B2B Sem III Important Questions

Q1. Explain the similarities and differences in the characteristic of B2B and
consumer marketing?
Ans:
B2B and B2C marketing are like two different ways to sell things:
B2B (Business-to-Business)
Who they sell to: Other businesses.
What they sell: Things businesses need to run, like software, equipment, or
supplies.
How they sell: Focuses on building long-term relationships and showing how
their products help businesses save money or make more money.
B2C (Business-to-Consumer)
Who they sell to: Regular people like you and me.
What they sell: Things we buy for ourselves, like clothes, food, or electronics.
How they sell: Tries to make us want to buy things because they look cool,
make us feel good, or solve a problem.
Similarities
Both want to make money by selling things.
Both use things like ads, websites, and social media to reach people.
Both try to understand what their customers want.
Differences
Who they sell to: Businesses vs. people
What they sell: Things for businesses vs. things for ourselves
How they sell: Building relationships vs. making us want things

Q.2 Why companies carry out environmental analysis? Mention major

micro and macroenvironmental factors or forces for an industrial products
company of your choice
Ans:
Companies carry out environmental analysis to stay ahead of the curve and
make informed decisions. By understanding the factors that can impact their
business, they can identify opportunities and threats, adapt their strategies, and
ultimately improve their chances of success.
Major Micro and Macroenvironmental Factors for an Industrial Products
Company:
Microenvironment
Customers: Understanding customer needs, preferences, and buying behavior is
crucial. This includes analyzing customer demographics, purchasing power, and
loyalty.
Competitors: Identifying competitors, analyzing their strengths and weaknesses,
and developing competitive strategies are essential for market success.
Suppliers: Ensuring a reliable supply chain and maintaining good relationships
with suppliers is vital for the smooth operation of the business.
Marketing intermediaries: These are the channels through which products reach
customers, such as distributors, retailers, and logistics providers.
Public: This includes various stakeholders such as the media, government
agencies, and local communities, whose opinions and actions can impact the
company's reputation and operations.
Macroenvironment
Economic conditions: Factors like economic growth, inflation, interest rates,
and exchange rates can significantly impact demand for industrial products.
Demographic trends: Changes in population demographics, such as age
distribution, income levels, and lifestyle choices, can influence consumer
preferences and purchasing power.
Socio-cultural trends: Shifts in societal values, attitudes, and lifestyles can affect
consumer behavior and demand for certain products.
Technological advancements: Technological innovations can create new
opportunities for product development, improve production processes, and
disrupt existing markets.
Political and legal factors: Government regulations, policies, and legal
frameworks can impact business operations, product development, and
marketing strategies.
Natural environment: Environmental concerns, such as climate change and
resource depletion, can influence product design, production processes, and
consumer preferences.

Q.3. Discuss why should a business marketer classify Industrial products

and customers?
Ans:
There are several key reasons why a business marketer should classify industrial
products and customers:
Tailored Marketing Strategies:
Product Classification: By understanding how different types of industrial
products are used (e.g., raw materials vs. capital equipment), marketers can
develop specific marketing messages and strategies that resonate with the
unique needs and buying behaviors of each product category.
Customer Classification: Classifying customers based on factors like industry,
size, purchasing power, and buying behavior allows marketers to target their
efforts more effectively. This leads to more relevant marketing campaigns and
improved customer relationships.
Efficient Resource Allocation:
Product Focus: By prioritizing product categories with the highest potential for
growth and profitability, businesses can allocate resources more efficiently. This
can involve focusing marketing efforts on specific product lines or investing in
research and development for new products within certain categories.
Customer Segmentation: Targeting specific customer segments allows
businesses to optimize their sales and marketing efforts. This can involve
developing customized pricing strategies, offering specialized services, or
creating targeted marketing campaigns for different customer groups.
Improved Decision-Making:
Product Portfolio Analysis: Classifying products helps businesses analyze their
product portfolio and identify areas for improvement. This can involve
discontinuing underperforming products, introducing new products to fill gaps
in the market, or repositioning existing products to better meet customer needs.
Customer Relationship Management: Understanding customer segments allows
businesses to develop more effective customer relationship management (CRM)
strategies. This can involve tailoring customer service, providing personalized
support, and building stronger relationships with key customers.
Enhanced Market Analysis:
Competitive Analysis: By classifying products and customers, businesses can
better understand their competitive landscape. This can involve identifying key
competitors, analyzing their product offerings, and developing strategies to gain
a competitive advantage.
Market Segmentation: Market segmentation allows businesses to identify
specific niches within the broader market. This can help businesses target their
marketing efforts more effectively and develop products and services that meet
the specific needs of their target customers.

Q. 4. In a highly competitive market, a tire manufacturer wants to increase

the share of business from the current level of 20 % to at least 50% with
Tata Motors, which is a major OEM customer. Propose suitable B2B
marking strategy to tire manufacturer?
Ans:
1. Value Proposition:
Focus on Total Cost of Ownership (TCO): Highlight how your tires offer
superior mileage, durability, and fuel efficiency, leading to lower long-term
costs for Tata Motors.
Emphasize Performance: Position your tires as offering superior performance in
key areas relevant to Tata Motors' vehicles (e.g., handling, braking, off-road
capability).
Sustainability: If your tires have eco-friendly features (e.g., reduced rolling
resistance, recycled materials), emphasize their environmental benefits, aligning
with Tata Motors' potential sustainability goals.
2. Relationship Building:
Dedicated Account Management: Assign a specialized team to focus solely on
the Tata Motors account.
Regular Communication: Maintain consistent and open communication
channels with key decision-makers at Tata Motors.
Joint Problem-Solving: Collaborate with Tata Motors on research and
development projects to co-create tires that meet their specific needs.
3. Pricing and Incentives:
Competitive Pricing: Offer attractive pricing structures that are competitive with
existing suppliers while maintaining profitability.
Volume Discounts: Provide significant volume discounts to incentivize Tata
Motors to increase their order volume.
Performance-Based Incentives: Consider offering incentives based on tire
performance metrics (e.g., mileage guarantees, reduced warranty claims).
4. Marketing and Communication:
Targeted Presentations: Develop compelling presentations that showcase the
value proposition of your tires to Tata Motors.
Case Studies: Highlight successful case studies of your tires being used in
similar applications.
Industry Events: Participate in industry events and conferences where Tata
Motors representatives are likely to be present.
5. Technology and Innovation:
R&D Collaboration: Invest in research and development to develop cutting-
edge tire technologies that address the evolving needs of the commercial vehicle
market.
Data Analytics: Leverage data analytics to track tire performance, identify areas
for improvement, and provide insights to Tata Motors.
Digital Solutions: Explore digital solutions such as tire pressure monitoring
systems (TPMS) or connected tire technologies to enhance safety and
efficiency.
6. Customer Service:
Prompt and Efficient Service: Provide prompt and efficient service, including
timely delivery, quick response to inquiries, and effective resolution of any
issues.
On-Site Support: Offer on-site support and training to Tata Motors' maintenance
and service teams.
Customer Feedback Mechanisms: Establish regular feedback mechanisms to
gather customer insights and continuously improve your products and services.

Q.5. Describe similarities and differences of relationship marketing (RM)

and customer relationship management (CRM)
Ans:
Relationship Marketing (RM)
Focus: Building and maintaining long-term, mutually beneficial relationships
with customers.
Goal: Increase customer loyalty, retention, and lifetime value.
Activities: Personalized communication, loyalty programs, customer feedback
mechanisms, exclusive offers, and building emotional connections.
Example: A coffee shop offering a loyalty card that rewards frequent customers
with a free drink.
Customer Relationship Management (CRM)
Focus: Using technology and data to manage customer interactions and
relationships.
Goal: Improve customer satisfaction, streamline sales processes, and gain
valuable insights into customer behavior.
Tools: CRM software, databases, and analytics tools.
Example: A company using CRM software to track customer interactions,
identify sales opportunities, and personalize marketing campaigns.
Similarities
Both RM and CRM aim to improve customer relationships.
Both involve collecting and analyzing customer data.
Both focus on understanding customer needs and preferences.
Differences
RM is a marketing strategy, while CRM is a business process.
RM focuses on building relationships, while CRM focuses on managing those
relationships.
RM activities are often manual, while CRM relies heavily on technology.

Q.6 Large numbers of personal computers (PC’s) are purchased by ABC

educational institute for use of their student. Explain the step-by-step
process used by ABC in selection of PC supplier
Ans:
1. Needs Assessment:
Define Requirements: Determine the specific needs and specifications for the
PCs, considering factors like:
Intended Use: General computing, specific software applications (e.g., design,
programming), multimedia, etc.
Operating System: Windows, macOS, or Linux.
Hardware Specifications: Processor speed, RAM, storage capacity, graphics
card, display size, etc.
Peripherals: Keyboards, mice, monitors, webcams, etc.
Software: Operating system, productivity software (e.g., Microsoft Office),
antivirus, etc.
Budget: Determine the overall budget for the PC purchase.
2. Supplier Identification and Shortlisting:
Research: Identify potential PC suppliers through online research, industry
publications, recommendations, and previous experiences.
RFI (Request for Information): Send an RFI to potential suppliers to gather
basic information about their company, products, and services.
Shortlisting: Based on the RFI responses and other factors, shortlist a few
potential suppliers for further evaluation.
3. RFP (Request for Proposal):
Develop RFP: Create a detailed RFP document that outlines the specific
requirements, evaluation criteria, and timelines for the PC purchase.
Issue RFP: Send the RFP to the shortlisted suppliers.
4. Supplier Evaluation:
Proposals: Evaluate the proposals received from the suppliers based on the
criteria outlined in the RFP.
Site Visits: Conduct site visits to the shortlisted suppliers to assess their
facilities, capabilities, and customer support.
Demonstrations: Request demonstrations of the proposed PCs and software to
assess their performance and suitability.
References: Contact references provided by the suppliers to verify their
reputation and past performance.
5. Supplier Selection:
Evaluation Committee: Form an evaluation committee comprising
representatives from the IT department, faculty, and administration to review
the proposals and make a decision.
Negotiation: Negotiate the final terms and conditions of the contract with the
selected supplier.
6. Contract Award and Implementation:
Contract: Award the contract to the selected supplier and finalize the contract
terms.
Delivery and Installation: Arrange for the delivery and installation of the PCs.
Training: Provide training to faculty and staff on the use of the new PCs and
software.
Support: Establish a support process for ongoing maintenance and
troubleshooting.
7. Evaluation and Review:
Performance Monitoring: Monitor the performance of the PCs and the supplier's
services.
Feedback Collection: Gather feedback from faculty and students on the PCs and
the supplier's support.
Contract Renewal: Review and renew the contract with the supplier as needed.
Q.7 What are major differences between supply chain management
orientation and procurement?
Ans:
Procurement is a subset of Supply Chain Management (SCM). Here's a
breakdown of their key differences:
Procurement
Focus: Acquiring goods and services (inputs) for the organization.
Scope: Limited to the purchasing function itself.
Key Activities:
Identifying suppliers
Negotiating contracts
Placing orders
Receiving and inspecting goods
Managing supplier relationships (to a degree)
Primary Goal: Obtaining goods and services at the best possible price and
terms.
Supply Chain Management (SCM)
Focus: The entire flow of goods and services, from raw materials to the end
customer.
Scope: Encompasses the entire supply chain network, including suppliers,
manufacturers, distributors, and retailers.
Key Activities:
Procurement (as one part)
Production planning and control
Inventory management
Logistics and transportation
Customer relationship management
Primary Goal: To optimize the entire supply chain to improve efficiency, reduce
costs, and enhance customer satisfaction.
In simpler terms:
Procurement is like buying groceries for your household.
SCM is like managing the entire process of growing, transporting, and
delivering those groceries to your home, ensuring everything is done efficiently
and cost-effectively.

Q.8. Describe factors influencing organizational buying behaviour?

Ans:
Organizational buying behavior is influenced by a complex interplay of factors,
both internal and external to the organization. Here's a breakdown of the key
factors:
1. Environmental Factors:
Economic Conditions: Economic downturns can lead to budget cuts and
reduced spending, while economic growth can stimulate demand.
Technological Advancements: New technologies can create new needs and
opportunities for businesses, influencing their purchasing decisions.
Competitive Forces: The competitive landscape, including the actions of
competitors, can impact an organization's purchasing decisions.
Legal and Regulatory Factors: Government regulations and industry standards
can influence product choices and purchasing processes.
2. Organizational Factors:
Organizational Goals and Objectives: Purchasing decisions must align with the
overall strategic goals and objectives of the organization.
Organizational Structure and Culture: The organizational structure and culture
can influence the decision-making process and the level of authority delegated
to purchasing personnel.
Purchasing Policies and Procedures: Established policies and procedures can
guide the purchasing process and ensure consistency and compliance.
Financial Resources: The availability of financial resources will constrain
purchasing decisions and influence the types of products and services that can
be acquired.
3. Interpersonal Factors:
Relationships with Suppliers: Existing relationships with suppliers can influence
purchasing decisions, such as repeat business with preferred vendors.
Influence of Buying Center Members: The buying center, consisting of
individuals involved in the purchasing decision, can have varying levels of
influence and may have conflicting priorities.
Communication and Negotiation Skills: Effective communication and
negotiation skills are crucial for successful purchasing outcomes.
4. Individual Factors:
Risk Aversion: Individual decision-makers may have varying levels of risk
aversion, influencing their willingness to try new products or suppliers.
Personal Motivations: Personal motivations, such as career advancement or
recognition, can influence individual decision-making within the buying center.
Knowledge and Expertise: The knowledge and expertise of individuals involved
in the purchasing decision can significantly impact the evaluation and selection
of products and suppliers.
5. Situational Factors:
Urgency of the Purchase: The urgency of the purchase can influence the
decision-making process, potentially leading to less thorough evaluation and a
focus on quick solutions.
Budget Constraints: Budget constraints can limit the range of options available
and may require trade-offs between price and quality.
Availability of Information: The availability of information about products,
suppliers, and market trends can significantly impact the purchasing decision.

Q.9 Describe Seth model of organization buying behaviour

Ans:
The Sheth Model of Industrial Buying Behavior, developed by Jagdish N.
Sheth, is a comprehensive framework that attempts to explain the complex
decision-making processes involved in organizational purchases. It recognizes
that industrial buying decisions often involve multiple individuals within an
organization, each with their own roles, responsibilities, and perspectives.
Key Components of the Sheth Model:
Environmental Stimuli: These are the external factors that influence the
buying decision, such as economic conditions, technological advancements,
competitive pressures, and government regulations.
Organizational Stimuli: These are internal factors specific to the organization,
including its goals, objectives, structure, culture, purchasing policies, and
financial resources.
Individual Stimuli: These are the personal characteristics and motivations of
the individuals involved in the buying decision, such as their risk aversion,
knowledge, expertise, and personal goals.
Buying Center: The buying center is a group of individuals within the
organization who are involved in the purchasing decision.
Decision-Making Process: The buying center members interact and exchange
information, leading to a decision. The decision-making process can be
influenced by various factors, such as the urgency of the purchase, budget
constraints, and the availability of information.
Purchase Decision: The final decision is made, and the order is placed with the
selected supplier.
Post-Purchase Evaluation: After the purchase, the organization evaluates the
performance of the product or service and the supplier. This feedback can
influence future purchasing decisions.
Implications for Marketing:
The Sheth Model provides valuable insights for marketers who want to
effectively reach and influence organizational buyers. By understanding the
complex factors that influence purchasing decisions, marketers can:
Target the right audience
Develop strong relationships
Provide valuable information
Demonstrate the value proposition

Q.10. What is a Buy- grid framework? What are the pros and cons of this
framework?
Ans:
The Buy-Grid Framework is a model that helps to understand the organizational
buying process. It categorizes buying situations and phases to provide a
structured approach to analyzing B2B purchasing decisions.

Key Components:
Buy Classes: These represent the different types of buying situations:
New Task: A first-time purchase of a product or service. Involves extensive
research and evaluation.
Modified Rebuy: A repeat purchase with some modifications to the original
product or supplier.
Straight Rebuy: A routine purchase of the same product from the same supplier.
Buy Phases: These are the stages involved in the buying process:
Problem Recognition: Identifying a need or problem.
General Need Description: Defining the general characteristics of the needed
product.
Product Specification: Developing detailed specifications for the product.
Supplier Search: Identifying potential suppliers.
Proposal Solicitation: Requesting proposals from shortlisted suppliers.
Supplier Selection: Evaluating proposals and selecting a supplier.
Order Routine Specification: Finalizing the order details, including price,
delivery, and terms.
Performance Review: Evaluating the supplier's performance and considering
future purchases.
Pros of the Buy-Grid Framework:
Provides a Structured Approach: Helps to systematically analyze the buying
process.
Identifies Key Decision Points: Highlights the critical stages in the buying
process.
Tailors Marketing Efforts: Enables marketers to tailor their strategies to specific
buying situations.
Improves Communication: Facilitates communication and coordination within
the buying center.
Cons of the Buy-Grid Framework:
Oversimplification: May not fully capture the complexity of real-world buying
situations.
Limited Flexibility: May not be suitable for all types of organizations or
industries.
Neglects Individual Factors: May not adequately consider the influence of
individual factors on buying decisions.
Outdated: Some aspects of the framework may be outdated due to the evolving
nature of business and technology.

Q.11 Explain difference between forward and reverse auctions?

Ans:

Feature Forward Auction Reverse Auction

Initiated by Seller Buyer

Goal Maximize seller's revenue Minimize buyer's expenditure

Bidding Direction Prices increase Prices decrease

Winner Highest bidder Lowest bidder

Q.12 How does the concept of Customer Life Time Value (CLV) help
marketers to arrive at the optimum customer mix?
Ans:
Customer Lifetime Value (CLV) is a powerful metric that helps marketers
understand the long-term value of each customer to the business. By calculating
CLV, marketers can identify their most valuable customers and tailor their
marketing efforts to acquire and retain those customers.
Here's how CLV helps marketers arrive at the optimum customer mix:
Prioritization:
CLV allows marketers to prioritize their efforts on acquiring and retaining high-
value customers. By identifying customers with high CLV, marketers can focus
their resources on acquiring similar customers and developing strategies to
retain existing high-value customers.
This prioritization ensures that marketing efforts are directed towards the most
profitable customer segments, maximizing return on investment.
Customer Segmentation:
CLV can be used to segment customers into different groups based on their
value to the company. This segmentation allows marketers to tailor their
marketing messages and offers to the specific needs and preferences of each
customer segment.
For example, high-value customers may receive exclusive offers, personalized
service, and loyalty programs, while low-value customers may be targeted with
less intensive marketing efforts.
Customer Acquisition Strategy:
CLV helps marketers determine the optimal customer acquisition cost (CAC).
By understanding the long-term value of a customer, marketers can determine
how much they can afford to spend to acquire a new customer while still
maintaining profitability.
This helps to avoid acquiring low-value customers who may not generate
enough revenue to justify the acquisition cost.
Customer Retention Strategy:
CLV highlights the importance of customer retention. By understanding the
long-term value of customers, marketers can invest in strategies to retain high-
value customers, such as loyalty programs, personalized communication, and
excellent customer service.
Retaining high-value customers is often more cost-effective than acquiring new
customers, as these customers are already familiar with the brand and have a
history of making purchases.
Resource Allocation:
CLV provides valuable insights into resource allocation. By understanding the
value of different customer segments, marketers can allocate resources
effectively to maximize the overall return on marketing investment.
For example, resources can be allocated to marketing channels that are most
effective in acquiring and retaining high-value customers.

Q.13. Explain the steps involved in conducting marketing research in B2B

marketing. What are the differences between B2B and consumer product
marketing research with example.
Ans:
Steps in B2B Marketing Research:
Define Objectives: Clearly state the research goals.
Gather Secondary Data: Collect existing information (industry reports,
competitor analysis).
Develop Research Plan: Design the research methodology (surveys, interviews,
focus groups).
Collect Primary Data: Gather data directly from target audience.
Analyze Data: Interpret findings and draw conclusions.
Prepare Report: Summarize findings and recommendations.
B2B vs. Consumer Marketing Research:
Focus: B2B: Business needs, ROI, decision-making units. Consumer: Individual
needs, emotions, brand perception.
Decision Process: B2B: Complex, multi-stage, involves multiple stakeholders.
Consumer: Often quicker, influenced by personal preferences.
Data Sources: B2B: Industry databases, trade publications, LinkedIn.
Consumer: Social media, surveys, market research panels.
Examples:
B2B: A software company researching the needs of IT departments in large
corporations.
Consumer: A food brand conducting taste tests and surveys to understand
consumer preferences.

Q.14 Steel Authority of India Limited (SAIL) is a large public sector

company, manufacturing and marketing steel products to domestic
markets in India and also international markets. If Which segmentation
variables (Micro and Macro) and target market you propose to the
marketing team of SAIL? Justify your answer
Ans:
Here are some segmentation variables (Micro & Macro) and target market
proposals for SAIL:
Micro Segmentation:
Industry:
Target 1: Automotive (focus on high-strength steels for lightweight vehicles)
Target 2: Construction (target infrastructure projects, real estate developers)
Target 3: Manufacturing (focus on specific sectors like machinery, shipbuilding)
Company Size:
Target 1: Large enterprises (bulk orders, long-term contracts)
Target 2: SMEs (offer customized solutions, flexible payment options)
Application:
Target 1: Structural steel for buildings, bridges
Target 2: Special steels for aerospace, defense
Target 3: Stainless steel for kitchenware, appliances
Macro Segmentation:
Geographic:
Target 1: Focus on regions with high industrial growth (e.g., Western India)
Target 2: Explore emerging markets (e.g., Southeast Asia)
Economic:
Target 1: Focus on sectors with high growth potential (e.g., renewable energy)
Target 2: Develop cost-effective solutions for price-sensitive markets
Technological:
Target 1: Invest in R&D to develop advanced steels (e.g., high-strength,
lightweight alloys)
Target 2: Leverage digital technologies for efficient order fulfillment and
customer service
Justification:
Micro Segmentation: Allows SAIL to tailor its products and services to the
specific needs of different industries and company sizes.
Macro Segmentation: Helps SAIL identify and capitalize on emerging market
opportunities and adapt to changing economic and technological trends.

Q.15. Assume you have joined a new company manufacturing and

marketing aluminum extrusion products as a head of marketing. The
company could market its products to household customers for door and
window frames and also to business customers for various applications like
control panels in electrical industry, water purification equipment, heat
sinks for electronic equipment as well as door and window frames to
building construction industry. Develop a plan for marketing segmentation
and targeting customers
Ans:

1. Market Segmentation
Segmentation Variables:
Customer Type:
Household: Residential construction (individual homeowners, builders)
Business:
Industrial (electrical, electronics, automotive)
Commercial (construction, infrastructure)
Application:
Household: Door/window frames, decorative profiles
Business:
Industrial: Control panels, heat sinks, automotive parts
Commercial: Building facades, architectural elements
Geographic:
Household: Regional variations in building styles, climate
Business: Industrial hubs, construction projects
Psychographic:
Household: Lifestyle preferences (modern, traditional), environmental concerns
Business: Industry trends, technological advancements, regulatory compliance
2. Target Market Selection
Prioritize Segments:
High-Growth: Focus on industries with high growth potential (e.g., renewable
energy, electric vehicles).
Profitability: Target segments with high profit margins and strong demand.
Competitive Advantage: Identify segments where the company has a
competitive advantage (e.g., specialized profiles, superior quality).
Example Target Markets:
High-End Residential: Focus on luxury home builders and homeowners seeking
high-quality, aesthetically pleasing products.
Data Centers: Target the rapidly growing data center industry for high-
performance heat sink applications.
Renewable Energy: Focus on solar panel manufacturers for innovative
mounting solutions.
3. Marketing Plan
Develop Unique Selling Propositions (USPs): Highlight key differentiators
(e.g., superior quality, customization options, sustainability, innovative designs).
Tailored Marketing Messages: Create targeted marketing messages for each
segment, emphasizing the specific benefits of the product.
Channel Selection: Utilize appropriate channels for each segment (e.g., online
platforms, industry trade shows, direct sales).
Build Relationships: Focus on building strong relationships with key customers
and channel partners.
4. Continuous Monitoring and Adjustment:
Regularly monitor market trends, competitor activities, and customer feedback.
Adjust the segmentation strategy and marketing plans as needed to adapt to
changing market conditions.

Q.16. How are new products classified? Briefly explain major reasons of
failure for Industrial new products?
Ans:
New Product Classification:
New-to-the-World: Entirely new market (e.g., first smartphone)
New Product Lines: New category for the company (e.g., car maker launches
motorcycles)
Additions to Existing Lines: Line extensions (new flavors, sizes)
Improvements/Revisions: Enhancements to existing products
Repositioning: Existing products for new markets
Cost Reductions: Modifications for lower production costs
Industrial Product Failure Reasons:
Inadequate Market Research: Lack of understanding of customer needs and
competition.
Poor Product Design: Flaws in functionality, quality, or usability.
Insufficient Resources: Lack of funding, marketing support, or production
capacity.
Poor Timing: Launching at the wrong time (e.g., economic downturn).
Strong Competition: Facing superior competitors with deeper resources.
Inadequate Pricing: Incorrect pricing strategy.
Ineffective Marketing & Sales: Poorly executed campaigns, lack of effective
sales channels.
Technological Obsolescence: Product becomes outdated quickly.
Organizational Factors: Lack of coordination, poor communication, resistance
to change.
Q.17. Classify Innovations. How are breakthrough innovations different
from incremental innovations
Ans:
Classification of Innovations:
Product Innovation: Introducing new products or improving existing ones.
Process Innovation: Enhancing production or delivery methods.
Business Model Innovation: Creating new ways of doing business (e.g.,
subscription models).
Social Innovation: Addressing social or environmental challenges.
Breakthrough vs. Incremental Innovation:
Breakthrough: Radical, game-changing innovations that create entirely new
markets or disrupt existing ones (e.g., the smartphone).
Incremental: Small, gradual improvements to existing products or processes
(e.g., a faster processor in a computer).
Key Differences:
Scope: Breakthrough: Wide-ranging impact; Incremental: Narrower focus.
Risk: Breakthrough: High risk, high reward; Incremental: Lower risk, lower
potential return.
Timeframe: Breakthrough: Longer development time; Incremental: Faster
development cycle.
Impact: Breakthrough: Can revolutionize industries; Incremental: Often leads to
continuous improvement.

Q.18 Explain the difference between disruptive innovation and sustaining

innovation
Ans:
Disruptive Innovation
Creates new markets: Often targets underserved or overlooked segments.
Disrupts existing markets: Challenges established players and their business
models.
Starts with low-end or niche markets: Gradually improves and expands to
mainstream.
Example: Digital photography disrupting film photography.
Sustaining Innovation
Improves existing products: Meets the demands of existing customers.
Reinforces existing markets: Strengthens the position of established players.
Focuses on performance and features: Targets existing customer base.
Example: Faster processors in computers.

Q. 19. What are the possible sources of conflict between manufacturer and
its agents? How can these conflicts be controlled or managed?
Ans:
Sources of Conflict between Manufacturer and its Agents:
Pricing:
Price discounts: Agents may demand excessive discounts, impacting
manufacturer's profitability.
Price discrimination: Agents may sell products at different prices to different
customers.
Territorial Disputes: Conflicts over customer territories, leading to competition
and reduced sales effectiveness.
Sales Effort: Agents may not exert sufficient effort in marketing and selling the
manufacturer's products.
Channel Support: Agents may not provide adequate support to customers,
leading to dissatisfaction and reduced brand loyalty.
Communication: Lack of effective communication between manufacturer and
agents regarding sales targets, marketing strategies, and company policies.
Control: Manufacturers may struggle to control agent activities and ensure
compliance with company policies.
Managing Conflicts:
Clear Contracts: Establish detailed contracts that define roles, responsibilities,
performance expectations, and dispute resolution mechanisms.
Effective Communication: Maintain open and regular communication channels
between manufacturer and agents.
Mutual Trust and Respect: Build strong, mutually beneficial relationships based
on trust and respect.
Performance Monitoring: Monitor agent performance closely and provide
regular feedback.
Incentive Programs: Design incentive programs that motivate agents to achieve
sales targets and meet performance expectations.
Training and Support: Provide training and support to agents on product
knowledge, sales techniques, and customer service.
Mediation and Arbitration: Establish mechanisms for resolving disputes fairly
and efficiently.

Q. 20. Explain the important elements of market logistics

Ans:
Market logistics focuses on getting the right products to the right customers
efficiently. Key elements include:
Transportation: Moving goods via road, rail, air, or sea.
Warehousing: Storing goods for timely availability.
Inventory Management: Balancing supply and demand.
Order Processing: Handling customer orders accurately.
Packaging: Protecting goods during transport and storage.
Customer Service: Providing timely support for order fulfillment and delivery.
Information Flow: Seamless exchange of information across the supply chain.

Q. 21. What are the unique characteristics of services that differentiate

them from goods?
Ans:
Intangibility: Services cannot be seen, touched, or tasted before purchase.
Inseparability: Production and consumption of services often happen
simultaneously.
Variability: Service quality can vary depending on the provider, customer, and
situation.
Perishability: Services cannot be stored for later use.
Lack of Ownership: Customers don't own the service, they experience it.

Q.22. Explain the expanded marketing mix for services

Ans:
The extended marketing mix for services, also known as the 7Ps, includes:
Product: The core service being offered.
Price: The cost of the service to the customer.
Place: Where the service is delivered (e.g., physical location, online).
Promotion: How the service is marketed and communicated to customers.
People: The employees who deliver the service.
Process: The systems and procedures used to deliver the service.
Physical Evidence: Tangible cues that represent the service (e.g., brochures,
uniforms, waiting areas).

Q,23. What is serve Qual model what are its applications

Ans:
The SERVQUAL model assesses service quality by measuring the gap between
customer expectations and their perceived service experience. It focuses on five
dimensions:
Tangibles: Physical evidence of the service (e.g., facilities, equipment).
Reliability: Consistent and dependable service delivery.
Responsiveness: Prompt and helpful service.
Assurance: Competence, courtesy, and credibility of service providers.
Empathy: Understanding and caring for customer needs.
Applications:
Service Improvement: Identify areas for improvement in service delivery.
Customer Satisfaction Measurement: Gauge customer satisfaction levels.
Competitive Analysis: Compare service quality with competitors.
Employee Training: Enhance employee skills and knowledge.
Marketing Strategy Development: Tailor marketing efforts to address customer
expectations.

Q. 24. Why are increasing number of business marketing firms adopting

hybrid – channel system our multichannel structures? Explain with
suitable examples
Ans:
Why Hybrid/Multi-Channel Systems are Adopted
Increased Reach:
Wider Customer Base: Accesses customers across various platforms (online,
offline, mobile).
New Markets: Explores new customer segments and geographical areas.
Enhanced Customer Experience:
Convenience: Offers multiple touchpoints for customer interaction.
Personalization: Tailors experiences based on customer preferences and
behavior.
Improved Service: Provides seamless support across different channels.
Competitive Advantage:
Differentiation: Stands out from competitors with a more comprehensive and
customer-centric approach.
Market Share Growth: Captures a larger share of the market by meeting diverse
customer needs.
Data-Driven Insights:
Customer Behavior Analysis: Gathers data across channels to understand
customer journeys and preferences.
Performance Tracking: Monitors the effectiveness of each channel and
optimizes marketing spend.
Examples:
Retail: A clothing brand with physical stores, an e-commerce website, and a
mobile app.
Financial Services: A bank offering online banking, mobile banking, and
physical branches.
Software Companies: Providing software downloads, online support, and in-
person training sessions.

Q.25. Explain the difference between selective distribution strategy and

intensive distribution strategy with examples?
Ans:
Intensive Distribution:
Goal: Maximum market coverage.
Availability: Product is available everywhere (convenience stores,
supermarkets, etc.)
Example: Coca-Cola, chewing gum
Selective Distribution:
Goal: Controlled market coverage.
Availability: Product is available at a limited number of carefully chosen
outlets.
Example: Electronics, designer clothing

Q.26. Explain the steps involved in developing an effective communication

program for B2B marketing with suitable example
Ans:
Steps in Developing a B2B Communication Program
Define Objectives: Clearly state goals (e.g., increase brand awareness, generate
leads, build relationships).
Target Audience: Identify ideal customer profiles (industry, size, roles, needs).
Messaging Strategy: Craft compelling messages that resonate with the target
audience (value proposition, key benefits).
Channel Selection: Choose appropriate channels (e.g., email, content marketing,
social media, events).
Budget Allocation: Determine budget for each channel and activity.
Content Creation: Develop high-quality content (e.g., white papers, case studies,
webinars)
Campaign Execution: Implement the communication plan across selected
channels.
Monitoring & Evaluation: Track key metrics (website traffic, leads generated,
ROI) and adjust strategy as needed.
Example:
A B2B software company targeting IT decision-makers in large enterprises
might:
Define Objective: Increase brand awareness and generate qualified leads.
Target Audience: CIOs, CTOs, IT Directors in Fortune 500 companies.
Messaging: Emphasize the software's ability to improve efficiency, reduce costs,
and enhance cybersecurity.
Channels: Utilize LinkedIn, industry publications, webinars, and targeted email
campaigns.
Content: Create white papers on industry trends, case studies of successful
implementations, and demo videos.

Q.27. Explain the concept of “integrated marketing communication (IMC)”

in the context of B2B Marketing. What are the benefits of IMC?
Ans:
IMC in B2B Marketing
Concept: IMC ensures all marketing messages and activities are consistent and
work together seamlessly across all channels. This includes advertising, PR,
social media, sales, and customer service.
Benefits of IMC in B2B:
Synergy: Creates a unified brand message that reinforces the company's image
and value proposition.
Efficiency: Avoids duplication of efforts and optimizes marketing spend.
Customer Focus: Delivers a consistent and personalized customer experience.
Competitive Advantage: Differentiates the company from competitors with a
more integrated and effective approach.
Improved ROI: Drives better return on investment by maximizing the impact of
marketing efforts.
Example: A B2B tech company might use IMC to ensure its website, social
media posts, email campaigns, and sales presentations all convey the same
message about its innovative technology and customer-centric approach.

Q.28. What are the technology -led trends that affect the B2B marketing
industry? Describe with examples their pros and cons.

1. AI and Machine Learning

Pros:
Hyper-personalization: Tailored experiences based on individual needs and
preferences.
Improved Targeting: Precise audience segmentation and ad targeting.
Predictive Analytics: Forecast future customer behavior and optimize
campaigns.
Cons:
Data Privacy Concerns: Ethical considerations around data collection and usage.
Bias: Potential for bias in AI algorithms, leading to unfair or discriminatory
outcomes.
2. Account-Based Marketing (ABM)
Pros:
Targeted Approach: Focuses on high-value accounts, maximizing ROI.
Personalized Engagement: Tailored messaging and interactions for specific
accounts.
Stronger Relationships: Builds deeper relationships with key accounts.
Cons:
Resource Intensive: Requires significant resources and expertise to execute
effectively.
Limited Reach: May not be suitable for all businesses or target markets.
3. Video Marketing
Pros:
High Engagement: Captures attention and conveys messages effectively.
Versatility: Can be used for various purposes (product demos, testimonials,
webinars).
Increased Brand Visibility: Builds brand awareness and enhances brand image.
Cons:
Production Costs: Can be expensive to produce high-quality videos.
Time-Consuming: Requires significant time and effort to plan, shoot, and edit
videos.
4. Social Selling
Pros:
Direct Engagement: Builds relationships with potential customers on social
media platforms.
Increased Visibility: Expands reach and brand awareness.
Cost-Effective: Relatively low-cost compared to traditional sales methods.
Cons:
Time-Consuming: Requires consistent effort and engagement on social media
platforms.
Distraction: Can be distracting if not managed effectively.
5. Chatbots and AI-Powered Assistants
Pros:
24/7 Availability: Provides instant customer support and answers inquiries.
Improved Efficiency: Automates routine tasks and frees up human resources.
Personalized Interactions: Offers personalized assistance based on customer
needs.
Cons:
Limited Human Interaction: May not always provide the same level of empathy
and understanding as human interactions.
Technical Limitations: May not be able to handle complex or nuanced customer
inquiries.

Q.29. List few inbound customer acquisition models based on technology

with examples for each.

Here are a few inbound customer acquisition models based on technology:

Content Marketing:
Example: Creating valuable and informative blog posts, videos, ebooks, and
infographics to attract and engage potential customers.
Technology: Content Management Systems (CMS), SEO tools, social media
platforms.
Search Engine Optimization (SEO):
Example: Optimizing website content and structure to rank higher in search
engine results pages (SERPs).
Technology: SEO tools, keyword research tools, website analytics platforms.
Social Media Marketing:
Example: Engaging with potential customers on social media platforms like
LinkedIn, Twitter, and Facebook.
Technology: Social media management tools, social listening tools, social media
advertising platforms.
Email Marketing:
Example: Building an email list and nurturing leads with targeted email
campaigns.
Technology: Email marketing platforms (e.g., Mailchimp, HubSpot), email
automation tools.
Chatbots and AI-Powered Assistants:
Example: Using chatbots to engage with website visitors, answer questions, and
provide personalized recommendations.
Technology: Chatbot platforms, AI-powered customer service tools.