Concepts and Cases

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BUSINESS MARKETING

Chapter 1

Copyright 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

THE NATURE AND SCOPE OF

BUSINESS MARKETING
MANAGEMENT

LEARNING OBJECTIVES

The type of products and services bought

by organisational customers

The major differences between business

marketing and household marketing
Some unique aspects of business
marketing management

Copyright 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

The nature and scope of business

marketing management

LEARNING OBJECTIVES

The evolution of business marketing in

India

The importance of having an independent

exposure to business marketing, besides
basic marketing

Copyright 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

Challenges of managing business

marketing

BUSINESS MARKETING

THE NATURE AND SCOPE OF BUSINESS MARKETING

ALL PERVASIVE YET INVISIBLE

Copyright 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

WHAT ORGANISATIONS BUY?

PRODUCT CLASSIFICATION

Minor Capital Equipments

The Revenue Items
Raw Materials
Components
Consumables

Processed Materials and Chemicals

Services
Office Equipments

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Major Capital Equipments

WHAT ORGANISATIONS BUY?

ANOTHER CLASSIFICATION

Entering Goods: Raw Materials, Components

and Parts

Foundational Goods: Major & Minor Capital

Goods and Office Equipment

Facilitating Goods: Operating Supplies,

Consumables and Services

Copyright 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

Regrouped by Kotler into three broad

classifications:

BUSINESS MARKET STRUCTURE

CHARACTERISTICS

May have the Dominant and Single Customer

Situations

Horizontal and Vertical Market Situations

Geographical Concentration of Business Buyers
Simultaneous Presence of Both Dominant and
Fragmented Markets
The Demand is Derived for Business Products
and Services

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Business Markets have Narrower Customer

Base

BUSINESS MARKETING
SOME UNIQUE DIMENSIONS

Higher Buyer Seller Interdependence

Product Complexity is High for many
Products
More Buying Process Complexity

Copyright 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

Higher Functional Interdependence

The Business Marketing Strategy Framework

Copyright 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

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INTEGRATED MARKETING
KEY DECISIONS
(FORMULATION)

PROMOTION
Advertising
Sales Promotion
Internet, Websites
Publicity and Public
Relations
Personal Selling

PLACE (Distribution)
Direct, Indirect
Distribution
No. of Dealers and
Retailers
Logistic
Management
Role and
Responsibilities of
Channel Members

PRICE
Pricing Strategy
List Prices
Payment Terms
Discounting Policies

POLICIES

PAISA
(Money)

Target
Customers
KEY ENABLERS
(IMPLEMENTATION)

PEOPLE

Quality
Number
Experience
Background

PROCESS AND
STRUCTURE

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PRODUCT
Product Range
Product Type
Product Quality
Product Brand
Positioning
Packaging
After Sales Services

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THE IDEA OF
MARKETING STRATEGY
Organisational Objectives and Time Bound
Goals.
Segmentation of the Markets and Selection of
the target Segments.
Decisions on the Marketing Mix Elements:
Product, Promotion, Place and Price. These are
Popularly Known as the 4Ps of Marketing Mix.
Managing the Marketing Function: The Four
Most Important Areas are People, Processes
and Structure, Policies and Paisa (Money).

Copyright 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

It is a set of decisions, which are:

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