Theme 6 lec 8

Business Markets and business Buyer Behavior

Business market: All the organizations that buy goods and services for use in the
production of other products and services that are sold, rented, or supplied to
others.
Different between consumer buyer and business buyer.
Special with Business Markets:
1. Fewer & Larger Buyers. (Tadad main kam hoty hain aur business volume
zyada hota hai.)
2. Geographic Concentration.
3. Derived Demand.( In ki demand consumer markets pr depand hoti hai.)
4. Buyer & Seller Dependency. (Bht zyada hoti hai in business market.)
Business buying process:
1. More Decision Participants.
2. More Professional Purchasing Effort.
3. More Buyer and Self-interaction.
Understanding Business Buying Behavior:
1. Environmental influences: Economic developments, supply conditions,
technological change, political and regulatory developments, competitive
developments, culture and customs.

2. Organizational Factors: objectives, policies, procedures, organizational

structure, system.

3. Interpersonal: Authority, status, empathy, persuasiveness.

4. Individual: age, income, education, job position, personality, risk attitudes.

Major Types of buying situations:

1. Straight Rebuy: is a buying situation in which the buyer routinely reorders
something without any modification.
 2. Modified Rebuy: is purchase decision that requires some research where
the buyer wants to modify the product specification, price, terms, or
suppliers.

3. New Task: is a buying situation in which the buyer purchases a product or

services first time.
Participants in the Business Buying Process:
1. Users.
2. Influencers. (Expert peoples influence krty hain buying ko.)
3. Deciders.
4. Purchasers.
5. Gatekeeper.
The buying process of business buyer:
1. Problem recognition.
2. General and description.
3. Product specification.
4. Supplier search.
5. Proposal solicitation.
6. Supplier selection.
7. Order-routine specification.
8. Performance review.
Institutional & Government Markets:
Institutional Markets: consist of hospitals, nursing homes, and prisons that
provide goods and services to people: Low budgets, “captive” audience apni koi
will nhi hoti jo dain un logon ko who wahi use krty hain.
Government Markets: Governments units’ federal, state, and local that purchase
or rent goods and services for carrying out the main functions of government.
What is marketing?
Trying to connect with the consumers.
Environmental opportunities?
Every environmental factor create opportunities.
Theme 7 lec 12
Customer Driven Marketing Strategy
Single organization has resources limited he did not serve ek tarh se.
Create value for targeted customers
1. Select customers to serve:
Segmentation: divide the total markets into smaller segments.
Targeting: select the segment or segments to enter.
2. Decide on a value proposition:
Differentiation: Differentiate the market offering to create superior customer
value.
Positioning: position the market offering in the minds of target customers.

Market Segmentation: is the process to divide large heterogeneous markets into

small markets that can be reached more efficiently and effectively with products
and services that match their unique needs. Types of market segmentations for
consumer markets:
1. Geographic segmentation: divides the market into different geographical
units such as nations, regions, states, provinces, or cities.

2. Demographic Segmentation: divides the market into groups based on

variables such as age, gender, family size, family life cycle, income,
occupation, education, religion, race, generation, and nationality.

3. Psychographic segmentation: divides a market into different segments

based on social class, lifestyle, or personality characteristics.

4. Behavioral segmentation: divides buyers into group based on their

knowledge, attitudes, uses, or response to a product. Occasions, Benefits
sought, user status, usage, rat, loyalty status.
Segmenting Business Markets: Consumer and business markets use many of the
same variables to segment their market. Additional variables include:
 Customer operating characteristic
 Purchasing approaches.
 Situational factors.
 Personal characteristics.
Segmenting international markets:
1. Geographic location.
2. Economic factors.
3. Political factors.
4. Cultural factors.
Requirements for effective segmentation:
1. Measurable. (Accpected revenue kya hoga)
2. Accessible. (Geographical problems ya koi aur problems ko dekhein)
3. Substantial.
4. Differentiable. (ek segmation clealy ap os ko dosry segmation se
differeniate kr saky. Agar difference wazya nhi hoga to ap apny product ko
apny target prn hi le kr ja skty)
5. Actionable.

Market Targeting: is the process of evaluating market segments one or and

selecting one or more to serve.
Target Market: is a set of buyers who share common needs or characteristics that
the company decides to serve. Buyers ka woh set hai jin ko company target krti hai
aur needs common hoti hain.
What to consider before targeting?
1. Segment size and growth
2. Segment structural attractiveness
3. Organizational objective and resources.
Target marketing strategies:
1. Undifferentiated/Mass Marketing.
2. Differentiated/Segmented Marketing.
3. Concentrated/Niche Marketing.
4. Micro Marketing.

Undifferentiated/Mass Marketing: targets the whole market with one offer and
focuses on common needs rather than what’s different.
Differentiated/Mass Marketing: targets several different market segments and
designs separate offers for each and its goal is to achieve higher sales and stronger
position. This is more expensive than Undifferentiated/Mass Marketing.
Concentrated/Niche Marketing: A Market-coverage strategy in which a firm
goes after a large share of one or a few segments or niches. Khas segment ke liye
apni product ko banaty hain.
Micro Marketing: Tailoring products and marketing programs to the needs and
wants of specific individuals and local customer segments; it includes local
marketing and individual marketing. Customer’s ki choice ke mutabiq cheez
banana.
Local Marketing: tailoring brands and marketing to the needs and wants of local
customer segments—cities neighborhoods, and even specific stores. (Ek ilaky ke
mutabiq cheez serve karna poor hain to low price rich hain to high price.)

Product Position: is the way the product is defined by consumers on important

attributes—the place the product occupies in consumers’ minds relative to
computing products.
Competitive Advantage: is an advantage over competitors gained by offering
consumers greater value, either through lower prices or by providing more benefits
that justify higher prices. Price ki base pr ap apny competitor se mukhtalif ho sakty
hain ya quality base p rap apny competitor se mukhtalif ho sakty hain.
Choosing a Differentiation and positioning strategy for competitor options:
1. Product Differentiation. (functionally different from other)
2. Service Differentiation.
3. Channel Differentiation. (other just physically purchase you give online
purchasing options)
4. People Differentiation. (staff different, good staff)
5. Image Differentiation.
Value Proposition: is the full mix of benefits upon which brand is positioned.

Theme 8 lec 18
Product, Brands & Services
Product: A product is anything that can be offered in a market for attention,
acquisition, use, or consumption that might satisfy a need or want.
Experience: what buying the product or service will do for the customer?
Levels of product: Core customer value is….
Augmented product: Delivery and credit, product support, warranty, after sales
service.
Actual product: Brand name, quality level, packaging, design, features.
Types of Product: Consumer Products, Industrial Products.
Consumer Products: Products and services for personal use/consumption. Types
of consumer products,
1. Convenience products.
2. Shopping products
3. Specialty products.
4. Unsought products.
Convenience products: Convenience products are consumer products and
services that the customer usually buys frequently, immediately, and with a
minimum comparison and buying effort. For example newspaper, candy, fast food.
Amm mil jati hain ye products. Low rate
Shopping products: are consumer product and services that the customer
compares carefully on suitability, quality, price, and style. Example furniture, cars,
appliances. Mahine bad kharidty hain. High rate
Specialty products: are consumer products and services with unique
characteristics or rand identification for which a significant group of buyers is
willing to make a special purchase effort. Example medical services, designer
clothes, high-end electronics. High rate products. Salon bad use krty hain.
Unsought products: are consumers’ products that the consumer does not know
about or knows about but does not normally think of buying. Example life
insurance, funeral services, blood donation.

Industrial Products: Products purchased for further processing or for use in

conducting a business. Types of industrial products….
1. Capital items.
2. Material and parts.
3. Supplies and services.
Capital items: Capital items are industrial products that aid in the buyers
production or operation. Items banay ke liye istamal hoti hain aur kafi high rate
hoti Hain.
Material and parts: include raw materials and manufactured materials and parts
usually sold directly to industrial users.
Supplies and services: include operation supplies, repair and maintenance items,
and business services.
Special Concepts…….
1. Organization marketing.
2. Person marketing.
3. Place marketing.
4. Social marketing.
Organization marketing: consist of activates undertaken to create, maintain, or
change attitudes and behavior of target consumers toward an organization.
Person marketing: consist of activates undertaken to create, maintain, or change
attitudes and behavior of target consumers toward particular people.
Place marketing: consist of activates undertaken to create, maintain, or change
attitudes and behavior of target consumers toward particular people.
Social marketing: the use of commercial marketing concepts and tools in
programs designed to influence individuals’ behavior to improve their well-being
and that of society. Enviroment saf rakeen logon ki madad kreen. Wagera.
Individual product decisions:
1. Product attributes.
2. Branding.
3. Packaging.
4. Labeling.
5. Support services.
Product attributes: are the benefits of the product or service. Quality, features,
style and design.
Branding: is the name, term, sign, or design—or a combination of these—that
identifies the maker or seller of a product or service.
Packaging: involves designing and producing and container or wrapper for a
product.
Labeling: identify the product or brand, describe attributes, and provide
promotion. Quantity, quality, expiry etc.
Support services: generally include after sales services, warranties etc……..
Product Line /decisions: is a group of products that are closely related because
they function in a similar manner, are sold to the same customer groups, are
marketed through the same types of outlets, or fall within given price range.
Product line length: is the number of items in product line: line stretching, line
filling.
Abhi 10 lec rehty hain…….
Theme 9
Price and Pricing
What is a price?
Answer: Price is the amount of money charged for a product or service.
It is the sum of all the values that consumers give up in order to gain the benefits of
having or using a product or service.
Price is the only element in the marketing mix that produces revenue; all other
elements represent costs…..
What is pricing?
The process of determining and setting price of a product.
What to consider for pricing?
 Price Ceiling. (is se agar oper price set ho gi to customer nhi le ga yani
mehngi hogi)
 Price Floor. (is se nichy agar charge kiya jaye to company ko nuqsan hoga)
Factors Affecting Pricing:
 Overall Marketing Strategy.
 Type of Demand.
 Type of Market.
 Economic Conditions.
 Government.
 Social Concern.
Major Pricing Methods
 Value Based Pricing. (Customer ke lihaz se price set krty hain. Low ya
high)
 Cost Based Pricing. (kharcha kitna aya hai os main margin add kr ke price
set krty hain)
 Competition Based Pricing. (wildly use hota hai)
Value Based Pricing: uses the buyers’ perceptions of value, not the seller cost, as
the key to pricing. Price considered before the marketing program is set.
Cost Based Pricing: sets prices based on the costs for producing, distributing, and
selling the product plus a fair rate of return for effort and risk.
Special Pricing Concepts:
 Good-value Pricing.
 Everyday low Pricing.
 High-low Pricing.
What are different pricing strategies?
 New-Product Pricing Strategies.
 Product Mix Pricing Strategies.
 Price Adjustment Strategies.
 Price Changes.
New-Product Pricing Strategies:
 Market-Skimming Pricing.
 Market-Penetration Pricing.
Market-Skimming Pricing: Strategy sets high initial prices to “skim” revenue
layers from the market. (Start main expensive price rakhi jati hai kunke skimming
prices product ke hisab se honi chahiye)
 Product quality and image must support the price.
 Buyers must want the product at the price.
Market-Penetration Pricing: involves setting a low price for a new product I
order to attract a large number of buyers and a large market share. (Start main price
low rakhi jati hai ta ke zyada customer hasil kiye jayen)
Product mix pricing strategies:
1. Product line Pricing.
2. Optional-product pricing.
3. Captive-product pricing.
4. By-product pricing.
5. Product bundle pricing.
Product line Pricing: takes into account the cost differences between products in
the line, customer evaluation of their features, and competitors’ prices.
Optional-product pricing: takes into account optional or accessory products
along with the main product. (Features add hoty hai thory thory time bad aur
uncompetitive na hon)
Captive-product pricing: sets prices of products that must be used along with the
main product. (main cheez sasti aur sath use hony wali cheez mahngi, accesori
means.)
By-product pricing: refers to products with little or no value produced as a result
of the main product. Producers will seek little or no profit other than the cost to
cover storage and delivery.
Product bundle pricing: combines several products at a reduced price.
Price Adjustment Strategies:
1. Discount and Allowance Pricing.
2. Segmented Pricing.
3. Psychological Pricing.
4. Promotional Pricing.
5. Geographic Pricing.
6. Dynamic Pricing.
7. International Pricing.
Price Changes:
1. Price Cuts:
 Excess Capacity.
 Increased Market Share.
2. Price Increases:
 Cost Inflation.
 Increased Demand.
 Lack of Supply.

Theme 10 Skip
Theme 11 lec 9
Place/Distribution
What is place?
Answer: Marketing function which deals in making products (Goods & Services)
available for purchase and use of the target market.
Place includes the use of different channels/intermediaries of distribution to make
available products for customers such as wholesalers and retailers.
What is placement?
Answer: The aim of placement is to promote products, connect buyers with
producers and physically distribute products.
Value Delivery Network: value delivery network is the firm’s suppliers,
distributors, and ultimately customers who partner with each other to improve the
performance of the entire system. 2 parts is……
Upstream Partners: upstream partners include raw material suppliers,
components, parts, information, finances, and expertise to create a product or
service.
Downstream Partners: include the marketing channels or distribution channels
that look toward the customer.
Intermediaries: offer producers greater efficiency in making goods available to
target markets. Through their contacts, experience, specialization, scale of
operations, intermediaries usually offer the firm more than it can achieve on its
own. Channel members add value is:
First……..
Form an economic view intermediaries transform the assortment of products into
assortments wanted by consumer.
Second……
Channel members add value by bridging the major time, place, and possession
gaps that separate goods and services from those who would use them.
  Information
 Promotion
 Contact
 Matching
 Negotiation (bargaining)
 Physical distribution
 Financing
 Risk taking
Place/Placement/Distribution
 Physical flow of products
 Flow of ownership
 Payment flow
 Information flow
 Promotion flow
Marketing channel: consists of firms that have partnered for their common good
with each member playing a specialized role.
Conventional distribution system: system consists of one or more independent
producers, wholesalers, and retailers. Each seeks to maximize its own profits, and
there is little control over the other members and no formal means for assigning
roles and resolving conflict. (apni marzi krty hain sab)
Vertical marketing system: provide channel leadership and consists of producers,
wholesalers, and retailers acting as a unified system and consists of:
 Corporate marketing systems.
 Contractual marketing systems.
 Administered marketing systems.
Corporate marketing systems: integrates successive stages of production and
distribution under single ownership.
Contractual marketing systems: consists of independent firms at different levels
of production and distribution who join together through contacts to obtain more
economics or sales impact than each could achieve alone. The most common form
is the franchise organization.
Administered marketing systems: has a few dominant channel members without
common ownership. Leadership comes from size and power.
Horizontal marketing system: are when two or more companies at one level join
together to follow a new marketing opportunity. Companies combine financial,
production, or marketing resources to accomplish more than any one company
could alone.
Multichannel distribution systems (hybrid marketing channels): are when a
single firm sets up two or more marketing channels to reach one or more customer
segments. (All techniques use in this) channel deign decisions….
 Analyzing consumer needs.
 Setting channels objectives.
 Identifying major channel alternatives.
 Evaluation.
Types of distribution:
 Intensive distribution. (khar possible channel ke zariye product sale karna)
 Exclusive distribution. (company sirf khud bechti hian channels nhi use krti
direct hoti hai)
 Selective distribution. (har jagha se nhi but mil jjaye gi)

Theme 12
Sustainable Marketing
What is Sustainable marketing?
Answer: Meeting needs of consumers while preserving the ability of future
generations to meet their needs. (Sustainable ka matlab barkarar rakhna, matlab
present mai asy operate kiya jay eke future mai nuqsan na ho)
Criticisms of Marketing
Impact on individual:
 High Prices.
 Deceptive Practices. (value otni hoti nhi jesa dekhaya jata hai)
 High-Pressure Selling.
  Shoddy, Harmful or Unsafe Products.
 Planned Obsolescence. (jaldi new product issue karna ye nuqsan de hota hai)
 Poor Service to Disadvantaged Consumers. (
Impact on society:
 False wants and too much Materialism.
 Too few Social Goods.
 Cultural Pollution.
Impact on other Businesses:
 Acquisition of competitors. (is main ap competitor ko khatam kr dety hain)
 Unfair competitive marketing practices. (secrets hasil krny ki koshish ki jati
hai)
Consumer actions to Promote Sustainable Marketing
Consumerism: Consumerism is the organized movement of citizens and
government agencies to improve the rights and power of buyers in relation to
sellers.
Consumers Rights:
 Right not to buy.
 Right to expect safe product.
 Right to expect well performing product as claimed.
 Right to be well informed about product.
 Right to be protected against questionable products and marketing practices.
 Right to influence products and marketing positively.
 Right to consume in a way to preserve the world for future generation.
Environmentalism: Environmentalism is an organized movement of concerned
citizens, businesses, and government agencies to protect and improve people’s
living environment.
Concepts of enviro…….
 Pollution prevention.
 Product stewardship.
 Design for environment (DFE).
 New clean technologies.
 Sustainability vision.
Pollution prevention: involves not just cleaning p waste but also eliminating or
minimizing waste before it is created.
Product Stewardship: involves minimizing the pollution from production and all
environmental impact throughout the full product life cycle.
Design for Environment (DFE): involves thinking ahead to design products that
are easier to recover, reuse, or recycle.
New Clean Technologies: involves looking ahead and planning new technologies
for competitive advantage.
Sustainability Vision: is a guide to the future that shows the company that the
company’s product, process, and policies must evolve and what is needed to get
there.
Sustainable Marketing Principals:
 Consumer-oriented marketing.
 Customer-value marketing.
 Innovative marketing.
 Sense-of- mission marketing.
 Societal marketing.

Consumer-oriented marketing: A Company should view and organize its

marketing activities from the consumer’s point of view. (Customer ki demand o
dekhna)
Customer-value marketing: A company should put most of its resources into
customer value-building marketing investments. (asi product banayen jis se
customer ko faida ho)
Innovative marketing: A company should seek real product and marketing
improvements. (Customer ki cost kam ho pr faida zyada ho customer ko)
Sense-of- mission marketing: A company should define its mission in broad
social terms rather than narrow products terms. (social responsibility ko feel kr ke
product serve kreen)
Societal marketing: A company should make marketing decisions by considering
consumers wants, the company’s requirements, consumers’ log-run interest, and
society’s log-run interests.
Deficient products: Products that have neither immediate appeal nor long-run
benefits. (asi produts jis ka kisi tarah bhi faida na ho un se bachhe)
Pleasing products: Products that give high immediate satisfaction but many hurt
consumers in the long run. (asi product jin ka filhal maza hai but future mai nuqsan
hai maslan ice cream ya fast food)
Salutary products: products that have low immediate appeal but many benefits
consumers in the long run. (jesy achi cheez jis ka filhal o maza nhi ata but future
mai nuqsan hi hota)
Desirable products: products that give both high immediate satisfaction and high
long-run benefits. (jis ka fida hi faida hota hai preset mai bhi aur future mai bhi.)
Marketing Ethics: are broad guidelines that everyone in the organization must
follow that cover distributor relations, advertising standards, customer service,
pricing, product development, and general ethical standards.