Business Marketing Management University of Mysore Fourth Semester

Murali S RIMS, Bangalore

BMM- Overview
• Business(Industrial) marketing (B2B), which some marketing experts have described as a 'sleeping giant', has

been the subject of very little research. And this despite the
fact that it generates higher volumes of sales than

consumer marketing.
• This Course is an attempt to create interest in this

challenging yet not much talked about subject. Several developments have transformed industrial marketing in the last few years:

BMM- Overview
• Technology has become the cornerstone of Business
marketing. New product technologies are emerging and manufacturing processes are evolving. Information

technology is being leveraged to develop new products and services, in addition to streamlining operations.

• The Internet has revolutionized Business marketing. It has
helped bring down the communication costs between the industrial marketers and other stakeholders drastically. E-procurement and E-marketplaces have gained popularity among organizational buyers.

" Today. "The Business Network is the Business Strategy. many firms have adopted the outsourcing route. competition is between value-chain partnerships rather than between industrial firms • From the 1990s.Overview • The nature of competition has undergone a sea change in the business marketplace. In addition to setting up joint ventures and subsidiaries. Industrial marketing has reached a stage where we can say.BMM. . the Government of India has been supporting liberalization by taking various positive measures. and solutions to a wide range of industries. India's progress on both the domestic and export fronts has resulted in a growing demand for professionals to market industrial products. services. including the permitting of foreign direct investments in capital intensive industries.

To learn why the demand for Industrial goods & services are generally called “derived demand” .Nature of Industrial marketing. To know what are the differences in characteristics of industrial & consumer marketing 3.Learning Objectives 1. To know what is industrial or business marketing 2.

BM is the marketing of products & services business organization 2. private sectors organizations 3.Business Marketing(BM) 1. Business organizations include manufacturing companies. The above organizations buy products & services to satisfy many objectives like:  Production of other goods & services  Making profits  Reducing costs etc . government undertakings.

for making other Business Products: • Raw Materials • Major Equipment • Accessory Equipment • Component Part products.Business Products A product bought for resale. or for use in a firm’s operation •Process Material •Supply •Business Service .

.Business Products Raw Materials • Is a basic material that actually becomes part of a physical product. or recycled solid wastes. forests. oceans. • It usually comes from mines. • Raw materials usually are bought and sold according to grades or specification.

Gravel Trees Aluminum Wood Copper .Business Products Examples of Raw Materials are : 1. 3. 4. 2. 5.

. but other items are standardized products that perform one or several tasks for many types of organizations. Some major equipment is custom-made for a particular organization.Business Products • • • • • • Major Equipment Includes large tools and machines used for production purposes.

2.Business Products Examples of Major Equipment are : 1. 3. Cranes Bulldozers Furnaces Dump Truck . 4.

Compared with major equipment.Business Products • • • • • Accessory Equipment Is standardized equipment used in a firm’s production or office activities. accessory items are usually much less expensive and are purchased routinely with less thought. .

Business Products Examples of Accessory Equipment are : 1. Calculators . Hand tools 2. Computers 3.

.Business Products Component Part • Is part of a physical product and is either a • finished item ready for assembly or a product • that needs little processing before assembly.

Switches .Business Products Examples of Component Parts are : 1. Tires 2. Computer chips 3.

. Like component parts. a process material is not readily identified in a finished product.Business Products • • • • Process Material Is used directly in the production of another product. Unlike a component part. process materials are purchased according to industry standards.

Industrial Glue .Business Products Examples of Process Material are : 1. Food Preservatives 2.

Business Products Supply • Facilitates production and operations. Paper 2. but it • does not become part of the finished product. Pencil 3. Oil 4. Examples of Supply are : 1. Cleaning Agents .

. • Purchasers must decide if they want to do their own services or to hire them from outside the organization.Business Products Business Service • An intangible product that an organization uses in its operations.

5. 4. 3.Business Products 1. Examples of Business Services are : Financial Rubbish Marketing/Advertising Janitorial Legal . 2.

Consumer Marketing (CM) • CM is the marketing of products & services to individuals. These groupings are based primarily on characteristics of buyer’s purchasing behavior . • There are three categories of consumer products. families & households • The consumers buy products & services for their own consumption • A product bought to satisfy personal and family needs.

Unsought Goods: goods & services that we do not yet know what we want . Convenience Products 2. Specialty Products 4. Shopping Products 3.Consumer Products 1.

crisps) 3. Emergency products . Impulse convenience bought without prior thought(sweets. Milk) 2.Consumer Products Convenience Products • Is a relatively inexpensive. • The buyer spends little time in planning the purchase of a convenience item or in comparing available brands or sellers. Staple convenience (basic goods eg. Convenience Products: Three types 1. frequently purchased • item for which buyers want to exert only minimal effort.

3. 4.Consumer Products Examples of convenience products are : Bread Gasoline Newspapers Chewing Gum Soft Drinks 1. 2. 5. .

.Consumer Products Shopping Products • Is an item for which buyers are willing to expend considerable effort on planning and making the purchase. and warranties. product features. services. • Buyers allocate ample time for comparing stores and brands with respect to prices. qualities.

3. 4.Consumer Products Examples of shopping products are : 1. 2. 5. Appliances Furniture Men’s Suites Bicycles Cellular Phones .

Consumer Products Shopping Products • These products are expected to last for a fairly long time and thus are purchased less frequently than convenience items .

• Buyers actually know what they want and will not accept a substitute. • In searching for specialty products. purchasers do not compare alternatives .Consumer Products Specialty Products • It possesses one or more unique qualities for which a buyer is willing to expend considerable purchasing effort.

Unique Sports Cars Rare imported wine Specific type of antique china Special handcrafted furniture . 4.Consumer Products Examples of specialty products are : 1. 3. 2.

   .Consumer Products 1. 3. 5. 6. 4. Financial services. Unsought Goods Consumer products the consumer either does not know about or knows about but does not normally think of buying Consumer has little interest in buying Only buy when they perceive the necessity of buying Managers need to make customers aware that they supply this need Examples: Life insurance. Funeral services Aggressive promotion & personal selling by producers& resellers because: consumers have little product awareness Little or negative interest in the product Marketers needs to convince potential buyers of the benefits of buying 2.

in particular 1. Advertising (both media & message) 4. Price 2. Channels of distribution 5. Promotion mix 3.Relevance (basis) of the classificationconsumer products • The marketing mix will be different for each class of products. Product features . Packaging 6.

felt. Based on the less tangible. transferred.Relevance (basis) of the classificationProducts Classification Product classification can be done on a variety of perspectives. the economic age in normal usage within one year. Therefore. chalk. apply the small increase. . stored. the product can be classified into two main groups. felt / touched. and other physical treatments. Judging by the aspect of sustainability. there are two kinds of products. namely: • a. beverages and snacks. In other words. so it can be seen. this type of goods consumed rapidly in a short period of time and frequency of purchase is often the case. and are strongly advertising to encourage people to try and simultaneously to form a preference. held. namely: 1. Goods not of Long Duration – Nondurable Goods Perishable goods are tangible goods that are normally consumed in one or a few hours of use. sugar and salt. Stuff • Goods are physical tangible product. Examples are soap. then the best strategy is to make them available in many locations.

Services • Services are activities. benefits or satisfaction for sale. hotels. and others. car. . fridge. Examples include TV. for example. 2.Relevance (basis) of the classificationProducts Classification • b. courses. computer. offering greater benefits and need a guarantee / warranty from the retailer specific. schools. and others. In general. Long Lasting Merchandise Goods – Durable Goods Durable goods are tangible goods that normally survive very long in use (economic era for normal use for one year or more). a beauty salon. these types of goods require personal selling and service more than perishable goods. For a repair.

Mosaic Daytime classifies consumers at their place of work.these include our award-winning Mosaic UK classification. behavioural and business classifications that is available for UK individuals. Clientele drinks occasions segmentation and Mosaic Commercial .Classification of business consumers and business products Business and consumer classifications • A portfolio of demographic. households and postcodes: • Socio-demographic classifications . Mosaic Grocery. Fashion Segments.these provide detailed insight into the lifestyles. as well as regional segmentation for Scotland. Northern Ireland and London. They include Mosaic Automotive. product consumption and buying habits of consumers. Financial Strategy Segments. and our Mosaic Public Sector classification provides a detailed understanding of the demands of citizens for public services • Behavioural classifications .

Difference between business and consumer marketing • Fundamental Differences between Consumer Marketing and Business Marketing • Those who have extensive knowledge of the business world will recognize that marketing is not a homogenous activity without distinction. One such distinction is the one that is created between consumer marketing and business marketing. . Often there will be variations in practice and purpose between various forms of marketing.

and other products for use in further production or operations or for resale to others. Final consumers more often buy on the basis of description. whereas final consumers usually acquire the finished items for personal. C. semi finished goods. . Organizational consumers purchase capital equipment. and color. B. style. Organizational consumers are likely to require exact product specifications. or household use.Difference between business and consumer marketing • Difference between business markets and consumer markets due To The Nature Of Purchases A. raw materials. Organizational consumers often use multiple-buying responsibility. Final consumers employ it less frequently and less formally. family. in which two or more employees formally participate in complex or expensive purchase decisions.

There are fewer organizational consumers than final consumers. Buying specialists are often used. organizational consumers are less sensitive to price changes. Distribution channels are shorter. Business market consumers tend to be geographically concentrated. Derived demand occurs for organizational consumers because the quantity of items they purchase is often based on the anticipated demand of their final consumers for specific finished goods and services. whereby final consumer demand affects many levels of organizational consumers. D. organizational consumers will not object to price increases. F.Difference between business and consumer marketing Difference between business markets and consumer markets on the basis of demand A. Demand is volatile due to the accelerator principle. . therefore. E. B. C. As long as final consumers are willing to pay higher prices.

. • C. • B. Companies doing business in foreign markets must know how to deal with organizational consumers in those markets. there are many distinctions among organizational consumers around the world and sellers must understand and respond to them. Nations’ cultures have a large impact on the way their organizational consumers negotiate and reach decisions. As with final consumers.Difference between business and consumer marketing Differences of business markets and consumer markets based On A Global Perspective • A.

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