1) Explain The Various Stages of NPD: New Product Development Stages

1) Explain the various stages of NPD
New Product Development Stages

Before a product can embark on its journey through the four product life cycle stages, it has to be developed. New
product development is typically a huge part of any manufacturing process. Most organizations realize that all
products have a limited lifespan, and so new products need to be developed to replace them and keep the company
in business. Just as the product life cycle has various stages, new product development is also broken down into a
number of specific phases.
New Product Development

Developing a new product involves a number of stages which typically center around the following key areas:
The Idea: Every product has to start with an idea. In some cases, this might be fairly simple, basing the new product
on something similar that already exists. In other cases, it may be something revolutionary and unique, which may
mean the idea generation part of the process is much more involved. In fact, many of the leading manufacturers will
have whole departments that focus solely on the task of coming up with ‘the next big thing’.
Research: An organization may have plenty of ideas for a new product, but once it has selected the best of them, the
next step is to start researching the market. This enables them to see if there’s likely to be a demand for this type of
product, and also what specific features need to be developed in order to best meet the needs of this potential
market.
Development: The next stage is the development of the product. Prototypes may be modified through various design
and manufacturing stages in order to come up with a finished product that consumers will want to buy.
Testing: Before most products are launched and the manufacturer spends a large amount of money on production
and promotion, most companies will test their new product with a small group of actual consumers. This helps to
make sure that they have a viable product that will be profitable, and that there are no changes that need to be made
before it’s launched.
Analysis: Looking at the feedback from consumer testing enables the manufacturer to make any necessary changes
to the product, and also decide how they are going to launch it to the market. With information from real consumers,
they will be able to make a number of strategic decisions that will be crucial to the product’s success, including what
price to sell at and how the product will be marketed.
Introduction: Finally, when a product has made it all the way through the new product development stage, the only
thing left to do is introduce it to the market. Once this is done, good product life cycle management will ensure the
manufacturer makes the most of all their effort and investment.
Thousands of new products go on sale every year, and manufacturers invest a lot of time, effort and money in trying
to make sure that any new products they launch will be a success. Creating a profitable product isn’t just about
getting each of the stages of new product development right, it’s also about managing the product once it’s been
launched and then throughout its lifetime.
This product life cycle management process involves a range of different marketing and production strategies, all
geared towards making sure the product life cycle curve is as long and profitable as possible.
2)What is Branding Industrial

Industrial branding is the process of creating and retaining a good unique image about the product
(using brandcolors, logo, typeface etc.) in the client's mind and continually promoting it to create the
desire so as to buy the product eventually.
As industrial branding consultants, Forward Analytics helps corporate clients increase

customer retention and sales levels through industrial branding, image, and awareness
market research, as well as satisfaction studies, competitive intelligence, customer value
analysis, and new product market research. Our tools and techniques have great utility in all
sectors of the economy, including producers and suppliers of industrial, consumer, and
service products.
Forward Analytics' corporate marketing research products support the three fundamental
business needs; reaching customers, converting customers, and retaining customers. Our
services provide near-term answers that help our clients identify market strengths,
weaknesses, opportunities, and threats. Additionally, the long-term value of our market
intelligence is evident when it comes time for forward planning - which markets? which
products? what price? We aim to exceed our clients' expectations by generating reports that
provide actionable information that's usable from the boardroom to the production floor.
Forward Analytics is an established leader in the fields of industrial branding market research, competitive
intelligence, business to business market research and consumer product market research. Through quantitative
and qualitative survey questionnaire design, we gather the following types of data:
 ongoing customer satisfaction

 customer value regarding product, service, and price
 corporate image and customer opinions
 competitive intelligence, positioning and industry information
 key decision makers
 factors influencing decision making
 purchase and experience information
 new product development and feasibility
 brand awareness
 pricing
3)list of various activity involved in for industrial advantages & promotion

The advantages of industrialization are given below: The growth of industries has resulted in large
scale production of goods which are available to the consumer at much cheaper rates. There is
saving of time and labor. Industrialization has resulted in a considerable rise in the standard of living
of the people.
Advantages
The advantages of industrialization are given below:
1. The growth of industries has resulted in large scale production of goods which are
available to the consumer at much cheaper rates.
2. There is saving of time and labor.
3. Industrialization has resulted in a considerable rise in the standard of living of the
people.
4. A number of substitutes in consumer goods are available. The customer get wide variety
of choices.
5. There are means to control and check the colossal wastage of human energy that can
be used otherwise.
6. Industrialization creates new job opportunities, leading to the removal of poverty to a
great extent.
7. Industrialization has also resulted in the development of new modes of transport making
quick export and import possible. The world has become a small place.
Definition: Promotions refer to the entire set of activities, which communicate the product, brand or
service to the user. The idea is to make people aware, attract and induce to buy the product, in
preference over others.
Description: There are several types of promotions. Above the line promotions include advertising,
press releases, consumer promotions (schemes, discounts, contests), while below the line include trade
discounts, freebies, incentive trips, awards and so on. Sales promotion is a part of the overall promotion
effort.
There are also:

1. Personal selling: one of the most effective ways of customer relationship. Such selling works best
when a good working relationship has been built up over a period of time.
This can also be expensive and time consuming, but is best for high value or premium products.
2. Sales promotions: this includes freebies, contests, discounts, free services, passes, tickets and so on,
as distinct from advertising, publicity and public relations.
3. Public relations: PR is the deliberate, planned and sustained effort to establish and maintain mutual
understanding between the company and the public.
Choose your promotional activities

The goal of marketing is to stand out and be noticed. Good marketing keeps drawing
your customers' attention to your products and services. Your clearly defined, well-
packaged, competitively-priced products and services are the foundation of your
marketing.
The newer you are in your market, the harder you have to work to attract and retain new
customers. Many of your marketing activities will focus on communicating to customers
the features and benefits of your products (i.e. compared to your competitors). Consider
which promotional activities will best meet your marketing needs.
Types of promotional activities
Product and service promotion is the most common form of marketing. Promotional
activities can include:
1) advertising - you can advertise your product, service or brand in newspapers, radio,
television, magazines, outdoor signage and online. Learn more about how to make your
advertising successful.
2) personal selling or telemarketing - effective personal selling relies on good
interpersonal and communication skills, excellent product and service knowledge and
the ability to sell product benefits to prospective customers.
3) publicity - created by sending media releases to print and broadcasting media, giving
interviews to the media and from word-of-mouth. Learn more about public relations.
4) short-term sales promotions - market your product or service using coupons,
competitions and contests. Find out about the benefits of coupon websites.
5) direct marketing - involves sending letters, emails, pamphlets and brochures to
individual target clients, often followed by personal selling or telemarketing. Learn more
about direct marketing.
You can use any combination of these methods to target your customers. The right
promotional mix will help you satisfy your customers' needs, increase sales, improve
your results and increase your ability to reach multiple customers within your target
market.
4)Explain the Road map to CRM implementation

2) Home
3) › Management
Roadmap For Successful CRM Implementation
By Arindam Banerjee | Mumbai | Last Updated at June 14 2013 15:17 IST

Traditional approaches to customer relationship management have yielded weak results because
they have been technology-led. Ideally, the prime movers of a CRM strategy should be line
functionaries in marketing, finance or operations. Indian banks, just moving into CRM, can learn from
the mistakes made in the West
About a decade ago, the marketing research industry in the United States seemed poised to take off on
an altogether new technological flight. Research clients in manufacturing and marketing organisations
of customer goods and services seemed to readily accept the notion that strategy building needed
some significant inputs from customer data collected from tracking services. These data were different
from the ones supplied until then by research suppliers through one-off survey analysis.
Tracking services supplied information not only about consumer attitudes but also their actual
behaviour "" and that too on an ongoing basis. Behavioural data was considered more useful for
developing strategy since it provided true insights about a customer's likes and dislikes rather than
slice-in-time customer surveys which provided stated preferences. This led to the usage of marketing
research techniques as a planning tool for the future rather than using it to merely report "nice-to-
know" customer reactions in posterior.
Strategy development exercises turned more data savvy and scientifically tuned and corporate America
was talking precision in estimated earnings rather than simply directions. Prediction modelling came
into vogue and a proper calibration of the marketing mix to induce an appropriate customer response
became necessary. Mere directional insights were not enough.
Large marketing organisations such a Kraft, Pepsi, Coke, General Mills and the like invested in customer
data management initiatives, recruited and trained technicians to mine the databases and focused on
interpreting past customer behaviour along with individual characteristics to fine-tune marketing
strategies directed at specific customer groups. This technique became popularly known as micro-
marketing based on data analysis.
The emphasis on customer data analysis and the subsequent use of the analytical output for strategy
building evolved more dramatically in the banking services sector where the preponderance of
customer transaction data is overwhelming. The entire business of banking services is about building
and maintaining individual customer relationships through value-added service. This spurred the need
for developing individualised customer care strategies to ensure that each customer (at least the high
value ones) was kept satisfied perpetually. Customer retention was important especially in the context
of the keen competition prevalent in the western markets.
The route to ensuring a high degree of satisfaction was to devise individualised strategies for every
important customer. Thus evolved the concept of customer relationship management (CRM) which not
only incorporated the micro-marketing strategies based on data analysis but advanced further to
customise marketing efforts to individual customers based on past behaviour.
Similar CRM strategies evolved in several service-based industries which have access to large-scale
transaction data of individual customers. Goods and services that lend themselves to repeated usage
and require the customer to directly access the provider to make a purchase are amenable to CRM-
type strategies. In order to build a database of information of customer transactions, adequate
computing infrastructure is required to identify and store individual transactions.
EFFECTIVE STRATEGIES
To devise effective strategies based on past customer behaviour, a thorough understanding of each
customer with respect to his/her profile and past consumption pattern is required. While this may
sound fairly prosaic, there are some significant operational issues for organisations resorting
to CRM initiatives. These can be categorised as:
* Customer data acquisition from all customer contact points
* Data mining for building customer insights and prediction modelling
* Developing appropriate initiatives on a proactive basis to improve customer satisfaction.

Perhaps the core of this process is the development of a data acquisition plan and its implementation.
The quality of the raw material used to develop customer insight determines the ultimate effectiveness
of any strategy. The subsequent stages in the CRM process development are of secondary importance.
Yet, there are many instances of organisations investing less in the planning of data acquisition and
relying more on efficient data mining to drive their CRM initiatives. Unfortunately, this has resulted in
less than marginal success.
RETAIL BANKING: CASE STUDY
To substantiate this point, the case of implementation of a customised debt collection initiative at a
credit card issuing bank in the United States is presented here. The objective of this CRM initiative was
to identify and assign appropriate delinquent customers to a litigation process to accelerate the
collection of pending dues from them. It was estimated that this method would significantly improve
the debt collection amount of the bank since it had over $5-6 billion of delinquent balances.
According to the bank, all delinquent customers were not suited for coercion into paying their dues.
Delinquent customers, who had pending disputes with the bank or had a genuine grievance, were
definitely not candidates for litigation. Hence, there was a need to search the history of past
interactions of customers with the bank and deselect customers with such records.
After deselecting the cases with a dispute or grievance, a second stage of classification was attempted
to segregate appropriate customers for litigation. The logic used was that it would be viable to initiate
action only against those delinquent customers who tended to pay up only when litigation proceedings
were launched. Past behaviour and profiling information was required to identify this segment.
It was presumed that customers who were unwilling to pay up their dues, but had to the ability to pay,
would generally satisfy the criteria for selection for litigation. Hence, it was necessary to determine the
financial solvency of delinquent customers in order to identify the appropriate cases for litigation.
Available customer information regarding possession of assets or a job that fetches a steady income
were found suitable to make this assessment.
Unfortunately, this type of information is not readily available with most banks for a variety of reasons.
First, they may not have instituted a procedure to collect this information at the time when customers
apply for credit cards. Some banks do have procedures to collect information about the customer's
income. However, this information is not updated on a periodic basis since there are no instituted
procedures to monitor changes in the financial status of customers over time.
Also, there are instances of data corruption causing a high level of missing information in the
databases. As a result of the non-availability of appropriate information, identification of customers to
be sent to litigation becomes non-trivial. Less than perfect information about customers imposes
constraints on the identification of the right candidates for litigation.
A similar problem was encountered at the bank while attempting to re-engineer the debt collection
practices. A decision-tree analysis was employed based on available surrogate information such as past
behavioural data of customers in lieu of information on the customer's financial status, which predicted
who would be a likely candidate to be sent to arbitration. Instead of definitively identifying financially
solvent cases, statistical modelling was used to predict the true financial solvency of delinquent
customers with the help of information of their past behaviour. Cases with a high probability of being
sound financially were assigned to the litigation process.
It was not viable to assign all delinquent cases to litigation because of the significantly high cost
associated with these proceedings. There was a $100 court fee for filing every case. The result of
developing sophisticated prediction models was just about average. The bank was able to identify
about 40 per cent of the true cases that were appropriate for litigation.
Even with a comprehensive search across multiple databases in the organisation, the bank was unable
to improve the identification process using the sophisticated prediction-modelling tool. The silver lining
was that given the scale of operation at the bank, even with this moderate success in customer
identification process it was able to save over $40 million annually.
This illustration is not an isolated case of low to moderate success in developing successful business
strategies based on customer information. Based on the author's experience from the banking sector in
the United States, no major bank in the past five years has recorded a high degree of success in
formulating customer transaction data-driven business strategy (with the possible exception of Capital
One).
While it is conceptually very appealing to devise systems to track consumers and fine-tune future
strategies based on an understanding of their past behaviour, many organisations have yet to evolve
internal processes that can capture and bank appropriate customer information for future use.
Unfortunately, this remains a major roadblock in the effective implementation of CRM or database-
driven strategy initiatives. The stress is on the appropriateness of the data captured and not on the
scale. The experience of the banking industry in the United States has exhibited the importance of
strategic planning of data acquisition for its effective use in the future. Without such proactive steps,
managers will have to reconcile themselves to moderate successes in any database-led strategy
development initiative.
KEY ISSUES
Traditionally, the technology and systems group in an organisation have spearheaded information
acquisition and management. In reality, this tends to be a hurdle since there is a significant disconnect
between the tasks of data management and data use for strategic purposes. The former is handled by
the more technology-savvy IT and systems personnel in organisations who may not be looped in with
the mainstream business functions of the organisation.
While management and development of databases and information flows is strategically important, the
responsibility of ensuring the acquisition of good quality information based on their potential
applicability to strategy development activities has to be assumed by the user groups. Ideally, this
would mean that prime movers of a CRM strategy in an organisation should be the line functionaries,
such as marketing, finance or operations, who would benefit the most from effective database-driven
business initiatives.
Hence it important that firms initiate a planning process for acquiring appropriate information
resources prior to investing enormous amounts of funds on the development of database management
systems. Proactive planning by line managers regarding their future information needs should ensure
tracking of the required information resources that will drive effective business strategy.
THE PREREQUISITES
Strategic CRM initiatives will require the following:
* User groups in organisations must develop a proactive plan to capture appropriate customer
information
* This plan can then be implemented by the systems and technology group, which includes customer
tracking and data management issues
* Appropriate data mining activities need to be planned by user groups to support various customer
management strategies as required in a timely manner. This activity will be supported by the systems
group
* User groups must develop appropriate customer development strategies based on the insights
available from the data mining exercise.
The general conclusion reached is that effective usage of customer data for developing business
strategies will require more active participation by line managers in the entire CRM development
process.
In reality, this remains an illusory goal. In the banking sector in the United States, most CRM-based
strategies are still driven by systems and IT functions with a low involvement of the actual user group.
One would suspect that the scenario is not very different in other industries.
CRM IN INDIAN RETAIL BANKING

Not surprisingly, India is still at a preliminary stage in the systems development cycle with respect
to CRM strategies. This is a boon in more than one way since it provides Indian managers an
opportunity to learn and avoid the pitfalls identified in more developed markets. Based on a limited
survey of the Indian retail banking sector, we are able to classify organisations based on
their CRM initiatives into three categories:
THE TRANSPLANTS: Many foreign banks operating in the Indian market have adopted
syndicated CRM processes that have been developed by their principals in more developed western
economies. Most bank managers in this group admit that the success rate of their CRM strategies is at
best moderate. They also have no significant plans to customise such processes for the Indian market
primarily because of perceived low marginal benefit. This is mainly because of the low degree of
competition in the Indian market that does not make it viable for foreign banks to invest in customising
their CRM processes for India.
THE PERFORMERS: Among "Indian-managed" banks, this group has acquired the so-called first mover
advantage of cornering the profitable premium segment of customers. High performance has
generated large fund surpluses, which bestows a high degree of confidence among the managers of
these banks. Early initiatives at targeting premium customers along with low levels of competition from
other banks are the prime reasons for their good performance.
However, managers of these banks have no reason to be complacent. With growing levels of
competition, a single segment focus may not remain an effective strategic option in medium term.
Micro-marketing strategies driven by consumer insights will determine successful businesses of the
future.
Therefore, in order to remain market leaders, they have to equip themselves with appropriate
technology to track and analyse customer behaviour. A more challenging task will be to reorient
managers to think of customers at the micro-segment level or even at the individual level rather than
as a single large entity.
THE FOLLOWERS: Many domestic banks, both private and state-run, fall in this category. Not having
had the benefit of the first mover advantage that the "performers" had, they are reconciled to building
competitive advantage by developing CRM-type infrastructure in their organisations to target micro
segments and provide customised value propositions, which the "performers" have not yet initiated.
From a systems lifecycle perspective, they are ahead of the "performers" on two major dimensions.
First, they have realised the need to fine-tune the marketing strategy towards micro-segments or even
to the extent of looking at individual customers. Second, most of these banks have started collating the
transaction data from all customer "touch points". As pointed out earlier, this exercise in data
management is fallacious since it is driven primarily by the systems group in many banks without
significant involvement of the line functionaries.
Managers at one such "follower" organisation, a large quasi-nationalised bank, pointed out that the
primary responsibility of CRM activities was vested with the technology group of the bank. Data
collation from various customer service points was the most significant task that the technology group
was currently engaged in. The general perception was that issues related to possible strategic use of
data and information were of a secondary nature, since the primary activity was to get the data
organised. It was clear that the management had adopted a sequential approach
to CRM development.
Significant investments had been made in developing data conduits for transfer and storage of data
without much attention being given to the quality and nature of the data being organised. The team
leader of the technology group recognised this as a drawback, but he expressed his inability to develop
a more collusive CRM initiative with the involvement of the line functionaries.
According to him, some organisational hurdles impeded the formation of constructive collusion among
the various functional managers of the bank. First, there was a general lack of awareness regarding the
mechanics of executing CRM-based strategies in the organisation, especially among managers who
were responsible for customer interfacing. While most recognised the need to customise product
offerings to retain customers, the process of gathering and analysing customer data to develop insights
for building strategy was perceived to be too technical and beyond their purview.
There was also a political dimension that seemed to have caused obstacles in
healthy CRM implementation. Given the heavy reliance on technology for building CRM capabilities,
the systems group was the natural choice for championing such initiatives. This may have been
perceived by other managers in organisations, albeit erroneously, as the personal turf of a functional
group and hence may not have spurred active participation from them.
To date, the impact of CRM-related activities on the bank's performance remains unclear since the
development of various processes is still on. However, the top management has definitely concluded
that any potential gain would be limited for the reasons cited above.
I suspect that the above reasons could be attributed to the lack of clarity in planning CRM initiatives in
many other organisations. This has serious implications since the banking sector in India can ill-afford
to spearhead a costly data management initiative for CRM-related activities without proper planning of
the potential use of information resources.
FROM TECH TO CUSTOMERS
It is quite evident that technology is not the focus of a CRM-initiative in an organisation. It is also amply
clear that technology has a significant role to play in ensuring smooth implementation, but effective
strategy development requires a thorough understanding of customer behaviour.
This is possible by tracking customer responses to past and current marketing initiatives, developing
insights about key customer groups, being aware of changing trends in customer preferences as
observed from their past behaviour, and finally, using this knowledge base to judiciously develop
segment-level strategies to enhance business performance.
This requires a more broad-based employment of organisational resources compared to what is

presently being deployed. Effective CRM-type initiatives will have to be led by functional areas which
have the most interaction with the customer, i.e. the marketing function. Marketing managers,
therefore, need to be more technology savvy to employ the current tools for data management and
tracking. They must integrate their knowledge about customers with careful collection and analysis of
appropriate historical transaction data to evolve better customer-specific product offerings.
The mantra for the long-term viability of CRM initiatives in organisations is obvious:
* Involve line managers in data collection and management initiatives

* Think of customer data as an investment in the future. Evolve a dynamic plan to capture the "right"
data over time
* Be customer-focused. CRM software is often one of the many dimensions to achieve customer focus.
Fortunately, commitment to CRM initiatives in India is still fairly insignificant. It is, therefore,
important for Indian business organisations to avoid the pitfalls uncovered by the experiences in more
developed economies. This would significantly improve returns on investments made in this area.
ABOUT THE AUTHOR
Arindam Banerjee is an associate professor in marketing at the Indian Institute of Management,

Ahmedabad. Prior to joining the faculty at IIMA, he was a management consultant associated with the
Mitchell Madison Group at their Chicago office. The survey mentioned in this article was conducted
with a research grant from the Indian Institute of Management, Ahmedabad.
(This article was published in the July 2002 issue of Indian Management magazine)
First Published: Fri,July 16 2004 00:00 IST
Read More on
INDIAN MANAGEMENT JULY 2002
ARINDAM BANERJEE
CRM
DATA ANALYTICS
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5)Explain the various industrial pricing strategy
3 Pricing Strategies that an Industrial Organisation Must Follow

Pricing strategies that an industrial organization are as follows: 1. Market Skimming Strategy 2.
Market Penetration Strategy 3. Pricing across Product Life-Cycle.
The pricing strategies must be in tandem with the organisational objectives as well as the
marketing objectives.
The industrial organisation also needs to balance the long-run strategies and the short run
objectives of profit and survival. Maintaining profitability is essential for a long term survival of
the firm, since it is those profits that finance the growth and improvement of the organisation.
There are many strategies available for an organisation to achieve profitability.
For example, the suppliers of thermocol to Mire Electronics (the owners of television brand
Onida) were located in Pune whereas Mire is based in Mumbai. This transport cost was added to
the price.
They moved from Pune to Wada and thus reducing the delivery time from 6 hours to 15 minutes.
This cost cutting not only improved the profit margins but also satisfied the customers. It
translated into lower inventory cost for Misc and helped meet the sudden rise in market
demand.
ADVERTISEMENTS:
There are no hard and fast rules for a strategy. It needs to be adapted according to the internal
as well as external environment. A diversified firm with multiple product lines can have several
pricing strategies in operation at one time. The only condition is that all these strategies must be
consistent with the company’s overall objectives.
The following are some pricing strategies that an industrial organisation can follow:
1. Market Skimming Strategy:
When a new product is introduced into a market this strategy can be used. A lot of effort would
have been put into developing any technological superior product or a new application. In India
today, any technology can soon be caught up and hence it becomes necessary to take advantage
of the fact that the firm is a pioneer.
The price is high so as to skim the market. If a genuine need exists and the company has adopted
the right promotional methods and tools so as to make the customers aware, then the customers
would certainly be willing to pay for the benefit the product provides.
ADVERTISEMENTS:
At this point, the profit margins will be high and soon the learning curve principle will be
applied and the cost of producing/ manufacturing will also decline, hence providing an
advantage to the market leader.
Due to high profit margins, more competitors will be attracted and soon other pricing strategies
have to be adopted and the prices have to be gradually reduced over time.
2. Market Penetration Strategy:

This strategy can be adopted by the industrial organisation when the market is price sensitive.
As the term indicates the organisation deliberately prices its product very low. This strategy
makes sense when the market is large and there is strong potential competition. The
organisation’s unit manufacturing cost must fall with the company’s scale of production and
accumulated manufacturing experience i.e., the firm depends on the economies of scale.
The low price will encourage rapid product acceptance and hence the firm aspires for a large
market share. But on the other hand at the beginning of the operations costs are high but the
margins low. Only in the long run the economies of scale and learning curve play a vital role to
increase the margins. Hence, short-term profits must be sacrificed to gain market share and
long-run profits.
ADVERTISEMENTS:
The company therefore works with this strategy assuming that the firm’s primary goal is
significant market share; the product has hidden benefits that will become obvious only after
use and potential competitors exist.
3. Pricing across Product Life-Cycle:

As we have previously discussed, one of the key price determinants is the stage of product life
cycle in which the product is presently in. Depending on the stage, the pricing strategies need to
be developed.
In the introduction stage, there can basically be two types of strategies. They are (i) skimming
strategy and (ii) penetration strategy. These two have been discussed in the previous sections.
In the growth stage, more than one supplier enters the market and hence the prices need to be
cut to remain competitive.
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In the maturity stage, the market is aggressive and due to large number of suppliers existing,
each one has to cut into the competitor’s market share. Hence, matching the competitor’s price
is the challenge in this stage.
There are numerous strategies available for the industrial organisation in the decline phase.
Cost cutting becomes a major exercise. As regards the price, if the firm has a reputation of one
that adheres to quality, then it is not necessary to cut prices. Or else, prices can be decreased to
certain segments and the rest left untouched.
The specific implications of the PLC for pricing are spelled out in Fig.12.1, i.e. it provides service
and maintenance. If there is a need even technological up gradation is performed.
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6) how to work distribute channel in industrial marketing
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Classification of Distribution Channels : Consumer, Industrial
and Service
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Read this article to learn about the classification of distribution Channels : consumer,
industrial and service channel!
Industrial channels are shorter than consumer channels because there are a small number of
industrial customers, and they are geographically concentrated at a few locations. Industrial
products are often complex in nature, and the buying process is long.
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Manufacturers and industrial customers interact extensively during the buying process, and
even afterwards, as most industrial products need to be routinely serviced. Consumer channels
are normally longer because a large number of geographically dispersed customers have to be
reached.
The consumers buy in small quantities. The information needed to arrive at a purchase decision
is limited because the products are not very sophisticated.
Consumer channels:
Manufacturers may reach out to consumers either directly, i.e., without using distribution
channels, or by using one or more distribution channel members.
Manufacturer to consumer:
Direct marketing includes use of personal selling, direct mail, telephone selling and internet.
Avon cosmetics, Tupperware, Aqua guard and Amazon.com are examples of companies engaged
primarily in direct marketing.
The company contacts customers directly through salespersons, mail, telephone, or internet and
makes sales. The products are sent directly to customers by the manufacturers.
Manufacturer to retailer to consumer:
Retailers have grown in size. Growth in retailer size means that it has become economic for
manufacturers to supply directly to retailers rather than through wholesalers.
Supermarket chains and corporate retailers exercise considerable power over manufacturers
because of their enormous buying capabilities. Wal-Mart uses its enormous retail sales to
pressurize manufacturers to supply products at frequent intervals directly to their store at
concessional prices.
Manufacturer to wholesaler to retailer to consumer:

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For small retailers with limited order quantities the use of wholesalers makes economic sense.
Wholesalers buy in bulk from producers and sell smaller quantities to numerous retailers.
But large retailers in some markets have the power to buy directly from manufacturers and thus
cut out the wholesalers.
These big retailers are also able to sell at a cheaper rate to consumers than retailers who buy
from the wholesaler. Wholesalers dominate where retail oligopolies or monopolies are not
dominant.
Manufacturer to agent to wholesaler to retailer to consumers:

A company uses this channel when it enters foreign markets. It does not have enough sales to
warrant the setting up of a sales and distribution infrastructure, and therefore, it delegates the
task of selling its product to an agent who does not take title to the goods. The agent contacts
wholesalers in the foreign market and receives commission on sales.
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Companies want to sell to larger number of customers, and hence are increasingly using
multiple channels to distribute their products.
A company’s product may be found in a company-owned store, an exclusive store, a multi-brand

store and a discount store simultaneously. Companies have realized that all customers of a
product do not buy from the same retailer.
Industrial channels:
Industrial channels are usually shorter than consumer channels. Direct selling is prevalent due
to closer relationship between the manufacturer and the customer, as well as due to the nature
of the product sold.
Manufacturer to industrial customers:

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This is a common channel for expensive industrial products like heavy equipments and
machines. There needs to be close relationship between the manufacturer and the customer,
because the product affects the operations of the buyer.
The seller has to participate in many activities like installation, commissioning, quality control
and maintenance jointly with the buyer. The seller is responsible for many aspects of the
operations of the product long after the product is sold.
The nature of the product requires a continuing relationship between the seller and the buyer.
The large size of the order makes direct selling and distribution economical.
Manufacturer to agent to industrial customer:

A company that sells industrial products can employ the services of an agent who may sell a
range of products from several producers on a commission basis. Such an arrangement spreads
selling costs and is beneficial to companies who do not have the resources to set up their own
sales and distribution operation.
The arrangement allows the seller to reach a large number of customers without having to invest
in a sales team. But the company does not have much control over the agent, who does not
devote the same amount of time and attention as a company’s dedicated sales team.
Manufacturer to distributor to industrial customer:

For less expensive, more frequently purchased products, distributors are used. The company has
both internal and field sales staff. Internal staff deals with customer and distributor generated
enquiries and order placing, order follow-up and checking inventory levels. Outside sales staff is
proactive.
They find new customers, get product specifications, distribute catalogues and gather market
information. They also visit distributors to address their problems and keep them motivated to
sell the company’s products. Distributors enable customers to buy small quantities locally.
Manufacturer to agent to distributor to industrial customers:

The manufacturer employs an agent rather than a dedicated sales force to serve distributors
mainly because it is less expensive to do so.
The agent may sell the goods of several suppliers to an industrial distributor, who further sells it
to the business user. This type of channel may be required when business customers require
goods rapidly, and when an industrial distributor can provide storage facilities.
Service channels:
Distribution channel for services are usually short, and are either direct or use an agent. Since
stocks are not held, the role of wholesalers, retailers or industrial distributors does not apply.
Service provider to consumer or industrial customer:

Close relationship between service provider and customer means that service supply has to be
direct, for instance, healthcare.
The service provider operates several outlets to reach out to the final consumer or to the
industrial buyer. Many service providers such as banks, retail outlets, service centers operate via
this distribution channel.
Service provider to agent to consumer or industrial customer:

Agents are used when the service provider is geographically away from customers and when it is
not economical for the provider to establish its own local sales team.
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For instance, many financial institutions are using this distribution channel to cross sell their
services to customers by using a database of existing or potential customers.
Service provider via internet to consumer or industrial customer:

Increasingly, services like music, software solutions and financial information are being
distributed via the internet. This distribution channel is successful in case of products which can
be downloaded. It is a very useful channel for information products. Nowadays, e-tickets have
become very popular.
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7) write a note on SN in drived demand concept
The concept of derived demand demonstrates how changing customer preferences or a changing
economy affects business-to-business markets. In fact, whether you own a manufacturing company
or small-business retail store, you most likely know more about derived demand than you realize.
What Is It?
Derived demand links to increasing or decreasing consumer demand for a specific product or service.
Essentially, demand -- or lack of demand -- for a product creates or reduces demand for related
products. Derived demand has both local and industry implications. For example, if you own an
electronics business, the demand for audio equipment creates demand for related products such as
headphones, connector cables and amplifiers. In the same way, if you own a custom clothing business,
customer orders create demand for fabric, sewing pins and thread.
The Chain of Derived Demand
From a business-to-business perspective, derived demand creates a right-to-left-flowing value chain

that starts with consumer demand. Every leftward step in a value chain directly results from consumer
demand. In the custom clothing example, a customer order creates a demand for fabric. Getting this
fabric starts with cotton or some other combination of fibers that first must be spun and then woven
into cloth. Each step in the chain adds the value necessary to move raw materials down the chain until
raw materials become the finished product.
The Ripple Effect of Derived Demand
Derived demand doesn’t exist in a vacuum. Instead, it creates a ripple effect within your local community
and within and among related industries. On a local level, the clothing produced in a custom sewing
business might also create demand for shoes, jewelry, ties and handbags. In turn, demand for each of
these products creates additional derived value chains. Likewise, demand for raw materials used in
manufacturing creates even more derived value chains.
Derived Demand Marketing
Derived demand value chains and the ripple effect underscore the importance of business-to-business
relationships. It all starts with creating consumer demand, especially in cases where demand might not
exist. Small businesses in the same place can collaborate and promote each other's products or services.
Vendors and manufacturers might create demand for their own products by creating demand for their
customer’s products. Joint ventures, strategic partnerships and vendor partnership agreements are all
helpful in using derived demand to each business’s best advantage.
8)Explain the stages of industrial marketing research process
6 Steps Involved in Industrial Marketing Research Process

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6 Steps Involved in Industrial Marketing Research Process
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Steps in industrial marketing research process are as follows: 1. Defining the Problem and
Research Objectives 2. Developing a Research Plan 3. Implementing the Research Plan 4.
Analysing, Interpretation and Reporting of Findings.
In stage two of strategic planning, it becomes necessary to scan the opportunities existing in the
market place. One of the ways of assessing market opportunities is through Marketing Research.
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Marketing Research usually involves formal studies that are undertaken either to solve a
particular problem or to discover an opportunity. It specifies the information needed to address
specific marketing areas, the appropriate data collection techniques, data analysis and
supporting of the research findings and implications. It is defined as:
The systematic gathering, recording and analysing of data about problems relating to the
marketing of goods and services.
Or
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Marketing Research is “the systematic design, collection, interpretation and reporting of

information to help marketers solve specific marketing problems or take advantage of marketing
opportunities.” Differences between consumer marketing research and industrial marketing
research.
(i) Practicality:
The Research is done on consumers to try to understand their perceptions, decision making,
likes, wants, desires etc. whereas industrial research is more practical oriented and is more
interested in knowing technological advancements, performance satisfaction, buying centre
roles etc.
(ii) Technicality:
Industrial Research tends to be more technical oriented compared to consumer research, as the
respondents are usually technically qualified engineers, in the purchasing and production
department.
(iii) Contact Methods:

One to technical inclination of industrial research, direct contact methods like interviews
(personal) is preferred rather than telephonic interviews or focus groups unlike consumer
research.
(iv) Sample Size:
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The bigger the sample size, the better for consumer search. On the other hand, industrial
research concentrates on smaller size as technically qualified personnel in the relevant fields are
not so freely available.
Type of Data:
There is a greater degree of reliance on secondary data sources including primary data in
industrial research as many organisations perform market and customer analysis industry wise
on regular basis and make available this information commercially.
On the other hand, consumer research is more oriented towards primary data analysis as the
fluctuations in changes are very high and research needs to be done more often for its results to
be effectively utilised. A success case of marketing of Kenwood audio equipment.
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‘Stereo’ type success based on research:

Nippon Audiotronix Ltd. (Marketers of Kenwood audio equipment) used market research to
find a foothold in the car audio equipment market in India. Nippon commissioned a
comprehensive research and study of the market and consumer needs and found that car
accessories are very high involvement products for Indians. Once they get linked to a brand,
they not only repeatedly buy the same but also influence others (friends/relatives).
They also found that “the moment you set in someone’s car and see a brand of car stereo, it
subliminally records in your mind”. All these factors made Kenwood go in for a strategy of
tackling the OEM market. Their first order was from Maruti Udyog Ltd. when it started
marketing all cars in C&D segment with built-in (or fit-in) stereo. Now Nippon is a market
leader and has a dominant market share and is looking to expand its range in India.
There are four steps in marketing research process:
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i. Defining the problem and research objectives.
ii. Developing research plan

iii. Implementing the research plan and
iv. Interpreting and reporting the findings.
1. Defining the Problem and Research Objectives:

This forms the first activity of any research process. This sounds very simple but many research
problems go wrong because people do not clearly decide what information they need from the
research they commission. Before any external research starts one should make sure that the
information does not already exist.
For example, many organisations collect extensive data in different areas of the company and
other parts of the company may not be aware of. Often research agencies and the Government
publish useful information. Trade or other business associations may also have information.
2. Developing a Research Plan:

Specific information needs must be determined according to the stated research objectives.
Information collected can be either secondary or primary data. Secondary data is data that
already exists e.g., journals, magazines and reports. Primary data is data collected for your
specific purpose e.g., by distributing questionnaires.
Researchers would normally exhaust secondary data sources before commencing with primary
data collection. In certain situations, secondary data may be sufficient to meet the researcher’s
information needs.
There are several issues to be considered in primary data collection: research approaches,
contact methods, sampling plan and research instruments. All these decisions together
constitute a research plan.
3. Implementing the Research Plan:

If an external agency is asked to conduct the research, it needs to be ensured that the agency is
provided with a proper brief, showing in detail the information required. The organisation must
also make sure that the research agency is aware of all the information that it already has so that
there is no wastage of money finding things that are already known.
4. Analysing, Interpretation and Reporting of Findings:

Interpretation should be conducted not only by the researcher but also the marketing manager.
Today, computer software made quantitative analysis very easy and faster as they are capable of
storing and analysing large amounts of data. For example, multidimensional data are easily
captured and analysed using cross tabulations and provided to the manager in a readable
format.
Information has no value unless it assists managers in better decision-making. Traditionally

companies have relied on centralised MIS (Marketing Information System) to provide managers
with routine information. They also have direct and quick access to data and information and
are able to tailor it to meet their own needs.
Related Articles:
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10) 7 Stages or Steps Involved in Marketing Research Process
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9)Explain in the type of consumer in B to B
Home B2B Marketing: Definition, Types, and Examples of Business Models

B2B Marketing: Definition, Types, and
Examples of Business Models
Published by Leonor Carrion on September 20, 2018
Today we are going to talk about a different kind of marketing, which is not usually discussed in
this blog, but that is as important as marketing intended for consumers (B2C) and which is
crucial for many companies, depending on their area of expertise: B2B marketing.
With this post, we will establish the theoretical foundations of this type of marketing as well as
its importance in the business world.
[hide]
11) 1 · What is B2B Marketing?
a. 1.1 ► 1.1 Types according to relations
12) 2 · Differences between B2B and B2C marketing
a. 2.1 ►Size of B2B vs. B2C
b. 2.2 ►Purchase process

c. 2.3 ►Sales process
d. 2.4 ►Cost of sales
e. 2.5 ►Purchase decision
f. 2.6 ►Brand value
g. 2.7 ►Long-term customer value
13) 3 · Advantages and Disadvantages of B2B Business Models
a. 3.1 ►3.1 Advantages of B2B Marketing
b. 3.2 ►3.2 Disadvantages of B2B Marketing
14) 4 · Examples of B2B Marketing Strategies
15) 5 · Below are examples of B2B businesses:
a. 5.1 Related Posts:
· What is B2B Marketing?

B2B (business-to-business) marketing is the set of steps that a company will follow when selling
directly to other companies or organizations, not to the end consumer. These organizations can use
these products to produce end products or for resale (sale to distributors).
Currently, the abbreviations that are commonly applied to these transactions, B2B or B-to-B, are
closely related to the company’s activities on the Internet. However, the reality is that this type of
commerce has a long history (companies have always sold to other companies).
Long before the rise of the Internet and even today, B2B trade was operated and continues to
operate through exchange channels of privately held electronic data (EDI). Most B2B commerce
started through these channels, but the Emerging business-to-business electronic transactions
increasingly depend more and more on the Internet.
B2B marketing is no more complicated or more complex than other marketing techniques.
However, some things should be taken into account when planning a successful strategy. The
main things you should consider are:
 Establish relationships
 Sincere technical interactions
 Intensive trade negotiations
 Pay close attention to after-sales services
► 1.1 Types according to relations

To properly plan a B2B marketing strategy, the first thing we have to know is to which category
our company belongs, according to the relations established by the company. The sales
categories are divided into three main forms and most companies belong predominantly to one
type:
● Industry experts.
Companies that belong to this group can sell all their products or services to companies from
the same industry.
For example, it is likely that process engineering companies will focus on the petrochemical
industries.
Their job is to build refineries and chemical factories. Occasionally, these companies also build
power plants for government organizations, compression stations for pipes, etc.
Companies dedicated to motorsport have several suppliers working exclusively for this sector,
and car manufacturers specialized in golf cars will sell mainly for golf courses.
A subgroup of the specific category consists of companies that will sell to a restricted category
within the same field. Companies manufacturing equipments for medicine or for laboratories,
fall into this category, for example, they sell only to certain types of hospitals or clinics.
● General Suppliers
At the other extreme are the companies that sell products for all kinds of companies.
Examples include companies that sell office supplies, file cabinet manufacturers, and office
furniture manufacturers.
Advertising agencies and public relations firms can be listed in this category, although many of
them end up specializing in offering services for just a few sectors.
We can list in the subsets of this category the producers who sell to all sectors but usually work
with a specific category of companies. For example, tool makers or steel producers who sell
mainly to manufacturers and very rarely to wholesalers, retailers or financial companies.
Some companies will deal exclusively with one department, even if they offer services for
different sectors.
Payroll or health plan companies are a clear example of this category, since their clients are
financial or human resources departments, but these departments are present in most
companies from different sectors.
● Companies specializing in supplying products to distributors

Companies that belong to this group work with distributors specialized in marketing their
products and attracting buyers. The actual sale can happen at annual or seasonal meetings
where the company receives its distributors, makes presentations and uses two or three days to
negotiate orders.
When they need to add or change distributors, often these companies need to create a complex
recruitment process to select the best candidate to promote their brand.
In some industries, for example, the sale of tour boats, the transactions are done directly with
the retail channel and automotive companies deal directly with their partners all over the world.
The three general categories described don’t present an exhaustive description and there are all
kinds of variants and specializations and, of course, within large companies, different divisions
may use different methods to reach their markets. However, separating companies in three
groups will facilitate the task of developing a communication strategy, helping us to identify our
target.
· Differences between B2B and B2C marketing

As we have mentioned, B2B marketing is no more complex than “traditional” B2C marketing, but
there are some differences that we should take into account when designing a sales strategy.
Let’s summarize these differences now:
► Size of B2B vs. B2C
In B2B, we usually find small vertical markets, often niche markets made up of thousands of
sales possibilities.
On the other hand, B2C markets are generally larger, with access to tens of billions of options.
► Purchase process
In B2B, sales are usually more complex. Often, this process can take several months,
demanding a lot of attention.
Meanwhile, B2C sales are less complex, depending on the product or service that is being sold.
In many cases, they don’t take more than a few minutes (impulse purchase) or may take a few
days, for more expensive products. However, there are usually not many people involved in the
purchasing process, which means that the trading period is much shorter.
► Sales process
B2B sales require a lot more work (vendors need to understand the customer needs, to build a
relationship based on trust), which means that the process can last for several months.
However, B2C sales are faster because usually, the company will sell directly to the consumer
or a retailer. To create a sales strategy, it will be necessary to convince the consumer that he
will need to buy this product.
► Cost of sales
When we are talking about B2B the total value of sales is usually higher, cost can range from
thousands of euros to tens of millions of euros.
However, for B2C sales the cost of products can vary greatly. Many companies earn only a few
cents per sale, for example in products for the home. On the other hand, companies that work
with luxury goods or large investments, such as real estate agents or cars will earn lots of
money for every closed sale.
► Purchase decision
In B2B, the decision to buy is usually driven by need and budgets, therefore the decision tends
to be based on price and the advantages of each product.
And in B2C, buying decisions tend to be made based on expectations. In many cases,
customers will buy moved by impulses, without stopping to reflect on the real need for getting
the product.
► Brand value
In B2B businesses, brand identity in the markets is created through personal relationships and
long-term sales.
However, in B2C businesses, brand identity in the markets is created through advertising, and
now through social media.
► Long-term customer value

In B2B, the long-term value of customers is much greater because of the higher product cost
and the probability of repeated sales or complementary sales to the same client.
However, in the B2C world, the long-term value of a customer is lower due to the lower cost of
the products and the fact that many companies are competing for the same customers.
· Advantages and Disadvantages of B2B
Business Models
As we saw earlier, in B2B marketing, the company sells its products to other companies or
suppliers directly and not to customers. This business model offers a series of advantages over
B2C marketing, but also brings some difficulties.
► 3.1 Advantages of B2B Marketing

 The first and most important advantage of this type of marketing is that the company has to deal
with other companies and not with a large number of customers. As these companies need to buy
these products, it is much easier to convince them to do business.
 Also, the total value of sales will generally be higher, resulting in higher transactions, with
potentially greater profits.
 Another advantage of B2B marketing is that once companies become your client, they will remain
working with you for a long time, if your services are good, and you are offering adequate customer
support. In short, brand loyalty, in the case of companies, is higher compared to final consumers.
► 3.2 Disadvantages of B2B Marketing

The biggest disadvantage of this type of marketing is that the target market is limited, as the
number of companies is much smaller than the number of consumers, which will greatly reduce
the target market.
Another disadvantage is that in many cases the company has to offer a discount for recurring
orders since the buyers have much greater negotiation power, when compared to end
customers who only buy one or two products and therefore don’t have bargaining power.
Another limitation is that there are several people involved in the cross company sales process,
and the purchase can take a long time. In B2C marketing, the purchase decision is immediate
because it involves fewer people. B2B marketing is a process that requires a lot of time.
· Examples of B2B Marketing Strategies
Now that we’ve seen the theory, let’s look at some examples:
● Tetra Pak demonstrates its marketing and product expertise. To do that, the company sent
selected, interesting and funny emails inviting subscribers to a mini-adventure. They included a
drop-down list that imitated the appearance of Instagram, directing the readers to a portal with
additional design tips and their products.
The hyper-objective company campaign (only 72 sample kits were shipped) had a great
success and got more than 500 responses from its target audience.
●Xerox uses humor to drive brand change. That strategy plays an essential role in the
campaign, which includes television, print ads and even an update of the website.
●In one of the ads, we can see a monk who is in charge of the translation of a document for
different languages that should be sent “as soon as possible” to all the monasteries of the world.
To solve the problem, He would need to use Xerox technology that facilitates the processes of
document distribution.
The Xerox campaign was very successful, getting a lot of coverage and positive results from
publications as Digiday, Forbes, and MediaPost. Over 1.7 million people watched their official
video on Youtube in four months.
● Adobe used the content center to change the perception of the buyer.
The finalist of the Adobe Insight Community of the Year award became famous in the publishing
company. They needed to expand the perception of the market beyond self-publishing when
they acquired Omniture, a marketing analysis company.
In particular, the company needed a way to engage regularly with marketing leaders, the main
target audience of Omniture.
· Below are examples of B2B businesses:

13. Below are examples of B2B businesses:
14. -A Danish Water Technology is an infrastructure solution of water pipes for houses and
installations. This B2B site has become an indicator of Denmark’s ambition to find and develop
better, cheaper, and more efficient ways of dealing with hydraulic technologies.
15. – ACME is a major supplier of tare and packaging for chargers and logistics operators. Each color,
image, and content on their site was created to improve their B2B marketing strategy, evoking an
emotional response in the buyers.
16. -Alibaba, based in China, is one of the best B2B examples in e-commerce. For starters, more than 18
million buyers and sellers from around 240 countries are using this business platform. The e-
commerce company was created in 1999, and currently has the largest e-commerce website in the
world. This company is considered the largest global e-commerce platform for small businesses.
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10)Explain the term in industrial marketing stage implementation
What is industrial Marketing?

Industrial marketing, also known as business-to-business (B2B) marketing, is a branch of
communications and sales that specializes in providing goods and services to other businesses,
rather than to individual customers (See also B2B Marketing).
Because industrial marketing often involves large orders and long-term relationships between the
producer and client, the process from first pitch to close of sale is often more complex than the
process between a business and a private customer.
While B2C sales might focus on one-on-one interactions between two parties, businesses are
usually made up of a number of individuals. Before the product appears on the other store's shelves,
the two businesses must reach a deal that will involve the manufacture, purchase, and shipping of
thousands of products
The value of market segmentation is tightly linked to the question:
what happens when the company brings the segmentation plan to the
market? Knowledge is needed about the action, reactions, and
consequences resulting from bringing a seemingly clear segmentation
plan, with its simplification and reduction of market realities, to work
in an unclear and complex business environment, in order to advance
the understanding of the market segmentation implementation
problem. This article reports on an extensive literature review ofimplementation of market
segmentation, and discusses and elabo-
rates on the understanding of the implementation problem in
industrial markets. Two research questions guide the study: 1) to
what extent has extant research covered the issue of implementation
of segmentation in industrial markets? 2) How has implementation
been conceptualized in existing research on industrial market
segmentation? The article contributes by:
a) Providing an overview of the coverage of the implementation issue
in the market segmentation literature.
b) Providing an overview and discussion of various perspectives on
implementation in the extant literature, hereby contributing to
conceptual clarity.
c) Pointing to the execution of segmentation plans as a highly
relevant concern for marketers.
d) Proposing future research avenues connected to industrial market
segmentation implementation.
First, the process and results of an extensive review of the market
segmentation literature are presented. Several reviews of market
segmentation are reviewed in the second section. Third, identified
implementation articles are examined in more detail, leading to the
identification and discussion of three perspectives on segmentation
implementation. One of these perspectives, execution, is described in
the fourth part, while the fifth and final part discusses opportunities
for future research. About
16)
17)
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17.
18.
19.
20.
21.
Abstract
Recent research concerning industrial process innovations, such as robotics, expert systems, computer‐
aided design and manufacturing, and decision support systems, calls for greater focus on the early usage
activities that often follow the adoption decision. These activities are called implementation.
Implementation determines whether buyers realize the full benefits of industrial process innovations.
Providers of industrial innovations may be interested in understanding the key factors influencing
implementation and the nature of effects. Such knowledge would be useful not only in enhancing
implementation but also in devising strategies to build market advantages. To address the knowledge
need, we reviewed the large, fragmented body of work on implementation, which is dispersed across
many disciplines, including process engineering, information technology, human resources
management, and marketing. We then synthesized relevant findings, developing a conceptual
framework and deriving propositions describing the effects of key factors on implementation. Finally, to
demonstrate the usefulness of the integrated knowledge, we draw some marketing implications,
specifically for new product development, market development, and relationship management.
11)Explain the terms B to B design
What is Business to Business - B to B

Business to business, also called B to B or B2B, is a form of transaction between
businesses, such as one involving a manufacturer and wholesaler, or a
wholesaler and a retailer. Business to business refers to business that is
conducted between companies, rather than between a company and individual
consumers. Business to business stands in contrast to business to consumer
(B2C) and business to government (B2G) transactions.
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DESIGN
8 Great Examples of B2B Web Design

FEBRUARY 21, 2017
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For many B2B companies, web design is the best sales tool at your disposal. Although these
brands are rarely looking for immediate purchases, great B2B web design should be able to
inform, captivate, and persuade people to buy into your brand. This is especially important
for B2B marketing, because when it comes to building customer relationships, B2B sales cycles
tend to be relatively long and contain multiple interactions.
Content is important (more on that later), but don’t overlook the importance of design. The better
the user experience, the more positive, lasting impressions you leave with visitors.
There are countless B2B web design best practices, and working with a quality web design
agency can help make sure you’re following these as you redesign your website.
8 Best Practices for B2B Website Design

1. Convey the Quality of Your Product
Blake Envelopes
(Source)
In a list of the most exciting products, envelopes probably doesn’t rank. However you couldn’t
tell by visiting www.blake-envelopes.com. Their website gives a vibrant, cheery feel and
captures the audience with a variety of their high quality product line.
2. Perfectly Placed Call-To-Action
Asana
(Source)
Asana does a great job directing their audience exactly where they want them to go. No
unnecessary images, navs, or distractions. Right on their homepage is a giant call-to-action
waiting to convert their visitors into consumers.
3. Functional Minimalism
Quid
(Source)
Less is more. There is no need for clutter and chaos. Quid is a great example of this theory.
Quid improves UX experience by using a minimalistic approach (a rare choice in B2B web
design) to cut down load time and increase readability. When there is less content on a page, it
has a way of drawing more attention. The design is polished and simplistic, making small
statements impactful.
4. Customer Service
Zendesk
(Source)
Zendesk has done a amazing job by adding advanced animations on their site. They utilize
animations for a number of reasons to draw attention and improve the user’s experience. They
also deliver great customer support. You can chat and talk to a live person while getting the full
experience at the tip of your fingers.
5. Define Value Proposition
Batterii
(Source)
What is being offered? The audience should be able to instantly identify the company’s purpose
and how it will deliver. Rather than excessive attempts to drive buyer motivation, focus energy
on addressing ways your company will provide a solution.
6. Quality Content
Sprint
(Source)
Offering energetic, colorful content to users will only lift your brand in a positive direction. Pick
a brand voice that aligns with your company mission statement and run with it. Keep readers
informed while portraying your company as one they can relate to and rely on.
It is important to understand the impact your content has on design. A beautiful site with poor
content will greatly decrease the effectiveness of your site. There’s a lot to say about content on a
B2B website, but keep these in mind:
1. Briefly explain products/services immediately. Visitors need you to get straight to the point. At
the first sign of ambiguity, they will bounce from the page and move on to one of your
competitors.
2. Show them the benefits of the partnership.
If they decide to partner with you, what will their customers be gaining? Use case studies and
previous successful partnerships of the past to show rather than tell. Actions speak louder than
words.
3. Strategically place content.
It matters. The placement of content is crucial in directing visitors to your call-to-action.
Placement is also used to prioritize content and the let the readers know how important it is.
7. Design That Tells a Story
Publish This
(Source)
Instead of directing users through complex navigations and category pages, choose a B2B web
design that takes them on a journey. This approach moves towards conversation marketing rather
than content marketing. Conversation marketing uses content to understand what it is that the
user is looking to find, and then proving the tailored information needed.
8. Captivating Videography
D.FY
(Source)
D.FY utilizes captivating videography to illuminate their content with a story of who they are.
This is a trend that is becoming extremely popular on home pages to take the place of excessive
“about” content.
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Buy-Grid model Essay

Essay Topic: Decision making, Cognition
Supplier Evaluation
An important job of the purchasing agent is to evaluate potential suppliers and their offerings. The
effects of purchasing on a firm’s competitive ability are great, so companies pay close attention to
how they evaluate suppliers. Marketers must also understand the process, for them the ones being
evaluated. Understand the process is like understand the rules of any games; if you don’t know
how to score, you are unlikely to win.
The buy-grid model is a version of a theory developed as a general model of rational organization
decision making, explain how companies make decisions about, for example, where to locate a
plant or make a purchase.
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The buy grid model has two parts: the buy-phase model and the buy class.
The buy-phase model in a management class as the rational or extensive problem solving model
or in consumer behavior as high-involvement model. Buy -phase model suggests that people go
through a series of steps (or phrases) when making a decision, beginning with problem recognition.
Then they search for alternatives, evaluate alternatives, and select a solution, which are them
implemented and evaluated.
For example, when an organization needs new office space, crowded conditions help force
recognition of the need. The next step is to define the type of product needed: Does the organization
want to build a new office building, add on to an existing building, or simply find a larger place to
rent or buy? As the organization continues to examine its needs, detailed specifications such as the
size and number of offices are created. If the decision in the second step was to build on, an
architect would help create specifications drawing plans.
Then suppliers would be contracted, included those recommended by architect. Step 5, acquisition
and analysis of proposals, involves receiving and reviewing bids from each contractor. The
architect and the executives would meet, evaluate the proposals, and select a contractor (step 6).
Step 7 involves the creations of a contract specifying when the building will be completed, what
it will look like, and when the payment will be made. Evaluation begins as the project begins, but
continues well after the organization moves in.
As observers of buying behavior quickly realized, many organizational purchase decisions do not
involve that much work or include each and every step every time. A second element, the buy-
class, was added, resulting in the grid. Buy-class refers to the type of buying decision, based on
the experience of the buyer with a purchase of a particular product or service.
Organizational researchers realized that once a decision was made, products were bought
automatically over and over; recognizing a problem simply mean recognizing that the company is
low in an item and needs to order more. The complete process was used only for new buys,
products or services never purchased before. Automatic purchasing described what happen with
straight rebuys, and only two steps were required. These steps are need recognition and placing an
order.
At other times, however, a product or service would be bought again but not automatically. When
a company was contemplating a rebuy but wanted to shop around, the process will be included
most or perhaps all of the steps – hence the term modified re-buys. In this instance, the process
may involve need recognition, an evaluation of suppliers, and a decision – a process that can be
similar to a new buy. The difference is not in the number of steps but in the amount and type of
information that must be collected before a purchase can be made. Modified rebuys can also be
similar to straight re-buys or new buys, depending on the specific of the situation.
In a new buy, the buyer has no experience with the product or service and must be educated about
the product or service to make a purchase. In a modified re-buy, the buyer has purchased the
product or service before. There, the buyer will not spend time on education about the product
itself, but the various vendors and their offerings as the buyer shops around. The buy grid model,
therefore describe how purchasing practices vary along a continuum depending on the buyer’s
experience in buying that particular product or service.
Value analysis is one situation that can turn a straight rebuy into a modified rebuy. When a
company is closely evaluating a particular part, one question that is asked is if the part is available
elsewhere for less. As the answer is sought to this question, out-suppliers (those suppliers who
products are not considered in a straight re rebuy) are given the opportunity to earn business. In-
suppliers (those suppliers whose products are ordered automatically in a straight rebuy) must prove
value or create new value by redesigning their offerings. Thus, the purchase moves from being a
straight rebuy to a modified rebuy.
Buy-Grid and Marketing Practice
The theory suggests that more information is needed by the buyer to make a new buy than when
making a modified rebuy, and almost no information is needed for a straight rebuy. To use this
model, a company would look at the degree to which a market is buying a product for the first
time. If most of the market is buying the product for the first time, method of communication such
as personal selling may be used in order to provide the most information. Advertising would
contain a lot of detailed copy that described the benefits and how the product worked. Over-time,
as the market grows more familiar with the product, less educational methods of communicating
may be used, such as catalogs.
Another marketing implication is thatan in-supplier would like purchases of its products to be
straight rebuys. Annual contracts are one method of creating straight rebuys. For example, Xerox
offers its customers an annual supply contract. Each time a department is low in copier supplies,
the purchasing department orders automatically from Xerox, perhaps using EDI. Out-suppliers
would be locked out until the next time the contract comes up for review.
Recently, research has found that marketers who get involved early in the decision process are
more likely to be successful. In part, this higher probability of success is due to greater
understanding of the buyer’s needs, an opportunity to help shape those needs, and a better
understanding of the process. The lower probability of success when starting later in the process
is also due to the fact that buyers become committed to a course of action over the process of
making the decision, and that course often leans towards alternatives presented early in the process.
When buyers don’t have experience, marketing strategies can provide buyers with the information
they need to make a decision. Marketers consider how buyers use that information to be very
important.
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13)Explain in Brief industrial marketing environment

MBA KNOWLEDGE BASE
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Abey Francis in Industrial Marketing
Industrial Marketing Environment

Industrial buyers and sellers operate in a dynamic environment. One constantly poising new
opportunities and threats. The industrial marketing environment could be divided into three
levels namely the interface level, the public’s level and the macro environment level.
The Interface Level
This involves those key participants who immediately interface with an industrial firm (buyer or
seller) in facilitating production, distribution and purchase of firm’s goods and services. Supply
inputs are transformed by a company and its competitors into outputs with added value that move
on to the end markets, the move being made through the firms interface with industrial distributors
and dealers, manufacturers representatives and the company’s own sales people. That move is
made possible by a firms interface with facilitating institutions such as banking, transportation,
research and advertising firms.
Participants in the interface level include:
 Input supplier– Input goods such as the raw materials, labor and capital are supplied by
organizations to industrial firms for use in producing output goods and services. The survival and
success of a firm depend on the knowledge and relationship with its input suppliers. Interruptions
in the flow of inputs cause repercussions in the entire industry affecting not only production and
marketing plans but also the production and marketing plans of the suppliers.
 Distributors– Most organizational buyers buy from five or more industrial distributors. Industrial
distributors, contact potential buyers, negotiate orders, provide buffer inventories, credit and
technical advice to potential buyers. They are particularly important when joint demand is present
because they bring together the heterogeneous inputs needed for the production of end products
.
 Facilitators– Advertising agencies and public relations firms provide the necessary
communication flow between the sellers and buyers through the formulation of meaningful
information and media strategies. The use of advertising in reaching potential buyers and the
multitude of buying influencers is vital in the overall communication strategy. Transportation and
warehouse companies facilitate the free flow of goods that must be delivered in usable condition
to industrial customers and distributors when and where they are required. When goods are not
delivered on time and in usable solutions, buyers can be forced to shut down production lines.
Resources as they move from the supply inputs to end users must be financed and insured.
 Competitors– Competitors actions whether domestic or foreign, ultimately influence the
company’s choice of target markets, distributors, product mix, and in fact its entire marketing
strategy.
The Publics Level
Publics are distinct groups that have actual or potential interest or impact in each firm’s ability to
achieve its respective goals. Publics have the ability to help or hinder a firms effort to serve is
markets.
 Financial publics– Financial institutions such as investments firms and stock brokerage firms and
individual stakeholders invest in an organization on its ability to return profits. When they become
unhappy with the management or dissatisfied with a company’s social polices, they sell their
shares.
 Independent press – Industrial organizations must be accurately sensitive to the role that the
mass media play and how they can affect the achievement of the marketing objectives. The
independent press is capable of publishing news that can boost or destroy the reputation of a
firm as well as the sales potential of a product.
 Public interest groups– Industrial marketing decisions are increasingly affected by public interest
groups. Clearly, these various public interest groups limit the freedom of the suppliers and buyers
in the industrial market. While some organizations respond by fighting, others accept these
groups as another variable to be considered in developing strategic planning, working through
public affairs departments to determine their interests and to express favorably the company’s
goals and activities in the press. The impact of these groups however is felt by all participants in
the interface level.
 General public— Although the general public does not react in an organized way towards a firm
or an industry, as interest groups do, when sizeable portion of a population shifts attitude
towards a firm or industry, there is definite impact.
 Internal public– The board of directors and managers as well as blue and white colour workers
are important emissaries between an organization and other participants in the interface and
public levels. Corporate policy must give consideration to employees and others who are held
responsible for the overall operation of the firm. Employee morale is an important factor in all
business decisions. And when morale is low, organizational efforts suffer. A firms employees
spend more than two thirds of their time off the job, interacting with their families and the
community, so employees attitudes do influence the public.
Macro Environment
This level of the organization is made up of components that have less specific and less immediate
implications for managing the organization effectively.
1. Economic component
Economic conditions greatly influence an organizations ability and willingness to buy and sell.
Thus emerging changes in the economic environment both at home and abroad, must be closely
monitored. It includes the following factors;
 GNP
 Inflation rates
 Balance of payment position
 Debts and spending
 Taxation rates
 Interest rates
 Consumer’s income
 Corporate profits
2. Social component
This describes the characteristics of the society where an organization exists. It includes factors
such as;
 Literacy levels
 Values of people
 Educational levels
 Geographical distribution
 Customs and believes
3. Legal component
This consists of legislation’s that have been passed. It describes the rules or the laws that all the
company members must follow. They include all laws affecting the organization e.g.
 Consumer health policy

 Energy policies and conservation Acts
 Employment Acts, etc.
4. Political component
Comprise those elements related to the government affairs. This includes;
 Type of government
 Government attributes towards certain issues
 Lobbying efforts from interest groups
 Progress towards passing of laws affecting certain industries, etc.
5. Technological component
Given the rate of technological change in industries such as telecommunications, computers, and
semi conductors, large buying firms are developing forecasting techniques to enable them to
estimate time periods in which major technology developments might occur. Marketers must also
monitor technological change if they hope to adapt marketing strategy with sufficient speed and
accuracy to make the more scientific breakthroughs. This includes;
 New procedures
 Approaches to new plan of goods and services
 Addresses the issues of new equipments and new ways of improving production through the use
of computers /robots.
6. Demographic component
Industrial firms cannot ignore the demographic environments because of the derived nature of
industrial demand. World population explosion and changing population structure of the world has
a major impact on industrial demand.
Next Read: Publicity and Public Relations in Industrial Marketing »
Industrial Marketing Concepts
LEAVE A COMMENT
Related Post
1. Definitions of Key Terms in Integrated Marketing Communications
2. Industrial Buying Process
3. Uses of Industrial Advertising
4. Factors Affecting the Structure of Industrial Channels
5. Channel Strategy Formulation in Industrial Marketing
6. Need for Advertising Agencies in Industrial Marketing

7. Industrial Sales Force Deployment
8. Personal Selling in Industrial Marketing
9. Decision Making Units (DMUs) in Industrial Marketing
10. Buying Situations in the Industrial Marketing
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14)Define industrial marketing explain different between industrial & consumer marketing
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redcrowmarketing in Industrial MarketingMarketing

Defining Industrial Marketing
Industrial marketing is a
practice often seen in the business world. It is essential for the day-to-day operations of many
companies and is the reason most are still in business today. Industrial marketing is defined as
the process of one business marketing a certain good or service to another business. This is not to
be confused with consumer marketing, which is the process of a business marketing their goods
or services to an individual for personal use.
Industrial vs. Consumer Marketing
For instance, Red Crow Marketing providing their expertise to help another business reach
potential clients is referred to as industrial marketing. Whereas, technology companies
manufacturing computers to sell to individuals from their website is considered consumer
marketing. The main difference between consumer and industrial marketing practices is the
amount of goods or services being transferred from one business to another. Most instances
involved with industrial marketing include a large number of goods being purchased, as opposed
to consumer marketing generally dealing with only one item. A school purchasing 300
computers for their students to use or a business signing a contract to have a marketing company
advise them for a year involves a mass quantity of goods or services being purchased, thus
categorizing it as industrial marketing.
How to Use Industrial Marketing
The best way for a business to determine the target of their industrial marketing is to know who
is best suited for the good or service being provided. What companies could benefit the most
from what is being offered? Obviously, an oil company has no business contacting a home goods
store to see if they are interested in their product. Once a list has been made of who could benefit
from what is being provided, the next step is contacting and marketing towards the target
businesses. Newer marketing trends point towards developing a user and mobile-friendly website
to showcase what is being offered while being active on social media platforms. This is essential
to being successful in industrial marketing, but old-school tactics such as flyers and cold calling
can be effective as well.
What Makes it Stand Out?
One way to convince a business to enter an agreement is by developing a quality relationship.

Once that is established, the two companies can begin working out a deal for the goods or
services. A great way to help close a deal is to offer a discount to the company wanting to
purchase a mass quantity; a discount that wouldn’t be offered to a general consumer purchasing a
much smaller quantity at the regular price. This discount will be seen as a benefit to doing
business with this company, and will lead to other future sales.
To find out more about how Red Crow Marketing can help with your industrial marketing needs,
visit www.redcrowmarketing.com/specializations.
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5 Differences Between Industrial
Marketing and Consumer
Marketing
 29/01/2018
 Posted by: GroVine
 Category: Marketing
No Comments
Industrial Marketing and Consumer Marketing are often assumed to be the same but both vary in many aspects.
Industrial Marketing is more related to B2B marketing where customers are mainly manufacturers , and Consumer
Marketing deals with B2C marketing where customer is the end user who is the ultimate consumer of goods and
services.
Let us define these marketing approaches to understand them better.
Industrial Marketing
A marketing channel that specializes in selling goods and services to other business organizations. Marketing for B2B
customers involves large orders and long-term relationships between organizations. It mostly involves purchase and
sale of materials for the manufacturing/production of goods and services.
Example
 Software company selling its software solution to speaker manufacturing companies.
 Industrial automation company selling its industrial robots to Original Equipment Manufacturers.
Consumer Marketing
A marketing channel that specializes in selling goods and services to individual buyers. Marketing for end customers
involves customizing the marketing campaigns and communication channels to reach the target audience. Marketing
strategies are more focused on personalizing the experience of the user with the product or service offered.
Example
 TV manufacturer selling its TV sets for individual buyers.
 A mobile manufacturer selling its mobile handsets to individual buyers.
Industrial Marketing and Consumer Marketing bundle together under the marketing umbrella, and yet are different in
many ways. Let us discuss some of the differences and common factors between the two, to understand them better.
Common Factors in Industrial Marketing and Consumer Marketing

Industrial and Consumer Marketing are quite similar when you address the fundamental principles of marketing. Both
categories follow the principles of the marketing mix and the and objectives of marketing. They share a common patch
in following ways:-
 Match the product or service with the needs of the target market.
 Understand the market and decide on position and pricing, of the product or service to align with the market needs.
 Create effective communication means to demonstrate the value of the product in the target market.
 Design an end-to-end marketing process to cater to the requirements and develop a long-term relationship with the
costumer.
Difference Between Industrial Marketing and Consumer Marketing
Industrial Marketing Consumer Marketing
Longer Sales cycle

Shorter Sales Cycle
Calculated decisions are made
Sales cycle after several rounds of review and Consumers make a decision on
analysis. Marketing should the spot based on few or limited
generally involve lengthy nurture- preferences.
based approach for sales.
Buying decision is done by an

Buying behavior Buying decision is made by a team. individual. The choice is based on
Involves a specific process to be personal requirements.
followed to arrive at a collective
decision for buying.
Complicated products, requires a Customized products, specific

thorough knowledge of the product. technical specification.
Products complexity
Knowledge on technical Knowledge of the customized
specification of the product is the specification is required for the
focus. sales of the product.
Information on the consumer

Information on industrial market
market is easily available. Consumer
niches is very difficult to gain. It
Market information demographic information database
requires quality and extensive
helps easily identify the consumer
industrial experience.
profile and kind of market to target.
Advertisement and Advertisements are more focused on Advertisements are more focused
promotions products’ applications and benefits on needs/wants and trends
Industrial and Consumer Buyers

The buying process is segmented into 5 stages:
 Need recognition
 Search for relevant information
 Evaluation of alternatives
 Purchase decision
 Post-purchase activities.
Consumer Buyers
The buying behavior, when concentrated on buying goods and services for household and personal consumption is
consumer buying. Here the buying is one at a time. The products are eatable products, day-to-day use products. Product
buying takes place in the following stages
1. Recognition of need
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior
Industrial Buyers
Here the buying is always in bulk and is based on group decision and influence. Raw materials purchased for further
production are the products for industrial buying. Product buying takes place in following stages.
1. Problem recognition
2. General need description
3. Product specification
4. Supplier search
5. Proposal solicitation
6. Supplier selection
7. Order routine specification
8. Performance review
It is important to understand why a consumer or industry makes a purchase. Lack of understanding makes it very hard
to respond to the customer requirements.
Conclusion
Creating incredible user experience is the key to create a strong customer base. Various factors influence the buying
decisions of the user. Some users are focused on feature and style of the product while some focus on the quality and
durability. Some decide for self, while some decide for the benefit of others. Consumer buying behavior is largely
influenced by information available and opinion of friends and family.
Innovation in developing product and technologies to satisfy customer needs is fruitful only when it is accompanied by
innovative marketing campaigns. Innovative marketing is all about adapting to consumer buying behavior and new
technologies while maintaining customer focus.
Marketing campaigns demand innovation for the following reasons.
 To adapt to change in technology and consumer needs
 To grasp new opportunities
 To conceptualize and put into practice new ideas
 To create an amazing experience for the user
 To increase the visibility of the brand
Marketing campaigns thrive to blend with innovation and imagination, to market the product or service and connect
with prospects at optimized cost.
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


15)which are the factor in influence on industry buying behaviour.
ENTREPRENEURSHIP
ACCOUNTING
MANAGEMENT
MARKETING
WRITING

TAXES
What Are the Factors That Influence Industrial Buying

Behavior?
Zapp2Photo/iStock/GettyImages
By: Michael Wolfe
Industrial buying behavior is the pattern of actions by a company involved in manufacturing,

processing and other heavy industry. Many of these companies are required to make regular
purchases as a means of supplying their businesses. Although each company -- and each
industry -- will have buying behavior affected by its own set of factors, there are several main
variables that can affect industrial buying as a whole.
Demand
Perhaps the main driver of industrial buying is demand. The amount of buying that an
industrial concern will do is directly depended on the amount of business that the company can
expect in the near future. Generally, if a company expects higher demand, then it will stock up
on raw materials as a means of ensuring that it will be able to meet consumer demand and
maximize revenue.
Price
Buying patterns are also affected by the price of the materials the companies are purchasing.
When prices are higher or the company expects a decrease in the near future, the company may
choose to hold off making purchases, so as to save money. This can involve some difficult
decision making. For example, a company that uses fuel in the production of its products may
attempt to guess the direction of oil prices.
Economy
In addition to current demand and the current prices for a product, industrial companies may
look to the economy as an indication of the future availability of materials relative to the
consumer demand for them. If the economy is trending upward, the company may purchase
more based on the expectation of a future rise in sales, while a downward trending economy
may push it to the opposite course of action.
Related Articles
How Is It Possible for Sales Growth to Decrease the Value of a Profitable Company?
What Is Speculative Inventory?
Definition of Optimum Tariff

How to Sell and Exchange Carbon Credits
The Effects of Purchasing Power
Reasons for a Decrease in Real GDP
Consumer Vs. Business Markets
Technological Changes
In addition, industrial companies are heavily influenced by changes in technology that affect
both the provision of goods and their own requirements. For example, if purchasing a piece of
technology means that a raw material becomes cheaper to use, then the company may choose
to invest in the new technology. Similarly, the acquisition of new technology will often change
the company's buying habits, as the technology will have different raw material requirements
to run.
References
 "Economics"; Roger A. Arnold; 2009
About the Author
Michael Wolfe has been writing and editing since 2005, with a background including both
business and creative writing. He has worked as a reporter for a community newspaper in New
York City and a federal policy newsletter in Washington, D.C. Wolfe holds a B.A. in art
history and is a resident of Brooklyn, N.Y.
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