Business Marketing Management-WD

Course Outcomes: 
To create an understanding, the nature of business marketing vis-
a vis consumer marketing.
To create an awareness about the business to business (B2B)
model of marketing
To understand the organization Buying Behaviour (OBB) with
emphasis on the customer profile identification of need based
requirements in terms of quantity, quality, cost & delivery of
industrial buyers.
To understand the various strategies involved in business
marketing in terms of product, price, positioning, placement,
promotion etc vis-a vis competitors.

Pedagogy: The Pedagogy consists of Lectures, Shared

Experience, Case Study, Role Play, Assignment, Fieldwork/
Practical’s, Seminars and Presentations.

1. The Nature of Business Marketing:

business and consumer products,

Type of Business
1. B 2 C
2. B 2 G
3. B 2 B
4. F 2 B
5. F 2 C
6. B 2 E
7. C 2 C
8. G 2 C
9. P 2 P

B2B vs B2C Marketing

B2C = Business-to-Consumer Market
Businesses sell products and services to consumers for
household or personal use
B2B = Business-to-Business Market
Businesses sell products and services to other businesses
for use in their daily operations or for making other
products and services

Defining B2C Marketing

B2C Marketing – Business-to-Consumer 
 Product driven 
 Maximize the value of the transaction 
 Large target market 
 Single step buying process, shorter sales cycle 
 Brand identity created through repetition and imagery 
 Merchandising and point of purchase activities 
 Emotional buying decision based on status, desire, or
price

Defining B2B Marketing

B2B Marketing – Business-to-Business 
 Relationship driven 
 Maximize the value of the relationship 
 Small, focused target market 
 Multi-step buying process, longer sales cycle 
 Brand identity created on personal relationship 
 Educational and awareness building activities 
 Rational buying decision based on business value
 Examples of B2C vs B2B Marketing

Business Marketing Definition

 A transaction that occurs between two companies, as
opposed to a transaction involving a consumer. 
 The term may also describe a company that provides goods
or services for another company.
 Business to Business Commerce. 
 When one business sells to another business rather than
to an end user. 
 This term usually is used in connection with sales: B2B
sales or B2B Sales reps.
 Any business providing products / services / information
for any other business can be called business 2 business
or B2B

 Commerce transactions between businesses - a

manufacturer and a wholesaler, or between a wholesaler
and a retailer 
 Business-to-consumer (B2C); business-to-government (B2G)

 Volume of transactions much higher than the B2C
transactions
 Supply chain - transactions involving sub components or
raw materials 
 Automobile manufacturer - buying tires, glass for
windscreens, and rubber hoses, etc.
 Communication and Collaboration 
 Using social media to connect with one another 
 "B2B" communication
Basis for classification,
 Difference between business and consumer marketing,

Business Marketing Vs. Consumer Marketing

 Business marketing shorter and more direct channels of
distribution
 Consumer marketing aimed at large groups through mass
media and retailers 
 Negotiation between the buyer and seller more personal
in business marketing

Business Marketing
4 P’s of marketing (Marketing Mix)
 4 categories of Business Categories
1. Companies that consume products or services,
2. Government agencies,
3. Institutions
4. Resellers

B2B vs B2C Marketing

 Business marketing in global context,
Global marketing is “marketing on a worldwide scale reconciling or
taking commercial advantage of global operational differences,
similarities and opportunities in order to meet global objectives"

Global marketing is also a field of study in general business management

to provide valuable products, solutions and services to customers locally,
nationally, internationally and worldwide.

International marketing is the export, franchising, joint venture or full

direct entry of an organization's product or services into another
country. This can be achieved by exporting a company's product into
another location, entry through a joint venture with another firm in the
target country, or foreign direct investment into the target country.

Global marketing is a firm's ability to market to almost all countries on

the planet. With extensive reach, the need for a firm's product or
services is established. The global firm retains the capability, reach,
knowledge, staff, skills, insights, and expertise to deliver value to
customers worldwide. The firm understands the requirement to service
customers locally with global standard solutions or products, and
localizes that product as required to maintain an optimal balance of cost,
efficiency, customization and localization in a control-customization
continuum to best meet local, national and global requirements to
position itself against or with competitors, partners, alliances,
substitutes and defend against new global and local market entrants per
country, region or city. The firm will price its products appropriately
worldwide, nationally and locally, and promote, deliver access and
information to its customers in the most cost-effective way. The firm
also needs to understand, research, measure and develop loyalty for its
brand and global brand equity (stay on brand) for the long term.

Advantages

The advantages of global market include:

• Economies of scale in production and distribution
• Lower marketing costs
• Power and scope
• Consistency in brand image
• Ability to leverage good ideas quickly and efficiently
• Uniformity of marketing practices
• Helps to establish relationships outside of the "political arena"
• Helps to encourage ancillary industries to be set up to cater for the
needs of the global player
• Benefits of eMarketing over traditional marketing

Classification of business consumers,

 Classification of business products.

2. Organizational Buying Behaviour (OBB):

Organization buying is the decision-making processby which

formal organizations establish the need for purchased products
and services and identify, evaluate, and choose among alternative
brands and suppliers.
CHARACTERISTICS
 1. Consumer market is a huge market in millions of consumers
where organizational buyers are limited in number for most of the
products.
 2. The purchases are in large quantities.
 3. Close relationships and service are required.
 4. Demand is derived from the production and sales of buyers.
 5. Demand fluctuations are high as purchases from business
buyers magnify fluctuation in demand for their products.
 6. The organizational buyers are trained professionals in
purchasing.
 7. Several persons in organization influence purchase.
 8. Lot of buying occurs in direct dealing with manufacturers.

ORGANIZATIONAL BUYING SITUATIONS

Straight rebuy:-
In this buying situation, only purchasing department is involved.
That get an information from inventory control department or
section to reorder the material or item and they seek quotations
from vendors in an approved list.
Modified rebuy:-
In this buying situation, there is a modification to the specifications
of the product or specifications related to delivery. Executives
apart from the purchasing department are involved in the buying
decisions. The company is looking for additional suppliers or is
ready to modify the approved vendors list based on the In this
buying situation, there is a modification to the specifications of the
product or specifications related to delivery. Executives apart from
the purchasing department are involved in the buying decisions.
The company is looking for additional suppliers or is ready to
modify the approved vendors list based on the technical
capabilities and delivery capabilities.
New task buy:-
In this situation, the buyer is buying the product for the first time.
As the cost of the product or consumption value becomes higher,
more number of executives are involved in the process. The
stages of awareness, interest, evaluation, trial, and adoption will
be there for the products of each potential supplier. Only the
products which pass all the stages will be on the approved list and
price competition will follow subsequently.
Systems buy:-
Systems buying is a process in which the organization gives a
single order to a single organization for supplying a full system.
The buying organization knows that no single party is producing all
the units in the system. But it wants the system seller to engineer
the system, procure the units from various vendors and assemble,
fabricate or construct the system.

key characteristics of organizational customer and buying

process

Five characteristics of the organizational buying process:

1. In organizations, many individuals are involved in making buying
decisions.
2. The organizational buyer is motivated by both rational and
quantitative criteria dominant in organizational decisions; the decision
makers are people, subject to many of the same emotional criteria used
in personal purchases.
3. Organizational buying decisions frequently involve a range of complex
technical dimensions. A purchasing agent for Volvo Automobiles, for
example, must consider a number of technical factors before ordering a
radio to go into the new model. The electronic system, the acoustics of
the interior, and the shape of the dashboard are a few of these
considerations.
4. The organizational decision process frequently spans a considerable
time, creating a significant lag between the marketer's initial contact
with the customer and the purchasing decision. Since many new factors
can enter the picture during this lag time, the marketer's ability to
monitor and adjust to these changes is critical.
5. Organizations cannot be grouped into precise categories. Each
organization has a characteristic way of functioning and a personality

Purchasing organization and buying stages,

Problem recognition:
The first stage of the business buying process in which someone
in the company recognizes a problem or need that can be met by
acquiring a good or a service.
General need description:
At this stage of business buying process company describes the
general characteristics and quantity of a needed item.
Product specification:
At this stage of the business buying process buying organization
decide on the product and specifies the best technical product
characteristics for a needed item
Value analysis:
An approach to cost reduction, in which components are studied
carefully to determine if they can be redesigned, standardized or
made by less costly methods of production.
Supplier search:
At this stage of the business buying process buyer tries to find the
best vendors.
Proposal solicitation:
The stage of the business buying process in which the buyer
invites qualified suppliers to submit proposals.
Supplier Selection:
The stage of the business buying process in which the buyer
reviews proposal & selects a supplier or suppliers
Order-routine specification:
The stage of the business buying process in which the buyer
writes the final order with the chosen supplier(s), listing the
technical specifications, quantity needed, expected time of
delivery, return policies, & warranties.
Performance review:
The stage of the business buying process in which the buyer rates
its satisfaction with suppliers, deciding whether to continue,
modifies, or drops

1. Problem Recognition
The process begins when someone in the organization recognizes
a problem or need that can be met by acquiring a good or service.
Problem recognition can occur as a result of internal or external
stimuli. Internal stimuli can be a business problem or need that
surfaces through internal operations or the actions of managers or
employees. External stimuli can be a presentation by a
salesperson, an ad, information picked up at a trade show, or a
new competitive development.
2. General Need Description
Once they recognize that a need exists, the buyers must describe
it thoroughly to make sure that everyone understands both the
need and the nature of solution the organization should seek.
Working with engineers, users, purchasing agents, and others, the
buyer identifies and prioritizes important product characteristics.
Armed with knowledge, this buyer understands virtually all the
product-related concerns of a typical customer.
From a marketing strategy perspective, there is opportunity to influence
purchasing decisions at this stage by providing information about the
nature of the solution you can provide to address the the organization’s
problems. Trade advertising can help potential customers become aware
of what you offer. Web sites, content marketing, and direct marketing
techniques like toll-free numbers and online sales support are all useful
ways to build awareness and help potential customers understand what
you offer and why it is worth exploring. Public relations may play a
significant role by placing stories about your successful customers and
innovative achievements in various trade journals.
3. Product Specification
Technical specifications come next in the process. This is usually
the responsibility of the engineering department. Engineers
design several alternatives, with detailed specifications about
 what the organization requires. These specifications align with the
priority list established earlier.
4. Supplier Search
The buyer now tries to identify the most appropriate supplier (also
called the vendor). The buyer conducts a standard search to
identify which providers offer what they need, and which ones
have a reputation for good quality, good partnership, and good
value for the money.
5. Proposal Solicitation
During the next stage of the process, qualified suppliers are
invited to submit proposals. Depending on the nature of the
purchase, some suppliers send only a catalog or a sales
representative. More complex purchases typically require
submission of a detailed proposal outlining what the provider can
offer to address the buyer’s needs, along with product
specifications, timing, and pricing.
6. Supplier Selection
At this stage, the buyer screens the proposals and makes a choice.
A significant part of this selection involves evaluating the vendors
under consideration. The selection process involves thorough
review of the proposals submitted, as well as consideration of
vendor capabilities, reputation, customer references, warranties,
and so on
7. Order-Routine Specification
The buyer now writes the final order with the chosen supplier,
listing the technical specifications, the quantity needed, the
warranty, and so on. At this stage, the supplier typically works
closely with the buyer to manage inventories and deliver on
agreement terms.
8. Performance Review
In this final stage, the buyer reviews the supplier’s performance
and provides feedback. This may be a very simple or a very
complex process, and it may be initiated by either party, or both.
The performance review may lead to changes in how the
organizations work together to improve efficiency, quality,
customer satisfaction, or other aspects of the relationship.

Concept of buying center,

PARTICIPANTS INORGANIZATIONAL BUYING BEHAVIOR
Users:-
The persons who use the item. Say for safety gloves the
operators.
Initiators:-
The persons who request the purchase. The safety officer may
initiate the request for the purchase.
Influencers:-
Persons who held define specifications. In this case of safety
gloves, the safety officer may himself define specifications. If an
industrial engineer is in the organization, he may also be
consulted. There can a different gloves for different working
situations and industrial engineer may be more aware of specific
requirements due to his special nature of work - human effort
engineering.

Buyers:-
They are the person who actually do the buying transaction.
Gatekeepers:-
They control access to personnel in a company.
The receptionist, the secretaries etc.
Deciders:-
People who decide on product requireements and suppliers. It is
the final approval for product specfications and suppliers' list.
Approvers:-
Persons who approve the purchase. In the case of safety gloves,
the personal manager may have the power to approve.
 Buying motivations,
Buying motives
Reasons or benefits that cause people to purchase products to satisfy their
wants and needs
Definition
Buying motives are defined as ‘all the impulse, desires and
considerations’ which motivate a buyer to purchase a specific product.

Product motives
Product motives are the impulse, desires and
considerations which make people buy a specific
product.
The emotional motives urge the buyer to do
impulsive purchases without reason or logic.
They involve in logical analysis and reasoning of the
purchase before deciding to buy
Operational and socio-psychological motives
• Operational motive: here person buys a product because its a utility for
them.
E.g. A family buys television because they feel it has utility for them
• Socio-psychological motive: here a person buys a product due to status
n the society.
Like a person buys a big car to show his status in the society,

Patronage Motives
• The impulses and influences which make a buyer to buy from particular
shop or brand is patronage motives
• These motives can be rational or emotional.

Types of patronage motives

Emotional motives
The buyer may buy from specific shop without any reasons then
it emotional motives
Rational motives
The buyer may select the shop because he knows that it offers a
wide selection then it is rational motives.

Buying motive is the urge or motive to satisfy a desire or need that

makes people buy goods or services. Behind every purchase there is a
buying motive.

Buying motives are can be divided by the following way:

 Purchasers evaluation of potential suppliers,
Evaluation and Selection Process
 No “one best way”
 Overall objective is to reduce sourcing risk and
maximize value to the buyer
 Need to select suppliers for the long-term

Evaluation and Selection Decisions

 During new product development
 Due to poor existing supplier performance
 At the end of an existing contract
 Buying new equipment
 Expanding into new markets or product lines
 Receiving internal user requisitions
 Performing market tests
 Facing countertrade requirements
 During outsourcing analysis
 Consolidating volumes
 Conducting a reverse auction
 When current suppliers have insufficient capacity
 Reducing supply base size
Identify Key Sourcing Requirements
 May be determined by internal and external customers
 Supplier quality
 Cost
 Delivery performance
 Other
 Vary widely from item to item

Determine Sourcing Strategy

 Single vs. multiple sourcing
 Short-term vs. long-term contracts
 Design support vs. operational support
 Full-service vs. non-full-service suppliers
 Domestic vs. foreign-based suppliers
 Collaboration vs. arm’s length relationship

Identify Potential Sources

 How well existing suppliers can satisfy cost, quality, and/or other performance objectives
 Strategic importance of purchase requirement
 Technical complexity of purchase requirement

Information Search Requirements

Sources of Information
 Current suppliers
 Preferred suppliers
 Sales representatives
 Information databases
 Experience
 Trade journals
 Trade directories
 Trade shows
 Second-party or indirect information
 Internal sources
 Internet searches
Sourcing Alternatives
 Manufacturer vs. distributor
 Vendor-managed inventory
 Integrated supply
 Local, national, or international suppliers
 Large vs. small suppliers
 Capability
 Multiple vs. single sourcing

Limit Suppliers in Selection Pool

 Financial risk analysis
 Ex. Dun and Bradstreet reports
 Evaluation of supplier performance
 For existing suppliers
 Evaluation of supplier-provided information
 Preliminary surveys (entry qualifiers)
 RFIs, RFPs, or RFQs

Method of Evaluation and Selection

 Evaluation from supplier-provided information
 Supplier visits
 Use of preferred suppliers
 External or third-party information

Key Suppliers Evaluation Criteria

 Price, quality, and delivery
 Management capability
 Employees capabilities
 Cost structure
 Total quality performance, systems, and philosophy
 Process and technological capability
 Environmental regulation compliance
 Financial stability
 Production scheduling and control systems
 E-commerce capability
 Supplier’s sourcing strategies, policies, and techniques
 Longer-term relationship potential

Management Capabilities
 Does management practice long-range planning?
 Has management committed to total quality management and continuous improvement?
 How high is management turnover?
 What are the professional and educational backgrounds of key managers?
 What is the organization’s vision?
 Is the company customer focused?
 What is the history of labor-management relations?
 Is the organization making necessary capital investments?
 Is the organization prepared to face future competitive challenges?
 Does management fully understand the importance of strategic sourcing?
Employee Capabilities
 Degree of commitment to quality and continuous improvement
 Overall skills and abilities
 Employee-management relations
 Worker flexibility
 Workforce turnover
 Willingness to contribute to improved operations

Total Cost Structure

 Direct labor costs
 Indirect labor costs
 Material costs
 Manufacturing or process operating costs
 General overhead costs

Challenges of Total Cost Analysis

 Supplier may not understand its true costs
 Unsophisticated cost accounting system
 Cost data is considered proprietary
 Buyer’s knowledge may undermine supplier’s pricing strategy
 Supplier is concerned about potential misuse of its cost data

Total Quality Performance

 Management commitment
 Use of SPC techniques
 Level of defects
 Safety, training, and maintenance
 Use of MBNQA and ISO 9000 criteria

Process and Technological Capability

 Level of technology, design capability, methods used, and equipment
 Current vs. future capabilities
 Resources committed to R&D

Environmental Compliance
 Disclosure of environmental infractions
 Hazardous and toxic waste generation and management
 Recycling management
 ISO 14000 certification
 Control of ozone-depleting substances

Financial Stability
 Often used as a screening process in the initial selection phase
 Risks of a financially weak supplier
 Supplier will go out of business
 Insufficient resources to invest in improved plant and equipment
 Supplier may become too dependent on buyer
 May be an indicator of other problems

Production Scheduling and Control

 Does the supplier use MRP?
 Does the supplier track material and production cycle times?
 Can the supplier support the buyer’s JIT initiatives?
 What are the supplier’s real lead times?
 What is the supplier’s on-time delivery performance?

E-Commerce Capability
 Web-based B2B vs. EDI systems
 Does the supplier have CAD capability?
 Does the supplier use bar coding?
 Does the supplier use RFID?
 Can the supplier provide ASNs?
 Can the supplier accept EFT transfers?
 Does the supplier utilize e-mail?

Supplier’s Supply Base Strategies

 Tier 1 vs. Tier 2 vs. Tier 3 suppliers
 Sharing of information
 Level of supplier development activities in the supplier’s own supply base

Potential for Long-Term Relationships

 Is the supplier willing to participate?
 Can the supplier commit necessary resources?
 When in the design phase can the supplier participate?
 How is the supplier unique?
 Can the supplier participate in joint problem solving and improvement?
 Will there be free and open information sharing?
 Will the supplier engage in future planning?
 Can the supplier maintain the buyer’s need for confidentiality?
 What is the general level of comfort between the parties?
 How well does the supplier understand the buyer’s industry and business?
 Will the supplier share cost data?
 Is the supplier willing to share innovation data early?
 Can the supplier commit to dedicated capacity?
 What is the supplier’s commitment level?

Evaluation and Selection Surveys

 Identify supplier evaluation categories
 Assign a weight to each category
 Identify and weight subcategories
 Define a scoring system for categories and subcategories
 Evaluate supplier directly
 Review results and make decision

Critical Supplier Selection Issues

 Size relationship
 Use of international suppliers
 Competitors as suppliers
 Countertrade requirements
 Social objectives

Reducing Selection Cycle Time

 Map the existing process
 Integrate with internal customers
 Data warehouse with supplier information
 Third-party support
 New organization design features
 Preferred supplier list
 Electronic tools
 Predefined contract language and shorter contracts

A Good Supplier Does the Following:

 Builds quality into the product, aiming for zero defects
 Makes delivery performance a priority
 Demonstrates responsiveness to a buyer’s needs
 Works with the buyer to reduce lead times
 Provides the buyer with capability and workload information
 Creates the future
 Reinvests part of its profits into R&D with a long-term view
 Meets stringent financial stability criteria when evaluating new customers
Environmental influence on organizational buying process.
I. Environmental Factors
Environment factors affect organizational buying behavior. This
includes economic, technological, political-legal, social
responsibility and competition.

1. Economic Factors

Economic factors affect organizational buying behavior. This

includes level of demand and economic health. The level of
demand includes capacity and desire for buying goods. This is
affected by income distribution and price of product. Prosperity,
recession and recovery are included in economic health. The
prosperity condition is economically good condition. Recession is
economically bad condition.

2. Technological Factors

Technological factors also affect organizational behavior. This

includes level of technology, pace of technology, technology
transfer etc. E-commerce as well as information technology has
got revolutionary change. It has directly affected organizational
buying behavior.

3. Political and Legal Factors

Political and legal factors also affect organizational buying

process directly. Political factors include political system,
political situation, and political thought, government policies
etc. whereas constitution, laws, rules and regulations etc. are
included in legal factors.

4. Social Responsibility

A business organization should consider social responsibility while

buying any goods or services. Indigenous goods should be given
preference in buying and interest of society should be protected.
Interest of different pressure group of the society also should be
considered while buying goods or services.

5. Competition
Competition also affects buying behavior. This competition
includes pure competition, monopolistic competition and
oligopoly competition.

II. Organizational Factors

Organizational factors also affect organizational buying behavior.

This includes objectives, policies, procedures, organizational
structure and system.

1. Objectives

Buying objective is determined according to organizational goal.

Goods should be purchased according to organizational objective.
As goods or services need to be purchased according to
organizational goal, buying is affected by objective.

2. Policies

Purchasing or buying policy also effects organizational buying

behavior. Goods should be purchased according to buying policy
of the organization. If the organization has the policy of buying
indigenous goods, the buyer cannot buy foreign goods. If the
purchasing policy is silent in this matter, whichever goods,
foreign or indigenous, can be purchased as desired.

3. Procedures

The methods and process adopted by an organization to buy

goods or services is called procedure. Goods or services can be
purchased directly through agreement, or through tender,
demanding catalog etc. Any of the method can be adopted to buy
goods or services. Whichever procedure the organization has
adopted, the buyer should follow it.

4. Organizational Structure

Organizational structure defines authority and relations which

directly affects buying behavior. In some organizations, goods or
services are purchased by direct order of chief executive while in
some other organizations, goods or services are bought through
purchase department. So, buying behavior is affected by
organizational structure.
5. System

Purchasing system also directly affects buying behavior. An

organization can adopt any one or more such as centralized
system, decentralized system, huge quantity purchase system
and others.

III. Interpersonal Factors

Interpersonal factors also affect buying behavior. This includes

authority, status, interest etc.

1. Authority

The personnel whom the organizational structure gives authority

to order for purchase, no goods can be purchased without his
order. Buying decision of such authority plays an important role
in buying.

2. Status

The persons to purchase goods or services and to give order for

purchase may be different in an organization. As much the
behavior of the person issuing purchase order affects behavior of
the buyer. If the status or level of the buyer is high, his buying
decision becomes rational and quick. His/her behavior becomes
mature.

3. Interest

Users, influencers, buyers, decider and gate keeper are involved

in organizational buying process. Their interest affects
organizational buying process. As their interest becomes
different, buying process may be complicated.

IV. Personal Factors

Personal factors also affect buying behavior. This includes age of

person, education, level of job, personality etc.

1. Age
Age of person also affects selection and priority. Younger persons
make buying decision and supplier selection quicker than older
aged persons. Similarly, the younger persons try to find new
suppliers whereas older persons try to give continuation to the
same who is supplying. So this also affects buying process.

2. Education

Education makes person able to analyze good or bad. So, an

educated person takes buying decision rationally whereas
uneducated person makes buying decision at hit and miss or
hunch. Educated person selects goods or services carefully. So,
buyer’s education also affects organizational buying behavior.

3. Job Position

Job position also shows a person’s status. Buyer’s position or

status also affects his buying behavior. Buyer’s status may be low
or high.

4. Personality

Personality of person working in an organization may be

different. Personality affects selection of quality, brand, price
etc. So, buyer’s personality also affects organizational buying
behavior.

5. Risk Attitude

Risk bearing capacity of men becomes different. Some can bear

more risk and others like to take less risk. Similarly, some like to
avoid risk and some others like to face. The capacity and attitude
to bear risk also affect buying behavior. The buyers having the
capacity to take high risk become aggressive. But those having
less risk bearing capacity and having no risk bearing capacity do
not do so.

MAJOR INFLUENCES ON BUSINESS BUYERS

Environmental factors:-
Expected demand for the product that the buying organization is
selling, expected shortages for the item, expected changes in
technology related to the item etc. are the environmental factors
that will have an effect.
Organizational factors:-
Changes in purchasing department organization like centralized
purchasing, decentralized purchasing and changes in purchasing
practices like long-term contracts, relationship purchasing, zero-
based pricing, vendor-performance evaluation are the organization
factors of importance to marketers.

Interpersonal factors:-
These factors are the relationship between buyers and sales
representatives of various competitor companies.
Individual factors:-
These factors related to the buyer. What sort of ways of interacting
and service are appreciated by the buyers and what ways are
considered as irritants? Marketers

Marketing information system for organizational market

Marketing Information System
• A marketing informationsystem (MkIS) is:
• Designed specifically for managingthe marketing aspects of a
business
• Intended to bring together disparate items of data into a
coherent body of information
A marketing information system (MkIS) is a continuing and
interacting structure of people, equipment and procedures to
gather, sort, analyze, evaluate and distribute needed,timely and
accurate information for use by marketing decision makers
toimprove their marketing planning, implementation, and
control.
• Assess the informationneeds
• Develop neededinformation
• Analyze information
• Distribute information
Features of Marketing InformationSystem
• Continuous System
• Permanent and continuous systemof collecting information
• Basic Objective
• To provide the right informationat the right time to the right
people to help them take rightdecisions
• Computer-Based System
• Uses computer, so is up-to-date and accurate
• Future-Oriented
• Provides information for solvingfuture problems
• Used by alllevels
• Usedby all three levels of management
• Sources
• Collects information from bothinternal and external sources
• Collects Marketing Information
• Information about consumer competition, marketing
environment,etc.
•HelpsinDecision-Making
• Supplies up-to-date and accurate information that helps take
quickand right decisions

Role of marketing information system in DM

To improve the efficiency of a company’s operations
To collect information about the need of the consumers
To provide pertinent DM information to marketing managers on
regular basis
Helps recognize trends and changes
Analyzes marketing information and gathers it from sources
inside and out an organization
Facilitates marketing planning and control
Provides marketing intelligence for the organization
Components of marketing information sysytem

A. Internal Reporting System

The internal reporting systems enable a company to always be aware of
how they are performing as a team and what issues may need addressing.
Marketing managers get lots of information from the internal-records of
the company. These records provide current information about sales,
costs, inventories, cash flows and account receivable and payable. Many
companies maintain their computerized internal records.
The internal records that are of immediate value to marketing decisions
are: orders received, stockholdings and sales invoices.
Most marketing managers use internal records and reports regularly,
especially for making day-to-day planning, implementation and control
decisions.
Internal records information consists of information gathered from
sources within the company to evaluate marketing performance and to
detect marketing problems and opportunities.
B. Marketing Intelligence
System
The marketing intelligence systems are used to deal with the costs of
running a marketing department and a business as a whole. It will process
all the facts and figures delivering what needs to be spent where and what
may be using too much money.
It collects information from external sources. It provides information
about current marketing-environment and changing conditions in the
market.
This information can be easily gathered from external sources like
magazines, trade journals, commercial press, trade press, census, so on.
This information cannot be collected from the Annual Reports of the
Trade Association and Chambers of Commerce, Annual Report of
Companies, etc. The salesmen’s report also contains information about
market trends. It can also gather information from Sales Force, Dealers
and Distributors, and suppliers.
The information which is collected from the external sources cannot be
used directly. It must be first evaluated and arranged in a proper order. It
can be then used by the marketing manager for taking decisions and
making policies about marketing.
Marketing Research Systems
• systems allow a company to really find out what their
customers/potential customers think of the current trends and
their views on certain items, or polices.
• can also delve into a customer's habits in the hope the company
can spot a gap in the market or service
• can gather quantitative andqualitative information
• provides information to themarketing managers
• conducted to solve specificmarketing problems of thecompany
• a proactive search forinformation

Marketing Models
• act as a concept or theory and a lot of campaigns will be built
with this guidance inmarketing
• tools which help the marketingmanagers to analyze data and to
take better marketing decisions

These tools are:

• Time series salesmodels
• Brand switching models
• Linear programming
• Elasticity models (price, incomes, demand, supply,etc.)
• Regression and correlationmodels
• Analysis of Variance (ANOVA)models
• Sensitivity analysis
• Discounted cashflow
• Spreadsheet 'what ifmodels
Three levels of decisionmaking:
1. Strategic decisions are characteristically one-off situations. This
level of decision making is concerned with deciding on the
objectives, resources and policies of the organisation.

2. Control decisions deal with broadpolicy issues. Such decisions

are concerned with how efficiently and effectively resources are
utilised and how well operational units areperforming.

3. Operational decisions concern the management of the

organisation's marketing mix. These involve making decisions
about carrying outthe "specific tasks set forth by strategic
planners and management.
Distinguish between MKIS and Marketing Research (MR)
 Advantages of MKIS

Market Monitoring
MkIS helps managers to recognize marketing trends. The changing trends
may be in respect of prices, product
design, packaging,
promotion schemes, etc.
Strategy Development
MkIS provides the information necessary to develop marketing strategy.
Provides the foundation for the development information system-
dependent e-commerce strategies.
Facilitates Marketing Planning and Control
Effective market planning is required in terms of product planning,
pricing, promotion and distribution.
Quick supply of information
A firm has to take quick decision for this purpose; it requires fast flow of
information which is facilitated by a properly designed MkIS.
Quality of DM
In every aspect of marketing, there is need to make constant and correct
decisions. A properly designed marketing information system promptly
supplies reliable and relevant information.
Tapping of business opportunities
MkIS makes it possible to tap business opportunities as it can supply
required and reliable data.
Provides Marketing Intelligence
Marketing intelligence refers to information of the events that are
happening in the external environment, i.e., changes in customer tastes,
expectations,competitor’s strategies, gov’t. policies, international
environment, etc. with the help of MkIS specialists, it is possible to
collect marketing intelligence which is vital to make effective marketing
decisions.
Help managers to recognize change
A firm which is well equipped with MkIS will be able to realize the need
to change the line of business.
Integration of Information and Functional Integration
Firms, which are largely decentralized can gather information which is
scattered at many centers or departments and integrate it for effective
decision making.
Strategy Implementation
MkIS provides support for product launches, enables the coordination of
marketing strategies, and is an integral part of sales force automation
(SFA), customer relationship management (CRM), and customer service
systems implementations.
Builds relationship within the organization
MkIS brings together many different kinds of data, people, equipment,
and procedures to help an organization make better decisions.
Convenient Storage
MkIS can organize data collection and store these important data for over
several time periods.

ESSENTIAL REQUISITES OF A GOOD MKIS

Unified and centralized:
 MkIS must be unified and centralized.
Facilitate decision making:
 MkIS must facilitate decision making.
Quick and accurate information:
 MkIS must provide quick and accurate information.
Economical:
 MkIS must be economical.
Selective:
 MkIS must be selective.
Future-oriented:
 MkIS must be forward looking i.e. futureoriented.
Supply information regularly:
 MkIS must supply information regularly.
Use new techniques:
 MkIS must use new techniques for collecting, analyzing, storing and
supplying information.
 3. Business Marketing Planning:

planning process,

Business Marketing plan

A Business Marketing plan is very important for any product or
company, in order to achieve individual and organizational goals. A
Business Marketing plan is a drafted document which gives the overall
summary of the market. It clearly states how the firm plans to achieve its
goals as planned. It also contains detailed guidelines regarding how the
product will perform in each life cycle and the budget allocated for the
same. And of course, it should be achievable and must be able to
respond positively to changing market conditions.

Marketing Planning Process

Steps 1. The first step involves develop the action plan

• Make vision and set your goals
• According to mission statement
• Company objectives
Before moving towards the other steps of planning strategy and
implementing it, the first and for most need to make your product
successful, is to make a keen observation of the company’s objective. So
the most prior stage of marketing planning process is to set your goals
that where you want to reach. You should know your ultimate
destination, your company’s vision for your product that who you are
and where you expect to reach. In the first step of planning process you
should carefully understand the company’s mission.
2. Analyze your present situation by
• By analyzing and auditing market
• SWOT Analysis
The second step of marketing planning process includes the
overview and examination of your present condition. It is a part of
strategic and long term planning process to see your current
position, your resources and view the market in which you are
moving. Layout your resources, evaluate them along with
evaluating other external and internal factors. Determine the
environmental risks and favors attach with the launching of your
product.

3. Developing Marketing Strategy

• Marketing mix
• Creating marketing strategy and objectives
• Communication means & vehicles
• Analyze alternative methods and procedures for marketing
available

This stage of Marketing Planning process involves making of

marketing objectives and marketing strategies to accomplish the
 overall company’s objective. This step includes analyzing all the
marketing tactics available for the best promotion of the product.

This phase will help you to make selection of different marketing

strategies and will help you to identify what tactics you can apply
to approach your target market. This part of planning will guide
you towards the market segment you opt to reach, will also direct
you that how you have to reach your desired segment by opting
the right communication mode and how you want to position your
product.

4. Employing, Executing and Evaluating the Planning Process

• Make budget
• Allocate resources & implement
• Monitoring & Overview

This is the milestone of any planning process because it includes

the operational level activities. In this stage you have to allocate
your resources, make budget for the implementation of the above
discussed strategies and make the action plans. You have to
consistently monitor and overview you marketing plan based
upon the customer’s opinion and feedback. So make regular
review of your promotional plan.
 Demand analysis,

https://www.scribd.com/presentation/29970658/Market-and-
Demand-Analysis-SVPITM

Demand analysis is a research done to estimate or find out the customer

demand for a product or service in a particular market. Demand analysis
is one of the important consideration for a variety of business decisions
like determining sales forecasting, pricing products/services, marketing
and advertisement spending, manufacturing decisions, expansion
planning etc. Demand analysis covers both future and retrospective
analysis so that they can analyse the demand better and understand the
product/service's past success and failure too.

Segmenting, Targeting and Positioning,

 Steps in market segmentation, targeting and positioning
Market Segmentation
● Identify bases for segmenting the market
● Develop segment profiles
Target Marketing
● Develop measure of segment attractiveness
● Select target segments
Market Positioning
● Develop positioning for target segments
● Develop a marketing mix for each segment

Definition
Market Segmentation:
●Dividing a market into distinct groups with distinct needs,
characteristics, or behavior who might require separate products or
marketing mixes.
Segmenting Consumer Markets
Geographical segmentation
Demographic segmentation
● Most popular segmentation
Psychographic segmentation
● Lifestyle, social class, and personality-based segmentation
Behavioral segmentation
Geographic Segmentation Variables

• World region or country

• U.S. region
• State
• City
• Neighborhood
• City or metro size
• Density
• Climate
Demographic Segmentation Variables
• Age
• Gender
• Family size
• Family life cycle
• Income
• Occupation
• Education
• Religion
• Race
• Generation
• Nationality
Behavioral Segmentation Variables
• Occasions
• Benefits
• User Status
• Attitude Toward
the Product
• User Rates
• Loyalty Status
• Readiness Stage
Segmenting Business Markets
Demographic segmentation
● Industry, company size, location
Operating variables
● Technology, usage status, customer capabilities
Purchasing approaches
Situational factors
● Urgency, specific application, size of order
Personal characteristics
● Buyer-seller similarity, attitudes toward risk, loyalty
Segmenting International Markets
Geographic segmentation
● Location or region
Economic factors
● Population income or level of economic development
Political and legal factors
● Type / stability of government, monetary regulations, amount of bureaucracy, etc.
Cultural factors
● Language, religion, values, attitudes, customs, behavioral patterns
Requirements for Effective Segmentation
Measurable
● Size, purchasing power, and profile of segment
Accessible
● Can be reached and served
Substantial
● Large and profitable enough to serve
Differentiable
● Respond differently
Actionable
● Effective programs can be developed
Target Marketing
Target Market
●Consists of a set of buyers who share common needs or
characteristics that the company decides to serve
Evaluating Market Segments
● Segment size and growth
● Segment structural attractiveness
● Level of competition
● Substitute products
● Power of buyers

● Powerful suppliers

● Company objectives and resources

Selecting Target Market Segments
● Undifferentiated (mass) marketing
● Differentiated (segmented) marketing

● Concentrated (niche) marketing

● Micromarketing (local or individual)

Choosing a Target Marketing Strategy

Considerations include:
● Company resources
● The degree of product variability

● Product’s life-cycle stage

● Market variability

● Competitors’ marketing strategies

Target Marketing
Socially Responsible Targeting
● Some segments, especially children, are at special risk
● Many potential abuses on the Internet, including fraud Internet

shoppers
● Controversy occurs when the methods used are questionable

Positioning
Positioning:
● The place the product occupies in consumers’ minds relative to competing
products.
● Typically defined by consumers on the basis of important attributes.

● Involves implanting the brand’s unique benefits and differentiation in the customer’s

mind.
● Positioning maps that plot perceptions of brands are commonly used.

Choosing a Positioning Strategy

 Identifying possible competitive advantages
 Differentiation can be based on
● Products
● Services
● Channels
● People
● Image
Choosing the right competitive advantage

• How many differences to promote?

●Unique selling proposition
●Several benefits
• Which differences to promote? Criteria include:
●Important
●Distinctive
●Superior
●Communicable
●Preemptive
●Affordable
●Profitable

Choosing a positioning strategy

• Value propositions represent the full positioning of the brand

• Possible value propositions:
●More for More
●More for the Same
●More for Less
●The Same for Less
●Less for Much Less
Developing a Positioning Statement
Positioning statements summarize the company or brand
positioning
● EXAMPLE: To (target segment and need) our (brand) is (concept)
that (point-of-difference)
Communicating the Positioning
Companies must be certain to DELIVER their value
propositions.
Positions must be monitored and adapted over time.
 Industrial product strategy and Product policy,

https://www.slideshare.net/shamshad60/product-strategies-
2337104

https://www.scribd.com/presentation/258241916/8-Industrial-
Product-Strategy-ppt

New product development,

Definition
 New product development (NPD) is the complete process of bringing
a new product to the market till its consumption & feedback from the end
user.
 It may be a Consumable product, service or idea.
 New product development (NPD) is the complete process of bringing
a new product or service to market.
 New product development may be done to develop an item to compete
with a particular product or may be done to improve an already
established product.

What is Product Development

 Product development means making changes in the size,
design, color, shape, characteristics, packing etc. of the product.
 It may include addition of a new product line, addition of a
new product item in a particular product line, elimination of
existing product or product line & changes in the size, color,
design, packing, characteristics, and prices of the product &
discontinuation of the unprofitable item or product line.

Agenda
1.  Idea Generation
2.  Idea Screening
3.  Market Research
4.  Concept Testing
5.  Prototype Development
6.  Test Marketing
7.  Product Launch

Why New Products?

 New product development is essential to any business that must keep
up with market trends and changes.
 Approximately one-third of the revenue a business generates is coming
from products they did not sell five years ago
 Changing environment creates new demands and needs
New Products necessity
 A way of getting new and keeping old customers
 Effective way of obtaining a competitive advantage
 Source of growth and excitement

New Product Categories

  New to the world products
  New product lines
  Product line extensions
  Improvements and revisions to existing products
  Repositioning's
  Cost reductions

Product Development Process

Idea Generation
The new product development process starts with the search for ideas.
Consumer’s problems are the most effective ground for the generation
of new product ideas. New product ideas come from interacting with
various groups.

An important source of new product idea is customers needs and wants.

 There are two types of source of idea generation
  Internal Source
  External Source
Idea Screening
The purpose of screening stage is to drop poor ideas as early as possible.
Thus an idea committee is formed to classify the proposed
ideas.
In screening ideas, the companies normally face 2 serious errors & they
must try to avoid these mistakes as far as possible, those 2 serious errors
are:
DROP ERROR & GO ERROR. Let’s clarify:

DROP ERROR: error which occurs when the company rejects one really
good idea having potential.
GO ERROR: error which occurs, when the company permits & facilitates
a poor idea to move onto further development stages &
commercialization.
Marketing
  Very important to product development success
  Key to successful marketing is imaginative, effective, creative communication
  Find a need and fill it.
  Mutually beneficial exchange relationships
Marketing Strategies
 Increase the number of customers
 Increase the average transaction
 Increase the frequency of repurchase
Market Research
 Who is my target audience?
 Are there enough members of this target group to make the business worthwhile?
 How large is the potential market and how much of that potential market I can
capture?
 Who is my competitor and what would make someone choose my product over
their current?
 Does the product meet a genuine need.
 Does the market accept the new product.
Determine opportunity

 Segment size
 
 Annual usage potential
 
 Analyze annual growth rate
 
 Margin
Evaluate competition

 Strengths/Limitations
 
 Implications
Concept Testing
Concept testing is the process of using quantitative and qualitative
methods to evaluate consumer response to a product idea prior to the
introduction of a product to the market.
Concept testing helps the company to choose the best among the
alternative product concepts.

Determine

 Critical success factors
 
 Financial objectives
 
 Marketing mix strategies

 Product, Pricing, Promotion, Placement

 Marketing plan initiatives

 Activity, Budget, Timing
Prototype Development
 Prototype development is the process of preparing a device, technique
or system that demonstrates a solution to a problem.
For-
 1) Experimentation and learning in the product development process
 2) Testing and proofing product concepts
 3)Communicating concepts to the product development team members,
management and customers.
Test Marketing
 Test marketing is an experiment conducted in a field laboratory ( test
market) comprising of actual stores and real-life buying situations,
without the buyers knowing they are participating in an evaluation
exercise.
 Test marketing duration may few weeks to several months.

Promotion and Product Launch

  Publicity
 Trade journals
 Conferences
  Personal selling
  Through any other promotion tools
Advertising ,Direct marketing, Event and
Activity, Celebrity Endorsement

Reasons For New Product Failures

  Poor marketing research
  Technical problems
  Insufficient marketing efforts
  Bad timing
  The wrong group was targeted.
  Unrealistic forecast.
  Insufficient level of awareness.

1. generation of new product ideas

2. screening of ideas
3. business analysis
4. product development
5. test marketing
6. full-scale commercialization

Factors Influencing Product Adoption

Relative advantage (+)
Compatibility (+)
Trialability/divisibility (+)
Observability (+)
Complexity (-)
Price (-)

Theory of International Product Life Cycle (IPLC)

Stage 0--Local Innovation
Stage 1--Overseas Innovation
Stage 2--Maturity
Stage 3--Worldwide Imitation
Stage 4--Reversal

Product Standardization vs. Product Adaptation

 Arguments for Standardization

- simplicity and cost
- consistent company or product image
- musical recordings and works of art
- industry specifications
- cultural universals
 Arguments for Adaptation
- big-car syndrome
- left-hand-drive syndrome

Mandatory Product Modification

 Government regulations
 Electrical current standards
 Measurement systems
 Operating systems

Optional Product Modification

 Physical distribution
 Local use conditions
 Climatic conditions
 Space constraint
 Consumer demographics as related to physical appearance
 User's habits
 Environmental characteristics
 Price
 Limiting product movement across national borders (gray
marketing)
 Historical preference or local customs and culture

International Product Strategies

 Standardized Product
- Domestic product introduced internationally, with minor or no
modification
- Efficient but not effective
 Localized Product
- Domestic product adapted for foreign markets
- Product designed specifically for foreign markets
- Effective but not efficient
Global Product
- Product designed with international (not national) markets in mind
- Product having universal features
- Product being adaptation-ready, when necessary
- Both efficient and effective

https://www.slideshare.net/khanfazalkhan9/new-product-
development-npd
Managing business services,
 PLC of industrial products.

https://kkhsou.ac.in/eslm/E-SLM-for-Learner/4th
%20Sem/Master%20Degree/MBA_4th_SEM/Industrial%20Rural
%20Marketing/Indus_Rural_Mar_B1.pdf
 4. Managing Business Marketing Channels:
Importance of Channel Component
• Selecting the channel design mix is challenging
1. Marketing goals differ between channel members
2. Business markets segments vary, thus it may require
numerous channels concurrently
3. Business market environment constantly changes 4
4. Customer requirements change

Managing the Channel

• Once a channel structure is specified and goals set,
marketing managers need to:
1. Develop procedures for selecting intermediaries
2. Motivate them to meet goals
3. Resolve conflict between them
4. Evaluate performance

Distribution Channel
• The link between the manufacturer and the customer is
called the Channel of Distribution.
• The channel accomplishes all the tasks necessary to get
the product/service to market
• Tasks can be performed by the manufacturer or be
delegated throughout the channel

Channel Tasks
• Contacting potential buyers
• Negotiating
• Selling
• Contracting
• Transferring title
• Training
• Financing
• Servicing the product
• Inventorying
• Transporting
• Storage

direct and indirect distribution,

Direct Channels
Direct is when the manufacturer performs all the marketing
functions.
• In direct distribution system the marketer reaches the
target consumer directly without the use of any
intermediary.
• The distribution chain is small and no other party can
take ownership of the product being distributed.
• The direct distribution system can be further sub-divided
on the basis of the methods of communication that takes
place during sale between marketer and consumer.

Indirect Channels
• Indirect is when some type of intermediary sells or
handles the product.
• In indirect distribution system the marketer includes
intermediaries or other members in his distribution chain.
• These resellers make sure the product reaches the end
user, while performing their duties they take complete
ownership of the product.
• However the reseller may sell products on a consignment
basis wherein the reseller pays for the product only when
the product is sold.
• The resellers may be expected to take up a few
responsibilities to help boost the sales of the product.

B2B Marketing Channels

 Direct Sales Force Required When:
• Sale is complex
• Product/service is highly customized
• Customers are large
• Products are complex
• Sales involve extensive negotiations
• Professionalism is required
• Customer requires direct contact
• Then, seller must control the process to ensure proper
implementation of total product package and to guarantee
quick responses to market conditions.

Indirect Distribution Found Where…

• Markets are fragmented and widely dispersed.
• Low transaction amounts prevail.
• Buyers typically purchase a number of items.

Direct methods include the following: 

Direct Marketing Systems
• In this system the consumer buys the product based on
information gained from impersonal contact with the
marketer like by visiting the marketer's website or
ordering from the marketer's catalogue.
• Or he buys based on information gathered through some
personal communication with a customer service personnel
who is not a salesperson and can be reached through a toll-
free number. 
Direct Retail System
• In this type of system the marketer operates his own
retail stores. A perfect example of this system is
Starbucks.

Direct methods 
Personal Selling Systems
• In this system the distribution of the product is carried
forward by people whose main responsibility is creating and
managing sales (for instance a salesperson).
• He persuades the buyers into placing an order.
• The sales person plays a vital role here in generating
sales.
Assisted Marketing System
• In this form of distribution system the marketer handles
the distribution of his product and helps it reach directly
to the end user.
• However he needs assistance from others to spread
awareness about his product among the customers.
• An example of assisted marketing system is e-bay, here
the buyers and sellers are brought together for a fee.
Agents and brokers can also be included in this category
Advantages of direct distribution systems 
No loss of margin through intermediaries
• As intermediaries are providing the business with a
service, they are going to charge for it.
• Direct distribution effectively cuts out the middlemen
and enables businesses to be more competitive on price. 
Complete control over the distribution/sales process
• Some products are very complex, that service a niche
selection of customers. These products can be explained and
sold better through the companies marketing and sales team
than intermediaries.
• Direct distribution allows company employees to build
relationships directly with customers. Which could possibly
be stronger, and allow for better supply chain management,
and the possibility for co-developed to occur.
 Indirect methods include the following: 
Single-Party Selling System
• In this system the marketer involves another party to
sell and distribute his product to the end user.
• An example can be when the product is sold through large
store-based retail chains or through online retailers. In
this case the distribution system is also referred to as
trade selling system. 
Multiple-Party Selling System
• In multiple-party selling system the distributor involves
two or more reseller in the distribution process before the
product reaches the end user.
• This is most likely to happen when a wholesaler buys the
product from the manufacturer and then sells it to the
retailer.

Advantages of indirect distribution channels 

Allows penetration of fragmented/widely dispersed markets
• The organisation may only have contacts in a localised
geographical area, and it maybe difficult to penetrate
markets outside of that area, due to a lack of
contacts/external market knowledge.
• Intermediaries will help to connect buyers and sellers
from wider geographic regions due to the knowledge and
connections that intermediaries can provide. 
Increases profitability by making low transaction amounts
viable
• Due to the limitations of capacity with in house
marketing/direct distribution it is sometimes only viable
to work on large client orders.
• The payment mechanism that some intermediaries use, e.g.
percentage of sales makes smaller clients more viable.
Eases logistics for buyers who purchase a number of
different items
• General line distributors can stock a broad array of
industrial goods, for example industrial cleaning products.
• This allows for one stop shopping and saves buyers having
to order specific goods from multiple companies.

Primary Intermediaries
• There are two primary intermediaries:
1.Industrial distributors
2. Manufacturers’ representatives
• These two groups handle a very sizeable share of B2B
sales.

Echannels,

• There are a number of different distribution channels

available on the Internet which could be utilised
efficiently.
1. Social networks (Facebook, Myspace, Friendster)
• The current trend of the Internet is social interactions,
and the trend is here to stay for a while.
• Multi-million corporations are in the hunt to acquire
popular social networking sites because they understand the
potential and the impact social networking has on Internet
users.
• Treating social networks such as Facebook and Myspace as
your distribution channels mean reaching to more people and
increasing awareness of your website.
2. Social bookmarks (del.icio.us, Stumble Upon, Digg)
•Social bookmarks enable users to share, organise and store
URLs of websites they like and/or find useful.
• And because social bookmarks are created by users who
understand the content of the website they bookmark, it
makes it easier for other users to find stuff related to an
interest.
3. Social media (YouTube, Flickr, Podcasts)
•As with social networks and social bookmarks, social media
has become increasingly popular among Internet users for
the same reasons.
•Using a social media like YouTube or Flickr as a medium to
promote your business could bring a lot of traffics to your
website.
4. Blogs
•Blogs are popular because they provide up-to-date
information and enables readers to engage in discussions
via comments.
•By using blog as a distribution channel, businesses can
build a loyal readership and interact with their customer
base.
5. Widgets and gadgets (Yahoo! widgets, Google gadgets,
Facebook APIs)
•Widgets and gadgets deliver dynamic and updated content to
the users at any time.
•They leverage the website’s content to create new
opportunities, extend users and strengthen the presence of
your brand.
6. Browser extensions
•Browser extensions such as customised search engine, add-
ons, and toolbars provide users with an easy access to your
website and the functionalities that it offers instantly
from their favourite browser.
•It is an effective distribution channel for both the
business and end users as it maximizes access and
visibility for both parties.
7. Search engines
•According to a survey conducted in 1998 by Georgia
Institute of Technology, 85% of users found websites
through search engines (Tri-Media).
•Therefore, the power of search engine optimisation (SEO)
and search engine marketing (SEM) should be used to drive
targeted and qualified traffic to your website and improve
visibility of your business.
Distributors,

Distributors
Industrial Distributors are:
•Generally about 75% of all business marketers sell some
product through distributors.
•Most are small, independent businesses serving narrow
geographic markets.
•Distributors are full-service intermediaries, that is they
take title (carry inventory) for the products they sell.
•They provide credit, deliver, offer an assortment, offer
technical skills, maintain customers and find new ones.
•They employ both inside and outside sales people.

Distributors are in every industry.

•Food and Beverage
•Maintenance, Repair and Operations supplies
•Hardware, Electronics and Fabrication
•Furniture, Clothing, and Personal products

Distributor Classification 
General-Line Distributors
• Stock extensive variety of low tech (commodity) products

Specialists
• Focus on one or few related lines geared around high tech
or industries demanding complex customer requirements 
Combination House
• Operates in two markets: industrial and consumer

Manufacturer representative,
• Manufacturers’ Reps fill a different role than
Industrial Distributors. They:
• Perform a much higher level of service.
• Are more technically advanced
• Know their territory better
• Are able to sell professionally
• Are experienced in the industry
• Usually represent several companies
• Used by small, medium and large firms.
• Often, small and medium firms cannot support a full time
salesperson.
• Large firms use them to supplement their direct force for
introducing new products to an area not covered by their
sales force.
• The main reason for using Reps is because it is
economically correct to do so. Little or no training costs,
no benefits, no outrageous risks, and Reps are highly
motivated vs. employees.

Manufacturer’s Rep’s are used when

1. Reps do not take title nor hold inventory
2. Reps are normally paid commission, however deals can be
made to be paid a monthly minimum
3. Commission rates can range from 3%, 20% or more
4. Gross margin is not large
5. Relatively few customers or concentrated geographically
or concentrated in few industries
6. Customers order relatively infrequently and allow fairly
long lead times
Channel design and administration.

https://b2bdistribution.wordpress.com/
 Concept of logistics and supply chain management in
business marketing.
https://talkforbiz.com/marketing-logistics-supply-chain-
management257-2/

Pricing strategy for business markets

https://www.slideshare.net/pkraan/pricing-strategies-for-
small-business

Competitive bidding and leasing,

COMPETITIVE BIDDING AND LEASING
Industrial marketing often involves competitive tendering
(see tender, tendering). This is a process where a purchasing
organization undertakes to procure goods and services from
suitable suppliers. Due to the high value of some purchases (for
example buying a new computer system, manufacturing
machinery, or outsourcing a maintenance contract) and the
complexity of such purchases, the purchasing organization will
seek to obtain a number of bids from competing suppliers and
choose the best offering. An entire profession (strategic
procurement) that includes tertiary training and qualifications has
been built around the process of making important purchases. The
key requirement in any competitive tender is to ensure that...

 The business case for the purchase has been completed and

approved.
 The purchasing organization's objectives for the purchase
are clearly defined.
 The procurement process is agreed upon and it conforms
with fiscal guidelines and organizational policies.
 The selection criteria have been established.
 A budget has been estimated and the financial resources are
available.
 A buying team (or committee) has been assembled.
 A specification has been written.
 A preliminary scan of the market place has determined that
enough potential suppliers are available to make the process
viable (this can sometimes be achieved using an expression of
interest process).
 It has been clearly established that a competitive tendering
process is the best method for meeting the objectives of this
purchasing project. If (for example) it was known that there was
only one organisation capable of supplying; best to get on with
talking to them and negotiating a contract.
Because of the significant value of many purchases, issues
of probity arise. Organisations seek to ensure that awarding a
contract is based on "best fit" to the agreed criteria, and not
bribery, corruption, or incompetence.

BIDDING PROCESS:-

Suppliers who are seeking to win a competitive tender go through

a bidding process. At its most primitive, this would consist of
evaluating the specification (issued by the purchasing
organization), designing a suitable proposal, and working out a
price. This is a "primitive" approach because...

 There is an old saying in industrial marketing; "if the first time

you have heard about a tender is when you are invited to
submit, then you have already lost it."
 While flippant, the previous point illustrates a basic
requirement for being successful in competitive tendering; it is
important to develop a strong relationship with a prospective
customer organization well before they have started the formal
part of their procurement process.

Bidding
After the information about the project has been distributed to
contractors, the bidding process begins. The bidding process can
differ, depending on the rules set by the client. In some cases,
sealed bids will be submitted and the customer will evaluate them.
In other cases, a more informal bidding process will be involved in
which contractors simply give a total amount that they can do the
job for.
Reviewing the Bids
The customer will typically set a deadline on when the last bids will
be accepted. Once that deadline is reached, the customer will
begin reviewing the bids. The length of time that it takes to review
the bids could vary, depending on the number of bids received.
Awarding the Contract
After the bids have been thoroughly reviewed, the customer will
award the contract to one bidder. In most cases, the bidder with
the lowest bid wins. In some situations, the bidder will award the
contract not only on price but other factors as well. For instance,
the customer may be inclined to go with a more reputable provider
or with those where a prior relationship exists.

LEASING:
Leasing is a process by which a firm can obtain the use of a
certain fixed assets for which it must pay a series of contractual,
periodic, tax deductible payments.
The lessee is the receiver of the services or the assets under
the lease contract and the lessor is the owner of the assets. The
relationship between the tenant and the landlord is called a
tenancy, and can be for a fixed or an indefinite period of time
(called the term of the lease). The consideration for the lease is
called rent. A gross lease is when the tenant pays a flat rental
amount and the landlord pays for all property charges regularly
incurred by the ownership from lawnmowers and washing
machines to handbags and jewelry.[1]
Under normal circumstances, a freehold owner of property is at
liberty to do what they want with their property, including destroy it
or hand over possession of the property to a tenant. However, if
the owner has surrendered possession to another (the tenant) then
any interference with the quiet enjoyment of the property by the
tenant in lawful possession is unlawful.
Similar principles apply to real property as well as to personal
property, though the terminology would be different. Similar
principles apply to sub-leasing, that is the leasing by a tenant in
possession to a sub-tenant. The right to sub-lease can be
expressly prohibited by the main lease.
A tenancy for years greater than 1 year must be in writing in order
to satisfy the Statute of Frauds.

Advertising and sales promotion, Personalselling in business

marketing
https://opentextbc.ca/businessopenstax/chapter/promotion-
strategy/

5. Managing Business Markets:

managing personal selling function,

https://slideplayer.com/slide/10307304/

Key account management,

https://www.slideshare.net/SteveSoman/key-account-
management-48473949
https://www.slideshare.net/PresentationLoad/keyaccount-
management-ppt-slide-templatepresentation-load-
keyaccountmanagementtemplates

Sales administration,

https://www.slideshare.net/JoeJackson8/intro-to-sales-
administration-v1-0
 Selling through Internet. E-commerce,

https://www.slideshare.net/munishsingla71/e-commerce-ppt-
10713485

Prospecting on Internet,

https://www.slideshare.net/shanegibson/prospecting-in-sales-
sources-tips-rules

Accepting orders and payment on net

https://www.slideshare.net/mkmannu/online-payment-
gateway-system

References: 
Business Marketing Management Michael Hutt and Thomas Speh,
8 th Edition, Thomson Learning 
Industrial Marketing Reeder and Reeder(PHI) 
Industrial Marketing Richard Hill(AITBS) 
SupplyChain Management SunilChopra and Peter Meindl (1st
Indian reprint, PearsonEducation) 
Business Marketing Haynes  Business Marketing Rangan