MEANING OF MARKETING

 Marketing is the activity, set of institutions, and

processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.
(AMERCIAN MARKETING ASSOCIATION )
 Philip Kotler defines marketing as “the science and
art of exploring, creating, and delivering value to
satisfy the needs of a target market at a profit.
Marketing identifies unfulfilled needs and desires.
It defines, measures and quantifies the size of the
identified market and the profit potential.
 B2B & SERVICE
MARKETING
FUNDAMENTAL of B2B Marketing

MR. ARPIT GUPTA

UNITED INSTITUTE OF MANAGEMENT
 DEFINATION OF MARKET

 A market is a place where buyers and sellers can

meet to facilitate the exchange or transaction of
goods and services. Markets can be physical like a
retail outlet, or virtual like an e-retailer.

 In Marketing, the term market refers to the group of

consumers or organizations that is interested in the
product, has the resources to purchase the product, and
is permitted by law and other regulations to acquire the
product.
 TYPES OF MARKET

 CONSUMER MARKET
A consumer market is a market when individuals
purchase products or services for their own personal
use, as opposed to buying it to sell themselves.
BUSINESS MARKET
The business market is the process of selling your
product and services to other businesses, where those
products and services will either be used as a raw
material for the manufacturing of other products. Or
those businesses buy the products or services and
resell them.
CONSUMER MARKET V/S BUSINESS MARKET

 CONSUMER MARKET  BUSINESS MARKET

Many Customer Fever customer often
Geographically dispersed Geographically
concentrated
Smaller amounts of money Large amount of money
involved involved
Longer decision cycle
Shorter decision cycles

More reliance on mass More reliance on

marketing personal selling
Classification of Business Product and
Customers

 Convenience goods
Convenience goods are those that are regularly
consumed and are readily available for
purchase. They are often nondurable goods
and low-priced items sold by wholesalers and
retailers. Examples of convenience goods
include milk and tobacco products.
Shopping Goods
Shopping goods are those items bought less
frequently, are durable, and are commonly
more expensive than convenience goods.
Examples of shopping goods include furniture
and televisions.
 Specialty consumer

Specialty consumer goods are rare and often

considered luxury purchases. They are often
marketed by brand or geared to a niche market.
Sports cars and fine art are examples of
specialty consumer goods.
Unsought consumer

Unsought consumer goods are readily available

but not often sought by the consumer.
Although they may be necessary purchases,
they require marketing to consumers to nudge
a purchase. Examples of unsought consumer
goods include life insurance and pre-paid
funeral expenses.
 ELEMENTS OF B2B OFFERING

Business-to-business (B2B) is now a frequently

used term in the industry, although it does not
have any direct impact on the common man.
When a business develops a product or service
to be sold to consumers, it is called Business-to-
Consumer (B2C).
 Company Branding

To establish your brand, you need more than a

recognizable logo and a company “voice.” A
strong value proposition expands your mission
statement to communicate the benefits clients
get from working with you. It differentiates
your startup from other tech companies with a
clear declaration of how your services help
your target audience.
 Competitive Analysis

Look at what your closest local and online

competitors are doing to attract customers.
Their campaign designs, keywords, advertising
and pricing strategies can help you determine
the best way to bring more clients to your
startup.
Product Positioning

Without proper product positioning, your

marketing messages will not resonate with
customers or partners. If you have a unique
product or service, clearly identify and
articulate what makes it different from other
similar offerings in the market.
 Customer Personas

Create detailed and specific personas for your

ideal customers. Consider who your mission
statement, value proposition and positioning
statement speak to. Conduct market research to
see how the decision makers at similar
companies search for solutions.
 Organizational Buyer

Organizational buyers are individuals who

represent a business. When they make
purchases, these buyers typically consider both
their personal tastes and the suspected tastes of
the customers to whom the organizational
buyer's business will sell.
 CONSUMER BUYING PROCESS

These stages include 

 Need identification,
 Information Search and Processing,
 Evaluation of alternatives, (Product/Service)
 Purchase Decision
 Post Purchase Behavior
 Buying situation
There are 3 types of buying situations

NEW BUY a customer purchases a product for

the first time, which means the buying decision is
heavily involved due to both organizations being
unfamiliar with each other.
MODIFIED REBUY = buyer has purchased a
similar product in the past, but has decided to
change some specifications (price, quality level,
customer service level, options, etc.). Current
vendors have an advantage in acquiring the
sale in a modified rebuy situation

STRAIGHT REBUY = when the buyer simply

buys additional units that have been already
purchased in the past
 Buying Grid Model
 Model developed to understand business buying
process in different situation and explaining How
companies make decision.

With the help of this model or 8 buying phase

organization will able to take rational decision

 Buying Grid Model is combination of the

08 Buy phase
03 Buying situation
 08 Buy Phase

1. Problem Identification
2. General Need Description
3. Product Specifications
4. Supplier Search
5. Proposal Solicitation
6. Supplies Selection
7. Order Routine Specifications
8. Performance Review
Problem Identification

 First stage of business buying process.

 Organization indentifies the need of

organization which will be met by
purchasing and good and services.
General Need Descriptions
organization or buyer prepare a general need
descriptions which reports both features and
quantity needed item for the organization.

Product Specifications
In this stage, the organization decides and
specifies the technical or different features of
the particular products.
Supplier Search
In this stage, organization conduct suppliers
search to find out the best sellers.
The organization can assemble the a list of
qualified suppliers by analyzing through
computer search, contacting with others
companies.
Proposal Solicitation
Organization ask qualified suppliers to submit
proposal is called proposal solicitation.
After this suppliers will send a catalogue and
salesperson .
 Organization ask for the written proposal or
Formal Presentation from each potential
suppliers.
Suppliers Selection

Order Routine Specifications

Stage of buying process in which the
organization choose the final suppliers listing
various things like technical specification,
quantity needed, expected time of delivery,
return policies and warranties.
Performances Review

Organizational analyze the suppliers

performances on the basic of different criteria
and decide to continue, modify or drop the
arrangements.
 03 Buying situation

1. New Buy
2. Modified Rebuy
3. Straight Rebuy
 NEW BUY MODIFIED STRAIGHT
REBUY REBUY

PROBLEM YES MAY BE MAY BE

IDENTIFICATIO
N

GENERAL YES MAY BE MAY BE

NEED
DESCRIPTIONS
PRODUCT YES YES MAY BE
SPECIFICATION

SUPPLIERS YES MAY BE MAY BE

SEARCH

PROPOSAL YES MAY BE MAY BE

SOLICITATION

SUPPLIERS YES MAY BE MAY BE

SELECTION
ORDER ROUTINE YES MAY BE MAY BE
SPECIFICATIONS

PERFORMANCE YES YES YES

 Buyer & Seller Relationship
Establishing a good relationship between the
buyer and seller is a most difficult task in the
concept of business marketing theory.

Seller always try to fulfill all demands of the

buyers and getting the maximum number of
buyers to gain the competitive advantage among
the competitors.
There are various dimensions in understanding
the relationship of buyer and seller. Some of the
dimensions are given below for the better
understanding of the concept : –

 The basic relationship building a base between

both of them  is based on the interactions of the
sales representative with the buyers.
 What is the perception of the buyer towards
the sales person which is based on the
company’s reputation.
The behavior of the sales personnel with the
buyer which depends on the needs of the
company, personal needs of the employees and
the social needs.

Types of Buyer – Seller Relationships

 Transactional (distant) relationship.

 Value – added (continuing) relationship.

 Partnering / Collaborative (close) relationship.

Transactional or distant / Relationship
 It is a one time interaction of the buyer and the

seller.
 This type of relationship occurs when there are

Small number of suppliers available.

 There is no complexity in the purchase decision.

 This method is preferred by the sellers when they

feel that the buyer’s have low potentials &

bargaining power.
 The sellers focus on low price of the product and

also aim at timely delivery.

Value-Added or Continuing/ Relationship
 This type of relationship occurs when there is

medium sales and the potential of the buyer is

also medium
 This type of relationship aims at fulfilling the

needs of the buyers more than that of the

competitors, that is, providing them with the
maximum value.
 The main objective of the seller in this type of

relationship is getting the maximum share of

the market.
Collaborative or  Partnership Exchange  Relationship
 The basic foundation in this type of relationship
is the commitment and trust between the buyer
and the supplier.
 The major objective in this is to maintain a long
term mutually benefitted relationship.
 Buyers prefer this type of relationship mostly
where there is More choice in selection of the
suppliers.
 Few buyers prefer this when there is much
complexity involved in the purchase decision.
 Sellers prefer this type of relationship when they
feel that the potential of the buying firms are high
 CUSTOMER RELATIONSHIP
MANAGEMENT

Customer relationship management (CRM) is

the combination of practices, strategies and
technologies that companies use to manage
and analyze customer interactions and data
throughout the customer lifecycle. The goal is
to improve customer service relationships and
assist in customer retention and drive sales
growth.
 The CRM cycle involves marketing, customer
service and sales activities. It starts with
outreach and customer acquisition and ideally
leads to customer loyalty.

There are five key stages in the CRM cycle:

 Reaching a potential customer

 Customer acquisition

 Conversion

 Customer retention

 Customer loyalty
Difference Between Customer Relationship
Management And Customer Relationship
Marketing

Customer relationship management is the process

of identifying and understanding customer needs,
then meeting those needs.
Customer Service & Customer Retention
 On the other hand, customer relationship marketing
(CRM) is the process of attracting new customers by
making them aware  and business interaction of
your products or services.
 Functions in CRM

 Customer Needs
 Customer Response
 Customer Satisfaction
 Customer Loyalty
 Customer Retention
 Customer Complaints
 Customer Services
 TYPES OF CRM
OPERATIONAL CRM

 Generate Leads,
 Convert Then Into Contacts,
 Capture All Required Details,
 Provide Service Throughout Customer
Lifecycle.
ANALYTICAL CRM

 Data Analysis Is The Main Function

 Analyzes Customer Data
 It Helps The Top Management To Take Better
Decision
 Marketing Executives To Understand The
Effectiveness Of The Data Analysis, Sale
Executives To Increase Sales
 Build Strong Relationship
 COLLABORATIVE CRM

 Also known as strategic CRM

 Enables organization to share customers
information among various business unit like
sales team, marketing team, technical and
support team.
 Helps to unite all groups to aim only one goal-
use all information to improve the quality of
customer services to gain the loyalty and
acquire new customer to increase sales.
 Importance of CRM

 Increase In Sales.
 Reduce The Cost Of Sales.
 Lead To Customer Satisfaction.
 Lead To Customer Retention.
 Leads To Customer Loyalty.
 Overall Achievement Of Organizational
Goal.
 Strategic Alliance
 A strategic alliance is an arrangement between
two companies that have decided to share
resources to undertake a specific, mutually
beneficial project.
 A strategic alliance agreement could help a
company develop a more effective process.
 Strategic alliances allow two organizations,
individuals or other entities to work toward
mutual or correlating goals.
 Strategic alliances diversify revenue streams,
grant access to potentially difficult-to-obtain
resources, and may improve a company's
public image.
 Strategic alliances may also cause companies to
expend resources resolving conflict, not yield
results as expected, or negatively impact a
company's public image.
Importance Of Strategic Alliances
 Increased resources
Strategic alliances enable businesses to gain
access to supplementary resources in the form
of knowledge, products, or other assets
without changing their core functions.
 Access to new markets
One of the most popular reasons to enter into
strategic alliances is to gain access to another
market. This is especially common when a new
product, event, or campaign is being launched.
 Agile growth
A strategic alliance brings the benefit of having
double the manpower, skill set, knowledge, and
more. Reaching your objectives can instantly be
done much quicker and more efficiently.
 Greater brand awareness
With an expanded customer base and growth
into new markets, strategic alliances have the
added advantage of building brand awareness.
Partnering with a business that has a positive
reputation can also enhance your own through
association.
 Expanded customer base
In a strategic alliance, it’s typical for businesses
to be publicly mentioned by their partner. In
fact, businesses often choose partners based on
their local presence or position in another
market.
TYPES OF STARTEGIC ALLIANCE
 Joint Venture

A joint venture is a child company of two

parent companies.
It’s maintained by sharing resources and
equity with a binding agreement.
Whether it’s formed for a specific purpose or an
ongoing strategy, a joint venture has a clear
objective, and profits are split between the two
companies.
Equity Strategic Alliance

An equity strategic alliance occurs when one

company purchases equity in another business
(partial acquisition), or each business
purchases equity in each other (cross-equity
transactions).
Non – Equity Strategic Alliance

In a non-equity strategic alliance, organizations

create an agreement to share resources without
creating a separate entity or sharing equity.
Non-equity alliances are often more loose and
informal than a partnership involving equity.
These make up the vast majority of business
alliances.