors in a specific industry
or market and analyze their strengths and weaknesses. Use this information to inform
business decisions about marketing and sales strategies, product and service
offerings, and business operations.
i. Short Answers
1. How does a B2B company create a value proposition that differentiates it from its
competitors?
2. In what ways can a company demonstrate its commitment to sustainability in its B2B
strategy?
3. What are the key steps in the process of researching B2B markets?
4. How can companies use the Standard Industrial Classification (SIC) system to gain a
better understanding of the industries they are targeting?
5. What are the main advantages and disadvantages of a responsible strategy in a B2B
context?
ii. Medium Answers
1. Discuss the impact of corporate social responsibility (CSR) and sustainability on the B2B
market. How are companies responding to these challenges and how are these trends
affecting their strategies?
2. How can companies use customer value as a competitive advantage in B2B markets?
What are some best practices for creating a customer value strategy?
3. Analyze the process of developing a B2B strategy, including the identification of target
customers, competitive analysis, and the creation of a go-to-market plan.
4. Researching B2B markets is essential for companies looking to expand their business.
Analyze the different methods that can be used for researching B2B markets, including
primary and secondary research, and discuss the advantages and disadvantages of each.
5. The Standard Industrial Classification (SIC) system is a widely used tool for classifying
industries. Analyze the purpose and utility of the SIC system, and discuss how companies
can use this system to gain a better understanding of their target markets and customers.
14
i. Long Answers
1. In recent years, there has been a growing emphasis on corporate social responsibility
(CSR) and sustainability in B2B markets. Analyze the reasons for this trend and discuss how
companies are addressing these challenges in their strategies.
2. Developing a customer value strategy is essential for companies looking to succeed in
B2B markets. Analyze the process of creating a customer value strategy and discuss the
various factors that companies must consider when developing their value proposition.
3. Researching B2B markets is an essential step in developing a successful B2B strategy.

Analyze the process of researching B2B markets, including the methods that companies can
use to gather information and the types of data that are typically analyzed. Discuss the
importance of understanding the competitive landscape, identifying target customers, and
developing a go-to-market plan.
4. The Standard Industrial Classification (SIC) system is widely used by government and
private organizations to classify and track industry statistics. Analyze the purpose and utility
of the SIC system. Provide examples of industries and companies that have been classified
using the SIC system.
5. Creating a responsible strategy that takes into account the impact of a company's
actions on society and the environment is becoming increasingly important in B2B markets.
Analyze the reasons for this trend and discuss how companies are addressing these
challenges in their strategies.
 "B2B Marketing Strategies: A Guide to Building and Managing Business Relationships" by Paul
Parcells
 "Corporate Social Responsibility in the B2B Context" by Christian Scholz and Holger Sievert
 "B2B Market Research: Understanding and Meeting the Information Needs of Business
Customers" by Tony Proctor
These books contain detailed information on various aspects of B2B strategy, such as
customer value and strategy, responsible strategy, CSR, sustainability, researching B2B
markets, and the Standard Industrial Classification (SIC) system. They should provide a
deeper understanding of the topic and give you more insights to base your knowledge
on.
15
JGI JAIN
16
UNIT
Targeting and Positioning of
Business Markets
Names of Sub-Units
Targeting and Positioning of Business Markets, Target Segment Selection; Targeting
Strategies; Positioning: Process and Options; Perceptual Maps for Positioning; Positioning
Errors
Overview
Target Segment Selection: How to identify and choose a specific group of consumers as the
target audience for a marketing campaign.
Targeting Strategies: How to develop and implement a marketing plan that reaches the target
audience effectively.
Positioning: Process and Options: How to create an image or identity for a brand, product or
service in the minds of consumers, including the process of conducting market research,
developing a unique value proposition, and communicating that proposition to the target
audience.
Perceptual Maps for Positioning: How to use visual tools to understand and compare
consumer perceptions of different brands, products, or services in a particular market.
Positioning Errors: The common mistakes made in the positioning process and how to avoid
them, including poor market research, failure to communicate a clear value proposition, and
failure to differentiate from competitors.
JGI JAIN
DEEMED-TO-BE UNIVE RSI TY UNIT 05: Targeting and Positioning of Business Markets
Learning Objectives
In this Unit, you will learn –
 To identify and select the target audience for a marketing campaign.
 To learn how to develop and implement a marketing plan that effectively reaches the
target audience.
 To understand the process of creating an image or identity for a brand, product or
service in the minds of consumers and to be able to evaluate different positioning
options such as price, quality, and innovation.
 To learn how to use visual tools to understand and compare consumer perceptions of
different brands, products, or services in a particular market.
 To identify common mistakes made in the positioning process and to learn how to
avoid them, including poor market research, failure to communicate a clear value
proposition, and failure to differentiate from competitors.
Learning Outcomes
At the end of this Unit you would -
 Understanding the importance of targeting a specific audience and the process of
selecting the target segment.
 Ability to develop and implement effective targeting strategies that reach the target
audience.
 Knowledge of the process of creating an image or identity for a brand, product or
service in the minds of consumers and ability to evaluate different positioning options.
 Skills in using visual tools such as perceptual maps to understand and compare
consumer perceptions in a particular market.
 Awareness of common positioning errors and the ability to avoid them, leading to
better alignment between the intended brand image and consumer perceptions.
2
UNIT 05: Targeting and Positioning of Business Markets JGI JAIN
DEEMED-TO-BE UNIV ERSI TY
 Reading articles and case studies that demonstrate the importance of targeting and
positioning in marketing.
 Watching videos that explain the process of target segment selection and the different
targeting strategies.
 Reviewing examples of successful branding and positioning campaigns.
 Familiarizing with different positioning options such as price, quality, and innovation.
 Examining perceptual maps used by companies to understand consumer perceptions.
 Studying real-life examples of positioning errors and the impact they have on brands.
 This preparatory material will help students build a foundation of knowledge and
understanding of the concepts and techniques covered in the unit.
5.1 Target market selection
Target market selection is particularly important in B2B (business-to-business) markets

because it directly impacts the success of a company's marketing efforts and ultimately, its
revenue. In B2B markets, the target audience is typically made up of organizations rather than
individual consumers, and the sales cycle is often longer and more complex.
This means that the process of reaching and influencing a target audience requires a different
approach compared to B2C (business-to-consumer) markets. By selecting the right target
market, a B2B company can:
 Ensure that its marketing messages and offers are relevant and appealing to the target
audience.
 Reduce marketing costs by focusing resources on the most promising prospects.
 Increase the effectiveness of sales and marketing efforts by focusing on organizations

that are most likely to buy.
 Better understand the needs and challenges of the target audience, leading to better
product and service offerings.
3
JGI JAIN
DEEMED-TO-BE UNIV ERSI TY UNIT 05: Targeting and Positioning of Business Markets
 Build long-term, profitable relationships with target organizations.
5.1.1 The advantages of target market selection are:
Increased relevance: By focusing on a specific group of customers, a company can tailor its
marketing messages and offers to meet the specific needs and preferences of that group,
increasing the relevance and appeal of the offering.
More effective marketing: By focusing on the target market, a company can allocate its
marketing resources more effectively, leading to more impactful and cost-efficient marketing
efforts.
Better understanding of customers: By focusing on a specific group of customers, a company

can gain a deeper understanding of their needs, preferences, and purchasing behavior,
allowing it to improve its products, services, and overall customer experience.
Improved customer satisfaction: By targeting a specific group of customers, a company can

provide a more personalized experience, which can lead to higher customer satisfaction and
loyalty.
Increased sales and profitability: By focusing on the most promising target market, a company
can increase its sales and profitability by selling more effectively to that group.
5.2 Targeting Strategies
Targeting strategies are the approaches a company uses to reach and influence its target
audience. The following are some common targeting strategies:
 Demographic targeting: This strategy focuses on reaching customers based on

characteristics such as age, gender, income, and education.
 Geographic targeting: This strategy focuses on reaching customers based on their

location, such as region, city, or zip code.
4
 Psychographic targeting: This strategy focuses on reaching customers based on their

lifestyle, values, personality, and interests.
 Behavioral targeting: This strategy focuses on reaching customers based on their past
behaviors, such as purchase history and online activity.
 Event-based targeting: This strategy focuses on reaching customers around specific

events, such as holidays or product launches.
 Benefit-based targeting: This strategy focuses on reaching customers based on the

specific benefits they are seeking from a product or service.
 Multi-segment targeting: This strategy focuses on reaching multiple target segments

with different marketing messages and offers.
 The right targeting strategy depends on the specific needs and goals of the company
and the target audience, as well as the resources available for implementing the
strategy. Companies often use a combination of targeting strategies to reach their
target audience effectively.
5.3 Positioning: Process and options
Positioning refers to the process of creating a unique and differentiated image for a brand in
the mind of the target audience. It involves understanding what customers need, want, and
believe about the brand, and developing a marketing strategy to meet those needs and shape
customer perceptions.
The following are the steps involved in the positioning process:
 Market research: Collecting information about the target audience, the competition,
and the industry to understand the market and customer needs.
 Brand positioning statement: Developing a clear and concise statement that defines
the brand's unique value proposition and target audience.
5
JGI JAIN
DEEMED-TO-BE UNIV ERSI TY UNIT 05: Targeting and Positioning of Business Markets
 Differentiation: Identifying the unique features and benefits that distinguish the brand
from its competitors.
 Message development: Developing a consistent and compelling marketing message

that emphasizes the brand's unique value proposition and differentiation.
 Implementation: Integrating the positioning strategy into all aspects of the marketing
mix, including product, price, promotion, and distribution.
The following are some common positioning options:
 Price positioning: Focusing on offering the lowest prices or the highest value for the
price.
 Quality positioning: Focusing on offering superior quality products or services.
 Feature positioning: Focusing on offering specific features that are unique or important
to the target audience.
 Benefit positioning: Focusing on the specific benefits that customers will receive from
using the brand.
 Competitor positioning: Focusing on positioning the brand relative to its competitors.
 Image positioning: Focusing on creating a specific image or identity for the brand in
the mind of the target audience.
The right positioning option depends on the specific goals and needs of the brand, as well as
the target audience and competition. Companies often use a combination of positioning
options to effectively communicate their value proposition and differentiate their brand.
5.4 Perceptual maps for positioning
Perceptual maps are visual tools used to graphically represent how customers perceive
different brands in the market. They help to understand the strengths and weaknesses of
6
different brands, as well as identify opportunities for positioning the brand in a unique and
differentiated way.
Perceptual maps are usually created by plotting customer perceptions of different brands
along two axes that represent key dimensions of the market, such as price and quality, or
quality and innovation. The position of each brand on the map represents its perceived value
relative to its competitors.
Perceptual maps are used in the following ways in the positioning process:
 Market analysis: Understanding how customers perceive different brands in the market
and identifying gaps and opportunities for positioning.
 Brand positioning: Developing a clear and differentiated positioning strategy that

leverages the brand's strengths and addresses customer needs and expectations.
 Message development: Developing a consistent and compelling marketing message

that emphasizes the brand's unique value proposition and differentiation.
 Implementation: Integrating the positioning strategy into all aspects of the marketing
mix, including product, price, promotion, and distribution.
Perceptual maps are an effective tool for understanding customer perceptions and
developing a successful positioning strategy. They help companies to gain a deeper
understanding of the market, identify opportunities for differentiation, and create a
compelling and consistent marketing message.
5.4.1 Positioning Errors
Positioning errors are mistakes that companies make in the process of creating and
communicating a unique and differentiated image for their brand in the mind of the target
audience. Some common positioning errors include:
 Misunderstanding the target audience: Failing to understand the needs, wants, and beliefs
of the target audience can result in ineffective or inconsistent messaging.
7
JGI JAIN
 Inadequate differentiation: Failing to identify unique features or benefits that distinguish

the brand from its competitors can result in a weak or generic positioning.
 Inconsistent messaging: Failing to develop a consistent and cohesive marketing message

can confuse customers and damage the brand's image.
 Over-positioning: Focusing too narrowly on one aspect of the brand, such as price or
quality, can limit the brand's appeal to a narrow segment of the market.
 Under-positioning: Failing to effectively communicate the brand's unique value

proposition and differentiation can result in a lack of brand recognition and customer
loyalty.
 Incorrect positioning: Choosing a positioning strategy that is not aligned with customer
needs, the market, or the competition can result in a weak or ineffective positioning.
 Lack of implementation: Failing to integrate the positioning strategy into all aspects of the
marketing mix can result in a lack of consistency and effectiveness.
Avoiding these common positioning errors requires careful research, planning, and execution
of the positioning strategy. Companies should take the time to understand their target
audience, the market, and the competition, and develop a clear and consistent positioning
strategy that leverages the brand's strengths and addresses customer needs.
Summary
 Target segment selection involves identifying and selecting a specific group of customers to
target with marketing efforts.
 Different targeting strategies can be used to reach and engage with the target audience, such
as demographic targeting, psychographic targeting, and behavioral targeting.
 Positioning involves creating and communicating a unique and differentiated image for a
brand in the mind of the target audience. This includes the options for positioning the brand
and the steps involved in the positioning process.
8
 Perceptual maps can be used to graphically represent how customers perceive different
brands in the market.
 Positioning errors are common mistakes made in the process of creating and communicating
a unique and differentiated image for a brand, such as misunderstanding the target audience,
inadequate differentiation, and inconsistent messaging.
 The purpose of studying these topics is to provide a comprehensive understanding of the

strategies and tactics used to reach and engage with target customers, and to develop a
successful positioning strategy for a brand.
Self-Practice
Target Segment Selection: Research a company's target market and analyze the segments they
currently target. Identify potential new target segments for the company and explain the
reasoning behind these choices.
1 Targeting Strategies: Choose a product or service and develop a targeted marketing

campaign. Consider which targeting strategy would be most effective and explain why.
2 Positioning: Analyze two similar brands in the market and compare their positioning
strategies. Evaluate the strengths and weaknesses of each brand's positioning and suggest
ways they could improve.
3 Perceptual Maps for Positioning: Create a perceptual map for a specific market, including
several brands. Analyze the positions of the brands on the map and suggest ways they could
improve their positioning.
4 Positioning Errors: Choose a brand and analyze their current positioning. Identify any
positioning errors the brand may be making and suggest ways they could improve their
positioning strategy.
9
JGI JAIN
A. Essay type
i. Short Answers
1 What is target segment selection?

2 What are the benefits of using perceptual maps for positioning?
3 What is the difference between mass marketing and market segmentation?
4 What are the different positioning options available for a product?
5 What is the importance of market positioning?
ii. Medium Answers
1 Explain the process of identifying the target segment and provide an example of a company
that has effectively identified its target segment.
2 Discuss the role of consumer behavior in selecting the target segment and the consequences
of ignoring consumer behavior while selecting the target segment.
3 Provide examples of two companies that have successfully used different targeting strategies
and analyze the reasons for their success.
4 Explain how perceptual maps can be used to position a product in the market and provide
an example of a company that has effectively utilized perceptual maps for positioning.
5 Analyze the impact of positioning errors on a company's sales and provide strategies to avoid
these errors.
iii. Long Answers
1 Explain in detail the steps involved in the target segment selection process and the
importance of identifying the right target segment for a company's marketing strategy.
2 Discuss the different targeting strategies that a company can use and provide examples of
companies that have effectively utilized each strategy.
3 Explain the positioning process and the different options available for positioning a product
in the market. Also, explain the role of perceptual maps in positioning.
10
4 Discuss the common positioning errors that companies make and the consequences of these
errors. Also, provide strategies to avoid these errors.
5 Analyze the importance of considering consumer behavior while selecting the target segment
and positioning a product in the market.
Post-Unit Reading Material
Kotler, Philip and Kevin Keller. Marketing Management, Chapter 4: "Segmenting, Targeting, and Positioning"
Aaker, David A. Strategic Market Management, Chapter 2: "Market Segmentation and Targeting"
Ries, Al and Jack Trout. Positioning: The Battle for Your Mind, Chapter 8: "The Positioning Process"
11
UNIT
MANAGING PRODUCT OFFERINGS
Names of Sub-Units
B2B Product Elements; Concept of the Total Product; Product Life Cycle; Portfolio Analysis;
New Product Development Process; Concept of Product Quality; Product Lines – Catalog
Product, Custom Built Product, Custom Designed Product, Industrial Services; Examples of
Product Innovation.
Overview
B2B product elements include features, design, packaging, branding, and support services
aimed at satisfying the needs of business customers. The concept of the total product
encompasses all the physical, functional, and psychological attributes that make up the
complete product offering to the customer.
The product life cycle describes the stages of a product's existence from introduction to
decline, including market acceptance and sales growth. Portfolio analysis is a method for
evaluating the balance of a company's product mix in terms of market growth and market
share. The new product development process includes stages such as idea generation,
feasibility analysis, design and testing, and commercialization.
The concept of product quality refers to the degree to which a product meets customer
requirements and expectations. Product lines consist of various products with similar
characteristics, including catalog products, custom-built products, custom-designed
products, and industrial services. Product innovation involves creating new or improved
products to meet customer needs, increase competitiveness, and drive business growth.
JGI JAIN
DEEMED-TO-BE UNIVE RSI TY
UNIT 06: Managing Product Offerings
Learning Objectives
 To understand the various elements that make up a B2B product and how they
contribute to customer satisfaction.
 To grasp the concept of the total product and how it impacts customer decision-
making.
 To recognize the stages of the product life cycle and the challenges associated with
each stage.
 To learn how to conduct a portfolio analysis to assess the balance of a company's
product mix.
 To familiarize with the new product development process, including idea generation,
feasibility analysis, design and testing, and commercialization.
Learning Outcomes
 To be able to identify and describe the various elements that make up a B2B product.
 To be able to evaluate the impact of the total product on customer decision-making.
 To be able to explain the stages of the product life cycle and the challenges associated
with each stage.
 To be able to measure and evaluate product quality, and recommend ways to improve
product quality.
 To be able to distinguish between different types of product lines and their respective
advantages and disadvantages.

 Readings: Provide a comprehensive overview of B2B product elements and product
development, including the concept of the total product, product life cycle, portfolio analysis,
new product development process, product quality, and product lines.
 Videos: Present relevant video content to illustrate key concepts, such as product life cycle,
portfolio analysis, and new product development process.
2
UNIT 06: Managing Product Offerings JGI JAIN
6.1 B2B Product Elements
B2B (business-to-business) product elements refer to the various components that make up a
product offered by a company to another business. These elements can include the product’s
features, design, packaging, branding, support services, warranties, and other aspects that
contribute to the overall value and experience for the customer. B2B product elements are crucial
in shaping a company's image, reputation, and competitiveness in the market, and therefore
should be carefully considered when developing and launching new products.
6.2 Concept of the Total Product
The Concept of the Total Product refers to the complete package of benefits that a customer
receives when they purchase a product. The total product encompasses not only the physical
product, but also the various intangible elements that contribute to the customer’s overall
experience, such as the product’s design, brand, customer service, warranties, and more.
The concept of the total product is important for companies to understand, as it provides a
comprehensive view of the value that their products deliver to customers, and helps them to
identify areas for improvement and differentiation. By considering the total product, companies
can create more compelling and differentiated offerings that better meet the needs and
expectations of their customers.
6.3 Product Lifecycle
The Product Life Cycle (PLC) is a model that describes the stages that a product goes through
from its conception to its eventual decline. In the context of the B2B (business-to-business)
market, the product life cycle can include the following stages:
 Development: The product is in the ideation and research phase, where the company
identifies market needs and develops a product concept.
3
JGI JAIN
 Introduction: The product is launched into the market and the company starts to promote
it to potential customers. Sales are typically low at this stage.
 Growth: The product starts to gain traction and sales increase as it becomes more widely
recognized and adopted.
 Maturity: Sales growth starts to level off, and the company may start to focus on cost
reduction and efficiency.
 Decline: Sales start to decline as the product becomes outdated or competition increases.
The product life cycle is important for B2B companies to understand as it helps them to plan for
the future and make informed decisions about their products. By anticipating the product's stage
in the life cycle, companies can better allocate resources, manage costs, and plan for the next
product or line of products.
It also helps companies to determine the best strategies for marketing and selling their products,
and to understand when it may be time to discontinue a product.
6.4 Portfolio Analysis
Portfolio Analysis is a strategic tool used by companies to evaluate and manage their product
lines and make decisions about product development, marketing, and resource allocation.
Portfolio Analysis typically involves the following steps:
 Identifying the company's product lines: The Company must first determine the range of
products and services it offers.
 Assessing the market potential of each product: The Company must analyze the market
size, growth rate, and competition for each product to determine its potential for success.
 Evaluating the company's relative strengths and weaknesses: The Company must assess
its strengths and weaknesses in relation to each product and the market, including its
experience, resources, and capabilities.
4
 Determining the product's position in its life cycle: The Company must determine the
stage of the product's life cycle, such as introduction, growth, maturity, or decline.
 Allocating resources: The Company must allocate resources based on the potential and
position of each product, taking into account market trends, competition, and the
company's strengths and weaknesses.
 Monitoring and adjusting the portfolio: The Company must regularly monitor and adjust
its portfolio to ensure that it continues to align with market trends and its own goals and
objectives.
Portfolio Analysis helps companies to ensure that they are maximizing their potential and making
the best use of their resources by focusing on the products and services that have the greatest
potential for success.
It also helps companies to make informed decisions about product development, marketing, and
resource allocation, and to respond effectively to changing market conditions and trends.
6.5 The New Product Development (NPD)
The New Product Development (NPD) process is a systematic approach that companies use to
bring new products to market. It typically involves the following steps:
 Ideation: The Company identifies potential new product ideas and evaluates their
potential for success.
 Concept development: The Company develops a detailed concept of the product,

including its features, design, and target market.
 Market research: The Company conducts market research to validate the product concept
and gather information about customer needs and preferences.
 Design and prototyping: The Company designs and builds a prototype of the product to
test and refine its features and design.
5
JGI JAIN
 Testing and validation: The Company tests the product with customers to gather feedback
and validate its market potential.
 Launch: The Company launches the product into the market and begins promoting it to
customers.
 Post-launch review: The Company regularly reviews the product's performance and makes
any necessary adjustments based on customer feedback and market trends.
The NPD process is critical for companies to successfully bring new products to market, as it
helps them to minimize risk, ensure that products meet customer needs and preferences, and
increase the chances of success.
The NPD process is often iterative, with steps being repeated as necessary, and involves close
collaboration between different departments and functions within the company, such as
engineering, marketing, sales, and customer support.
6.6 Concept of Product Quality
The Concept of Product Quality refers to the degree to which a product meets the
expectations and requirements of its customers. Product quality can be evaluated based on
a number of different factors, including:
 Performance: The product's ability to perform the functions for which it was designed.
 Features: The product's features and functionality, including its design, functionality, and
user-friendliness.
 Reliability: The product's ability to perform consistently and without failure over time.
 Durability: The product's ability to withstand wear and tear and last for a reasonable
amount of time.
 Serviceability: The ease with which the product can be maintained and repaired.
 Aesthetics: The product's appearance and design, including its color, shape, and texture.
6
 Conformance to standards: The product's compliance with relevant industry and safety
standards.
 Perceived value: The customer's perception of the product's value for money, including its
price, quality, and reputation.
A company's goal is to deliver high-quality products that meet or exceed customer expectations
and requirements. To achieve this, companies often use quality management processes and
tools, such as Total Quality Management (TQM) and Six Sigma, to continually improve product
quality and meet customer needs and expectations.
6.7 Product Lines – Catalog Product, Custom Built Product, Custom Designed Product,
Industrial Services
Product lines refer to a group of related products that a company offers for sale to customers.
The different types of product lines include:
 Catalog Product: A pre-manufactured product that is listed in a catalog and can be

purchased directly by the customer without any customizations.
 Custom Built Product: A product that is built to meet the specific needs and requirements
of a customer. This type of product is often designed and manufactured on a made-to-
order basis.
 Custom Designed Product: A product that is designed specifically for a customer based
on their unique requirements and specifications. This type of product may be
manufactured using a combination of pre-existing components and custom-built parts.
 Industrial Services: A type of product line that involves providing a service to customers
rather than a tangible product. This can include services such as maintenance, repair, and
consulting.
Each type of product line has its own unique characteristics and requires a different approach to
product design, manufacturing, and marketing. Companies often offer a mix of different product
lines to meet the needs and preferences of a diverse customer base.
7
JGI JAIN
6.7.1 Examples of Product Innovation
Product innovation refers to the process of creating new or improved products that meet the
needs and wants of customers. Some examples of product innovation include:
 Smartphones: The introduction of smartphones with advanced features and capabilities,

such as touch screens, internet connectivity, and multimedia capabilities.
 Electric vehicles: The development of electric vehicles that are more energy efficient and
environmentally friendly than traditional gasoline-powered vehicles.
 Wearable technology: The creation of wearable devices, such as fitness trackers and
smartwatches, that allow customers to track their health and fitness data and connect with
other devices.
 Smart homes: The development of home automation systems that allow customers to
control their homes using their smartphones or other connected devices.
 3D printing: The introduction of 3D printing technology that allows customers to create

physical objects from digital designs.
 Drones: The development of unmanned aerial vehicles (UAVs) that can be used for a
variety of purposes, including aerial photography, delivery, and search and rescue
operations.
 Artificial intelligence and machine learning: The development of AI and ML technologies

that allow companies to automate a range of tasks and processes, from customer service
to manufacturing.
These examples demonstrate how product innovation can lead to new and improved products
that meet the changing needs and wants of customers. Companies that continuously innovate
and improve their products are better positioned to stay ahead of the competition and meet the
evolving needs of their customers.
8
Summary
 B2B product elements refer to the various components that make up a product offered by a
business to another business. These elements can include the physical product, packaging,
branding, and customer service.
 The concept of the total product refers to the overall experience that a customer has with a
product, including all of the various elements that make up the product. The product life cycle
is the stages that a product goes through from its inception to its eventual decline.
 Portfolio analysis is a method used by companies to evaluate their product offerings and
determine which products should be continued, discontinued, or modified.
 The new product development process involves a series of steps that companies follow to
bring new products to market, including idea generation, market research, product design
and development, and testing and commercialization.
 Concept of product quality refers to the overall value of a product in terms of its features,
reliability, and performance. Product lines are groups of related products that a company
offers for sale, and can include catalog products, custom-built products, custom-designed
products, and industrial services.
 Examples of product innovation include smartphones, electric vehicles, wearable technology,

smart homes, 3D printing, drones, and AI/ML technologies.
Self-Practice
1. Product analysis: Choose a B2B product and analyze its various elements, including physical
product, packaging, branding, and customer service. Evaluate the overall experience of the
total product.
2. Product life cycle: Research a product that is currently in the market and identify its stage in
the product life cycle. Evaluate the potential future of the product and the strategies that
could be employed to extend its life cycle.
9
JGI JAIN
3. Portfolio analysis: Choose a company and analyze its product portfolio. Evaluate the strengths
and weaknesses of the portfolio and make recommendations for which products should be
continued, discontinued, or modified.
b. Essay type questions
i. Short Answers:
1. What is the product life cycle?

2. What is the purpose of portfolio analysis?
3. What is the first stage in the new product development process?
4. What is the final stage in the product life cycle?

5. What is an important factor to consider when evaluating product quality?
ii. Medium Answers:
1. Explain the difference between a catalog product and a custom-built product.

2. What is the purpose of market testing in the new product development process?
3. Describe the concept of the total product.
4. How does the product life cycle impact a company's product portfolio?
5. What is the difference between custom-designed and custom-built products?
iii. Long Answers:
1. Discuss the benefits of product innovation for a company and provide examples.
2. Analyze the new product development process, including the stages involved and their
objectives.
3. Evaluate the role of product quality in the success of a product in the marketplace.
4. Compare and contrast the various types of product lines offered by a B2B company, including
10
catalog products, custom-built products, custom-designed products, and industrial services.

5. Discuss the factors to consider when conducting portfolio analysis, including product life cycle
and product quality.
 "Marketing Management" by Philip Kotler and Kevin Lane Keller:

Chapter 4: Product and Branding Strategy
Chapter 5: New-Product Development and Product Life Cycles
Chapter 8: Product Mix and Line Decisions
 "B2B Marketing Management: A Global Perspective" by Erdener Kaynak and Venkatesh Shankar:
Chapter 2: B2B Products and Services
Chapter 3: Product Life Cycle and Portfolio Analysis in B2B Marketing
Chapter 4: B2B New Product Development
11
JGI JAIN
12
UNIT
BUSINESS PRODUCT PRICING
Names of Sub-Units
Pricing Consideration – Pricing Objectives, Demand Determinants, Cost Determinants,
Competition; New Product Pricing Strategies; Response to Price Attacks by Competition;
Competitive Bidding: Open and Closed Bidding; Bidding Strategies.
Overview
Pricing is a crucial aspect of business strategy, and companies must consider multiple factors
when setting prices for their products or services. Pricing objectives, demand determinants,
and cost determinants are all factors that influence pricing decisions.
Competition also plays a significant role in pricing, and companies must take into account
the prices and strategies of their competitors when setting their own prices. For new products,
companies have several pricing strategies available, including penetration pricing, skimming
pricing, and value-based pricing.
In response to price attacks from competitors, companies may need to adjust their pricing
strategy or find ways to differentiate their products. Competitive bidding, which can be either
open or closed, is another aspect of pricing that companies must consider. Bidding strategies
for competitive bidding include low-price bidding, selective bidding, and bidding only for
profitable contracts.
JGI JAIN
UNIT 07: Business Product Pricing
Learning Objectives
 To understand the various factors that impact pricing decisions, including pricing
objectives, demand determinants, and cost determinants.
 To understand the role of competition in pricing, and how to take it into account when
setting prices.
 To understand and apply new product pricing strategies, such as penetration pricing,
skimming pricing, and value-based pricing.
 To understand how to respond to price attacks from competitors, including adjusting
pricing strategy or differentiating products.
Learning Outcomes
 Ability to identify and evaluate the various factors that impact pricing decisions, such
as pricing objectives, demand determinants, and cost determinants.
 Knowledge of how to take competition into account when setting prices, including
analyzing competitors' prices and strategies.
 Skill in applying new product pricing strategies, such as penetration pricing, skimming
pricing, and value-based pricing.
 Understanding of how to respond to price attacks from competitors, including
adjusting pricing strategy or differentiating products.
 Knowledge of the competitive bidding process, including open and closed bidding,
and the bidding strategies that companies can use.

 "Pricing: Making Profitable Decisions" by R. Schmeizer and K. Simon
2
UNIT 07: Business Product Pricing JGI JAIN
7.1 Pricing consideration
Pricing considerations in a B2B market differ from B2C as B2B sales often involve longer and more
complex purchasing processes, larger deals, and ongoing relationships between buyers and sellers.
Understanding the buyer's purchasing process: In B2B, the buyer often represents an organization,
so understanding their purchasing process, budgeting, and decision-making processes is crucial.
 Value-based pricing: In B2B, the focus is on the value the product or service provides to the
buyer, rather than just its cost. This includes understanding the buyer's pain points and how
the product or service solves them.
 Cost of production and delivery: B2B products and services often have higher production and
delivery costs, which must be taken into account when setting prices.
 Market demand and competition: In B2B, market demand and competition play a role in
pricing, but the focus is on the specific market segment and its characteristics.
 Long-term relationships: Maintaining long-term customer relationships is crucial in B2B as

repeat business is often a significant source of revenue. Pricing must take into account the
impact on these relationships.
 Discounts and volume-based pricing: B2B sales often involve volume discounts and pricing
based on the buyer's purchasing power and commitment to the seller.
 Balancing margins and competitiveness: B2B companies must balance the desire for high
margins with the need to remain competitive in their market.
7.1.1 Pricing Objective
In a B2B market, pricing objectives often focus on balancing the need to achieve profitability with
the desire to build and maintain long-term customer relationships. Some common B2B pricing
objectives include:
Maximizing profit: Setting prices that generate the highest possible profit margins while still being
competitive in the market.
3
JGI JAIN
Increasing market share: Setting prices low enough to attract new customers and increase market
share, even if it means lower profit margins in the short term.
Achieving a target rate of return: Setting prices to achieve a specific rate of return on investment,
taking into account all costs and the desired level of profit.
Maintaining customer loyalty: Setting prices that are fair and reasonable to existing customers,
taking into account the value they receive from the product or service and their long-term potential
as a source of repeat business.
Building brand equity: Setting prices that reflect the value of the brand and position the product or
service as premium in the market.
In a B2B market, pricing objectives may vary based on the specific market segment and the
company's goals, but the overall focus is often on achieving long-term profitability and maintaining
customer relationships.
7.1.2 Demand Determinants
In a B2B market, demand determinants may differ from those in a consumer market, as the
purchasing decisions are often made by organizations rather than individual consumers. Some
common demand determinants in a B2B market include:
 Business needs: The specific needs and requirements of the organization, such as
production volume, quality standards, and delivery requirements.
 Industry trends: Industry trends and shifts, such as changes in technology, regulation, and
consumer behavior, which can affect demand for products and services.
 Supplier reputation: The reputation of the supplier, including factors such as quality,
reliability, and customer service.
 Economic conditions: Economic conditions, such as inflation, interest rates, and consumer
confidence, which can affect the demand for products and services.
4
 Product features: The features of the product or service, such as customization, technical
specifications, and product performance.
 Competition: The offerings of competitors, including price, quality, and product features,
and their impact on demand.
 Legal and regulatory requirements: Legal and regulatory requirements, such as

environmental regulations, health and safety regulations, and product standards, which can
influence demand.
By understanding these demand determinants, companies can better anticipate changes in the
market and adjust their pricing, product offerings, and marketing strategies to meet the needs of
their B2B customers.
7.1.3 Competition
In a B2B market, pricing considerations during competition can play a significant role in determining
a company's success. Companies must carefully consider their pricing strategies in the context of
their competitors' offerings and the demands of their customers. Some key considerations during
competition in a B2B market include:
 Market position: Companies should consider their position in the market, including their
brand reputation, customer base, and product offerings, and determine how these factors
may influence their pricing strategy.
 Competitor pricing: Companies should closely monitor their competitors' pricing strategies,
including the prices they charge, any discounts or promotions they offer, and their pricing
strategies over time.
 Customer demand: Companies should consider the demands of their customers, including
their needs, preferences, and willingness to pay, and adjust their pricing strategies
accordingly.
 Cost structure: Companies should consider the costs associated with producing and
delivering their products and services, and determine how these costs may impact their
pricing strategies.
5
JGI JAIN
 Market conditions: Companies should consider market conditions, such as economic

conditions, regulatory requirements, and technological advancements, and determine how
these conditions may influence their pricing strategies.
 Long-term goals: Companies should consider their long-term goals, including profitability,
market share, and customer loyalty, and determine how their pricing strategies can help them
achieve these goals.
7.2 New Product Pricing Strategies
When launching a new product in a B2B market, companies must carefully consider their pricing
strategies to ensure they are maximizing their profits while also appealing to their target customer
base. Some common new product pricing strategies in the B2B market include:
 Skimming: Setting a high price for a new product to quickly recover development costs and
maximize profits before competitors enter the market.
 Penetration: Setting a low price for a new product to quickly gain market share and build
customer loyalty before gradually increasing prices over time.
 Bundle pricing: Offering a combination of products or services at a discounted price to

encourage customers to purchase more.
 Value-based pricing: Setting prices based on the value a product provides to the customer,
rather than its production costs or competitor prices.
 Cost-plus pricing: Setting prices based on the cost of producing the product, plus a markup
to generate profit.
 Psychological pricing: Setting prices at certain levels to influence customers' perception of

value and encourage them to purchase.
6
7.3 Response to Price Attacks by Competition
When a company is faced with a price attack from its competition, it must quickly respond to remain
competitive and protect its market position. Some common strategies for responding to price
attacks in a B2B market include:
 Matching the price: The Company can lower its prices to match the competitor's price and
maintain its market share.
 Differentiating the product: The Company can focus on differentiating its product through
quality, features, or service, making it less vulnerable to price-based competition.
 Reducing costs: The Company can look for ways to reduce its costs, such as improving
efficiency, outsourcing, or automating processes, to make its products more competitive at
the current price point.
 Developing new products: The Company can invest in research and development to create
new products that are less vulnerable to price-based competition.
 Building customer loyalty: The Company can focus on building strong relationships with its
customers and providing excellent customer service, making them less likely to switch to a
competitor based on price.
By considering these strategies, companies can effectively respond to price attacks from their
competition in a B2B market and protect their market position and profitability.
7.4 Competitive Bidding: Open and Closed Bidding
Competitive bidding is a common process in the B2B market, where companies submit bids for
contracts or projects. There are two main types of competitive bidding: open bidding and closed
bidding.
 Open bidding: In open bidding, any company can submit a bid for a contract or project. This
type of bidding is often used for public projects and is meant to increase transparency and
competition.
7
JGI JAIN
 Closed bidding: In closed bidding, only pre-selected companies are invited to submit bids for
a contract or project. This type of bidding is often used for confidential projects or when a
company has a preferred supplier list.
 Both open and closed bidding have advantages and disadvantages, and companies must
carefully consider the type of bidding that is best for their needs. Open bidding provides
more competition and transparency, but closed bidding may result in a more focused and
efficient process with fewer bid submissions.
Regardless of the type of bidding, companies must carefully prepare their bids to ensure they are
competitive and meet the requirements of the project. This may involve preparing detailed
proposals, demonstrating expertise, and negotiating pricing and terms with the client.
7.5 Bidding Strategies
Successful bidding requires a well-planned and executed strategy to win contracts in a competitive
B2B market. Some common bidding strategies include:
 Low-priced bidding: Submitting a low bid to win the contract based on price alone. This
strategy may be effective when there are multiple bidders, but it can also result in lower
profits.
 Value-based bidding: Focusing on the value a company can provide to the client, such as
expertise, quality, and innovation, rather than just price. This strategy can differentiate a
company from its competition and increase the likelihood of winning the contract.
 Strategic partnerships: Forming partnerships or alliances with other companies to bid on

contracts together. This can increase the resources and expertise available to bid on larger or
more complex projects.
 Market research: Conducting research on the client, competitors, and market conditions to
better understand the client's needs and tailor a winning bid.
 Risk assessment: Carefully assessing and managing the risks involved in a project to minimize
potential issues and increase the likelihood of success.
8
By considering these strategies, companies can increase their chances of winning contracts and
achieve their goals in a competitive B2B market.
Summary
Pricing consideration in B2B markets involves several key factors, including:
 Pricing objectives: Companies must consider their overall goals and target market when
setting prices for their products or services.
 Demand determinants: Factors such as customer demand, market trends, and product
features can impact pricing decisions.
 Cost determinants: Companies must consider their production costs, marketing expenses,
and other costs when setting prices.
 Competition: Companies must consider the prices and strategies of their competitors when
setting prices and responding to price attacks.
 New product pricing strategies: Companies must consider how to price new products to
maximize profits and attract customers.
 Competitive bidding: Companies can participate in open or closed bidding to win contracts,
and must carefully prepare their bids and negotiate pricing and terms with clients.
 Bidding strategies: Companies can use low-priced bidding, value-based bidding, strategic
partnerships, market research, and risk assessment to increase their chances of winning
contracts.
By considering these factors, companies can make informed and strategic pricing decisions in the
B2B market and achieve their goals.
9
JGI JAIN
Self-Practice
 Case study analysis: Analyze a case study of a B2B company and evaluate their pricing
strategies, considering factors such as pricing objectives, demand determinants, cost
determinants, competition, and bidding strategies.
 Pricing simulation: Create a pricing simulation where learners can practice setting prices for
a B2B product or service, considering the impact of different pricing strategies and market
conditions.
 Competitive bidding exercise: Have learners participate in a mock bidding process for a B2B
contract or project, practicing the preparation of bids and negotiation of pricing and terms.
A. Essay type (Short/Medium/Long – 5 each; For numerical questions answers to be shared

at the end of the last unit)
i. Short Answers:
1. What are some of the pricing objectives a company may have?

2. What are some of the factors that determine demand for a product?
3. What are some of the costs that a company must consider when setting the price for a
product?
4. How does competition impact pricing strategies for a company?
5. What are some new product pricing strategies that companies use?
ii. Medium Answers:
1. What factors should a company consider when setting pricing objectives for a new
product?
2. How can a company respond to price attacks by competition?
3. What are the differences between open and closed bidding, and when would a company
choose each one?
4. What are some common bidding strategies that companies use in competitive bidding
10
situations?
5. How do demand determinants and cost determinants interact to impact the pricing of a
product?
iii. Long questions:
1. What is the relationship between pricing objectives, demand determinants, cost

determinants, and competition when setting the price for a product?
2. How can a company balance its pricing objectives with the realities of demand and cost
determinants, as well as competition, in the marketplace?
3. How do companies evaluate their pricing strategies for new products, and what factors
can influence these strategies over time?
4. What strategies can a company use to effectively respond to price attacks by competitors
and maintain its pricing objectives?
5. What are the most important considerations for a company when bidding on a
competitive contract, and how can a company develop an effective bidding strategy that
balances cost and pricing considerations?
 "Pricing Strategy: A Guide for Modern Marketers" by Adweek:

 Chapter 1: Introduction to Pricing Strategy
 Chapter 2: Understanding Your Target Market
 Chapter 3: Determining Your Cost Structure
 Chapter 4: Setting Pricing Objectives
 Chapter 5: Analyzing Demand Determinants
 "The Art of Pricing: How to Price Right for Your Small Business" by Inc.:
 Chapter 1: Understanding the Basics of Pricing
 Chapter 2: Conducting a Pricing Audit
 Chapter 3: Setting Pricing Objectives
 Chapter 4: Analyzing Cost and Demand Determinants
 Chapter 5: Evaluating Competitor Pricing
1
1
UNIT
CHANNEL DESIGN
Names of Sub-Units
Channel Design Process; Channel Objectives; Channel Constraints; Channel Alternatives;
Channel Selection.
Overview
The Channel Design Process involves determining how a company's products or services will
reach its customers. This includes identifying the target market, understanding their needs
and preferences, and selecting the best distribution channels to meet those needs.
Channel Objectives refer to the specific goals that a company hopes to achieve through its
distribution channels, such as increasing sales, improving customer service, and reducing
costs.
Channel Constraints are the limitations that a company faces when selecting and
implementing its distribution channels, such as budget, resources, and regulations.
Channel Alternatives refer to the different types of distribution channels available to a
company, including direct sales, indirect sales, and e-commerce.
Channel Selection involves choosing the most effective and efficient distribution channels
based on the company's objectives, constraints, and alternatives. This is a critical step in the
Channel Design Process as the right selection can greatly impact a company's success in
reaching its target market.
JGI JAIN
UNIT 08: Channel Design
Learning Objectives
 To understand the Channel Design Process and its importance in a company's
distribution strategy.
 To identify and define the different Channel Objectives that a company may have.
 To analyze the impact of Channel Constraints on the selection and implementation
of distribution channels.
 To familiarize oneself with the different Channel Alternatives available to a company.
 To evaluate the criteria and process for Channel Selection, and to understand the
importance of selecting the right channels for a company's target market.
Learning Outcomes
 Explain the Channel Design Process and its role in a company's distribution strategy.
 Identify and prioritize a company's Channel Objectives.
 Analyze the impact of Channel Constraints on distribution channel selection and
implementation.
 Compare and evaluate different Channel Alternatives in terms of their potential to
meet a company's Channel Objectives.

 Channel Design Process, Channel Objectives, Channel Constraints, Channel Alternatives, and
Channel Selection.
 Overview of different types of distribution channels, including direct sales, indirect sales, and
e-commerce.
 Case studies or examples of companies that have successfully designed and implemented
their Channel Design and Distribution Strategy.
 Review of basic marketing concepts, such as target market analysis, customer needs and
preferences, and marketing mix.
2
UNIT 08: Channel Design JGI JAIN
8.1 Channel Design Process
The Channel Design Process in a B2B (business-to-business) market involves a series of steps that
companies take to effectively distribute their products or services to other businesses.
In the B2B (business-to-business) market, Channel Selection is a crucial process that involves
choosing the best distribution channels for reaching other businesses and achieving company
objectives. The steps involved in Channel Selection in the B2B market are similar to those in other
markets, but there are some unique considerations and challenges that must be taken into account.
 Identifying the target market: This involves understanding the needs and preferences of
the businesses that the company wants to reach. This may involve conducting market
research, analyzing customer data, and assessing industry trends.
 Evaluating channel alternatives: This involves considering the different types of

distribution channels that may be appropriate for the target market, including direct sales,
indirect sales, and e-commerce.
 Assessing channel constraints: This involves taking into account any limitations that may
impact the selection and implementation of distribution channels, such as budget,
resources, and regulations.
 Setting channel objectives: This involves establishing specific goals that the company
hopes to achieve through its distribution channels, such as increasing sales, improving
customer service, and reducing costs.
 Selecting the best channel: This involves choosing the most effective and efficient
distribution channels based on the company's target market, channel alternatives, channel
constraints, and channel objectives.
 Implementing and monitoring the channel: This involves putting the selected channel into
action, and continuously monitoring and adjusting it to ensure that it is meeting the
company's objectives.
 It is important to note that the Channel Design Process in a B2B market may vary
depending on the company, industry, and target market, and may require ongoing
refinement as market conditions change.
3
JGI JAIN
8.2 Channel Objectives
The specific goals that a company hopes to achieve through its distribution channels. Channel
objectives are a critical component of the Channel Design Process and help to guide the selection
of the best channels for a company's target market. Some common examples of Channel
Objectives include:
 Increasing sales: A company may aim to increase sales by expanding its reach to new
customers, improving the availability of its products or services, or increasing the frequency
of purchases.
 Improving customer service: A company may aim to improve customer service by making its
products or services more accessible, providing more convenient options for customers to
purchase, or improving delivery times.
 Reducing costs: A company may aim to reduce costs by streamlining its distribution channels,
reducing inventory costs, or finding more efficient ways to reach customers.
 Enhancing brand awareness: A company may aim to enhance brand awareness by increasing
its visibility in the market, building stronger relationships with customers, or differentiating
its products or services from competitors.
 Entering new markets: A company may aim to enter new markets by finding the best
distribution channels for reaching new customers, improving its distribution network, or
expanding its product or service offerings.
It is important to note that a company may have multiple Channel Objectives, and that these
objectives may change over time as market conditions and customer preferences change. The
Channel Objectives should be aligned with a company's overall business strategy and goals.
In the B2B market, companies may also have additional objectives related to specific industries,
geographic regions, or types of businesses that they serve. For example, a company serving the
healthcare industry may have objectives related to complying with regulations, offering specialized
products and services, and supporting medical professionals.
4
In conclusion, Channel Objectives in the B2B market are critical to the success of a company's
distribution and marketing efforts. Companies should regularly evaluate their Channel Objectives
and adjust their Channel Design and Distribution Strategy as necessary to ensure that they are
meeting the needs of their target market and achieving their goals.
8.3 Channel Constraints
Channel constraints refers to limitations or challenges that may impact a company's ability to
effectively distribute its products or services through its chosen channels. Channel Constraints
are a critical component of the Channel Design Process, and should be considered when
evaluating channel alternatives and setting channel objectives. Some common examples of
Channel Constraints include:
 Budget: A limited budget may impact a company's ability to implement and maintain its
distribution channels, or to invest in the necessary resources or technology.
 Resources: A company may have limited resources, such as manpower or technology, to

effectively manage and support its distribution channels.
 Regulations: Certain regulations, such as those related to product safety, may impact the
distribution of certain products or services, or may limit the types of channels that can be
used.
 Competition: The presence of strong competitors may impact a company's ability to reach its
target market, or may limit its ability to differentiate its products or services.
 Customer preferences: Customer preferences may impact a company's ability to reach its
target market, or may limit its ability to provide convenient and accessible options for
purchasing.
 Supply chain: The efficiency of a company's supply chain may impact its ability to quickly and
effectively distribute its products or services.
Channel Constraints may vary depending on the company, industry, and target market, and may
change over time as market conditions change. Companies should continuously monitor and
5
JGI JAIN
assess their Channel Constraints, and make adjustments to their Channel Design and Distribution
Strategy as necessary.
8.4 Channel Alternatives
Channel Alternatives refer to the different types of distribution channels that a company may use
to reach its target market and achieve its channel objectives. Channel Alternatives are an
important component of the Channel Design Process, and should be evaluated to determine the
best channels for a company's target market.
Some common examples of Channel Alternatives include:
 Direct Sales: This involves selling products or services directly to customers through a
company's own sales team, online store, or call center.
 Indirect Sales: This involves using intermediaries, such as wholesalers, retailers, or

distributors, to sell products or services to customers.
 E-commerce: This involves selling products or services online through a company's

website, a third-party platform, or a mobile app.
 Customer Service: This involves providing customer service through a variety of channels,
such as phone, email, chat, or social media.
 Referral Marketing: This involves using word-of-mouth or customer referrals to reach new
customers.
 Trade Shows: This involves exhibiting products or services at trade shows or industry
events to reach new customers and build brand awareness.
It is important to note that the best Channel Alternatives will depend on a company's target
market, channel objectives, and channel constraints. Companies should continuously evaluate
and adjust their Channel Alternatives to ensure that they are meeting the changing needs of their
target market and achieving their channel objectives.
6
8.5 Channel Selection
Channel Selection refers to the process of choosing the best distribution channels for a
company's target market and channel objectives. Channel Selection is a critical component
of the Channel Design Process, and involves evaluating channel alternatives and considering
channel constraints to determine the most effective channels for reaching customers and
achieving channel objectives.
The steps involved in Channel Selection include:
 Defining channel objectives: The first step is to define the specific goals that a company hopes
to achieve through its distribution channels.
 Evaluating channel alternatives: The next step is to evaluate the different types of distribution
channels that a company may use to reach its target market and achieve its channel
objectives.
 Assessing channel constraints: The next step is to consider any limitations or challenges that
may impact a company's ability to effectively distribute its products or services through its
chosen channels.
 Selecting the best channels: The final step is to choose the best channels for a company's
target market and channel objectives, taking into account the evaluation of channel
alternatives and assessment of channel constraints.
 It is important to note that Channel Selection is an ongoing process, and companies should
continuously evaluate and adjust their channels to ensure that they are meeting the changing
needs of their target market and achieving their channel objectives. The best channels may
change over time, and companies should be prepared to make changes to their Channel
Design and Distribution Strategy as necessary.
Summary
This unit focuses on the Channel Design Process in the context of business-to-business (B2B)
marketing. The topics covered include Channel Objectives, Channel Constraints, Channel
Alternatives, and Channel Selection.
7
JGI JAIN
By the end of this unit, learners will have a clear understanding of the Channel Design Process in
the B2B market and will be able to:
 Define the key Channel Objectives and how they relate to reaching other businesses in the
B2B market.
 Evaluate the different Channel Alternatives, including direct sales, indirect sales through
intermediaries, and e-commerce, and understand their strengths and limitations.
 Assess the key Channel Constraints in the B2B market, such as complex purchasing processes
and longer sales cycles.
 Select the best channels to reach and serve other businesses based on the needs of the target
market, the complexity of the products or services, and the level of support required.
This unit is designed to help learners understand the importance of the Channel Design Process
in the B2B market and how to select the best channels for reaching other businesses and
achieving company objectives.
Self-Practice
Conduct a SWOT analysis of a company's current distribution channels: This exercise involves
evaluating the Strengths, Weaknesses, Opportunities, and Threats of your current distribution
channels. This will help you identify areas for improvement and opportunities for growth.
 Research your target market: Conduct research on your target market to better understand
the needs and behaviors of other businesses. This will help you determine the best channels
for reaching and serving your target market.
 Evaluate channel alternatives: Analyze the different channel alternatives, including direct sales,
indirect sales through intermediaries, and e-commerce. Consider the strengths and
limitations of each channel, and determine which channels are best suited to your company's
needs.
8
 Develop a Channel Selection Matrix: Create a matrix that compares the different channel
alternatives based on factors such as cost, reach, and customer service. This will help you
select the best channels for your company and prioritize your efforts.
 Conduct a pilot test of your selected channels: Once you have selected your channels, conduct
a pilot test to validate your Channel Design Process. This will help you identify any potential
issues and make any necessary adjustments to your channels before implementing them
more broadly.
 Monitor and evaluate your channels: Regularly monitor and evaluate your channels to ensure
that they are meeting your Channel Objectives and delivering results. This will help you
identify any areas for improvement and make any necessary adjustments to your Channel
Design Process.
These exercises will help learners to apply the concepts learned in the unit and gain hands-on
experience with the Channel Design Process in the B2B market.
A. Essay type (Short/Medium/Long – 5 each; For numerical questions answers to be shared at

the end of the last unit)
i. Short Answers:
1. What is the Channel Design Process?

2. What is the purpose of setting Channel Objectives in B2B market?
3. What are the Channel Constraints in B2B market?
4. What are the different Channel Alternatives available in B2B market?
5. What is the significance of Channel Selection in B2B market?
ii. Medium Answers:
1. How does the Channel Design Process vary in the B2B and B2C market?
2. Can you explain the impact of Channel Constraints on the Channel Design Process in B2B
market?
9
JGI JAIN
3. What are the factors that influence the selection of Channel Alternatives in B2B market?
4. How do you measure the success of Channel Objectives in B2B market?
5. Can you discuss the role of Channel Selection in the overall success of a B2B company?
iii. Long Answers:
1. Explain the Channel Design Process in detail with examples specific to the B2B market.
2. Analyze the impact of Channel Objectives on the Channel Design Process in B2B market.
3. Evaluate the role of Channel Constraints and alternatives in the Channel Design Process
in B2B market.
4. Discuss the importance of considering customer preferences while selecting the channel
in B2B market.
5. Present a case study of a successful Channel Design Process implementation in a B2B

company and its impact on the company's growth and success.
"Marketing Channels: A Management View" by Bert Rosenbloom: Chapter 4 - Designing Channel Systems
"B2B Marketing Management: A Strategic View" by K. H. Möller and M. Peer Skov: Chapter 8 - Channel
Management
"B2B Marketing: A Guide to Best Practice" by John Williams and John Eyeington: Chapter 5 - Channel Design
and Management
"B2B Channel Management: A Global Perspective" by Jörg T. Friedrich: Chapter 6 - Channel Design and
Management in B2B Markets
"Marketing Channels: Delivering Customer Value" by Donald Baack: Chapter 7 - Channel Design and Strategy.
These chapters provide a deeper understanding of the topic and offer practical examples and case studies to
reinforce the concepts learned
10
UNIT
BUSINESS MARKET CHANNEL MANAGEMENT
Names of Sub-Units
Channel Tasks; Factors Affecting Channel Decisions; Channel Participants –Industrial
Distributors, Manufacturer’s Representative; Distributor Classification; Channel Conflict
Sources and Management.
Overview
Business Market Channel Management refers to the process of overseeing the distribution of
goods and services from the manufacturer to the end consumer. In a B2B context, channel
management involves managing the intermediaries that are involved in getting products to
the market.
 Channel Tasks: Channel tasks involve activities such as planning, organizing, and
implementing the distribution of goods and services. These tasks are crucial in
ensuring that the product reaches the market effectively and efficiently.
 Factors Affecting Channel Decisions: Channel decisions are influenced by various

factors such as market characteristics, consumer preferences, the nature of the
product, and the availability of resources.
 Channel Participants – Industrial Distributors, Manufacturer’s Representative: Channel

participants play a crucial role in the distribution of goods and services. Industrial
distributors are intermediaries who buy and sell products to other businesses, while
JGI JAINDEEMED-TO-BE UNIVERSITY
UNIT 09: Business Market Channel Management
manufacturer's representatives are independent agents who represent a

manufacturer's products in a specific geographic area.
 Distributor Classification: Distributors can be classified based on the type of products

they distribute, the size of their operation, and the geographic area they serve.
 Channel Conflict Sources and Management: Channel conflict can arise due to various
factors such as competition for sales, conflicting objectives, and different distribution
strategies. It is important to identify and manage these conflicts in order to maintain
a healthy and productive channel relationship.
The goal of this unit is to help learners understand the various aspects of Business Market
Channel Management and how they can effectively manage their channels to ensure the
efficient and effective distribution of goods and services.
Learning Objectives
 To understand the role and importance of channel management in the distribution of
 To identify and evaluate the various channel tasks, such as selection of channel
partners, managing relationships, and monitoring channel performance.
 To analyze the factors that influence channel decisions, such as market dynamics,
consumer behavior, and competition.
 To recognize the different types of channel participants, including industrial
distributors, manufacturer’s representatives, and the various classifications of
distributors.
 To understand the sources of channel conflict and to develop strategies for managing
such conflicts effectively.
Learning Outcomes
2
UNIT 09: Business Market Channel Management JGI JAIN
DEEMED-TO-BE UNIVERSITY

 Gain knowledge of channel management principles and practices.
 Understand the role and responsibilities of different channel participants and their
impact on the distribution process.
 Ability to analyze and evaluate factors that influence channel decisions, and to make
informed decisions regarding channel selection and management.
 Skill in developing and implementing effective strategies for managing channel
relationships and resolving conflicts.

 Overview of Business Marketing: A brief introduction to business marketing concepts,
including the role of channels in the distribution of products or services.
 Channel Management Fundamentals: A comprehensive overview of the principles of channel
management, including channel design, selection, and management.
 Channel Tasks: A detailed review of the various tasks involved in channel management,
including channel selection, relationship building, and performance monitoring.
 Factors Affecting Channel Decisions: An analysis of the key factors that influence channel
decisions, including market dynamics, consumer behavior, and competition.
9.1 Channel Tasks
In the B2B (business-to-business) market, channel tasks refer to the various activities involved in
managing the distribution of products or services through intermediaries, such as wholesalers,
distributors, or resellers. The following are some of the key channel tasks in the B2B market:
1. Channel Selection: Identifying the most appropriate channels for a particular product or
service, taking into account factors such as market size, target customer segments, and
competition.
2. Relationship Management: Building and maintaining positive relationships with channel

partners, including regular communication, joint planning and problem-solving, and
incentives to encourage collaboration.
3
JGI JAIN
3. Contract Negotiation: Negotiating contracts with channel partners that outline the terms
and conditions of the distribution relationship, including pricing, product availability, and
marketing support.
4. Performance Monitoring: Continuously monitoring the performance of channel partners,

including sales volume, market share, and customer satisfaction, and using this
information to make adjustments to the channel strategy as needed.
5. Conflict Resolution: Addressing conflicts that may arise between channel partners, such
as disputes over pricing or product distribution, and finding mutually beneficial solutions.
6. Sales and Marketing Support: Providing sales and marketing support to channel partners,
including product training, promotional materials, and other resources to help them sell
the product effectively.
7. Inventory Management: Managing inventory levels at the channel partner level, ensuring
that products are available when customers want to purchase them, while avoiding excess
inventory and associated carrying costs.
8. Channel Performance Evaluation: Regularly evaluating the performance of each channel

partner and making decisions about which channels to continue using, which to modify,
and which to discontinue.
There are several key factors that can affect channel decisions, such as the selection of
intermediaries to distribute products or services. Some of the main factors that influence channel
decisions in B2B marketing are:
 Market Dynamics: This includes factors such as market size, customer behavior, and
competition, which can impact the choice of channel and the design of the distribution
strategy.
 Product Characteristics: The characteristics of the product, such as size, weight, and
complexity, can influence the choice of channel, as some products may require specialized
distribution channels.
4
 Customer Segments: Understanding the target customer segments, their needs and
preferences, and the channels they use to purchase products, is important in selecting the
most appropriate channels.
 Channel Partner Capabilities: The capabilities of existing and potential channel partners,
such as their experience, market reach, and logistics capabilities, are important
considerations in selecting channels.
 Channel Partner Relationships: Building and maintaining strong relationships with channel
partners is crucial for the success of the distribution strategy, and this must be taken into
account when selecting channels.
 Cost and Efficiency: The cost and efficiency of the distribution channels, including the cost
of distribution, order processing, and inventory management, are important factors in
channel decision-making.
 Legal and Regulatory Considerations: Channel decisions may be influenced by legal and
regulatory requirements, such as licensing and certification requirements, product
labeling, and advertising restrictions.
 Market Acceptance: Understanding the level of market acceptance for a particular product
or service and the channels that are most commonly used by customers is important in
selecting channels that are likely to be successful.
9.2 Channel participants
These are intermediaries that help distribute products or services to customers. There are two
main types of channel participants in the B2B market: industrial distributors and manufacturer's
representatives.
 Industrial Distributors: Industrial distributors are companies that purchase products from
manufacturers and resell them to other businesses or customers. They provide a range of
services to their customers, including product availability, logistics support, and technical
expertise.
5
JGI JAIN
 Manufacturer's Representatives: Manufacturer's representatives are independent sales

agents who represent one or more manufacturers and promote their products to potential
customers. They are usually compensated on a commission basis and provide a valuable
service by expanding the reach of the manufacturer into new markets.
Both industrial distributors and manufacturer's representatives play a critical role in the
distribution of products in the B2B market, and it is important for manufacturers to build strong
relationships with these channel partners in order to maximize their reach and sales potential.
9.3 Distributors
Distributors can be classified based on various criteria such as the types of products they
distribute, the size of the businesses they serve, their geographic scope, and the level of services
they provide to their customers. Some common types of distributor classification are:
 Product Specialization: Distributors can be classified based on the type of products they
distribute, such as industrial, consumer, or hi-tech products.
 Customer Segment: Distributors can be classified based on the size of the businesses they
serve, such as small, medium, or large enterprises.
 Geographic Scope: Distributors can be classified based on their geographic scope, such
as local, regional, or national distributors.
 Service Level: Distributors can be classified based on the level of services they provide to
their customers, such as basic or full-service distributors.
 Channel Type: Distributors can be classified based on the type of channel they belong to,
such as direct or indirect channels.
By classifying distributors, manufacturers can gain a better understanding of the capabilities and
strengths of their channel partners, and tailor their distribution strategies to maximize their reach
and sales potential.
6
9.4 Channel conflict
It is a common issue that arises in the distribution of products or services through

intermediaries. Channel conflict can arise between manufacturers and their channel partners,
or between different intermediaries in the distribution channel.
Sources of channel conflict include:
 Territorial Issues: Conflicts can arise when two or more intermediaries attempt to sell the
same product in the same geographic area.
 Price Disputes: Conflicts can occur when intermediaries believe that the price of a product
is too high, or when manufacturers believe that intermediaries are discounting products
too heavily.
 Competitor Interference: Conflicts can arise when competitors attempt to interfere with
the relationship between manufacturers and their channel partners.
 Product Line Issues: Conflicts can occur when intermediaries feel that the manufacturer is
not providing them with enough products or support to meet customer demand.
 Effective channel conflict management requires manufacturers to have a clear

understanding of the sources of conflict and to develop strategies to address these issues.
Some strategies for managing channel conflict include:
 Communication: Regular and open communication between manufacturers and their

channel partners can help to build strong relationships and reduce the likelihood of
conflict.
 Contractual Agreements: Written agreements that clearly define the roles and
responsibilities of intermediaries can help to prevent conflicts from arising.
 Performance Management: Measuring and managing the performance of intermediaries

can help to ensure that they are meeting expectations and reducing the risk of conflict.
7
JGI JAIN
 Problem-Solving: Resolving conflicts through open and transparent problem-solving

processes can help to maintain strong relationships between manufacturers and their
channel partners.
By addressing channel conflict effectively, manufacturers can maintain strong relationships with
their channel partners, and ensure the success of their distribution strategies.
Summary
In B2B (business-to-business) marketing, channel management refers to the process of coordinating

and managing the activities of intermediaries involved in the distribution of products or services.
Channel participants in the B2B market include industrial distributors and manufacturer's
representatives. Industrial distributors purchase products from manufacturers and resell them to
other businesses or customers, while manufacturer's representatives are independent sales agents
who promote products on behalf of manufacturers.
Channel conflict, a common issue in distribution, can arise between manufacturers and their channel
partners or between intermediaries. The sources of channel conflict include territorial issues, price
disputes, competitor interference, and product line issues. Effective channel conflict management
involves regular communication, contractual agreements, performance management, and problem-
solving processes.
By managing channel conflict effectively, manufacturers can maintain strong relationships with their
channel partners and ensure the success of their distribution strategies.
Self-Practice
 Case Study Analysis: Choose a real-life case study of a company that has faced channel
conflict and analyze the cause of the conflict, the steps taken to resolve it, and the outcome
of the situation.
 Role-Play Simulation: Divide into groups and role-play different channel participants involved
in the distribution of a product. Discuss the challenges each participant faces and how they
could resolve any conflicts that arise.
8
 Channel Map Creation: Create a visual representation of a distribution channel for a product
and analyze the different intermediaries involved, their roles and responsibilities, and how
they work together to distribute the product.
B. Essay type
i. Short Answers:
1. What is channel management in B2B marketing?

2. What are the main channel participants in the B2B market?
3. What is a common source of channel conflict in B2B marketing?
4. What is the role of industrial distributors in B2B marketing?
5. What is distributor classification in B2B marketing?
9
JGI JAIN
ii. Medium Answers:
1. Explain the role of market research in B2B channel management.

2. Discuss the impact of product quality on channel decisions in B2B marketing.
3. What are the objectives of channel management strategies in B2B marketing?
4. Analyze the significance of channel conflict management in B2B marketing.
5. Evaluate the role of manufacturer's representatives in the B2B market.
iii. Long Answers:
1. Describe the steps involved in the process of channel management in B2B marketing.
2. Discuss the factors affecting channel decisions in B2B marketing and provide examples.
3. Analyze the role of channel evaluation in B2B marketing and explain the methods used to
assess channel performance.
4. What are the different types of channel conflict in the B2B market, and how can they be
resolved effectively?
5. Evaluate the advantages and disadvantages of different channel participants in the B2B
market, such as industrial distributors, manufacturer's representatives, and others.
Marketing Channels: A Management View by Bert Rosenbloom - Chapter 4: Channel Design and
Management, Chapter 5: Channel Relationships, Chapter 6: Channel Conflict
Channel Management in B2B Markets by Monika Hamori and Mary Teagarden - Chapter 2: Channel Strategy,
Chapter 4: Channel Design, Chapter 5: Channel Conflict Management
10
Handbook of Channel Management by Marie Bell and Christoph Beck - Chapter 4: Channel Design and
Structure, Chapter 5: Channel Relationships, Chapter 6: Channel Conflict Management
Marketing Management by Philip Kotler - Chapter 14: Marketing Channels and Supply Chain Management,
Chapter 15: Channel Behaviour and Channel Relationships
B2B Marketing Management by Dave Stein - Chapter 4: Channel Management, Chapter 5: Channel Strategy,
Chapter 6: Channel Conflict Management
11
UNIT
MARKETING COMMUNICATION IN BUSINESS

MARKETS
Names of Sub-Units
Difference between B2B and B2C Marketing Communication; Role of Advertising in Business
Markets; Limitations of Advertising in Business Markets; Developing an Advertising Program;
Measuring Advertising Effectiveness.
Overview
Marketing Communication is a crucial aspect of business as it helps organizations reach and
communicate with their target audience. In business markets, there are two main types of
marketing communication: B2B (business-to-business) and B2C (business-to-consumer).
B2B marketing communication focuses on promoting products or services to other
businesses, whereas B2C marketing communication targets individual consumers. The
approach and strategy used in both forms of marketing communication differ significantly.
Advertising plays a crucial role in business markets by creating awareness and generating
demand for products or services. However, there are limitations to advertising such as
audience reach, high costs, and clutter in the advertising space.
To maximize the impact of advertising in business markets, it is important to develop an
advertising program that is well-researched and well-executed. This involves defining the
target audience, choosing the right channels to reach them, and determining the message
and call to action.
JGI JAIN
UNIT 10: Marketing Communication in Business Markets
Measuring the effectiveness of advertising is also crucial to determine if the advertising

program is successful in achieving its objectives. This can be done by monitoring key metrics
such as audience reach, engagement, and conversions.
Learning Objectives
 To understand the difference between B2B and B2C marketing communication and
apply the appropriate approach in business markets.
 To recognize the role of advertising in business markets and its impact on creating
awareness and generating demand for products or services.
 To identify the limitations of advertising in business markets and find ways to
overcome them.
 To develop an effective advertising program by defining the target audience, choosing
the right channels to reach them, and determining the message and call to action.
Learning Outcomes
 Develop a comprehensive understanding of the different types of marketing
communication, specifically B2B and B2C.
 Understand the importance and impact of advertising in business markets and its role
in creating awareness and generating demand for products or services.
 Be able to identify the limitations of advertising and develop strategies to overcome
them.
 To have the ability to measure the effectiveness of advertising using key metrics such
as audience reach, engagement, and conversions.
2
UNIT 10: Marketing Communication in Business Markets JGI JAIN

 Marketing Fundamentals: Understanding the basic concepts of marketing such as target
audience, segmentation, positioning, and the marketing mix.
 Communication Theories: Familiarizing oneself with communication theories such as the AIDA
model and the communication process.
 Marketing Research: Understanding the basics of market research, including primary and
secondary research methods and data analysis techniques.
10.1 Difference between B2B and B2C Marketing Communication
B2B (business-to-business) marketing communication and B2C (business-to-consumer) marketing

communication are two distinct forms of marketing communication that have different approaches
and strategies.
B2B marketing communication focuses on promoting products or services to other businesses. It is

typically characterized by longer sales cycles, higher ticket sizes, and more complex buying
processes. B2B marketing communication is often focused on building relationships and
demonstrating the value of the product or service to the target business.
B2C marketing communication, on the other hand, targets individual consumers. It is characterized
by shorter sales cycles, lower ticket sizes, and a more emotional and personal approach to marketing.
B2C marketing communication focuses on creating a connection with the target audience by
appealing to their emotions and personal values.
In conclusion, the main difference between B2B and B2C marketing communication lies in the target
audience, the approach and strategy used, and the goals of the marketing communication.
10.2 Role of Advertising in Business Markets
Advertising plays a crucial role in business markets by creating awareness and generating demand
for products or services. Advertising is an important tool for organizations to communicate with their
3
JGI JAIN
target audience, showcase the features and benefits of their products or services, and differentiate
themselves from their competitors.
Advertising in business markets can take many forms, including print, radio, television, outdoor,
digital, and social media advertising. The choice of advertising channel and format depends on the
target audience and the objectives of the advertising campaign.
In addition to creating awareness and generating demand, advertising can also be used to reinforce
brand identity, maintain market share, and improve customer loyalty. In business markets,
advertising is often used in conjunction with other marketing activities such as public relations, direct
marketing, and sales promotions to achieve a comprehensive and integrated marketing
communication plan.
In conclusion, advertising is a critical component of marketing communication in business markets,

serving to create awareness, generate demand, and reinforce the brand.
10.3 Limitations of Advertising in Business Markets
Advertising, although an important tool for marketing communication in business markets, is not
without its limitations. Some of the limitations of advertising in business markets include:
 Cost: Advertising can be expensive, particularly for large-scale campaigns. The cost of
advertising can be a significant investment for organizations, especially for small businesses.
 Relevance: Not all forms of advertising are relevant to the target audience, and messages that
are not relevant can be ignored or rejected.
 Clutter: With the abundance of advertising messages in the marketplace, it can be difficult for
organizations to stand out and get their message across.
 Ad Blindness: Consumers may become desensitized to advertising and develop "ad

blindness," ignoring or avoiding advertisements altogether.
 Effectiveness: Measuring the effectiveness of advertising can be challenging, and it can be

difficult to determine whether an advertising campaign has achieved its desired outcome.
4
 Regulation: There may be restrictions and regulations on advertising, particularly for products
or services that are controversial or have potential negative impacts.
 Saturation: In highly competitive industries, there may be saturation in the market, making it
difficult for organizations to achieve their advertising objectives.
These limitations highlight the importance of careful planning and execution of advertising
campaigns in business markets to ensure that the investment in advertising results in desired
outcomes.
10.4 Developing an Advertising Program
Developing an effective advertising program requires careful planning and execution. The following
steps outline the process of developing an advertising program:
 Define objectives: Clearly define the objectives of the advertising program, including what the
organization wants to achieve, the target audience, and the desired outcomes.
 Conduct market research: Conduct market research to gain a deep understanding of the
target audience, including their needs, preferences, and behaviors. This information can be
used to develop an advertising strategy that is relevant and effective.
 Develop a strategy: Based on the research and objectives, develop a strategy that outlines the
approach, tactics, and channels to be used in the advertising program.
 Create a budget: Determine the budget for the advertising program, taking into account the
objectives, target audience, and desired outcomes.
 Design and create advertisements: Based on the strategy and budget, design and create the
advertisements, including the messages, visuals, and calls-to-action.
 Plan media placement: Plan the media placement, including the channels and schedules, to
ensure that the advertisements reach the target audience at the right time and place.
 Launch the advertising program: Launch the advertising program, making any necessary
adjustments based on results and feedback.
5
JGI JAIN
 Evaluate the advertising program: Regularly evaluate the advertising program to measure its
effectiveness and make improvements.
Developing an effective advertising program requires careful planning and execution, including
defining objectives, conducting market research, developing a strategy, creating a budget, designing
and creating advertisements, planning media placement, launching the program, and evaluating
results.
10.5 Measuring Advertising Effectiveness
Measuring the effectiveness of advertising is important for organizations to determine whether their
advertising investment has produced desired outcomes. The following are some common methods
for measuring advertising effectiveness:
 Sales: Measuring sales before and after an advertising campaign can help determine if the
advertising has had a positive impact on demand for the product or service.
 Surveys: Surveys can be used to gather information from the target audience about their
attitudes and behaviors, including their awareness and perception of the product or service,
and their likelihood of making a purchase.
 Brand Awareness: Measuring brand awareness, such as recognition of the brand and recall of
the advertising message, can help determine if the advertising has had a positive impact on
the target audience.
 Web Analytics: Web analytics, such as click-through rates and conversion rates, can be used
to measure the effectiveness of digital advertising campaigns, such as online display and
search engine advertising.
 Return on Investment (ROI): Calculating the return on investment (ROI) of an advertising

campaign can help organizations determine the cost-effectiveness of their advertising spend.
 Cost per Acquisition (CPA): Measuring the cost per acquisition (CPA), or the cost of acquiring
a customer through advertising, can help organizations determine the efficiency of their
advertising spend.
6
Measuring the effectiveness of advertising is critical for organizations to determine the impact
of their advertising investment and make improvements. A combination of methods can be used
to get a comprehensive understanding of advertising effectiveness, including sales, surveys,
brand awareness, web analytics, return on investment, and cost per acquisition.
Summary
B2B and B2C marketing communication differ in terms of their target audience, the nature of the
products or services being marketed, and the decision-making process involved. Advertising plays a
crucial role in marketing communication in business markets, helping organizations reach their
target audience and achieve their marketing objectives. However, advertising also has limitations,
such as cost, relevance, clutter, ad blindness, effectiveness, regulation, and saturation.
Developing an effective advertising program requires careful planning and execution, including
defining objectives, conducting market research, developing a strategy, creating a budget, designing
and creating advertisements, planning media placement, launching the program, and evaluating
results. Measuring the effectiveness of advertising is important to determine the impact of the
advertising investment and make improvements. A combination of methods can be used to measure
advertising effectiveness, including sales, surveys, brand awareness, web analytics, return on
investment, and cost per acquisition.
In conclusion, B2B and B2C marketing communication differ in their approach, and advertising is a
crucial tool in marketing communication in business markets, although it has limitations. Effective
advertising requires careful planning and execution, and regular evaluation to measure its
effectiveness and make improvements.
Self-Practice
Self-practice exercises can help reinforce the concepts covered in the topics studied and provide
hands-on experience in developing an advertising program and measuring its effectiveness. Some
self-practice exercises include:
 Develop an advertising plan: Choose a product or service, and develop a complete advertising
plan, including defining objectives, conducting market research, developing a strategy,
7
JGI JAIN
creating a budget, designing and creating advertisements, planning media placement, and
evaluating results.
 Conduct a survey: Conduct a survey to gather information from the target audience about
their attitudes and behaviors, including their awareness and perception of a product or
service, and their likelihood of making a purchase. Analyze the results and determine the
impact of the advertising.
 Measure brand awareness: Develop a brand awareness survey to measure recognition of a

brand and recall of the advertising message. Compare the results before and after an
advertising campaign and determine the impact of the advertising on brand awareness.
A. Essay type
i. Short Answers
1. What is the difference between B2B and B2C marketing communication?
8
2. What is the role of advertising in business markets?

3. What are the limitations of advertising in business markets?
4. How do you develop an advertising program?
5. What is the purpose of measuring advertising effectiveness?
iii. Medium Answers:
1. Explain the key differences between B2B and B2C marketing communication.
2. Discuss the role of advertising in promoting a business's products and services to its target
audience.
3. What are some of the common limitations of advertising in business markets and how can
they be overcome?
4. What are the steps involved in developing an effective advertising program and what factors
should be considered?
5. How can companies measure the effectiveness of their advertising efforts and what metrics
are commonly used?
iii. Long Answers:
1. Provide a comprehensive comparison of the key differences in marketing communication

strategies between B2B and B2C markets.
2. Evaluate the role of advertising in business markets, including its benefits and limitations.
Discuss specific examples of advertising campaigns and their impact on target audiences.
3. Analyze the limitations of advertising in business markets, including issues such as cost,
audience fragmentation, and saturation. Discuss potential solutions for overcoming these
limitations, such as the integration of advertising with other marketing channels.
4. Outline the process of developing an advertising program, including market research, target
audience identification, messaging, and media planning. Discuss best practices for developing
effective advertising campaigns and the importance of ongoing evaluation and optimization.
5. Assess the importance of measuring advertising effectiveness in business markets. Discuss
various methods for evaluating advertising results, including return on investment, audience
reach, and brand awareness metrics.
9
JGI JAIN
B2B Marketing Communications: A Guide to Building Strong Relationships with Business Customers by Mike
Schultz and John Doerr
Chapter 2: Understanding B2B Marketing Communications
Chapter 3: Building Strong Relationships with Business Customers
Chapter 4: The Role of Advertising in B2B Marketing
Chapter 5: Limitations and Challenges of B2B Advertising
Chapter 6: Measuring the Effectiveness of B2B Marketing Communications
Advertising and Integrated Brand Promotion by Thomas O'Guinn, Chris Allen, and Richard J. Semenik
Chapter 9: Advertising in Business-to-Business Markets
Chapter 10: Limitations and Challenges of B2B Advertising
Chapter 11: Developing a Successful B2B Advertising Program
Chapter 12: Measuring the Effectiveness of B2B Advertising
10
UNIT
PERSONAL SELLING
Names of Sub-Units
Role of Salesperson in Business Markets; The Selling Cycle; Organizing the Salesforce;
Selecting and Managing Industrial Salesforce; Salesforce Deployment decisions; Sales
Influencers; Sales Resource Opportunity Grid.
Overview
The role of a salesperson in business markets is crucial in driving revenue and maintaining
relationships with clients. The selling cycle includes the stages of prospecting, approaching,
presenting, handling objections, closing, and follow-up.
Organizing the salesforce involves creating an effective sales structure and setting
performance goals for the sales team. In selecting and managing the industrial salesforce,
companies consider factors such as the type of products and target market. Salesforce
deployment decisions determine how sales resources will be allocated to different
geographic locations or market segments.
Sales influencers such as competition, economic conditions, and customer needs affect the
success of sales efforts. The sales resource opportunity grid is a tool for evaluating sales
resources based on market potential and the sales force's ability to successfully sell in that
market.
JGI JAIN
UNIT 11: Personal Selling
Learning Objectives
 To understand the role and responsibilities of a salesperson in driving revenue and
maintaining relationships with clients in business markets.
 To analyze the different stages of the selling cycle and the impact they have on the
sales process.
 To evaluate the effectiveness of various salesforce structures and the impact they
have on sales performance.
 To examine the criteria used in selecting and managing the industrial salesforce and
its impact on sales results.
 To study the impact of salesforce deployment decisions on sales performance and
market coverage.
Learning Outcomes
 Have knowledge of the role and responsibilities of a salesperson in business markets.
 Understand different stages of the selling cycle and their impact on the sales process.
 Ability to analyze and evaluate the effectiveness of various salesforce structures.
 Understand the criteria used in selecting and managing the industrial salesforce and
its impact on sales results.
 Knowledge of the impact of salesforce deployment decisions on sales performance
and market coverage.

 Background reading material on the role and responsibilities of a salesperson in business
markets.
 Overview of the selling cycle, including the stages of prospecting, approaching, presenting,
handling objections, closing, and follow-up
 Overview of salesforce structures and performance goals.
 Explanation of the criteria used in selecting and managing the industrial salesforce.
2
UNIT 11: Personal Selling JGI JAIN
11.1 Role of Salesperson in Business Markets

The role of a salesperson in business markets is to generate revenue by selling products or services
to customers. The salesperson is responsible for identifying potential customers, building
relationships with them, and persuading them to make a purchase. This requires a combination of
strong interpersonal skills, product knowledge, and market knowledge.
The salesperson is also responsible for maintaining relationships with existing customers, providing
after-sales support, and identifying opportunities for repeat business. This requires excellent
customer service skills and the ability to handle customer complaints and concerns.
In order to be successful, a salesperson must be well-organized, able to manage their time

effectively, and be able to work independently and as part of a team. They must also be able to
adapt to changing market conditions and customer needs, and be able to work under pressure and
meet targets.
Overall, the role of a salesperson in business markets is critical to the success of the company, as
they play a key role in driving revenue, building customer relationships, and contributing to the
company's bottom line.
11.2 The selling cycle
The selling cycle refers to the series of steps a salesperson takes in order to successfully sell a product
or service to a customer. The stages of the selling cycle typically include:
 Prospecting: Identifying potential customers who have a need for the product or service being
sold.
 Approaching: Making initial contact with potential customers, usually by phone or email, to
introduce oneself and the product or service being sold.
 Presenting: Giving a formal presentation of the product or service, highlighting its benefits
and features, and addressing any questions or concerns the customer may have.
 Handling Objections: Addressing any objections or objections the customer may have to
purchasing the product or service, and finding ways to overcome them.
3
JGI JAIN
 Closing: Persuading the customer to make a purchase and finalizing the sale.
 Follow-up: Maintaining contact with the customer after the sale has been made, to ensure
customer satisfaction and to identify opportunities for repeat business.
The selling cycle is an iterative process, with the salesperson repeating the cycle with each customer.
The success of the selling cycle depends on the salesperson's ability to effectively communicate the
product or service's benefits, handle objections, and close the sale. The selling cycle is a key tool for
salespeople in driving revenue and building customer relationships.
11.3 Organizing the Salesforce
Organizing the salesforce refers to the process of structuring the sales team in a way that is
efficient and effective. This includes determining the number of salespeople needed, the territories
they will cover, and the sales goals for each salesperson.
There are several common structures for organizing a salesforce, including:
 Geographic Structure: Salespeople are assigned specific territories based on geographical

location.
 Product Structure: Salespeople are assigned specific product lines or categories to focus on.
 Customer Structure: Salespeople are assigned specific customer segments or industries to

focus on.
 Hybrid Structure: A combination of the above structures, where salespeople may have a
combination of geographical, product, and customer focus.
The choice of salesforce structure will depend on several factors, including the size and complexity
of the market, the type of product or service being sold, and the company's sales goals and
resources.
4
11.4 Selecting and Managing Industrial Salesforce
Selecting and managing the industrial salesforce involves finding, hiring, and training individuals
who have the skills and experience needed to be successful in selling industrial products or services.
This requires a deep understanding of the industrial market, the products or services being sold, and
the customers being served.
When selecting individuals for the industrial salesforce, it is important to consider factors such as:
 Sales experience: Ideally, individuals should have experience selling industrial products or
services, or at least experience in a related field.
 Technical knowledge: Individuals should have a good understanding of the products or

services being sold, and be able to effectively communicate the technical features and
benefits to customers.
 Interpersonal skills: Individuals should be able to effectively communicate with customers and
build strong relationships.
 Organizational skills: Individuals should be able to manage their time effectively and prioritize
their sales activities.
 Adaptability: Individuals should be able to adapt to changing market conditions and customer
needs.
Once individuals have been hired, they need to be trained and managed effectively in order to
achieve success. This includes providing ongoing training on the products or services being sold, as
well as sales and communication skills. Managers should also regularly review the performance of
salespeople, setting goals and providing feedback and coaching as needed.
Overall, selecting and managing the industrial salesforce is a critical component of success in selling
industrial products or services. By having a well-trained and effective sales team in place, companies
can achieve higher levels of sales and customer satisfaction.
5
JGI JAIN
Organizing the salesforce is an important step in ensuring the success of the sales team. It helps to
ensure that the sales team is able to effectively cover the market, achieve sales goals, and build
strong customer relationships.
11.5 Salesforce deployment decisions
Salesforce deployment decisions refer to the decisions that companies make about how to allocate
their sales resources, including salespeople, in order to achieve their sales goals. These decisions
are driven by factors such as the size and complexity of the market, the products or services being
sold, and the company's sales goals and resources.
Common salesforce deployment decisions include:
 Territory Design: Determining the geographic territories that salespeople will cover, and
allocating sales resources accordingly.
 Sales Coverage Model: Deciding how many salespeople are needed to cover the market
effectively, and what types of customers they will focus on.
 Sales Resource Allocation: Allocating sales resources, including salespeople and support
staff, in a way that will maximize sales and customer satisfaction.
 Sales Resource Optimization: Making changes to the salesforce deployment as needed,

based on changes in the market or company goals.
The objective of salesforce deployment decisions is to allocate sales resources in a way that will
achieve the company's sales goals, while also maximizing customer satisfaction. This requires
careful planning and analysis, as well as ongoing monitoring and adjustment as needed.
Overall, salesforce deployment decisions are an important aspect of sales management, and can
have a significant impact on the success of a company's sales efforts.
6
11.6 Sales Influencers
Sales influencers are individuals or groups who have the power to affect the purchasing decisions of
others. They can play a key role in the sales process, and can be critical to the success of a company's
sales efforts.
There are several types of sales influencers, including:
 End-users: The individuals who will actually use the product or service being sold.
 Decision-makers: The individuals who have the authority to make purchasing decisions, such
as procurement specialists or senior executives.
 Gatekeepers: Individuals who control access to the decision-makers, such as administrative

assistants or procurement clerks.
 Opinion leaders: Individuals who are respected and trusted by others in their network, and
who can influence their opinions and decisions.
 Third-party consultants: Independent experts who provide advice and recommendations to

decision-makers.
Sales influencers can have a significant impact on the success of a sales effort, and it is important for
salespeople to understand their role and how to effectively engage with them. This may involve
developing relationships, building trust, and understanding their needs and concerns.
Overall, sales influencers play a critical role in the sales process, and companies should pay close
attention to them in order to maximize their sales efforts.
11.7 The Sales Resource Opportunity Grid
This is a tool used by sales managers to evaluate the potential of different sales opportunities and
determine the best allocation of sales resources. The grid is typically a two-dimensional matrix that
plots the potential of a sales opportunity against the required resources to pursue it.
7
JGI JAIN
The grid can be used to:
 Prioritize sales opportunities: By evaluating the potential of each opportunity and the
resources required to pursue it, sales managers can prioritize which opportunities to focus
on.
 Allocate sales resources: Sales managers can use the grid to determine how many sales
resources (e.g. salespeople) are needed to pursue each opportunity, and allocate resources
accordingly.
 Monitor progress: The grid can be used to track the progress of each sales opportunity and
make adjustments as needed.
The objective of the Sales Resource Opportunity Grid is to maximize the return on investment for
the sales resources. This requires balancing the potential of each opportunity with the resources
required to pursue it, and allocating resources in a way that maximizes sales and profitability.
Overall, the Sales Resource Opportunity Grid is a useful tool for sales managers to evaluate sales
opportunities and allocate sales resources effectively. By using the grid, companies can ensure that
they are maximizing their sales efforts and achieving their sales goals.
Summary
 The role of the salesperson in business markets is to identify and pursue sales opportunities,
build relationships with customers, and effectively communicate the value of the company's
 The selling cycle involves the various stages of the sales process, including prospecting,
qualification, need analysis, presentation, handling objections, closing, and follow-up.
Organizing the salesforce involves creating a structure that supports effective sales efforts,
including assigning territories and defining roles and responsibilities.
 Selecting and managing the industrial salesforce involves evaluating potential salespeople
and providing ongoing training and support to ensure they are effective in their role.
Salesforce deployment decisions are decisions about how to allocate sales resources, such as
salespeople, in order to achieve sales goals.
8
 Sales influencers are individuals or groups who have the power to affect the purchasing
decisions of others, and play a critical role in the sales process. The Sales Resource
Opportunity Grid is a tool used to evaluate the potential of different sales opportunities and
determine the best allocation of sales resources.
 By using these tools and strategies, companies can effectively manage their sales efforts and
achieve their sales goals.
Self-Practice
 Role of Salesperson in Business Markets: Observe a salesperson in action, either in person or

through online videos. Identify the key elements of their approach and consider how they are
building relationships with customers and communicating the value of the company's
 The Selling Cycle: Identify a product or service that you are interested in purchasing, and go
through the steps of the selling cycle yourself. This will give you a better understanding of
the process and the role of the salesperson.
 Organizing the Salesforce: Work with a team of classmates to create a salesforce structure for
a hypothetical company. Consider the best way to assign territories and define roles and
responsibilities.
B. Essay type
i. Short Answers:
1. What is the role of the salesperson in business markets?

2. What is the first stage in the selling cycle?
3. What is the main purpose of organizing the salesforce?
4. What is the role of sales influencers in the sales process?
5. What is the main objective of using the Sales Resource Opportunity Grid?
ii. Medium Answers:
9
JGI JAIN
1. Explain the main steps involved in the selling cycle and how they relate to each other.
2. Describe the key factors that need to be considered when selecting and managing industrial
salesforce.
3. Discuss the role of salesforce deployment decisions in achieving sales goals.
4. Explain the concept of sales influencers and their impact on the sales process.
5. Analyze the use of the Sales Resource Opportunity Grid in maximizing the return on
investment for sales resources.
iii. Long Aswers:
1. In your own words, explain the role of the salesperson in business markets and the
importance of building strong relationships with customers.
2. Provide a detailed analysis of the selling cycle, including each stage, its objectives, and how
it contributes to the overall sales process.
3. Describe the process of organizing the salesforce, including the steps involved, the goals, and
the benefits.
4. Evaluate the importance of selecting and managing industrial salesforce, including the key
factors that need to be considered and the benefits of an effective salesforce.
5. Discuss the role of salesforce deployment decisions in achieving sales goals and the
importance of considering sales resource opportunity grids in these decisions.
"Marketing Management" by Philip Kotler and Kevin Lane Keller (Chapters 8-11)
"Professional Selling: A Trust-Based Approach" by Steve Caboni and Daniel Baer (Chapters 5-8)
"The New Strategic Selling: The Unique Sales System Proven Successful by the World's Best Companies" by
Stephen E. Heiman, Tad Tuleja and Robert B. Miller (Chapters 3-5)
10
UNIT
SALES PROMOTION
Names of Sub-Units
Categories of Sales Promotion; Exhibitions: Utility of Exhibitions, Planning Exhibitions,
Managing Exhibition Kiosk/Stand, Trade Show: Utility and Strategy.
Overview
Sales promotion refers to a range of activities and techniques used by businesses to increase
sales and generate interest in their products or services. One common category of sales
promotion is exhibitions. Exhibitions refer to events where companies showcase their
products and services to potential customers, industry experts, and other stakeholders. The
utility of exhibitions lies in the opportunity they provide for businesses to reach a large,
targeted audience, generate leads, build brand awareness, and network with other
companies.
Planning exhibitions involves deciding on the type of exhibition to participate in, determining
the target audience, setting goals and objectives, budgeting, and selecting the right location
and timing. Managing the exhibition kiosk or stand requires careful planning and
coordination, including the design and setup of the display, staffing, and creating
promotional materials.
Trade shows are a type of exhibition that focuses on specific industries, such as technology,
fashion, or food. The utility of trade shows lies in the ability to see and compare products
from multiple companies in one location, and the opportunity to network with industry
experts. A successful trade show strategy includes thorough research and planning,
JGI JAIN
UNIT 12: Sales Promotion
identifying the target audience and setting specific goals, selecting the right show to
participate in, and creating a compelling and eye-catching display.
Learning Objectives
 To understand the different categories of sales promotion and their specific goals.
 To explore the utility of exhibitions and their potential benefits for businesses.
 To learn the key steps involved in planning and executing a successful exhibition.
 To gain insights into the best practices for managing an exhibition kiosk or stand,
including display design and staffing.
 To understand the utility of trade shows and the key factors that make them
effective for businesses.
Learning Outcomes
 A comprehensive understanding of the different categories of sales promotion and
their specific applications.
 The ability to evaluate the potential benefits and drawbacks of exhibitions as a sales
promotion tool.
 The skills to plan and execute a successful exhibition, including determining the
target audience, setting goals and objectives, budgeting, and selecting the right
location and timing.
 The knowledge and ability to design and manage a professional exhibition kiosk or
stand, including display design, staffing, and promotional materials.
2
UNIT 12: Sales Promotion JGI JAIN

 An overview of sales promotion: Before diving into exhibitions and trade shows, it would be
helpful to provide learners with an overview of sales promotion and its various categories. This
could include a definition of sales promotion, common types of sales promotions, and the
goals and objectives of each type.
 Industry research: Encourage learners to research and find examples of successful exhibitions
and trade shows in their industry of interest.
 Case studies: Provide learners with case studies of companies that have successfully used
exhibitions and trade shows to increase sales and build brand awareness.
 Budgeting and planning templates: Provide learners with templates and tools that they can
use to plan and execute a successful exhibition or trade show.
12.1 Sales Promotion
Sales promotion refers to a set of marketing activities designed to stimulate interest in a product
or service, encourage trial, and increase sales. There are several categories of sales promotions,
including:
 Coupons: A form of discount offered to customers in exchange for purchasing a product or

service.
 Sampling: Providing a free trial of a product to encourage customers to purchase it.
 Price-off promotions: Offering a discount on the price of a product or service.
 Premiums: Offering a free gift or incentive in exchange for purchasing a product or service.
 Loyalty programs: Programs that reward customers for repeat purchases or for spending a
certain amount of money.
3
JGI JAIN
 Contests and sweepstakes: Offering customers the chance to win a prize in exchange for
purchasing a product or service or for completing some other type of action.
 Trade shows and exhibitions: Opportunities for businesses to showcase their products or
services to potential customers, industry experts, and media.
 Point-of-purchase promotions: Marketing activities that take place at the point of sale, such
as in-store displays or demonstrations.
 Rebates: A type of price-off promotion in which customers receive a refund after making a
purchase.
Each category of sales promotion serves a specific purpose and can be used to achieve different
marketing goals. Effective sales promotions are often carefully planned, timed, and executed to
maximize their impact and return on investment.
12.2 Exhibitions: Utility of Exhibitions
Exhibitions, also known as trade shows, can be a highly effective sales promotion tool in the B2B
(business-to-business) market. Some of the key benefits and utilities of exhibitions in the B2B
market include:
 Networking opportunities: Exhibitions provide an opportunity for businesses to network

with potential customers, industry experts, and other businesses in their field. This can lead
to new business opportunities, partnerships, and collaborations.
 Product demonstrations: Exhibitions provide a platform for businesses to showcase their

products and services to potential customers. This can help businesses build brand
awareness and demonstrate the value and benefits of their products to potential customers.
 Market research: Exhibitions can be used to gather market research and insights, such as
customer preferences, feedback, and competitors' strategies. This information can be used
to improve products and services and stay ahead of the competition.
4
 Lead generation: Exhibitions provide an opportunity for businesses to collect contact

information from potential customers. This can help businesses build a database of leads for
future marketing and sales efforts.
 Sales: Exhibitions can be an effective way to close sales and increase revenue. With a captive
audience of potential customers, businesses can use exhibitions to close deals, generate
new leads, and increase sales.
 Industry recognition: Participating in exhibitions can help businesses establish themselves as

leaders in their industry and gain recognition among their peers and potential customers.
Overall, exhibitions can be a valuable tool for businesses looking to reach potential customers and
grow their business in the B2B market. By planning and executing a successful exhibition,
businesses can build brand awareness, increase sales, and gain a competitive edge in their
industry.
12.3 Exhibitions: Utility of Exhibitions as a sales promotion tool in b2b market
Exhibitions, also known as trade shows, can be a highly effective sales promotion tool in the B2B
(business-to-business) market. Some of the key benefits and utilities of exhibitions in the B2B market
include:
 Networking opportunities: Exhibitions provide an opportunity for businesses to network with

potential customers, industry experts, and other businesses in their field. This can lead to new
business opportunities, partnerships, and collaborations.
 Product demonstrations: Exhibitions provide a platform for businesses to showcase their

products and services to potential customers. This can help businesses build brand awareness
and demonstrate the value and benefits of their products to potential customers.
 Market research: Exhibitions can be used to gather market research and insights, such as
customer preferences, feedback, and competitors' strategies. This information can be used to
improve products and services and stay ahead of the competition.
5
JGI JAIN
 Lead generation: Exhibitions provide an opportunity for businesses to collect contact

information from potential customers. This can help businesses build a database of leads for
future marketing and sales efforts.
 Sales: Exhibitions can be an effective way to close sales and increase revenue. With a captive
audience of potential customers, businesses can use exhibitions to close deals, generate new
leads, and increase sales.
 Industry recognition: Participating in exhibitions can help businesses establish themselves as

leaders in their industry and gain recognition among their peers and potential customers.
Overall, exhibitions can be a valuable tool for businesses looking to reach potential customers and
grow their business in the B2B market. By planning and executing a successful exhibition, businesses
can build brand awareness, increase sales, and gain a competitive edge in their industry.
12.4 Planning Exhibitions
Planning exhibitions can be a complex and time-consuming process, but it is critical for the success
of the event. Here are some steps to help with the planning process:
 Define objectives: Start by defining the goals and objectives of the exhibition, such as
increasing brand awareness, generating leads, or closing sales. This will help guide the
planning process and ensure that the exhibition is aligned with the business's overall
marketing strategy.
 Research venues: Choose a venue that aligns with the objectives of the exhibition, taking into
account factors such as size, accessibility, cost, and the target audience.
 Set a budget: Establish a budget for the exhibition, taking into account expenses such as the
cost of the venue, equipment, and marketing materials.
 Plan the layout: Determine the layout of the exhibition, including the location of the exhibition
stand, the placement of products and displays, and the design of the exhibition kiosk.
6
 Select products and displays: Choose the products and displays that will be featured at the
exhibition. Consider the target audience, the objective of the exhibition, and the available
budget.
 Develop marketing materials: Develop marketing materials, such as flyers, posters, and
brochures, to promote the exhibition and the products that will be displayed.
 Staffing: Determine the number and type of staff needed for the exhibition, including sales
representatives, product specialists, and security personnel.
 Schedule: Develop a schedule for the exhibition, including set-up and tear-down times,
product demonstrations, and networking opportunities.
 Marketing and promotion: Plan a comprehensive marketing and promotion strategy to attract
potential customers and generate interest in the exhibition.
 Evaluation: Plan how to evaluate the success of the exhibition, including metrics for
measuring attendance, lead generation, and sales.
12.5 Managing Exhibition Kiosk/Stand
Managing an exhibition kiosk or stand is an important part of the overall success of an exhibition.
Here are some tips for managing an exhibition kiosk or stand:
Prepare the space: Ensure that the kiosk or stand is properly set up, including displays, lighting, and
product placement. This will create a professional and inviting environment for potential customers.
 Train staff: Train staff on the products, the target audience, and the objective of the exhibition.
This will help them engage with potential customers and provide them with the information
they need to make informed decisions.
 Monitor performance: Regularly monitor the performance of the kiosk or stand, including
customer engagement, sales, and feedback. Use this information to make any necessary
adjustments to improve the overall performance of the kiosk or stand.
7
JGI JAIN
 Engage with customers: Encourage staff to engage with customers, answering their questions
and providing them with information about the products and services being offered.
 Follow up: Ensure that follow-up activities are planned and executed after the exhibition,
including contacting leads and following up on sales opportunities.
 Evaluate the results: Evaluate the results of the exhibition, including attendance, sales, and
customer feedback. Use this information to make improvements for future exhibitions.
By effectively managing an exhibition kiosk or stand, businesses can increase their visibility, generate
leads, and close sales. This can help achieve the objectives of the exhibition and drive business
growth.
12.6 Summary
 Sales promotion is a marketing strategy that businesses use to increase sales, generate leads,
and create brand awareness.
 Exhibitions can be a useful sales promotion tool, especially in the B2B market. To plan a
successful exhibition, businesses should define their objectives, research venues, set a budget,
plan the layout, select products and displays, develop marketing materials, staff the event,
schedule events, and evaluate the success of the exhibition.
 When managing an exhibition kiosk or stand, businesses should prepare the space, train staff,
monitor performance, engage with customers, follow up on leads, and evaluate the results.
By following these steps, businesses can effectively use exhibitions as a sales promotion tool
to drive business growth and achieve their marketing objectives.
12.7 Self-Practice
Plan an exhibition: Plan a hypothetical exhibition, taking into account all of the steps outlined in the
previous information. This will help you practice the planning process and develop an understanding
of the different elements that need to be considered.
8
Design a kiosk or stand: Design a kiosk or stand for a hypothetical product. This will help you think
about how to create an attractive and effective display that will engage customers and generate
interest in the product.
Analyze a successful exhibition: Research a successful exhibition and analyze the factors that
contributed to its success. This will help you understand the elements of a successful exhibition and
how to apply this knowledge to your own planning and management efforts.
12.8 Self-Assessment Questions
A. Essay type
i. Short answers:
1. What is the difference between an exhibition and a trade show?

2. What is the purpose of an exhibition as a sales promotion tool?
3. What are the key elements in preparing an exhibition kiosk or stand?
4. What is the role of staff during an exhibition?
5. What is the significance of monitoring performance during an exhibition?
9
JGI JAIN
ii. Medium answers:
1. How does the objective of an exhibition differ from that of a trade show?
2. What are the steps involved in planning an exhibition and what are the key considerations in
each step?
3. What is the importance of customer engagement during an exhibition and what strategies
can be used to improve customer engagement?
4. How can staff be trained to effectively engage with customers and provide information about
the products during an exhibition?
5. What are the key performance indicators that should be monitored during an exhibition and
how can the performance be improved?
iii. Long answers:
1. How does the utility of exhibitions as a sales promotion tool differ in B2B and B2C markets,
and what are the strategies that can be used to maximize the utility of exhibitions in these
markets?
2. What are the key elements in planning and organizing an exhibition, and what role do they
play in achieving the exhibition's objectives?
3. How can the kiosk or stand design, product placement, lighting, and sales strategy be
optimized to enhance customer engagement and increase sales during an exhibition?
4. What is the importance of training staff for an exhibition, and what should be included in the
training to ensure that staff are equipped to effectively engage with customers and provide
information about the products?
5. How can the performance of an exhibition be measured, and what are the key performance
indicators that should be monitored to evaluate the success of the exhibition and identify
areas for improvement?
10
 Sales Promotion: How to Create, Implement, and Integrate Campaigns that Really Work by Bob
Gilbreath - Chapter 2: "Exhibitions and Trade Shows"
 Trade Show and Exhibition Trends: The Complete Guide to Marketing Success by John D. Graham -
Chapter 4: "Planning for Trade Shows and Exhibitions"
 Trade Show and Exhibition Management by Joe Pavlat - Chapter 5: "Exhibit Design and Kiosk
Management"
11
UNIT
RELATIONSHIP MARKETING
Names of Sub-Units
Understanding Relationship Marketing; Types of Relationship – Transactional, Collaborative
and Value-Adding; Strategic Implications for Marketers; Successful CRM Strategies
Overview
Relationship Marketing is a customer-centric approach that focuses on building and
maintaining long-term, mutually beneficial relationships with customers. The goal is to create
customer loyalty and repeat business. There are three types of relationships in relationship
marketing: Transactional, Collaborative, and Value-Adding. Transactional relationships are
based on simple exchanges of goods or services for payment. Collaborative relationships
involve collaboration and communication between the customer and the company to achieve
mutual goals. Value-Adding relationships involve creating added value for the customer
through personalized services and a deep understanding of their needs and preferences.
Successful relationship marketing requires a well-designed Customer Relationship

Management (CRM) strategy. A CRM strategy should include tactics such as personalized
communication, data analysis, and targeted marketing efforts. Marketers should also use
technology, such as customer data platforms and marketing automation software, to support
their relationship-building efforts. Effective relationship marketing can lead to increased
customer loyalty, higher customer lifetime value, and improved brand reputation.
JGI JAIN
UNIT 13: Relationship Marketing
Learning Objectives
 To understand the concept of relationship marketing and its significance in modern
business practices.
 To classify the different types of customer relationships, including transactional,
collaborative, and value-adding, and evaluate their impact on marketing strategies.
 To examine the strategic implications of relationship marketing for marketers,
including customer data management, targeted marketing efforts, and customer
lifetime value.
 To evaluate the success factors of CRM strategies and identify best practices for
relationship building.
Learning Outcomes
 A comprehensive understanding of the concept of relationship marketing and its
importance in modern business practices.
 Knowledge of the different types of customer relationships, including transactional,
collaborative, and value-adding, and the impact they have on marketing strategies.
 An understanding of the strategic implications of relationship marketing for marketers,
including customer data management, targeted marketing efforts, and customer
lifetime value.
 An appreciation of the success factors of CRM strategies and best practices for
relationship building.
2
UNIT 13: Relationship Marketing JGI JAIN
 Industry reports and research papers on customer relationship management and customer
engagement.
 Infographics and videos explaining the different types of customer relationships and their
implications for marketers.
 Webinars and podcasts by experts in the field of relationship marketing and customer
relationship management.
13.1 Understanding relationship marketing
Relationship marketing is a marketing strategy focused on building and maintaining long-term,

mutually beneficial relationships with customers. It is a customer-centric approach that places the
customer at the center of all marketing efforts and aims to create a deep understanding of their
needs, preferences, and behavior. The goal of relationship marketing is to create loyal customers
who will continue to do business with a company over time, rather than just making a one-time
purchase.
Relationship marketing involves developing personalized, value-added offerings that meet the
needs and wants of individual customers. It also involves communication and interaction with
customers to build trust, establish rapport, and create a sense of community. This type of marketing
is characterized by a focus on customer satisfaction, loyalty, and retention.
In contrast to traditional, transaction-focused marketing, which views each transaction as a one-off

event, relationship marketing views customers as partners in a long-term relationship. This shift in
focus requires a different set of skills, such as effective communication, customer relationship
management, and data analysis, to develop and maintain customer relationships.
13.2 Types of Relationship – Transactional, Collaborative and Value-Adding
In relationship marketing, there are three main types of customer relationships: transactional,
collaborative, and value-adding.
3
JGI JAIN
Transactional relationships are short-term, focused on the exchange of goods or services for
payment. This type of relationship is characterized by a one-time transaction with little to no ongoing
interaction or engagement between the customer and the company.
Collaborative relationships are characterized by a deeper level of engagement and interaction

between the customer and the company. These relationships involve co-creation of value and may
involve joint problem-solving and decision-making. Collaborative relationships are built on mutual
trust and a shared understanding of the customer's needs and preferences.
Value-adding relationships are the most advanced form of customer relationship, characterized by
the creation and delivery of customized offerings that meet the unique needs and wants of each
customer. This type of relationship is characterized by a deep understanding of the customer, their
behavior, and their needs, and involves the development of long-term, personalized solutions that
create value for both the customer and the company.
The type of relationship a company has with its customers will impact the marketing strategies and
tactics it uses. For example, a transactional relationship may require a focus on price, while a value-
adding relationship may require a focus on customization and personalization. Understanding the
different types of relationships and the marketing strategies and tactics required to build and
maintain each type is an important aspect of relationship marketing.
13.3 Strategic Implications for Marketers
The following are some of the strategic implications for marketers in the context of relationship
marketing:
 Customer-Centricity: Relationship marketing requires a customer-centric approach, where

the needs, preferences, and behavior of the customer are at the center of all marketing
efforts. Marketers must understand the customer's journey and develop strategies and
tactics that meet their needs and create value for them.
 Data-Driven Insights: Relationship marketing requires the collection and analysis of

customer data to gain insights into customer behavior, preferences, and needs. Marketers
must be able to use this data to develop customer profiles and segmentations, as well as
to personalize marketing messages and offerings.
4
 Personalization and Customization: Personalization and customization are key elements

of relationship marketing. Marketers must develop the skills and tools to deliver
customized offerings that meet the needs and wants of each customer.
 Multi-Channel Engagement: Relationship marketing requires engagement with customers

across multiple channels, including in-person, online, and through various digital
channels. Marketers must understand how to use each channel effectively to reach and
engage customers.
 Continuous Improvement: Relationship marketing requires continuous improvement and

the development of new strategies and tactics to stay ahead of the competition and meet
the evolving needs and preferences of customers.
 Collaboration and Partnership: Relationship marketing requires collaboration and

partnership between the customer and the company. Marketers must develop the skills
and tools to work effectively with customers to co-create value and solve problems.
Overall, relationship marketing requires a strategic shift in focus from transaction-focused

marketing to a long-term, customer-centric approach that prioritizes customer satisfaction,
loyalty, and retention. Successful relationship marketing requires an investment in customer data,
insights, and analytics, as well as the development of effective communication and engagement
strategies across multiple channels.
13.4 Successful customer relationship management (CRM) strategy
A successful customer relationship management (CRM) strategy involves the development of

processes and systems to manage customer interactions and data throughout the customer lifecycle.
The following are some key elements of a successful CRM strategy:
 Customer Data Management: A successful CRM strategy requires the ability to collect, store,
and analyze customer data from multiple sources. This data should be used to gain insights
into customer behavior, preferences, and needs.
 Segmentation and Personalization: A successful CRM strategy requires the ability to segment
customers based on their behavior, preferences, and needs, and to personalize marketing
messages and offerings accordingly.
5
JGI JAIN
 Multi-Channel Engagement: A successful CRM strategy requires the ability to engage

customers across multiple channels, including in-person, online, and through various digital
channels.
 Customer Journey Mapping: A successful CRM strategy requires an understanding of the

customer journey, including key touchpoints and interactions with the company, in order to
deliver a seamless, personalized customer experience.
 Continuous Improvement: A successful CRM strategy requires continuous improvement,

including the development of new strategies and tactics to meet the evolving needs and
preferences of customers.
 Collaboration and Partnership: A successful CRM strategy requires collaboration and

partnership between the customer and the company. This includes the development of
processes and systems to effectively manage customer interactions and data.
Overall, a successful CRM strategy requires a customer-centric approach, investment in data and
analytics, and the development of effective communication and engagement strategies across
multiple channels. By prioritizing customer satisfaction, loyalty, and retention, a successful CRM
strategy can help companies build long-term relationships with their customers and drive business
growth and success.
Summary
Relationship Marketing is a marketing strategy that focuses on building long-term, mutually

beneficial relationships with customers. This approach aims to create and maintain customer loyalty
and satisfaction by offering personalized experiences and continuous engagement.
There are three types of relationships in relationship marketing: transactional, collaborative, and
value-adding. Transactional relationships are short-term and focused on the exchange of goods or
services for money. Collaborative relationships are characterized by a two-way exchange of value
and an emphasis on joint problem-solving and innovation. Value-adding relationships are focused
on creating value for the customer through ongoing engagement and personalized experiences.
6
Marketers must be strategic in their approach to relationship marketing in order to achieve success.
This requires a deep understanding of customer needs, preferences, and behavior, as well as the
development of effective communication and engagement strategies across multiple channels. In
addition, marketers must be able to analyze customer data, personalize their offerings, and
continuously improve their relationship marketing efforts in order to stay ahead of the competition.
A successful customer relationship management (CRM) strategy is a key component of relationship

marketing. This involves the development of processes and systems to manage customer
interactions and data throughout the customer lifecycle, with the goal of delivering a seamless,
personalized customer experience. Successful CRM strategies typically include customer data
management, segmentation and personalization, multi-channel engagement, customer journey
mapping, continuous improvement, and collaboration and partnership with customers.
In conclusion, relationship marketing is a customer-centric approach to marketing that aims to

create and maintain long-term, mutually beneficial relationships with customers. By prioritizing
customer satisfaction, loyalty, and retention, relationship marketing can drive business growth and
success, and help companies build strong, lasting relationships with their customers.
Self-Practice
Research and analyze successful relationship marketing campaigns: Look at examples of companies
that have successfully implemented relationship marketing strategies and analyze their approaches.
What made their campaigns successful? What lessons can you learn from these examples?
Create a customer journey map: Map out the different touchpoints a customer has with your
company, from awareness to post-purchase. Think about how you can create a seamless,
personalized experience for each customer at each touchpoint.
Conduct a customer survey: Ask customers about their experience with your company and gather
feedback on what they value most about your products or services. Use this information to inform
your relationship marketing strategies.
Implement a CRM strategy: Develop a customer relationship management strategy that includes
processes and systems for managing customer interactions and data. Focus on delivering a
personalized customer experience and continuously improving your approach.
7
JGI JAIN

i. Short answers:
1. What is the definition of Relationship Marketing?

2. What are the three types of relationships in Relationship Marketing?
3. What is the main goal of using CRM strategies?
4. Can you name a successful CRM strategy?
5. What are the implications for marketers in using Relationship Marketing?
ii. Medium answers:
1. Discuss the differences between Transactional, Collaborative and Value-Adding

relationships in Relationship Marketing.
2. How does Relationship Marketing differ from traditional marketing approaches?

3. What are the key factors that contribute to the success of CRM strategies in business?
4. How can Relationship Marketing help businesses to build long-term customer
relationships?
5. Discuss the benefits and challenges of using CRM strategies in business.
iii. Long answers:
1. In your own words, provide a comprehensive overview of Relationship Marketing and its
importance in today's business world.
2. Analyze the impact of Relationship Marketing on customer loyalty and retention.
3. Discuss the role of technology in the success of CRM strategies and its implications for
marketers.
4. Evaluate the strengths and weaknesses of different types of relationships in Relationship
Marketing.
5. Explain how businesses can create a successful CRM strategy and the steps involved in
implementing it.
8
 "Relationship Marketing: Creating Stakeholder Value" by Stephen Brown and Ellen Muir
 "The CRM Handbook: A Business Guide to Customer Relationship Management" by Jill Dyché and
Jasmine Green
 "CRM at the Speed of Light: Capturing and Keeping Customers in Internet Real Time" by Paul
Greenberg
9
UNIT
KEY ACCOUNT MANAGEMENT
Names of Sub-Units
Key Accounts vs. Regular Accounts; Understanding Profitability though Whale Curve;
Identifying Key Accounts; Managing Key Accounts; Successful Key Account Management
Strategies
Overview
Accounts are high-volume, high-value customers who play a crucial role in the revenue and
profitability of a business. On the other hand, Regular Accounts are customers who contribute
to the business's revenue but are not as critical as Key Accounts.
The Whale Curve is a graphical representation of the distribution of customers in terms of
their contribution to a business's revenue. It shows that a small number of key accounts
generate a large portion of the revenue, while the majority of regular accounts contribute
relatively little.
Key Accounts can be identified through various methods, including data analysis, customer
surveys, and market research. The criteria for identifying Key Accounts can include factors
such as purchase history, frequency of purchase, and overall revenue contribution.
Managing Key Accounts involves developing and maintaining strong, strategic relationships
with these high-value customers. This can be achieved through regular communication,
customized services, and personalized attention to their needs and preferences.
A successful Key Account Management strategy should focus on building strong, long-term
relationships with Key Accounts, identifying and addressing their needs, and continuously
JGI JAIN
UNIT 14: KEY ACCOUNT MANAGEMENT
improving the services provided to them. Other important strategies include regular
communication, continuous analysis of their behavior, and providing customized solutions.
Learning Objectives
 To understand the difference between Key Accounts and Regular Accounts and their
significance to the business.
 To utilize the Whale Curve as a tool to understand the profitability of Key Accounts
and their impact on the overall revenue.
 To identify Key Accounts effectively through data analysis, customer surveys, and
market research.
 To effectively manage Key Accounts by building strong, strategic relationships and
providing customized services to meet their needs.
Learning Outcomes
 Understanding of the concept of Key Accounts and Regular Accounts and their
importance to the business.
 Knowledge of the Whale Curve and its use in understanding the profitability of Key
Accounts.
 Ability to identify Key Accounts through various methods and criteria.
 Skilled in managing Key Accounts by building strong relationships, providing
customized services, and continuously improving their experience.
 Competency in developing and implementing successful Key Account Management
strategies.
2
UNIT 14: KEY ACCOUNT MANAGEMENT JGI JAIN

 Understanding the Whale Curve and its implications for profitability
 Characteristics of Key Accounts and how to identify them
 Best practices for managing Key Accounts
 Key Account Management Process
 Building and maintaining relationships with Key Accounts
 Strategies for successfully managing Key Accounts
 Measuring the success of Key Account Management programs
 Case studies of successful Key Account Management
 Importance of Key Account planning and budgeting.
14.1 Key Accounts vs. Regular Accounts
Key Accounts and Regular Accounts refer to different types of customer accounts that a company
manages. Key Accounts are those customers who are considered to be the most important to the
company, due to their size, strategic importance, or level of spending. Regular Accounts are all other
customers who do not meet the criteria for being considered a Key Account. Companies typically
allocate more resources and attention to Key Accounts, as they are considered more valuable to the
company's success.
14.2 Understanding Profitability Through Whale Curve
The Whale Curve is a graphical representation of the relationship between a company's customer
base and its profitability. It shows that a small percentage of customers, referred to as "whales,"
contribute the majority of a company's profits. This concept is often used in Key Account
Management to emphasize the importance of identifying and focusing on those Key Accounts that
have the greatest potential for profitability. The Whale Curve can help companies allocate resources
and prioritize their efforts in a way that maximizes their return on investment.
Whale Curve can help companies allocate resources and prioritize their efforts in a way that
maximizes their return on investment. By focusing on the most valuable Key Accounts, companies
can improve their overall profitability and achieve a better return on their sales and marketing efforts.
3
JGI JAIN
The Whale Curve can also be used to help identify opportunities for growth and to evaluate the
impact of changes in customer behavior. By monitoring the curve over time, companies can quickly
identify any shifts in the distribution of profits and take appropriate action to maintain profitability.
14.3 Identifying Key Accounts
Identifying Key Accounts in a B2B (business-to-business) context involves evaluating a company's

customer base to determine which accounts have the greatest strategic importance and potential
for profitability. Here are some factors that can be considered when identifying Key Accounts:
 Revenue generation: Accounts that generate a large percentage of a company's total revenue
are likely to be considered Key Accounts.
 Strategic importance: Accounts that play a critical role in a company's supply chain or have
significant influence in the industry may also be considered Key Accounts.
 Growth potential: Accounts with high growth potential, such as those in emerging markets,
may be considered Key Accounts.
 Customer loyalty: Accounts with a long-standing relationship with the company and a history
of repeat business may also be considered Key Accounts.
 Spending levels: Accounts with high levels of spending are likely to be considered Key
Accounts.
It's important to note that the criteria for identifying Key Accounts may vary from company to
company and industry to industry, so it's important to determine what's most relevant for a specific
business.
14.4 Managing Key Accounts
Managing Key Accounts in a B2B context involves developing and maintaining strong relationships
with the most important customers to a company. This involves a range of activities aimed at
understanding the customer's needs, providing high-quality service and support, and building trust
and loyalty. Here are some best practices for managing Key Accounts:
4
 Establish a dedicated Key Account Management team: This team should be responsible for
building and maintaining relationships with Key Accounts, and should have the resources and
authority to do so effectively.
 Understand the customer's needs and goals: Conduct regular meetings with Key Accounts to
understand their business objectives and priorities.
 Develop a Key Account plan: This plan should outline the strategies and tactics that will be
used to manage the relationship with each Key Account, and should be reviewed and updated
regularly.
 Provide high-quality service and support: Respond quickly and effectively to customer
inquiries and issues, and provide value-added services such as training, technical support, and
market intelligence.
 Foster trust and loyalty: Foster open and honest communication with Key Accounts, and work
collaboratively to identify and solve problems.
 Monitor performance: Regularly track and evaluate the performance of Key Accounts to
identify areas for improvement and to ensure that the relationship is moving in the right
direction.
Continuously evaluate and improve Key Account Management processes: Regularly review and
improve Key Account Management processes to ensure that they are effective, efficient, and aligned
with the company's goals and objectives.
14.5 Successful Key Account Management Strategies
Successful Key Account Management in a B2B context requires a well-structured approach and a
focus on building strong, long-lasting relationships with the most important customers. Here are
some strategies that can help companies achieve success in Key Account Management:
Develop a dedicated Key Account Management team: Assign a team of experienced professionals
to manage relationships with Key Accounts, and give them the resources and authority to do so
effectively.
5
JGI JAIN
Focus on customer needs: Invest time and resources in understanding the needs, goals, and
challenges of Key Accounts. Use this information to develop tailored solutions that meet their
specific needs.
Build a Key Account plan: Develop a plan that outlines the strategies and tactics to be used in
managing relationships with Key Accounts, and review and update it regularly.
Foster open and honest communication: Establish a culture of open and honest communication with
Key Accounts, and work collaboratively to identify and solve problems.
Provide high-quality service and support: Respond quickly and effectively to customer inquiries and
issues, and provide value-added services such as training, technical support, and market intelligence.
Continuously evaluate and improve processes: Regularly review and improve Key Account
Management processes to ensure that they are effective, efficient, and aligned with the company's
goals and objectives.
Foster long-term relationships: Focus on building long-term relationships with Key Accounts, and
work to maintain their loyalty and trust over time.
By implementing these strategies, companies can establish a strong foundation for successful Key
Account Management and build lasting relationships with their most valuable customers.
Summary
 Understanding Profitability through the Whale Curve, Identifying Key Accounts, Managing
Key Accounts, and Successful Key Account Management Strategies are all related to effective
customer relationship management in a B2B context.
 Key Accounts are a company's most important customers and contribute the majority of its
profits, making it crucial to focus on their needs and maintain strong relationships with them.
 The Whale Curve concept illustrates this relationship and can help companies allocate
resources and prioritize their efforts in a way that maximizes profitability.
 To be successful in Key Account Management, companies should develop a dedicated Key
Account Management team, focus on customer needs, build a Key Account plan, foster open
and honest communication, provide high-quality service and support, continuously evaluate
and improve processes, and foster long-term relationships.
6
Self-Practice
Case study analysis: Choose a company that has a well-established Key Account Management
program, and analyze their approach, strategies, and results. What did they do well and what could
have been improved?
Customer relationship mapping: Create a map of the relationships between your company and its
Key Accounts. Identify the key stakeholders, decision-makers, and influencers in each relationship
and consider how they can be engaged and influenced to improve the relationship.
Role-playing: Practice scenarios that are common in Key Account Management, such as negotiating
contracts, resolving conflicts, and presenting new solutions.
Networking: Attend industry events, conferences, and networking opportunities to meet other Key
Account Managers and learn from their experiences.

i. Short Answers:
1. What is Key Account Management in B2B?

2. What is the main goal of Key Account Management in B2B?
3. What is the Whale Curve in Key Account Management in B2B?
4. How can a company identify Key Accounts in B2B?
5. What is one benefit of having a dedicated Key Account Management team in B2B?
ii. Medium Answers:
1. What are the steps involved in managing Key Accounts in B2B?

2. How can a company prioritize customer needs in B2B Key Account Management?
3. Why is it important to regularly review Key Account Management performance in B2B?
7
JGI JAIN
4. How can a company build strong relationships with Key Accounts in B2B?
5. What are some key strategies for successfully managing Key Accounts in B2B?
iii. Long Answers:
1. What is the impact of Key Account Management on customer lifetime value in B2B?
2. How can a company evaluate and improve Key Account Management processes in B2B?
3. What are the most important factors in determining the success of Key Account Management in
B2B?
4. How can a company stay ahead of market trends and maintain a competitive advantage in Key
Account Management in B2B?
5. What are the challenges associated with Key Account Management in B2B and how can they be
overcome?
8
"Key Account Management and Planning" by Malcolm McDonald and Ian Wilson
Chapter 2: Understanding the Key Account Management Concept
Chapter 3: Identifying Key Accounts and Prioritizing Efforts
Chapter 7: Managing the Key Account Relationship
Chapter 8: The Key Account Plan
"The Handbook of Key Account Management: Advanced Strategies and Techniques for Achieving Profitable
Key Supplier Status" by Don Peppers and Martha Rogers
Chapter 1: The Big Picture of Key Account Management

Chapter 4: Identifying and Selecting Key Accounts
Chapter 7: Building Strong Relationships with Key Accounts
Chapter 10: Developing Key Account Strategies
"Key Account Management: The Definitive Guide" by Anthony L. Ilka and Mick Broadbent
Chapter 2: What is Key Account Management?

Chapter 5: Identifying Key Accounts
Chapter 7: Building Relationships with Key Accounts
Chapter 9: Key Account Management Strategies.
9
UNIT
MARKETING CONTROL
Names of Sub-Units
Marketing Audit; Areas of Audit; Sales Analysis - Methods; Marketing Cost Analysis;
Emerging Trends in Business Marketing; Control in the era of Digital B2B Marketing
Overview
A marketing audit is a comprehensive examination of a company's marketing goals,
strategies, and processes to identify areas of improvement and to maximize the effectiveness
of marketing efforts.
During a marketing audit, the following areas are typically reviewed: marketing goals and
objectives, target market, branding and positioning, marketing mix (product, price, place,
promotion), marketing research, and marketing performance.
Sales analysis is the process of evaluating sales data to gain insights into business
performance. There are several methods of sales analysis, including trend analysis, ratio
analysis, and regression analysis.
Marketing cost analysis involves reviewing the costs associated with marketing activities,
including advertising, promotions, public relations, and market research, to determine their
effectiveness and to identify cost savings opportunities.
There are several emerging trends in business marketing, including data-driven marketing,
influencer marketing, and personalization. These trends are shaping the way companies
approach marketing and are having a significant impact on marketing effectiveness.
JGI JAIN
UNIT 15: Marketing Control
In the era of digital B2B marketing, companies must have effective control mechanisms in
place to ensure that their marketing efforts are aligned with business goals and that their
investments in marketing are producing the desired results. This includes monitoring and
evaluating marketing metrics, using marketing automation tools, and conducting regular
marketing audits.
Learning Objectives
 To conduct a comprehensive marketing audit that accurately assesses the
effectiveness of marketing strategies and identifies areas for improvement.
 To analyze sales data using various methods to gain insights into business
performance and identify trends and patterns.
 To perform a thorough marketing cost analysis to determine the cost-effectiveness of
marketing activities and identify opportunities for cost savings.
 To stay up-to-date with emerging trends in business marketing and incorporate them
into marketing strategies to increase marketing effectiveness.
 To implement effective control mechanisms in digital B2B marketing to ensure that
marketing efforts are aligned with business goals and producing the desired results.
Learning Outcomes
 Understanding of the purpose and process of a marketing audit and the ability to
conduct one effectively.
 Knowledge of various methods of sales analysis and the ability to analyze sales data
to gain insights into business performance.
 Ability to perform a marketing cost analysis and understand the cost-effectiveness of
marketing activities
 Awareness of emerging trends in business marketing and the ability to incorporate
them into marketing strategies.
 Understanding of the importance of control mechanisms in digital B2B marketing and
the ability to implement them effectively.
2
UNIT 15: Marketing Control JGI JAIN

 Company data: Gather data and information about the company, such as sales data, customer
demographics, marketing campaigns, and product offerings.
 Industry best practices: Research best practices in marketing and sales within the B2B market.
This can include case studies of successful campaigns, industry reports, and expert insights.
 Marketing and sales tools: Familiarize yourself with marketing and sales tools, such as
customer relationship management (CRM) software, marketing automation platforms, and
data analysis tools, that can help you collect and analyze data for the audit and analysis.
15.1 Marketing Audit
A marketing audit in a B2B market involves evaluating the company's current marketing strategy,
tactics, and performance to identify areas for improvement. The goal of a B2B marketing audit is to
help the company optimize its marketing efforts, increase its return on investment (ROI), and achieve
its marketing objectives.
Here are the steps involved in conducting a marketing audit in a B2B market:
 Define objectives: Clearly define the goals and objectives of the marketing audit. This can
include increasing brand awareness, improving lead generation, or boosting sales.
 Review existing data: Gather and review data related to the company's current marketing
efforts, such as sales data, customer demographics, and marketing campaign metrics.
 Analyze marketing strategies: Evaluate the company's current marketing strategies, including
its target audience, messaging, and channels. Identify any gaps or inefficiencies in the current
strategy.
3
JGI JAIN
 Assess marketing tactics: Evaluate the company's marketing tactics, such as email campaigns,
social media efforts, and event marketing. Determine which tactics are working well and which
need improvement.
 Analyze performance: Analyze the performance of the company's marketing campaigns,

using metrics such as website traffic, lead generation, and conversion rates. Identify areas for
improvement and opportunities for optimization.
 Review the competition: Analyze the competition and identify best practices, key
differentiators, and areas for improvement.
 Identify recommendations: Based on your analysis, identify recommendations for improving

the company's marketing efforts, including changes to the target audience, messaging, and
channels.
 Implement changes: Develop a plan to implement the recommendations and track the results.
By following these steps, a B2B marketing audit can provide valuable insights into the company's
marketing performance and help drive improved results.
15.2 Areas of Audit
Marketing audit can cover to provide a comprehensive assessment of a company's marketing efforts.
Here are some of the key areas of a marketing audit:
 Branding: Evaluate the company's branding efforts, including its mission, values, and
messaging, to ensure they are aligned with the target audience and the company's goals.
 Target audience: Assess the target audience, including customer demographics, behaviors,
and needs, to ensure the company's marketing efforts are effectively reaching and resonating
with the target audience.
 Marketing strategy: Evaluate the company's overall marketing strategy, including its goals,
target audience, and messaging, to ensure it is aligned with the company's overall goals and
effectively reaching the target audience.
4
 Marketing mix: Evaluate the company's marketing mix, including its product offerings, pricing,
promotion, and distribution, to ensure it is aligned with the target audience and the
company's goals.
 Marketing channels: Assess the effectiveness of the company's marketing channels, including
email, social media, content marketing, and paid advertising, to determine which channels
are most effective and where improvements can be made.
 Website: Evaluate the company's website, including its design, functionality, and content, to
ensure it is effectively communicating the company's brand and messaging and meeting the
needs of the target audience.
 Sales and lead generation: Analyze the company's sales and lead generation efforts, including
the effectiveness of its lead nurturing campaigns, to determine where improvements can be
made.
 Metrics and KPIs: Evaluate the company's marketing metrics and KPIs, including website
traffic, lead generation, conversion rates, and return on investment (ROI), to determine the
effectiveness of its marketing efforts and identify areas for improvement.
By auditing these areas, a comprehensive marketing audit can provide a comprehensive assessment
of the company's marketing efforts and identify areas for improvement.
15.3 Sales Analysis Methods
Methods that can be used to conduct a sales analysis, including the following:
 Sales trend analysis: This method involves analyzing sales data over time to identify trends
and patterns in sales performance. This can be useful for identifying changes in demand for
the company's products or services and identifying opportunities for growth.
 Customer segmentation analysis: This method involves dividing the company's customers
into segments based on demographic, geographic, or psychographic characteristics. Sales
data can then be analyzed for each segment to identify which segments are driving the
majority of sales and where opportunities for growth exist.
5
JGI JAIN
 Product sales analysis: This method involves analyzing sales data by product or product line
to identify which products are performing well and which are underperforming. This can help
the company make informed decisions about product development and marketing efforts.
 Competitor analysis: This method involves comparing the company's sales performance with
that of its competitors to identify areas where the company may be lagging behind or
outperforming its competitors.
 Channel analysis: This method involves analyzing sales data by distribution channel, such as
online sales, retail sales, or direct sales, to determine which channels are driving the majority
of sales and where opportunities for growth exist.
 Sales pipeline analysis: This method involves analyzing the sales pipeline, including the
number of leads, opportunities, and closed deals, to determine the effectiveness of the sales
process and identify areas for improvement.
15.4 Marketing cost analysis
Marketing cost analysis is a process of evaluating the cost of a company's marketing activities in
relation to its sales and revenue. The goal of a marketing cost analysis is to determine the return on
investment (ROI) of the company's marketing efforts and identify areas where costs can be reduced
or efficiency can be improved.
Here are the steps involved in conducting a marketing cost analysis:
 Identify marketing expenses: Gather data on all marketing expenses, including advertising,
promotions, market research, and personnel costs.
 Calculate cost per marketing activity: Divide the total cost of each marketing activity by the
number of units or activities performed. For example, the cost per email campaign or cost per
event.
 Calculate cost per customer acquisition: Divide the total marketing cost by the number of
new customers acquired during a specified time period. This will give you the cost per
customer acquisition.
6
 Evaluate cost-effectiveness: Compare the cost per customer acquisition with the average
value of a customer to determine the cost-effectiveness of the company's marketing efforts.
 Identify areas for improvement: Analyze the data to identify areas where costs can be reduced
or efficiency can be improved. For example, if the cost per customer acquisition is high, the
company may need to consider alternative marketing strategies or tactics.
 Monitor and update: Regularly monitor and update the marketing cost analysis to ensure the
company's marketing efforts are delivering the best possible ROI.
15.5 Control in the era of Digital B2B Marketing
 Control is a critical aspect of digital B2B marketing, as it allows companies to measure the
effectiveness of their marketing efforts and make data-driven decisions about future
marketing activities. Here are some key elements of control in the era of digital B2B
marketing:
 Analytics and Metrics: Companies must have the ability to track and analyze key metrics,
such as website traffic, lead generation, and conversion rates, to determine the effectiveness
of their marketing efforts.
 Data Management: Companies must have a system in place to collect, store, and analyze
customer data to gain a complete understanding of their audience and their preferences.
 Lead Management: Companies must have a process in place for managing and nurturing
leads to ensure they are effectively moving through the sales funnel.
 Marketing Automation: Companies can use marketing automation tools to streamline and
optimize their marketing efforts, including lead generation, email marketing, and social
media marketing.
 Budget Management: Companies must have a system in place for tracking and managing
their marketing budget to ensure they are getting the best return on investment.
 A/B Testing: Companies can use A/B testing to compare different versions of marketing
materials and determine which ones are most effective in achieving their goals.
7
JGI JAIN
 ROI Tracking: Companies must have a method in place for tracking and measuring the
return on investment (ROI) of their marketing efforts to determine which activities are
delivering the best results.
15.6 Summary
 Definition of Relationship Marketing: Relationship marketing refers to the process of

establishing and maintaining long-term, mutually beneficial relationships with customers.
 Types of Relationships: There are three types of relationships in marketing: transactional,

collaborative, and value-adding. Transactional relationships are based on individual
transactions, while collaborative relationships involve a higher level of cooperation and
coordination between the marketer and customer. Value-adding relationships go beyond
transactions and collaboration to create value for both the marketer and customer.
 Strategic Implications for Marketers: Marketers must understand the type of relationship they
have with their customers in order to develop effective marketing strategies. Relationship
marketing requires a shift in focus from transaction-based marketing to customer-centric
marketing. Marketers must also understand the importance of customer data and use it to
create personalized experiences and build loyalty.
 Successful CRM Strategies: Successful CRM strategies require a holistic approach that takes
into account all aspects of the customer experience. Marketers must use technology and data
analysis to gain a deep understanding of customer behavior and preferences, and then use
this information to create tailored customer experiences. They must also be flexible and adapt
to changes in the market and customer needs.
15.7 Self-Practice
 Study real-life examples of companies that have implemented relationship marketing and
analyze their strategies.
 Identify transactional, collaborative, and value-adding relationships in your personal and

professional life and reflect on their impact.
8
 Analyze the customer database of a company and identify opportunities for implementing
relationship marketing strategies.
15.8 Self-Assessment Questions
A. Essay type (Short/Medium/Long – 5 each; For numerical questions answers to be shared at

the end of the last unit)
i. Short Answers:
1. What is a marketing audit?
2. What are the areas typically audited in a marketing audit?
3. What is sales analysis?
4. What is marketing cost analysis?
5. What are emerging trends in business marketing?
ii. Medium Answers:
1. Can you explain the purpose of a marketing audit?

2. How does a sales analysis help a business determine its marketing strategy?
3. What factors are considered in a marketing cost analysis?
4. Can you give an example of an emerging trend in business marketing?
5. How has the era of digital B2B marketing affected control in marketing?
Long Answers:
1. Can you describe the process of conducting a marketing audit and explain its significance
for a business?
2. How do businesses go about analyzing sales data to make informed decisions about their
marketing strategies? Can you provide specific methods used in sales analysis?
3. How does a marketing cost analysis help businesses optimize their marketing budgets
and improve ROI? Can you give an example of a cost analysis method?
4. How have technological advancements impacted the business marketing landscape? Can
you discuss some of the emerging trends in this area?
5. In what ways has digital B2B marketing changed the way businesses approach marketing
control, and what steps can companies take to effectively manage their marketing efforts
9
JGI JAIN
in this new era?
 Marketing Audit:
Book: "Marketing Management" by Philip Kotler and Kevin Lane Keller
Chapter: 14 - Marketing Audit: Assessing Current Marketing Performance and Formulating New
Marketing Strategies
 Areas of Audit:
Book: "Marketing Metrics: The Definitive Guide to Measuring Marketing Performance" by Paul W.
Farris, Neil T. Bendle, Phillip E. Pfeifer, and David J. Reibstein
Chapter: 4 - Marketing Audit Metrics
 Sales Analysis - Methods:

Book: "Data-Driven: Creating a Data Culture" by Hilary Mason and DJ Patil
10

B2B Marketing

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

B2B Marketing

Uploaded by

Copyright:

Available Formats

UNIT

INTRODUCTION TO B2B MARKETING

Specifically, students will learn about:

In this Unit you will learn –

At the end of this unit, you would:

Pre-Unit Preparatory Material

 Business Marketing and Business Market Customers:

 Environment and Characteristics of Business Marketing:

 Classification of Business Products and Markets:

1.1 Introduction to B2B Marketing

B2B marketing is a specialized form of marketing that involves promoting products or

1.1.1 Definition of B2B Marketing

B2B marketing, also known as business-to-business marketing, refers to marketing efforts

1.1.2 Buyer Behaviour in B2B Marketing

i. Organizational objectives: Businesses will typically make purchasing decisions based on

1.1.3 Sales Management in B2B Marketing

1.2 Business Market & Business Marketing Customers

1.2.1 Types of Business Markets

1.2.2 Business Market Segmentation

i. Demographic segmentation: Demographic segmentation involves dividing the market

iv. Needs-based segmentation: Needs-based segmentation involves dividing the market

1.2.3 Business Market Analysis

There are several key components of business market analysis, including:

By conducting thorough market analysis, businesses can develop a better understanding of

1.3 Market Structures, Environment & Characteristics of Business Marketing

1.3.1 Market Structure

There are several different types of business market structures, including:

i. Monopoly: A monopoly is a market structure in which there is only one supplier of a

iii. Monopolistic competition: Monopolistic competition is a market structure in which there

1.3.2 PESTEL environment in B2B scenario

iv. Technological: Technological factors refer to the impact of technology on business

v. Environmental: Environmental factors refer to the impact of the natural environment on

1.3.3 Characteristics of Business Marketing

i. Relationship focus: Business marketing often involves developing long-term

1.4 Classification of Business Products and Markets

1.4.1 Types of products

1.4.2 Market targeting

1.4.3 Market trends and positioning

1.6 Case Study: Fashion Brand Order Fulfilment

Self-Assessment Questions and Hints

ii. Medium Answers

1. How do environmental factors such as economic conditions or legal requirements

iii. Long Answers

1.7 POST-UNIT READING MATERIAL

PERSPECTIVES ON ORGANIZATIONAL BUY

The nature of buying, Factors affecting purchasing decisions, purchasing orientation

Organizational customers are businesses or other organizations that purchase goods or

Specifically, students will learn about:

 Factors affecting purchasing decisions, purchasing orientation, and segmenting

In this Unit you will learn –

At the end of this unit, you would:

Pre-Unit Preparatory Material

Types of organizational customers and their unique characteristics of Commercial

The nature of buying:

2.1 Decision Making in Commercial Enterprises

2.1.1 Decision-Making Processes

Some common approaches to decision-making in commercial enterprises include:

i. Top-down decision-making: In a top-down decision-making process, decisions are made

ii. Bottom-up decision-making: In a bottom-up decision-making process, decisions are made

iii. Consensus-based decision-making: In a consensus-based decision-making process,

2.1.2 Marketing to Commercial Enterprises

Some key considerations when marketing to commercial enterprises include:

i. Understanding the needs and preferences of business customers: Business customers