Corporations

Government

Type of Hospitals

organizations Schools

that use Mosques Churches

marketing
Army

Postal Service
B2B & B2C marketing
• Business marketing is a marketing practice of
individuals or organizations (including
commercial businesses, governments and
institutions).

• Business markets have a derived demand; a

demand in them exists because of demand in
the consumer market.
• Give examples.
B2B & B2C
marketing
• The marketing mix is affected by the B2B
unique factors which include complexity of
business products and services, diversity of
demand and the differing nature of the
sales itself (including fewer customers
buying larger volumes)
• There may be multiple influencers on the
purchase decision, which may also have to
be marketed to, though they may not be
members of the decision making unit.
 Finally the purchase
information that buyers are
researching changes as they go
through the buying process.
B2B & B2C
marketing The research and decision
making process a B2B buyer
undertakes will be more
extensive.
• B2B sales typically involve
multiple decision makers. The
marketing mix is affected by the
B2B uniqueness which include
complexity of business products
and services, diversity of demand
and the differing nature of the
sales itself.
 • A B2C marketing is to a "Consumer" i.e. to a single
person who pays for the transaction.

B2B & B2C • Marketing to a business is trying to make a profit

(business-to-business marketing) as opposed to an
individual for personal use (Business-to-Consumer,
marketing or B2C marketing) is similar in terms of the
fundamental principles of marketing.
In B2C, B2B and B2G marketing situations, the marketer
must always:
Successfully match
the product or
service strengths
with the needs of
a definable target
market;

Communicate and Position and price

sell it in the to align the
fashion that product or service
demonstrates its with its market,
value effectively to often an intricate
the target market. balance;
Who are business customers?
Business companies
customers fall that consume government
Institutions resellers
into four broad products or agencies,
categories: services,

The first category includes Government agencies, is

Auto-makers and also small The third category,
the biggest. institutions, includes Finally, resellers consist of
firms owned by 1-2
individuals who purchase But this category also schools, hospitals wholesalers, brokers and
includes state and local and nursing homes, and industrial distributors.
products to run their
business. governments. charities.
A main goal of marketing is to add value

It is the link between a society’s material requirements and its economic patterns of response.

It satisfies needs and wants through exchange processes and building long-term relationships.

It is the process of communicating the value to customers. It also manages customer relationships in ways
that benefit the organization and its shareholders.

It is the science of choosing target markets through market analysis and market segmentation, as well as
understanding consumer buying behavior and providing superior customer value to a firm's customers.
Value in marketing can be defined by both qualitative and
quantitative measures.

On the quantitative side, value added is to improve its quality/price

ratio.

When an organization delivers high quality but at a high price, the

perceived value may be high.
Total market offering and value

The "total market offering" includes an organization's reputation, staff

representation, product benefits, and technological characteristics as
compared to competitors.

Value, in this sense, is defined as the relationship of a firm's market

offerings to those of its competitors.
 Assess the quantitative importance of the
different attributes and benefits. In other
words, attempt to assign an actual price
differentiation for products with value-
adding benefits.
How to identify
and
define benefits Assess the company's and competitors'
performance on each
attribute and benefit. It is important to be
honest with yourself about who your actual
closest competitors are and how they price
their products.
 Examine how customers in the particular
segment rated the company against major
competitors on each attribute.

How to identify Monitor customer perceived value analysis

can lead a company to creating an accurate
and value proposition is a promise of value will be
define benefits experienced.
A value proposition is based on a review and
analysis of the benefits, costs
and value propositions to position
Marketing Mix,
4 P’s of
Marketing
Part Two
Marketing Mix

Satisfy customers
 Marketing
Mix

Product Price Place Promotion

 The product has to have the right features - for
example, it must look good and work well.

The price must be right. Consumer will need to buy in

large numbers to produce a healthy profit.

The goods must be in the right place at the right time.

Making sure that the goods arrive when and where
they are wanted is an important operation.
The target group needs to be made aware of the
existence and availability of the product through
promotion. Successful promotion helps a firm to
spread costs over a larger output.

Internal and external constraints of marketing environment

• Marketers, using different blends
of 4Ps, can target different group
of customers having different
needs.

• So, a customer may

call marketing mix “the offering”.
Product
• Product is the actual offering by the company to its targeted
customers which also includes value added stuff.

• Product may be tangible (goods) or intangible (services).

 Is the product the responsibility of the
marketing function?

Finding out how to make the product, setting up the production line, providing the finance and manufacturing
the product are not the responsibility of
the marketing function.
 Marketing

…. is concerned with what the product means to the customer.

Marketing therefore plays a key role in determining such aspects as:

• the appearance of the product - in line with the requirements of the market
• the function of the product - products must address the needs of customers as
identified through market research.
• The product range and how it is used is a function of the marketing mix
 While formulating the marketing
strategy, product decisions include:

What to
Brand name Packaging Quality Appearance
offer?

After sale
Functionality Accessories Installation Warranty
services
Price
• Price includes the pricing strategy of the company
for its products.
• How much customer should pay for a product?

• Pricing strategy not only related to the profit

margins but also helps in finding target customers.

• Pricing decision also influence the choice of

marketing channels.
 Pricing Strategy (Penetration, Skim, etc)

List Price

Price payment period

decisions include: Discounts

Financing

Credit terms
Price
• Using price as a weapon for rivals is as old as
mankind, but it’s risky too.

• Consumers are often sensitive for price,

discounts and additional offers.

• Another aspect of pricing is that expensive

products are considered of good quality.
Place (Placement)

Is all those activities

performed by the company
to ensure the availability of Placement
the product to the targeted
customers.

Place Time Quantity

 Placement decisions include:

Distribution
Placement Logistics Inventory
channels

selection of
Order Market
channel
processing coverage
members
Promotion
• Promotion includes all communication and selling
activities to future prospects to buy the product.
Promotion decisions include:
Promotion decisions include:

Advertising Media Types Message Budgets Sales Personal

promotion selling

Public Direct
relations marketing
Limitation of Marketing Mix

TODAY, WITH LATEST MARKETING THE 7PS

CONCEPTS, MARKETING ENVIRONMENT
HAS BECOME MORE INTEGRATED.