The Most Important Questions

Antim Prahar

MBA/BBA

By
Dr. Anand Vyas
1 Fundamentals of B2B marketing
Nature of Business Markets:
1. Inter-Organizational: Business markets involve transactions between
organizations rather than individual consumers. Companies buy products or
services to support their own operations or for resale to other businesses.
2. Rational Decision-Making: Purchasing decisions in business markets are typically
based on rational factors such as cost, quality, reliability, and the ability to meet
specific business needs. Emotions play a lesser role compared to consumer
markets.
3. Long-Term Relationships: Business markets emphasize building long-term
relationships between buyers and sellers. This is because transactions often involve
larger volumes, complex products or services, and ongoing support or
customization.
4. Multiple Decision-Makers: In business markets, purchasing decisions are often
made by a group or team within the organization. Multiple stakeholders, such as
managers, department heads, and end-users, may be involved in the decision-
making process.
Scope of Business Markets:
1. Business-to-Business (B2B): B2B markets encompass transactions between two or more
businesses. This includes manufacturers, wholesalers, retailers, service providers, and
other entities that buy or sell products/services to support their operations.
2. Industrial Markets: Industrial markets refer to the purchase of products or services by
organizations involved in industrial production. This includes raw materials, machinery,
equipment, and other inputs required for manufacturing processes.
3. Institutional Markets: Institutional markets involve transactions with non-profit
organizations, government agencies, and educational institutions. These entities have
specific needs for goods and services, such as healthcare supplies, educational resources,
and government contracts.
4. Reseller Markets: Reseller markets involve businesses that purchase products or services
for the purpose of reselling them to other businesses or consumers. Wholesalers and
distributors are examples of resellers who buy in bulk and distribute to retailers or other
businesses.
5. Government Markets: Government markets consist of transactions between businesses
and government agencies at various levels (local, state, or national). Government contracts
may involve the purchase of goods, services, or infrastructure development.
6. International Markets: International markets involve business transactions across
national boundaries. Companies engage in import/export activities, establish international
partnerships, and adapt their marketing strategies to different cultural and regulatory
environments.
Understanding Business Markets

• Market Structure & Demand

• Nature of Buying Unit
• Kinds of Decision & Decision Process
2 Consumer market vs Business market
Consumer Market Business Market

1. Individuals and households are the buyers. | 1. Organizations and businesses are the buyers.
2. Purchases are made for personal consumption or 2. Purchases are made for operational use or for
use. | resale.

3. Buying decisions are driven by personal needs, | 3. Buying decisions are driven by business needs,
wants, and preferences. objectives, and rational factors.

4. Smaller purchase quantities and lower transaction 4. Larger purchase quantities and higher transaction
values. | values.

5. Marketing strategies focus on mass marketing, | 5. Marketing strategies focus on targeted

brand positioning, and emotional appeals. marketing, relationship building, and rational
appeals.
6. Shorter sales cycle as individual consumers make 6. Longer sales cycle as business purchases involve
quicker purchase decisions. multiple decision-makers and more complex
processes.
7. Limited post-purchase relationship with individual 7. Emphasis on building long-term relationships with
consumers. | business buyers.
8. Advertising and promotions target individual | 8. Advertising and promotions target businesses
consumers through various media channels. through industry-specific channels, trade
publications, and professional networks.
9. Customer behavior is influenced by personal 9. Customer behavior is influenced by business
factors, trends, and social influences. | requirements, economic factors, and industry-specific
trends.

10. Less formal procurement processes in consumer 10. Formal procurement processes, contracts, and
markets. | negotiations are common in business markets.
3 Gaps Model of Service Quality
• 1. Consumer expectation – Management perception gap (Gap 1)
• Management may have inaccurate perceptions of what consumers
(actually) expect. The reason for this gap is lack of proper market/customer
focus. The presence of a marketing department does not automatically
guarantee market focus. It requires the appropriate management
processes, market analysis tools and attitude.

• 2. Service Quality Specification gap (Gap 2)

• There may be an inability on the part of the management to translate
customer expectations into service quality specifications. This gap relates
to aspects of service design.
• 3. Service delivery gap (Gap 3)
• Guidelines for service delivery do not guarantee high-quality service delivery or
performance. There are several reasons for this. These include: lack of sufficient
support for the frontline staff, process problems, or frontline/contact staff
performance variability.

• 4. External communication gap (Gap 4)

• Consumer expectations are fashioned by the external communications of an
organization. A realistic expectation will normally promote a more positive
perception of service quality. A service organization must ensure that its
marketing and promotion material accurately describes the service offering and
the way it is delivered

• 5. These four gaps cause a fifth gap (Gap 5)

• which is the difference between customer expectations and perceptions of the
service actually received Perceived quality of service depends on the size and
direction of Gap 5, which in turn depends on the nature of the gaps associated
with marketing, design and delivery of services. So,Gap 5 is the product of gaps 1,
2, 3 and 4. If these four gaps, all of which are located below the line that
separates the customer from the company, are closed then gap 5 will close.
4 CRM PROCESS
• CRM stands for Customer Relationship Management, and it refers to the strategies and processes
businesses use to manage and enhance their relationships with customers. In simple language,
CRM is a way for companies to better understand their customers, keep track of their interactions
and preferences, and provide personalized experiences to meet their needs.

• The CRM process typically involves the following steps:

• 1. Customer Data Collection: This is where companies gather information about their customers,
such as their contact details, purchase history, preferences, and any other relevant data. This
information can be obtained through various channels like online forms, surveys, or customer
interactions.
• 2. Data Analysis: Once the customer data is collected, it is analyzed to gain insights and identify
patterns. This analysis helps companies understand customer behavior, preferences, and needs.
By examining this data, businesses can make informed decisions to improve their products or
services.
• 3. Customer Segmentation: After analyzing the data, companies can group customers into
segments based on similarities in their characteristics or behaviors. This segmentation allows
businesses to tailor their marketing strategies and offerings to specific customer groups, providing
personalized experiences.
• 4. Relationship Building: CRM focuses on building strong relationships with
customers. This involves regular and meaningful interactions through
various channels such as email, phone calls, social media, or in-person
meetings. These interactions help companies understand customer
concerns, address issues, and provide relevant information.
• 5. Customer Service and Support: CRM also includes providing exceptional
customer service and support. This involves promptly addressing customer
queries, resolving issues, and ensuring customer satisfaction. Effective
customer service can lead to higher customer loyalty and positive word-of-
mouth recommendations.
• 6. Continuous Improvement: The CRM process is an ongoing effort.
Companies continuously gather feedback from customers, track customer
satisfaction, and monitor their changing preferences. This feedback is used
to improve products, services, and overall customer experience.
• By implementing an effective CRM process, companies can build long-
lasting relationships with customers, enhance customer satisfaction, and
ultimately drive business growth.
5 Delivering Services: Role of Employees and
Customers in service delivery
• Delivering Services: Role of Employees in Service Delivery:
• 1. Expertise and Skill: Employees bring their expertise and skills to deliver
high-quality services.
• 2. Interpersonal Communication: Employees engage with customers,
understand their needs, and provide personalized assistance.
• 3. Service Customization: Employees tailor services to meet individual
customer needs.
• 4. Problem Solving: Employees identify and resolve service-related issues
efficiently.
• 5. Service Recovery: Employees acknowledge and rectify service failures,
turning negative experiences into positive ones.
Delivering Services: Role of Customers in
Service Delivery:
• 1. Clear Communication of Needs: Customers express their
requirements and preferences for effective service delivery.
• 2. Providing Feedback: Customers share feedback to help service
providers improve.
• 3. Active Participation: Customers actively engage in the service
delivery process.
• 4. Patience and Understanding: Customers remain patient and
understanding during service delays or issues.
• 5. Appreciation and Loyalty: Customers express appreciation, loyalty,
and provide positive recommendations to service providers.
6 Marketing Communication mix
• The elements of the marketing communication mix include:
• 1. Advertising: Promoting products or services through paid media
channels such as television, radio, print, online banners, or social
media advertisements.
• 2. Sales Promotion: Offering short-term incentives or discounts to
stimulate immediate sales, such as coupons, contests, free samples,
or limited-time offers.
• 3. Public Relations: Building and maintaining a positive image and
relationships with the public through activities like media relations,
press releases, sponsorships, events, and community involvement.
• 4. Personal Selling: Direct, one-on-one communication between sales
representatives and potential customers to demonstrate and sell products
or services.
• 5. Direct Marketing: Communicating directly with target customers through
various channels like email marketing, telemarketing, direct mail, or SMS
marketing.
• 6. Digital Marketing: Utilizing online platforms and channels, including
websites, search engine optimization (SEO), search engine marketing
(SEM), social media marketing, content marketing, and influencer
marketing.
• 7. Sponsorship and Branding: Associating a company's brand with events,
organizations, or causes to enhance brand visibility and build positive
associations.
• 8. Integrated Marketing Communications (IMC): Coordinating and
integrating various communication elements to deliver a consistent and
unified message across multiple channels.
The B2B marketing mix, also known as the industrial marketing mix, includes:

1. Product: Offering products or services tailored to the needs and

requirements of other businesses or organizations.
2. Price: Determining pricing strategies that align with the value delivered to
B2B customers, taking into account factors such as volume discounts,
contract pricing, and long-term relationships.
3. Distribution (Place): Identifying and establishing efficient distribution
channels to deliver products or services to B2B customers, which may
involve direct sales, distributors, wholesalers, or online platforms.
4. Promotion: Using targeted marketing communications to reach and
influence B2B decision-makers, such as trade shows, industry events,
professional associations, trade publications, digital advertising, and content
marketing.
5. Relationship Management: Building and nurturing long-term relationships
with B2B customers through personalized interactions, account
management, customer support, and post-sales services.
6. Strategic Alliances and Partnerships: Collaborating with other businesses
or organizations to expand reach, access new markets, or leverage
complementary resources and capabilities.
7. After-sales Support: Providing ongoing support, training, maintenance,
and customer service to ensure customer satisfaction and foster repeat
business.
8. Customer Experience: Focusing on delivering a seamless and positive
customer experience at every touchpoint, considering factors such as
reliability, responsiveness, customization, and ease of doing business.
9. Innovation: Emphasizing continuous innovation and improvement to meet
evolving B2B customer needs and stay ahead of competitors.
10. Reputation and Trust: Building a strong brand reputation and establishing
trust in the market through testimonials, case studies, industry partnerships,
and thought leadership.
It's important to note that the B2B marketing mix may vary depending on
the specific industry, target market, and nature of the products or services
being offered.
7 Selling to low-priority and High-priority customers
• Selling to Low-Priority Customers:

• 1. Efficient and Streamlined Approach: Focus on delivering a streamlined and efficient

sales process to low-priority customers to maximize productivity and minimize resources
allocated.
• 2. Targeted Marketing Communications: Develop targeted marketing messages and
communications that highlight the value proposition and benefits specifically tailored to
low-priority customers' needs and pain points.
• 3. Price and Incentives: Offer competitive pricing or special incentives to attract and
retain low-priority customers, such as discounts, flexible payment terms, or volume-
based pricing.
• 4. Self-Service Options: Provide self-service options and resources to low-priority
customers, allowing them to access information, place orders, and resolve basic inquiries
independently, freeing up sales resources for higher-priority customers.
• 5. Relationship Building Opportunities: While low-priority customers may not require as
much attention, invest in building relationships by periodically checking in, offering
support, and maintaining a positive rapport. This can help keep the door open for
potential future business or referrals.
• Selling to High-Priority Customers:

• 1. Customized Solutions: Develop customized solutions that address high-priority customers'

unique challenges and requirements, demonstrating a deep understanding of their business
needs.
• 2. Personalized Relationship Management: Provide dedicated account managers or sales
representatives who serve as the primary point of contact for high-priority customers, offering
personalized attention, proactive communication, and prompt responses to inquiries.
• 3. Value-added Services: Offer value-added services, such as priority access, exclusive resources,
technical support, or dedicated training programs, to enhance the overall customer experience
and strengthen the relationship.
• 4. Strategic Partnerships: Explore opportunities for strategic partnerships or collaborations with
high-priority customers, aligning goals and objectives to foster long-term loyalty and mutual
growth.
• 5. Continuous Support and Upselling: Provide ongoing support, post-sales assistance, and
upselling opportunities to high-priority customers, ensuring their satisfaction, identifying
additional needs, and maximizing the potential for repeat business.

• It's important to note that the categorization of low-priority and high-priority customers may vary
based on specific business contexts and strategies. Regular evaluation and adjustment of
customer priorities are recommended to align sales efforts effectively.
8 Supply chain and Logistics management
• Logistics and supply chain management are crucial elements in ensuring the efficient flow of
goods, services, and information from the point of origin to the point of consumption. Here are
some key points related to logistics and supply chain management:

• Logistics Management:
• 1. Transportation: Managing the movement of goods from suppliers to customers through various
modes of transportation, such as road, rail, air, or sea. This includes selecting carriers, optimizing
routes, and tracking shipments.
• 2. Warehousing and Inventory Management: Overseeing storage, handling, and organization of
inventory in warehouses or distribution centers. It involves managing stock levels, optimizing
warehouse layouts, and implementing inventory control measures to ensure sufficient stock
availability while minimizing holding costs.
• 3. Packaging and Materials Handling: Determining appropriate packaging methods and materials
to protect goods during transportation and storage. Efficient materials handling practices involve
the proper movement, storage, and control of goods within facilities, minimizing damage and
improving operational efficiency.
• 4 Order Fulfillment: Coordinating and executing the processes involved in receiving, processing,
and delivering customer orders. This includes order entry, order picking, packing, and shipping,
aiming for timely and accurate order fulfillment.
• Supply Chain Management:

• 1. Supplier Relationship Management: Building and maintaining strong relationships with

suppliers, including sourcing, selecting, and negotiating contracts. Supplier relationship
management focuses on collaboration, performance monitoring, and continuous improvement to
ensure a reliable supply of goods and services.
• 2. Demand Planning and Forecasting: Analyzing historical data and market trends to predict future
demand for products or services. Accurate demand planning enables effective inventory
management, production scheduling, and resource allocation.
• 3. Inventory Optimization: Balancing inventory levels to minimize holding costs while meeting
customer demand. Techniques such as just-in-time (JIT) inventory, economic order quantity
(EOQ), and safety stock management are employed to optimize inventory levels.
• 4. Supply Chain Visibility and Collaboration: Enhancing transparency and visibility across the
supply chain by leveraging technology and data sharing. Collaboration with partners, including
suppliers, distributors, and customers, facilitates information flow, improves responsiveness, and
enables efficient decision-making.
• 5. Sustainability and Risk Management: Integrating sustainable practices and risk management
strategies into supply chain operations. This includes assessing and mitigating risks related to
disruptions, implementing sustainable sourcing and transportation practices, and ensuring ethical
and responsible supply chain practices.
• Effective logistics and supply chain management contribute to reducing costs, improving
customer satisfaction, enhancing operational efficiency, and gaining a competitive edge in the
market. It involves a holistic approach that integrates various functions and stakeholders to create
a seamless flow of goods and services throughout the entire supply chain.
9 3 C’s of pricing cost, Customer and competition
pricing strategy
• The 3 C's of pricing, also known as the cost, customer, and competition pricing strategy,
are key factors that businesses consider when determining their pricing strategies. Here's
a breakdown of each component:

• 1. Cost: The cost aspect of pricing involves considering the expenses incurred in
producing and delivering a product or service. This includes direct costs (materials, labor,
manufacturing) and indirect costs (overhead, administrative expenses). By analyzing the
cost structure, businesses can ensure that the selling price covers their expenses and
allows for a reasonable profit margin.

• 2. Customer: The customer component focuses on understanding customer behavior,

preferences, and willingness to pay. It involves conducting market research, customer
surveys, and analyzing customer segments to identify the value customers perceive in
the product or service. Pricing strategies are then developed based on customer insights
to maximize customer satisfaction and capture the perceived value.
• 3. Competition: The competition component involves assessing the pricing
strategies of competitors in the market. It includes analyzing competitor
prices, positioning, and value propositions. By understanding the
competitive landscape, businesses can determine whether to price their
product higher, lower, or at a similar level to their competitors to gain a
competitive advantage.

• By considering the 3 C's of pricing, businesses can develop effective pricing

strategies that take into account their costs, align with customer
expectations, and respond to competitive dynamics. It's important to strike
a balance between these factors to optimize pricing decisions and achieve
profitability while meeting customer demands.
10 Personal selling
• Personal selling is a direct marketing strategy where a salesperson
interacts with potential customers to promote and sell products or
services. The process involves stages such as prospecting, pre-
approach, approach, needs assessment, presentation, handling
objections, closing the sale, and follow-up.

• In summary, personal selling is a direct marketing approach that

involves face-to-face interaction to build relationships, understand
customer needs, and persuade them to make a purchase. It offers
personalized attention, immediate feedback, and customization, but it
can be costly and time-consuming.
• Advantages of Personal Selling:
• 1. Personalized interaction.
• 2. Relationship building.
• 3. Immediate feedback.
• 4. Customization and upselling.
• 5. High conversion rates.

• Disadvantages of Personal Selling:

• 1. High cost.
• 2. Limited reach.
• 3. Dependence on salesperson's skills.
• 4. Time intensive.
• 5. Inconsistency in message delivery.
11 Customer Defined Service Standards

• customer-defined service standards involve understanding and

meeting the specific expectations and requirements set by customers
for the level of service they expect to receive. It involves actively
listening to customers, defining measurable standards, aligning
organizational efforts, and continuously improving to ensure
customer satisfaction and loyalty. By prioritizing customer needs and
preferences, organizations can create a customer-centric culture and
gain a competitive edge.
Developing Customer Defined Service Standards:
1. Engage with customers to understand their expectations and preferences.
2. Identify key dimensions of service quality based on customer feedback.
3. Define clear and measurable service standards and metrics.
4. Align organizational efforts to ensure all employees are committed to
meeting the defined standards.
5. Monitor and evaluate performance against the service standards.
6. Continuously seek customer feedback to drive improvement.
7. Foster a customer-centric culture through internal communication.
8. Empower frontline employees to deliver excellent service.
9. Recognize and reward employees who meet or exceed the service
standards.
12 Complaint handling (Grievance Resolution)
• “Complainants” are defined as customers who have had a recent
problem, and have told a member of staff about it. They have not
necessarily lodged a formal complaint, and their issue may or may not
be captured in an organisation’s complaints tracking system.
The 5 rules of complaints handling for organisations
1. Acknowledge and respect: Show respect and acknowledgement to the
complainant's concerns, ensuring they feel heard and valued.
2. Prompt response: Respond to complaints in a timely manner to
demonstrate your commitment to addressing the issue promptly.
3. Empathy and understanding: Show empathy towards the complainant's
emotions and perspective. Understand their point of view and validate their
feelings.
4. Effective communication: Communicate clearly and effectively with the
complainant, providing updates, explanations, and resolutions in a
transparent manner.
5. Resolution and follow-up: Strive for a fair and satisfactory resolution to the
complaint. Take appropriate actions to address the issue and follow up with
the complainant to ensure their satisfaction.
These rules serve as guidelines for organizations to handle complaints
effectively, improve customer relations, and foster a positive reputation for
customer service.
Here are the steps for handling complaints
effectively:
1. Listen attentively: Give the complainant your full attention and actively
listen to their concerns without interruption. Allow them to fully express
their complaint.
2. Show empathy and understanding: Demonstrate empathy towards the
complainant's situation. Understand their perspective and acknowledge their
emotions.
3. Gather information: Ask questions to gather all the necessary information
related to the complaint. Seek clarifications and additional details to ensure
a clear understanding of the issue.
4. Apologize and take responsibility: Apologize sincerely for the
inconvenience or dissatisfaction caused by the issue, regardless of who may
be at fault. Take responsibility for resolving the complaint.
5. Offer solutions: Propose viable solutions or alternatives to address the
complaint. Be proactive and provide options that can resolve the issue to the
customer's satisfaction.
6. Take prompt action: Take immediate action to resolve the complaint.
Communicate with the relevant departments or individuals to ensure
appropriate steps are taken to rectify the problem.
7. Communicate the resolution: Clearly communicate the resolution to the
complainant. Provide a detailed explanation of the actions taken and how
the issue has been resolved.
8. Follow up: Follow up with the complainant after the resolution to ensure
their satisfaction. Check if any further assistance is needed and address any
remaining concerns or questions.
9. Document and learn: Document the complaint, including the details,
actions taken, and resolutions provided. Analyze the complaint to identify
any patterns or recurring issues that need to be addressed to improve
processes and prevent similar complaints in the future.