Business to Business

Marketing (B2B)
 Meaning
Business-to-Business marketing includes all actions and processes to market and distribute a
product or service to another company. In other words, it is marketing directed at other
businesses instead of directed at consumers.

The purpose of B2B marketing is to make other businesses familiar with your brand name, the
value of your product or service, and convert them into customers.
 Examples of B2B

Wework Intel Oracle Adobe

Mailchim Sales
CBRE IBM
p Force
 B2B vs B2C
Particulars B2B B2C

Target audience Markets to other companies Markets to consumers directly

Examples Ad agencies, office furniture Restaurants, hotels, retail stores,

manufacturers, etc. etc.

Communication Uses special industry jargon and Provides consumers with easy-to-
terms understand information

Audience needs Audience is looking for professional Audience is looking for

expertise entertainment and a good deal

Decision-making process Decision-making process can take a Consumers don’t need a lot of time
lot of time to make decision
 B2B vs B2C
 Particulars FOR B2B MARKETING FOR B2C MARKETING

Customers are focused on ROI, efficiency, and Customers are seeking deals and entertainment
Goal
expertise. (which means marketing needs to be more fun).

Customers are driven by logic and financial

Purchase Motivation Customers are driven by emotion.
incentive.

Customers want to be educated (which is where  Customers appreciate education but don’t always
Drivers B2B content marketing comes in). need it to make a purchase decision.

Customers like (if not prefer) to work with account

Purchase Process managers and salespeople. Customers like to make purchases directly.

Customers often have to confer with decision

Customers rarely need to confer with others before
People Involved in Purchase makers and other members of their chain of making a purchase decision.
command before making a purchase decision.

Customers make purchases for long-term

solutions, resulting in a longer sales cycle, longer
Purchase Purpose contracts, and longer relationships with
companies.
 Different Markets in B2B
Organizational markets are divided into four components: 

Industrial market, which includes individuals and companies that buy goods and services in order
to produce other goods and services;

Reseller market, which consists of individuals or companies that purchase goods and services
produced by others for resale to consumers; 

Government market, which consists of government agencies at all levels that purchase goods and
services for carrying out the functions of government; 

Institutional market, which consists of individuals and companies such as schools or hospitals that
purchase goods and services for the benefit or use of persons cared for by the institution.
 Marketing Myopia
Marketing myopia is a situation when a company has a narrow-minded marketing approach
and it focuses mainly on only one aspect out of many possible marketing attributes.

Marketing Myopia, first expressed in an article by Theodore Levitt in Harvard Business Review,
is a short-sighted and inward-looking approach to marketing that focuses on fulfilment of
immediate needs of the company rather than focusing on marketing from consumers point
of view.
 Causes of Marketing Myopia

A business only A company lacks clear Leaders want fast results Stakeholders or CEOs
anticipates growth. goals. or quick wins. want to see positive data.
 Causes of Marketing Myopia Includes

 Neglecting to
 Rushing
Overconfidenc identify a
product
e target
development
demographic
 Kodak lost much of its share to Sony cameras when
digital cameras boomed and Kodak didn’t plan for
it. 

Nokia losing its marketing share to android and

Examples Of IOS. 
Marketing
Myopia Hollywood didn’t even tap the television market as
it was focused just on movies.

Yahoo! (worth $100 billion dollars in 2000) lost to

Google and was bought by Verizon at approx. $5
billion (2016).
 Organizational Buying Behavior is a complex
Organizational decision-making and communication process
Buying involving the selection and procurement of
products and services by organizational
Behavior buyers.
 Nature / Characteristics of
organizational buying behavior
Every organization is unique

There is a long time lag between efforts and results

There is a long time lag between efforts and results

It is a formal activity

It is a multi-person activity
 1. Timing Complexity. 
2. Technical Complexity. 
Characteristics 3. Organizational Complexity. 
of Organizational
Buying  4. Individual Factors. 
5. Organizational Factors.  
6. Business Environment.
 1. Few buyers - As organization itself become buyer, organizational buyers are few in

number. But they buy in huge quantity. Organization buyers live scattered in

different places.

2. Close relationship - Organizational buyers and suppliers have close relations. It may

be long lasting. Such relation has positive effect on future buying. Generally all

Features of
organizational buyer and suppliers have close relation.

Organizational
3. Rational buyers - Buyer becomes rational in organizational buying. Professional and

trained buyers are involved in buying. So, buying decision becomes rational.
Buying 4. Direct channel - As organizational buyers buy a huge quantity, they buy goods
Behavior       directly from producer. So, marketing channel becomes direct. But some

organizations buy goods through intermediaries or agencies.

5. Purchase policy - The buying method of organization and persons become different.

An organization makes certain policy for buying and buys goods according to the

policy. Buying through quotation, buying through tender, buying through contract

etc. are the major buying policies of organizations.

Categories of organizational purchasers

Institutional buyers

Retail buyers

Industrial buyers
 Decision-making unit (DMU)

Initiators Users Influencers Deciders

Buyers Approvers Gatekeepers

  Stages of Organizational
Buying Process           

1. Need Recognition - Organizational buying process starts

from need recognition. In an organization, a certain person
recognizes need of certain goods and after buying the needed
goods, need is fulfilled. Needs in organization can be
recognized in two ways. They are: external stimuli and internal
stimuli. If a company decides to produce new goods, it is
internal stimuli. It needs to buy new goods and equipment.
Similarly, when a buyer observes trade exhibition, s/he may
make his/her idea to buy new goods. Such idea is external
stimuli, because this idea is made from outer environment and
materials should be purchased for this.
2. Need Description - After the need is recognized, the buyers
should describe need. This task is completed in the second
stage of organizational buying process. While describing need,
features of needed goods and needed quantity should be
described. If the goods have standard, this task becomes easy;
if otherwise, it becomes complicated. Help of engineers, users
and consultants should be taken for complex goods.
3. Product Specification - The task of preparing specific
description of goods is the third stage of organizational buying
process. In this stage, description performance of goods is
prepared to solve the problems. Technician’s help should be
taken for this task. In this stage, the value of goods is analyzed.
 4. Supplier Search - At this stage of organizational buying process, the
buyer searches proper suppliers or sellers. Buyer prepares a list of
suppliers to select good and proper suppliers. This list is prepared by
looking at trade directory, searching in Internet, asking other
Stages of companies for suggestions etc. If the goods to be bought are new,
complicated and costly, it needs long time to search suppliers.
Organizational 5. Proposal Solicitation - Proposal solicitation is the fifth stage of
Buying Process   organizational buying process. At this stage, buyer calls best suppliers
for submitting proposal. As the reaction, some send catalog or sellers to
the organization. If the product is costly and complicated, the buyer
demands detailed proposal, and if the product is technical, business
organization calls for presenting the product itself.
6. Supplier Selection - At the sixth stage of organizational buying
process, buyers assess the proposal and select one or more suppliers.
For selecting the suppliers, a list is prepared and rating is made on the
basis of their attribute and importance. Then the best supplier is
selected. Analysis of the suppliers is done in the following ways.
 • Order-routine specification. The
buyer now writes the final order with
the chosen supplier, listing the
technical specifications, the quantity
Stages needed, the warranty, and so on.
of Organizational Buyi
ng Process   • Performance review. In this final
stage, the buyer reviews the
supplier's performance. This may be
a very simple or a very complex
process.
 Common types of buying situations include the 
1. Straight rebuy
B2B Buying 2. Modified rebuy
Situations 3. The New Task.
 • Straight rebuy 
The organization reorders a good or service without any
modifications. These transactions are usually routine and
may handled entirely by the purchasing department because the
initial selection of the product and supplier already took place. ​

• Modified rebuy

B2B Buying The buyer wants to reorder a product but with some modification to
the product specifications, prices, or other aspects of the order. In this
Situations situation, a purchasing agent may be involved in negotiating the terms
for the new order, and several other participants who will use the
product may participate in the buying decision.​

• New task
 When an organization considers buying a product for the first time.
The number of participants and the amount of information sought
tend to increase with the cost and risks associated with the
transaction. For marketers, the new task is the best opportunity for
winning new business because there is no need to displace another
supplier (which would be the case for the rebuy situations).​
 In 1967, the Canadian, American and Israeli
marketing researchers, Robinson, Faris and Wind,
introduced the buygrid framework as a generic
conceptual model for buying processes of
organisations. They saw industrial buying not as
single events, but as organisational decision-making
processes where multiple individuals decide on a
Buygrid Framew purchase. Their framework consists of a matrix of
ork buyclasses and buyphases.

Definition: the Buygrid Framework is a matrix form

by Robinson et al. comprising Buyphases (with
8 purchase decision steps) and Buyclasses (3
purchase situations).
 Phases
1. PROBLEM RECOGNITION
2. GENERAL NEED DESCRIPTION
3. PRODUCT SPECIFICATION
4. SUPPLIER SEARCH
Buygrid Framew 5. PROPOSAL SOLICITATION
6. SUPPLIER SELECTION
ork 7. ORDER-ROUTINE SPECIFICATION
8. PERFORMANCE REVIEW
Buyclasses:

1. NEW TASK
2. STRAIGHT REBUY
3. MODIFIED REBUY
Buygrid Framewor
k
 • The most complex buying situations occur in the upper left quadrant of the buygrid
matrix where the largest number of decision makers and buying influences are
involved. A new task that occurs in the problem recognition phase (1) is generally the
most difficult for management.

• The buying process can vary from highly formalised to an approximation depending on
the nature of the buying organisation, the size of the deal and the buying situation.

• The relationship between the buyer and seller is initiated in phases 1 and 2. Assessing
the buyer's needs and determining gaps between the current and desired situation is
important. Buyers need assistance in forming realistic perceptions of both the current
and the desired situation. Need gaps create the motive behind any purchase.
Buygrid Framew • The relationship needs to be developed during phases 3 to 7. A sales person must be
ork aware that a buyer not only has functional needs, but psychological, social, knowledge
and situational needs as well. These components should be addressed in meetings in
order to obtain commitment. The purchase can be a one-time transaction of a
repetitive nature. When there are multiple deliveries, the supplier and buyer must
agree on an order routine.

•
As buyphases are completed, the process of 'creeping commitment' occurs and reduces
the likelihood of new suppliers gaining access to the buying situation.

• During the performance feedback and evaluation phase, the relationship between the
seller and buyer can develop into a longer term engagement. Buyer loyalty and
customer satisfaction are primarily determined by the sales activities during this last
phase.
 • The major implication of Robinson, Faris and Wind's research is that
industrial buying behavior depends more on the buying situation than on
the type of product.
• The model explains the likely interaction between buyer and seller activities
given the purchase needs of an organization. It helps sales personnel deliver
the correct message at the right time. Suppliers need to fill out this matrix
for their firm's specific situation. For each cell in the matrix (buy situation
and buy phase), the following questions must be answered: 1. Is this
Pros and Cons combination of situation and phase relevant? 2. Which organization
members influence this purchase decision? 3. What are the used
of Buygrid performance indicators? 4. What are the information sources?
• The buying side of the model can be used for both consumer and business
Framework related buying processes. It applies to all purchase situations.
• The model is based on the observation that buyer's expectations and
behavior change according to whether the purchase is new, a modified
rebuy or a straight rebuy.
• The model can provide the basis for a formal selection process (e.g. request
for information and request for proposal).
• The buygrid framework proved its worth to the scientific community as one
of the few industrial marketing models.
 Cons:
•The organisational buying model focuses mainly
on products and not on services.
Pros and Cons
of Buygrid Framework •A shortcoming of the organizational buying
approach is the negligence the supplier's side and
the influence this party wields on the
customer's organisational decision process.
•The model neglects the importance of acquisition
in sales processes.
 Any large B2B company will have a buying center responsible
for making any purchase decision. Marketing teams need to
be able to identify members of a target business’s buying
center in order to tailor their marketing efforts and improve
their outreach. 

Buying Centre The buying center isn’t a new concept. In fact, it’s attributed
to Webster and Wind over 40 years ago. But even still, it’s an
important concept to B2B sales reps when trying to secure
new leads. 

The buying center is the group of people within a business

responsible for making the purchase decision.
 The user 
This person works directly with the product or service every
day within the business. They don’t usually have purchase
power, but they are involved in the decision-making process
since they will be the ones using the new product. 
The data collector 

Roles of Buying This person researches the different options available during
the buying process. They also don’t usually have purchase
Centre power, but they are a key member of the buying center to
market to since they will be the ones gathering information
on the best companies to do business with during 
the awareness stage of the buyer journey.
Data collectors vary widely from assistants right through to
managing directors, so it’s important to know who in a
company carries out this role. 
 The buyer 
This person is responsible for the practical aspects of the purchase and
holds decision power. They will be involved in finding suppliers,
negotiating pricing, handling discounts, and ironing out the terms
of contracts. 
This is another important person for your sales team to know. The best
way to communicate value to this person is using risk-lowering
strategies such as guarantees, free trial periods, inclusive deals, and
high levels of transparency.
Roles of Buying The consultant 
Centre This person supports the buyer center with extensive knowledge and
experience of similar products or services. They will often be brought in
to work alongside sales reps or marketing agents to get a full overview
of the current state of the business so they can give expert advice on
whether a product or service is the right solution.
Although they don’t hold purchasing power since they are not part of
the company, they do have significant sway over the other members of
the center. 
 The decision-maker 
This is usually a high-level member of senior management who is
responsible for ensuring the best interest of the business’s bottom line. They
will review the information gathered by other members of the buying center
and have the overall decision on whether to move forward with a purchase.
This person is usually most interested in facts and figures. When marketing,
the best way to reach this person is with short, concise messages that show
the tangible gains the company could get with your product or service. 

Roles of Buying Who Influences the B2B Buying Decisions of the Buying Center?
Although those within the buying center (and the decision-maker
Centre specifically) do get the final say over purchase decisions, their 
buying behavior is influenced by a sphere of individuals around them. 
This includes people referred to as gatekeepers (assistants and members of
staff you need to talk to before reaching the decision-makers), sales reps,
financial advisors, investors, and more. 
Those who have the most sway will depend on the product, which is
why it’s crucial to understand who within a company you’re marketing to
and who will be using your product. 
The Webster
and Wind
Model
The Webster and Wind Model of
organisational buying  behavior  is
quite a  comprehensive model. It
considers four sets of variables:
 environmental, organizational, buying
center, and individual, which, affect
the  buying-decision making process in
a firm.
The (a) physical, (b) technological, (c) economic, (d) political,(e)
legal, (f) labour unions, (g) cultural, (h) customer demands, (i)
environmental competition, and (j) supplierinformation. For example, in a
variables recessionary economic condition, industrial firms minimize
thequantity of items purchased. The environmental factors
include influence the buying decisions ofindividual organizations.
The  (a) objectives, (b) goals, (c) organization structure,
(d)purchasing policies and procedures, (e) degree of
organizational centralization in purchasing, and (f) evaluationand reward
system. These variables particularly influence the
variables composition and functioning of thebuying centre, and also,
the degree of centralization or decentralization in the
include purchasingfunction in the buying organization.
Buying Centre 1. Authority , Size, Key influencers, Interpersonal
Variables relationship, communication  

and Individual 2. Personal Goals, Education, Experience, Values, Job

Position, Lifestyle,  Income
variables
 The strengths of the model, developed in 1972, are
that it is comprehensive, generally applicable,
analytical, and that it identifies many key variables
Strength which could be considered while developing
marketing strategies by industrial marketers. However,
the model is weak in explaining the specific influence
of the key variables.
 In 1969, Professor Howard and Jagdish N Sheth developed
the Sheth model of Organizational Buying. 
The
The Howard Sheth Model is an approach for analyzing the
Howard Sheth combined impact of the social, psychological and marketing
Model factors on the buying behaviour or preference of the
consumers and the industrial buyers into a logical order of
information processing.
 The Howard Sheth Model is a sophisticated integration of
the various social, psychological, and marketing influences
on consumer choice into a coherent sequence of information
processing.

The The logic of the Howard Sheth model of consumer behavior

Howard Sheth summarizes like this.
Model •There are inputs in the form of Stimuli. 
•There are outputs beginning with attention to a given
stimulus and ending with purchase.
•In between the inputs and the outputs, there are variables
affecting perception and learning. 
The Howard
Sheth Model
 The  Howard Sheth model of consumer behavior  suggests
three levels of decision making:
The first level describes extensive problem-solving. At this
level, the consumer does not have any basic information or
knowledge about the brand and he does not have any
preferences for any product. In this situation, the consumer
will seek information about all the different brands in the
The market before purchasing.

Howard Sheth The second level is limited problem-solving. This situation

exists for consumers who have little knowledge about the
Model market, or partial knowledge about what they want to
purchase. In order to arrive at a brand preference, some
comparative brand information is sought.
The third level is habitual response behavior. At this level,
the consumer knows very well about the different brands
and he can differentiate between the different characteristics
of each product, and he already decides to purchase a
particular product.
 Inputs:  These input variables consist of three distinct types of
stimuli (information sources) in the consumer’s environment. 
Significant Stimuli: The significant stimuli are the physical traits
of the product and the brand. It includes the product’s price,
quality, availability, distinctive characteristics and service.
Symbolic Stimuli: The marketing strategies like 
Input in advertisement and publicity creates a psychological impact on
Howard and the buyer’s perception of a product’s rhetorical and visible
features.
Sheth Model Social Stimuli: The social stimuli comprises of the various
environmental factors which are considered as a source of
information for the buyers. It includes family, social class and
reference groups.
 The hypothetical constructs depict the central part of the model.
It includes all those psychological variables which play a vital
role in the buyer’s decision-making process.
It can be further bifurcated into the following two categories:
1. Perceptual Constructs
These components define the consumer’s procurement and
Hypothetical perception of the information provided at the input stage.

Constructs It is an essential element since it drives the buyer’s brand

selection and purchases, which includes:
Sensitivity to Information: The buyer’s level of understanding or
openness towards the information received by him/her.
Perceptual Bias: On the grounds of individual perception of
each brand, the buyer is partial towards a particular brand.
Search for Information: The buyer also seeks for more
information to ensure the right decision-making.
 2. Learning Constructs
The learning constructs define the buyer’s knowledge, opinion, attitude and
end decision on product or brand selection.
Following are the various learning constructs of a buyer:
Motive: The specific goal or purpose for which the product purchase is
carried out.
Choice Criteria: The set of principles or benchmarks defined for product
selection.
Brand Comprehension: The information about the product or brand
Hypothetical pertained by the buyer.

Constructs Attitude: The buyer’s perspective and willingness to purchase a product of a

particular brand defines his/her attitude.
Confidence: The trust or faith of the buyer in a specific brand and its
products builds his/her confidence.
Intention: The buyer’s purchase motive, preference criteria, brand
comprehension, consumer attitude and confidence, results in the selection
of a particular brand.
Satisfaction: After-purchase, the buyer evaluates his/her level of
contentment, to find out whether the product has fulfilled the expectations
or not.
 The output or as we say, the result of the buyer’s decision-making can
be seen in the form of his/her response towards the input variables.
It consists of five major components which are arranged systematically
below:
Attention: The buyer’s level of concentration and alertness with which
he/she understands the information provided, is termed as attention.
Brand Comprehension: The awareness of the buyer regarding a
Output particular brand and its products is known as brand comprehension.

Variables Attitude: The buyer’s evaluation of a brand in terms of individual likes

and dislikes, determines his/her behaviour, interest and awareness
towards it.
Intention: The aim or objective of the buyer for purchasing a product
can be seen as the buying intention.
Purchase Behaviour: All the above elements result in the actual
purchase of a product by the buyer.
 There are certain other external factors which influence the buying
behaviour of an individual or a firm by hampering the product purchase of a
prefered brand.
The exogenous variables are the environmental forces or components of this
model. These are as follows:
Importance of Purchase: If the buyer perceives the product to be less
crucial, involving a low cost, then there is a little brand preference.
Personality Variables: Personal traits like ego, self-esteem, anxiety,
dominance, authoritarian, etc. influences a buyer’s decision-making while
purchasing a product.

Exogenous Social Class: A buyer’s social group, including the family, friends and other
reference groups impact the selection or rejection of a particular brand.
Variable Culture: The buyer’s values, beliefs and ideas frame his/her purchase motive
and inhibitors.
Organization: The buyer’s interaction with the social groups define their
authority, status and power. The hypothetical constructs of a buyer are
affected by such formal or informal communications.
Time Pressure: The buyer, at times, is under the pressure of taking a timely
decision, which makes him/her look for alternatives if the product of the
preferred brand is unavailable at the moment.
Financial Status: The buyer’s inability to purchase a product or
unaffordability restricts him/her from buying it.
 The Howard Sheth Model majorly emphasizes repetitive
buying behaviour of the consumers or industrial buyers.
This is an empirical approach towards understanding the
buyer’s mindset while purchasing a product or service. It has
Conclusion been intensively applied and tested to check its viability.
Still, the model lacks reliability due to its dependency on the
hypothetical constructs, which are challenging to be
pragmatically examined.
Impact of Macro/Micro
Environmental factors on
decision making.
There are two elements within the external
marketing environment; 
Micro, and 
Macro. 
These environmental factors are beyond the
control of marketers but they still influence the
decisions made when creating a strategic
marketing plan.
 Suppliers: Suppliers can control the success of the business
when they hold power. The supplier holds the power when
they are the only or the largest supplier of their goods; the
buyer is not vital to the supplier’s business; the supplier’s
product is a core part of the buyer’s finished product and/or
business.
Micro Resellers: If the product the organisation produces is taken
Environment to market by 3rd party resellers or market intermediaries such
as retailers, wholesalers, etc. then the marketing success is
Factors impacted by those 3rd party resellers. For example, if a retail
seller is a reputable name then this reputation can be
leveraged in the marketing of the product.
Customers: Who the customers are (B2B or B2C, local or
international, etc.) and their reasons for buying the product
will play a large role in how you approach the marketing of
your products and services to them.
 The competition: Those who sell the same or similar
products and services as your organisation is your
market competition, and the way they sell needs to be taken
into account. How do their prices and product differentiation
Micro impact you? How can you leverage this to reap better results
Environment and get ahead of them?

Factors The general public: Your organisation has a duty to satisfy

the public. Any actions of your company must be considered
from the angle of the general public and how they are
affected. The public has the power to help you reach your
goals; just as they can also prevent you from achieving them.
 Demographic forces: Different market segments are typically
impacted by common demographic forces, including
country/region; age; ethnicity; education level; household
lifestyle; cultural characteristics and movements.
Economic factors: The economic environment can impact
both the organisation’s production and the consumer’s
Macro decision-making process.

Environment Natural/physical forces: The Earth’s renewal of its natural

resources such as forests, agricultural products, marine
Factors products, etc must be taken into account. There are also
natural non-renewable resources such as oil, coal, minerals,
etc that may also impact the organisation’s production.
Technological factors: The skills and knowledge applied to
the production, and the technology and materials needed for
the production of products and services can also impact the
smooth running of the business and must be considered.
 Political and legal forces: Sound marketing decisions should
always take into account political and/or legal
developments relating to the organisation and its markets.
Macro Social and cultural forces: The impact the products and
Environment services your organisations brings to market have on
society must be considered. Any elements of the production
Factors process or any products/services that are harmful to society
should be eliminated to show your organisation is taking
social responsibility. A recent example of this is the
environment and how many sectors are being forced to
review their products and services in order to become more
environmentally friendly.
Unit –2 
SEGMENTATION, TARGETING, POSITIONING 
 Market segmentation is a process of dividing the market of
potential customers into smaller and more defined segments
on the basis of certain shared characteristics like
demographics, interests, needs, or location.
What Is The member of these groups share similar characteristics
Market and usually have one or more than one aspect common
Segmentation? among them which makes it easier for the marketer to craft
marketing communication messages for the entire group.
There are many reasons as to why market segmentation is
done. One of the major reasons marketers segment market
is because they can create a custom marketing mix for each
segment and cater them accordingly.
 Companies often deal with customers who belong to
different age groups, have varied interests, and are
motivated by different triggers.
Segmenting these potential customers into different groups –
Makes it easier for the marketer to develop a different
Importance Of marketing mix for each customer segment which is more
Market likely to bring results.
Increases the results of the marketing efforts as each of the
Segmentation groups witness personalized marketing messages according
to what stimulates them to do the task.
For example, a chips brand can launch a party pack for $15 in
cities where teens are more likely to buy them for parties.
Whereas, the same brand may launch small packs in the
country-side where people don’t spend a lot on chips.
 Segmenting is dividing a group into subgroups according to
some set bases. These bases range from age, gender, etc. to
psychographic factors like attitude, interest, values, etc.
•Gender
Bases Of •Age Group
Market •Income
Segmentation •Place
•Occupation
•Usage
•Lifestyle
 Gender
Gender is one of the most simple yet important bases of
market segmentation. The interests, needs and wants of
males and females differ at many levels. Thus, marketers
focus on different marketing and communication strategies
for both. This type of segmentation is usually seen in the
Bases Of case of cosmetics, clothing, and jewellery industry, etc.
Market Age Group
Segmentation Segmenting market according to the age group of the
audience is a great strategy for personalized marketing. Most
of the products in the market are not universal to be used by
all the age groups. Hence, by segmenting the market
according to the target age group, marketers create better
marketing and communication strategies and get better
conversion rates.
 Income
Income decides the purchasing power of the target audience
. It is also one of the key factors to decide whether to market
Bases Of the product as a need, want or a luxury. Marketers usually
Market Segme segment the market into three different groups considering
their income. These are
ntation High Income Group
Mid Income Group
Low Income Group
This division also varies according to the product, its use, and
the area the business is operating in.
 Place
The place where the target audience lives affect the buying
decision the most. A person living in the mountains will have
less or no demand for ice cream than the person living in a
desert.
Bases Of Occupation

Market Se Occupation, just like income, influences the purchase

decision of the audience. A need for an entrepreneur might

gmentation be a luxury for a government sector employee. There are

even many products which cater to an audience engaged in
a specific occupation.
Usage
Product usage also acts as a segmenting basis. A user can be
labelled as heavy, medium or light user of a product. The
audience can also be segmented on the basis of their
awareness of the product.
Bases Of Lifestyle

Market Se
Other than physical factors, marketers also segment the
market on the basis of lifestyle. Lifestyle includes subsets like
marital status, interests, hobbies, religion, values, and other
gmentation psychographic factors which affect the decision making of an
individual.
Types Of
Market
Segmentatio
n
 Demographic segmentation divides the market on the basis
of demographic variables like age, gender, marital status,
family size, income, religion, race, occupation, nationality,
Demographic etc.

Segmentation This is one of the most common segmentation practice

among marketers. Demographic segmentation is seen almost
in every industry like automobiles, beauty products, mobile
phones, apparels, etc and is set on a premise that the
customers’ buying behaviour is hugely influenced by their
demographics.
 Geographic segmentation divides the market on the basis of
geography. This type of market segmentation is important for
marketers as people belonging to different regions may have
different requirements. For example, water might be scarce
Geographic in some regions which inflates the demand for bottled water
but, at the same time, it might be in abundance in other
Segmentation regions where the demand for the same is very less.
People belonging to different regions may have different
reasons to use the same product as well. Geographic
segmentation helps marketer draft personalized marketing
campaigns for everyone.
 The market is also segmented based on audience’s behaviour, usage,
preference, choices and decision making. The segments are usually divided
based on their knowledge of the product and usage of the product. It is
believed that the knowledge of the product and its use affect the buying
decision of an individual. The audience can be segmented into –
Those who know about the product,
Those who don’t know about the product,
Behavioral Segmentatio Ex-users,
n
Potential users,
Current Users,
First time users, etc.
People can be labelled as brand loyal, brand-neutral, or competitor loyal.
They can also be labelled according to their usage. For example, a sports
person may prefer an energy drink as elementary (heavy user) and a not so
sporty person may buy it just because he likes the taste (light/medium user).
 Psychographic Segmentation divides the audience on the
basis of their personality, lifestyle and attitude. This
segmentation process works on a premise that consumer
buying behavior can be influenced by his personality and
lifestyle. Personality is the combination of characteristics that
form an individual’s distinctive character and includes habits,
Psychographic Segmentatio traits, attitude, temperament, etc. Lifestyle is how a person
n lives his life.
Personality and lifestyle influence the buying decision and
habits of a person to a great extent. A person having a lavish
lifestyle may consider having an air conditioner in every
room as a need, whereas a person living in the same city but
having a conservative lifestyle may consider it as a luxury.
 A market segment needs to be homogeneous. There should
be something common among the individuals in the segment
that the marketer can capitalise on. Marketers also need to
check that different segments have different distinguishing
Nature Of A features which make them unique. But segmenting requires
Market Segme more than just similar features. Marketers must also ensure
that the individuals of the segment respond in a similar
nt way to the stimulus. That is, the segment must have a similar
type of reaction to the marketing activities being pitched.
A good market segment is always externally heterogeneous
and internally homogeneous.
Macro and Micro Segmentation:
Variables for Segmenting
Organizational Markets

Organizational markets can be segmented on

the basis of various factors that can be broadly
classified into macro segmentation and micro
segmentation.
 To segment organizational market, a company can use macro
segmentation variables like an organization’s size, its location
and the industry it is a part of.
Organizational size:
A large organization may buy the same product as a smaller
one, but it would buy differently. A large organization will
Macro buy in larger lots and will have a formal buying process. It
will have specialized departments like those of purchase and
segmentation quality control, with each one having an individual mandate.
It is also likely to demand more services and discounts.
It may happen that a company’s profitability in serving large
clients is low, and hence it is not wise to ignore smaller
clients, who do not want extensive services and deep
discounts. A company may develop a business model for
serving large number of small clients, which may not
necessarily be less profitable than another company’s
business model of serving few large clients.
 The industry that an organization is part of largely
determines what it would buy. An industry has a unique
requirement of products, buys in a particular manner and
requires certain level of quality in the product that it buys.
Therefore, a company may be selling a product like
computers to clients in different industries, but it cannot sell
Industry in the same way and sell the same computer to its clients in
different industries. Though companies in an industry may
buy slightly differently from each other, it is possible to
design a marketing mix for an industry, which a company can
then tweak for different buyers in the industry.
Therefore, it is important that a company makes an in depth
study of the requirements of an industry, before it starts to
woo companies of that industry.
 There are regional variations in purchasing practices and
needs. Companies operate within the constraints of their
national cultures.
Geographical In an American company, a purchase manager may have the
segmentation: full authority to make a purchase decision, whereas in a
Japanese company, a purchase manager may have to build
consensus among various stakeholders before he can make a
purchase decision.
End-use segmentation
End-use segmentation is the marketing strategy that focuses
on the precise way a B2B purchaser will use a product.
Customer and End User aren’t always the same! 
Within the broad definition of a customer are:
 End User : who ultimately uses your product 
Economic Buyer: who makes the final decision to purchase
your product
 Firmographic segmentation is a direct parallel of
demographic segmentation, used primarily by B2B
enterprises to analyze and segment business organizations.
Firmographic. Premodimant firmographic traits include industry types,
number of employees, company age, location, value, and
revenue growth among others.
Product Applications.
Market or customers can be segmented on the basis on
Product Application or how the Product is being used by the
Customer or End User
 Each company buys differently from other companies in its
industry, and a seller needs to develop a detailed
understanding of how each company buys.

Micro It is important that salespeople spend considerable time in

segmentation understanding the roles that different functions play in the
buying process and their individual mandate. It is also
important to understand the buyer’s philosophy in terms of
its emphasis on quality, its view on price and its intent of
developing long term relationship with the sellers.
 A company’s choice criteria will depend on how it has
decided to compete in its own market. Therefore, a buyer
will not budge on quality because it is making a premium
product, and another will not budge on price because it is
making a value-for-money product.
A seller needs to understand what each one of its buyers is
trying to achieve for its target market to know how it would
Choice criteria buy—the buyer who is buying premium products will be
willing to pay a higher price if the seller offers to increase
quality of its products, and the buyer who is buying value-for
– money products will be willing to buy products of lower
quality if the seller offers to reduce its price.
Therefore, a seller needs to have different marketing mix
when its buyers have different choice criteria, and
salespeople will need to emphasize different benefits with
different clients.
Decision making unit structure
In an organization, a large number of people influence the purchase decision. Though a Decision
Making Unit or a DMU does not exist on a formal organizational chart, its members exert
tremendous influence on how a buying process will proceed and who will finally be selected as a
supplier.
Who the members of DMU are, depends on what product is being bought and whether the
product has been bought earlier. For example, if a buyer is contemplating outsourcing
manufacturing of a component of a new product, the DMU may consist of product developers,
process engineers, quality engineers, manufacturing engineers, assembly engineers and
purchasers.
But, if a buyer is contemplating buying grease for its machines, the DMU may just consist of
manufacturing engineers and purchasers. If the product has been bought earlier, the DMU
might just consist of quality engineers and purchasers, because the supplier has already been
evaluated on parameters which are important to the buyer.
Decision making process
The size of the DMU depends on the type of the product which is being bought, and whether
the product has been bought earlier. The buying process will be longer if the size of the DMU is
large because the suppliers will be evaluated on all the parameters that are important to all the
members of the DMU.
For example, quality engineers will ensure that the supplier is capable of meeting quality
standards, and product developers will ensure that the component serves the function for which
it has been designed. Therefore, a seller needs to be willing to expend resources and time to
deal with a large DMU. The buying process is short when the size of the DMU is small, and also
when the product has been bought earlier.
Buy class
It is helpful to categorize organizational purchases into straight rebuy, modified rebuy and new
task. Whether a particular purchase is straight rebuy, modified rebuy, or new task, will affect
how long the buying process will take, who the members of the DMU will be and what would be
their choice criteria. Once a seller has categorized a purchase into one of the buy class, he can
estimate the amount of time and resources he will have to expend to clinch a deal.
Purchasing organization
Decentralized versus centralized purchasing is an important variable due to its influence on the
purchase decision. Centralized purchasing is associated with purchasing specialists who become
experts in buying a product or range of products. They are more familiar with cost factors, and
strengths and weaknesses of suppliers than decentralized generalists.
The opportunity for volume buying means that their power to demand price concessions from
suppliers is enhanced. In centralized purchasing systems, purchasing specialists have greater
power within the DMU with respect to technical people like engineers.
Organizational innovativeness
Marketers need to identify the specific characteristics of the innovator segment since these are
companies that should be targeted first when new products are launched. Follower firms buy
the product but only after innovators have approved it.
Customer Interaction needs
Just like real funnels, B2B marketing funnels start out widest at the top. They narrow after leads
are identified, and keep narrowing until leads become customers. Marketers design unique
content and interactions to appeal to people at every position within the funnel.
Leads & Lead Scoring
Not all leads are created equal. Some are desperate for a solution and willing to buy right now.
Others are still educating themselves about their options. And then there's everyone in between!
Lead scoring provides a way to show how likely someone is to become a customer. The goal of
lead scoring is to identify prospects, or leads, that are mostly likely to buy based on their
interaction with your marketing campaigns, as well as their demographic and firmographic data.
Lead scoring helps marketers understand how engaged a lead is in the marketing funnel. That
makes it easier to create relevant content and interactions, and move them closer to becoming
customers.
Customer Interaction needs
Anyone who interacts with your brand can be a lead, but that doesn’t mean they are a good
one. To progress through the funnel, a lead must receive enough points to become an MQL – a
“marketing-qualified lead.” 
And what is an MQL? An MQL is someone whose engagement levels suggest that he or she
shows the potential to become a customer.

In addition to demographics information, leads also receive points when they interact with your
brand. Participating in a webinar, downloading content, or seeing your company at an event are
all interactions which result in points. Interactions with your brand are weighted – the more
important the action, the more points the lead gets. If someone requests a
demo, they’ve shown a true interest in your product. This would be worth more points than
downloading an eBook.
Customer Interaction needs
Once leads have reached a minimum point value, they become an MQL. Traditionally, an MQL
was someone who responded to an outbound marketing communication channel. But now, in a
time where the average B2B buyer is 57 percent of the way through a purchase decision before
even talking to a sales rep, it's a bit more complicated.
Target
Market
What Is a Target
Market
A target market is a specific group of people with shared characteristics
that a business markets its products or services to. Companies use
target markets to thoroughly understand their potential customers and
craft marketing strategies that help them meet their business and
marketing objectives.

Target marketing 
Definition: is a marketing strategy that breaks a market into segments
and then concentrating your marketing efforts on one or a few key
segments consisting of the customers whose needs and desires most
closely match your product or service offerings. It can be the key to 
attracting new business, increasing sales, and making your business a
success.
Target market vs. Target audience 

Occasionally, people A target market is the overall group For example, imagine a tech Although the watch likely appeals
interchangeably use “target of people a business is trying to company has developed a to many people (the target market),
market” and “target audience.” But, reach through its marketing efforts. smartwatch capable of taking the company might craft a specific
despite their similarities, the terms Meanwhile, a target audience is a phone calls, answering text advertising campaign emphasizing
refer to different groups of people.   specific subset of the target market messages, opening apps, and the watch’s health features to
that a company attempts to reach keeping track of the wearer’s blood attract an older audience of health-
through targeted marketing efforts. pressure and step count. conscious consumers. This group of
older health-conscious people is an
example of a target audience.
Target Marketing
Case Study: McDonald's
McDonald's is the largest fast-food chain in the U.S. ranked by sales. 3 It's also
one of the most successful examples of demographic target marketing, aiming
its products at children, teenagers, and young urban-dwelling families by
offering PlayPlaces & Parties, the Arch Card (reloadable cash card), free wifi,
Happy Meals that include toys such as Marvel Studios characters, special
promotions, and clever ad campaigns. Targeted advertising and aggressive
pricing have enabled McDonald's to capture over 18.5% percent of the fast-food
market share in the U.S. as of 2020.

However, as millennials surpassed baby boomers in 2017 to become the largest

generation in the U.S. workforce, McDonald's sales have been in decline as fast-
food style menu items, such as the ubiquitous Big Mac and fries, have
less appeal to millennials. In response, McDonald's has altered its marketing
strategy to target the millennial generation by advertising fresher, healthier
menu options and upscale coffee products such as espressos.
 Surveys
Surveys can function as a census. When the right questions are being
asked, surveys are an effective method when gathering information
about your target market.  
Analytics Tools

Surveys Analytics tools are used to measure customer engagement with your
content. These platforms collect data and provide real-time feedback
& Analytics on the behavior flow of your audience when interacting with your
brand.
Tools There are many analytics platforms to choose from. You should choose
one that focuses on providing data that is most relevant to your
company.
Firebase (for Android apps)
Apple App Analytics
Facebook Analytics
ilo Analytics (for Twitter)
Mixpanel (for user behavior)
Hockeystack (for website behavior)
 Airbnb
Airbnb’s target demographic is people who travel, prefer a
home to a hotel and/or are looking to take part in activities
hosted by local people. While Airbnb’s marketing strategy
 targets multiple segmentation demographics, the company
originally was designed to offer affordable accommodation
Target Market options to millennials.

Examples Nomad Lease

Nomad Lease’s target demographic is homeowners who
travel. Nomad Lease operates as a property management
company finding tenants for home owners while they’re
away. The company is limited to only a few cities in the US,
but the service is guaranteed. As an alternative to Airbnb, I'm
sure this company will see their target market expanding
soon.
 Vinovest
Vinovest’s target demographic is retail investors looking for
alternative assets. Their marketing strategy focuses on the 25 to
40 year-old market. Average wine drinkers are not overlooked by
Vinovest. However minimum investment begins at $1000,
targeting individuals with experience or interest in finance.
Microverse
Target Market  Microverse’s target demographic is remote software developers
Examples​ and aspiring software developers. Microverse offers a full-time
tech curriculum to students from all over the world. Their
marketing caters to young and underfunded students by not
requiring tuition upfront.
Willful
Willful’s target demographic is younger professionals and
families. Willful is an online platform that assists people making
end of life arrangements with access to legal professionals and
advisors.
Target Marketing Strategies

Concentrated Differentiated Undifferentiated

Marketing Marketing Marketing
Strategy Strategy Strategy
 Concentrated marketing is a marketing strategy in which a
company focuses on one specific target market group for
most or all of its marketing initiatives. Companies that use
concentrated marketing emphasize how their products can
Concentrated meet the unique needs of their niche audience.

marketing Concentrated marketing is a strategy that involves a brand

directing all effort and resources to develop and market a
product for one specific segment of the target audience. This
strategy is especially effective for small businesses as it helps
obtain a good position in one marketing segment.
Features of Concentrated Marketing
Helps companies focus,
Involves the efficient use
meet the needs and
Can be implemented by of resources for
produce goods
small companies production, distribution,
specifically for one
and advertising
audience segment

Requires a company-
expert in the market that
Can’t acquire a larger
knows the core product
customer base.
necessary to get into the
niche market
Examples of Concentrated Marketing
Rolls-Royce
The luxurious car manufacturer was established in 1904 in Britain, Rolls-Royce knows a thing or two about
concentrated marketing. The brand has customers in more than 120 countries and is well-known for the
quality and price of its cars. Rolls-Royce targets customers with liquid assets of at least $30 million. This
car manufacturer reaches their clients using personally signed letters. The brand sells approximately 800
cars per year.
Rolex
The brand founded in 1905 is now considered one of the leading names in the watch manufacturing
industry. Their promotional campaigns always include different famous, influential, successful athletes and
artists who depict the brand’s target segment. Ads created by Rolex convey that successful, strong people
with status wear Rolex watches. This shows that the watch manufacturer is targeting career-orientated
people.
 Omega
The Swiss watchmaker established in 1848 is famous for
making some of the finest watches in the world. Omega is a
world-known brand with a great reputation because their
products have excellent quality, durability, and resistance.
Their ad that features Rory McIlroy, a famous golfer, depicts
Examples of the brand's ideal client — a successful, influential, and good-
looking person. This personality has passion and expertise in
Concentrated sports or other industries. So, Omega targets customers who
try to balance their family and career.
Marketing Munchkin
The infant and toddler company founded in 1991, Munchkin,
specializes in manufacturing and distributing products for
children. The brand creates products and chooses parents as
their target audience. Additionally, the company creates
articles on parenting for their blog. They target moms and
dads using different strategies when they search for certain
baby products and use mobile-friendly tactics to reach busy
parents.
 Concentrated marketing, the main purpose of which is to create an offer
for one specific segment, comes with several benefits for small
companies. The strategy allows small businesses and startups to function
even with limited resources. Some other advantages of concentrated
marketing include:

Advantages The opportunity to analyze and understand the needs and wants of a
select audience segment

and A company can become a professional in meeting the needs of a certain

segment of customers
Disadvantages Cost-effectiveness due to the absence of mass production and mass
of advertising

Concentrated More loyal customers if their needs are met.

Marketing However, the strategy also has disadvantages. They are as follows:
high dependence on customers’ preferences, a shift might result in
decreased effectiveness for your marketing campaigns;
risk of neglecting other profitable segments
risk of brand failure in the event of decreased product demand.
 By using differentiated marketing, companies can appeal to
two or more segments of their target audience or marketing
segments through their campaigns. Brands target various
well-defined customer profiles to create a wider customer
base, increase brand awareness, communicate personalized
messages, and meet customers’ needs.
After creating special approaches for different segments of
Differentiated the target audience, company messaging is more likely to
resonate with the unique needs of clients and you can
marketing expect even more benefits including higher customer loyalty,
better business-customer relationships, and even more.
Like any marketing method, this strategy has pros and cons.
The benefits of differentiated marketing include fulfilling
customers’ needs, increased customer reach, and more
revenue. However, the strategy also has its cons. They are as
follows: unstable brand identity and high expenses.
 Differentiated marketing can lead to a strong and
entrenched market presence that is difficult to displace
when implemented successfully. 
This is because of customers’ great affinity towards different
products and offers that cater to the unique demands of
Features Of their segment.
Differentiated Here your marketing capabilities and resources play a critical
Marketing role as they are fundamental in designing different messages
for multiple products. 
Strategy? The strategy allows you to appeal to two or more clearly
defined consumer segments with a particular product and a
unique marketing approach tailored for each segment. 
Additionally, with a differentiated strategy, you can achieve
consumer diversification, improve sales and build a strong
brand identity in the industry.
 Differentiation marketing strategy offers several benefits and advantages
that help you develop a niche in your industry. Some of the key benefits are
listed below:
Caters To A Range Of Consumer Demands
Using a differentiated marketing approach, you can cater to various
consumer demands instead of appealing to just a specific one. An example
Advantages of differentiated marketing can be a business offering dietary supplements
with multiple target audience segments, from individuals looking for specific
of Differentiate nutritional supplements to those who prefer general multivitamins. With
differentiated marketing, you can reach out and appeal to each target

d Marketing segment separately and cater to their respective demands.

Scales Up Customer Reach
You can reach more customers by differentiating your marketing approach to
sell your products and services. For example, suppose you own a coffee shop
with a primary customer base comprising college-going students. You can
aim to expand your consumer reach to commuting professionals by
diversifying your offerings. Such an approach will allow you to reach a larger
audience and improve on business operations.
 Improves Revenues
Combine the two points mentioned above. As you cater to a
broader audience and their respective demands, your
revenues will naturally go up. As your business increases, so
will your profits. That’s why many businesses look to
Advantages diversify their marketing approaches and develop a variety of
of Differentiate offerings for their consumers.

d Marketing Makes Your Business Agile

Differentiated marketing can help your brand adapt to
changing trends within the industry. With multiple target
audiences to cater to, you can ensure future revenues by
shifting your focus if one particular segment is no longer
viable.
Disadvantages

Different Customer Increased Levels Of

Responses, Which May Competition Among
Overall Increase In The
Create Difficulties In Players That Offer
Cost Of Advertising
Generating Definite Products At Lower
Insights Costs
 In this section, we will try to get an overview of how to
create and implement a differentiated marketing strategy.
Define Your Target Audience: The Most Critical Step While
Designing A Marketing Strategy Is To Define Your Key Target
Consumers. For This Purpose, You Need To Figure Out Your
Consumers’ Main Characteristics, Such As Their Location,
Gender, Age, Income, Marital Status, Etc. With All The
Information, You Can Then Group Them Into Different
How To Targeting Segments.
Create Differentiat
Understand The Demands Of Your Consumers: The Next
ed Strategy? Step In The Process Is To Figure Out What Exactly Your
Consumer Demands. You Need To Understand What
Products They Like The Most And What Services Help Solve
Their Problems. A Survey Or Feedback Form Can Be A Good
Tool To Get Such Information. Additionally, With The Use Of
Analytical Data, You Can Track Your Customers’ Purchase
Habits And Target Them Accordingly.
 Different Offers For Different Segments: As You Create Your
Target Segments And Understand Their
Respective Demands, It’s Time To Develop Separate
Marketing Offers Or Messages. Identify The Unique
How To Characteristic In Each Segment And Try To Promote Your
Create Differentiat Offerings That Appeal To The Character The Most.
ed Strategy? Figure Out Promotional Channels: You Need To Have The
Proper Promotional Channels To Reach Your Target Audience.
If Most Of Your Target Audience Is On Social Media, Creating
A Specialized Email Marketing Campaign Would Be Futile.
 Maruti Suzuki
Maruti Suzuki is one of India’s most trusted and popular
automakers. The organization deploys differentiated
marketing and targets a wide range of consumer segments. It
offers different promotional offers for budget-friendly cars
such as WagonR or Alto with separate messaging for each
Differentiated product. Similarly, it targets the high-spending consumer
segment with promotional messaging for top-line cars like
Marketing Ciaz, S-Cross, or Baleno.

Strategy Bumble

Examples We all know Bumble as a dating app. However, the

organization has done a great job differentiating its product
range by offering different services for different user groups.
Bumble app, known for women making the first move,
introduced BFF mode in 2016. The mode allows two people
who have swiped right to initiate conversation and form a
connection. Similarly, the organization introduced Bumble
Bizz that enables business networking on the platform. 
 Additionally, the approach also uses different messaging in a
single campaign for different target segments. For example, a
brand can promote the low cost of its product to the budget-
conscious segment and superior build and quality of the same
Difference product to an affluent target audience.
Between Differentiate
On the other hand, an undifferentiated marketing strategy
d And allows you to use a single message across your target
Undifferentiated segments. This approach is similar to mass marketing and
Marketing Strategy allows you to create a message that can influence a large
audience. In such cases, the message is primarily more
generic or expansive for people to relate to it.
 Also called mass marketing, is a strategy that entails
creating one message for an entire audience. It helps
businesses reach more people at a lower cost and
improves brand recognition.
Undifferentiated
marketing In this case, companies focus not on how the needs of
customers differ from each other but rather on the
similarities they have. This strategy best fits businesses that
develop products and marketing programs for large market
segments that will reach a ton of people.
 Companies choose this strategy when it is difficult to identify
their target segment of customers or when segments
transform over time. There are several pros and cons of
undifferentiated marketing to consider.
Advantages of
Pros of undifferentiated marketing:
Undifferentiate
cost-effective in the long run;
d Marketing no need for constant changes to content;
greater reach;
no in-depth market research necessary;
improved brand recognition.
 changes in your business environment can be triggered by
changes in price, consumer preference, or inflation;
Cons of it doesn’t bring many loyal customers;
undifferentiated it is challenged by competitors focused on satisfying the
marketing: needs of a smaller segment of your audience.
 Coca-Cola
The world-known multinational corporation founded in 1892,
Coca-Cola uses mass marketing. The company presented a single
product to the market, a carbonated soft drink. The brand has
done and continues to do a lot to promote its products to a
huge number of consumers worldwide who are ready to buy this
famous drink. Over the years, the product has changed its label
appearance, bottle shape, aroma, and taste but continues to sell
Examples of in record numbers.
Undifferentiate
d Marketing General Motors
The multinational corporation introduced in 1908 claims to
produce equipment suitable for any person, budget, and
purpose. Indeed, the company produces vehicles for all age
groups, and it’s justified. The company is always ready to deliver
products for a wide range of cars from different brands to satisfy
the needs of buyers.
Examples of Undifferentiated
Marketing
Persil
Persil, a brand of laundry detergent first introduced in 1907, is
also a great example of mass marketing. 
Consumer packaged goods like soaps and detergents use
undifferentiated marketing strategies as they are used by a big
market segment.
M&M's - Gems
A brand famous for its button-shaped chocolates of different
colors is a great example of undifferentiated marketing. The
company addresses people of all ages and appeals to everyone
looking for sweets in its funny commercials on TV. The same
M&M's product that the brand has used years remains the same.
Target Marketing
Following are 5 criteria that indicate whether you have selected a viable target market: size,
expected growth, competitive position, cost to reach, and compatibility.
Size - how large is this target market? Worth pursuing?
Expected Growth - even if the market is small, it may be profitable if there are indications that it
will grow.
Competitive Position - low competition equals attractive market.
Cost to Reach - is this market accessible with our tactics?
Compatibility - how aligned is this market to our goals?
Positioning
What Exactly Does “Positioning” Mean?
Here is what positioning is:
Positioning IS perception. The story that consumers and clients have created in their minds
about your company and your brand. As positioning is composed of many different elements,
from marketing and branding to service and social responsibility, it is crucial to create a clear
and captivating customer perception with a strategy so clients choose your product and/or
services to fill their needs every time.
Positioning is not something you do to your brand or product. Positioning is something you do
to the mind of your target customer with your brand or product (and your message). In
other words, your brand or product holds a certain position in a person’s mind – or a perception
– and positioning is the act of either reinforcing that perception or trying to change it.
Here is what is positioning is NOT:
Positioning is NOT branding. While both involve actively shaping your brand, positioning is how
your brand sits in consumers’ minds.
Positioning is NOT “marketing’s job.” Ultimately, it’s the CEO or founder’s job to lead the way
on what the positioning will be. Marketing can, of course, take on a role in the process, but their
job is more heavily involved later on in implementing the strategy through the messaging.
Positioning is NOT just a statement. As you develop strategic B2B positioning, that brand story
should weave itself into every element of your company.
Key attributes of Positioning
To ensure that this perception customers have of you works to your advantage and causes them
to favor you, it needs to have three key characteristics.

1. Uniqueness
This is the heart of positioning. You need to stand for something unique and your target
customers need to perceive it as being substantially different than what they encounter with
your competitors.
2. Importance
Just being different is not enough. This difference also must be meaningful and relevant to the
customer. If it’s not, it’s unlikely to motivate them.
Key attributes of Positioning
3. Credibility
You may be able to satisfy the first two criteria above, but if your positioning isn’t believable, it
will all fall apart. Before making any positioning claims in your marketing, ask yourself these
questions:
Do we have evidence to support this claim? (The more objective the evidence, the better.)
Can we consistently deliver on this claim?
Is there an indication that customers believe both the claim and that we can deliver?
How do you get a clear view of this mental impression that your target customers have of you?
 How do you know what’s most important to your customers? How do you determine if they’re
“buying what you’re selling”? You guessed it. You ask them.
There is a variety of customer
research that can be carried out to
provide the foundation for positioning
strategy.
Step 1
Your target customers who are familiar with your
company already have a mental picture of you
and many of your competitors. Your first task is to
figure out what this current state is and if you
satisfy the first criterion of being unique. Building
a perceptual map like the one shown below is a
great way to do this.
 Step 2

After gaining this understanding of perceived distinctiveness, the next step is to find out how
important these differences are to your target audience. You could of course ask them directly,
but the tendency for many people is to say that a lot of things are important. Instead, we can
reach back into our statistical bag of tricks to find regression analysis, a technique that derives
the importance of attributes by deciphering the extent to which each attribute drives the overall
perception people have about a brand or product.
Developing Your Positioning Strategy
The Buyer Persona
 
What are the ideal needs of your clientele? While every client may have different problems or difficulties,
remember your job as a company is to solve those key pain points by providing a solution. Creating that buyer
persona helps consolidate what needs your company should focus on filling and therefore, positioning your
story around. Generally, the best persona to pursue would be the one who has the highest distress, simply
because they are more likely to shift towards your solution if their needs aren’t currently being met.
Additionally, ask your current clientele for their input. This will help focus your areas of what customers’
perceptions are of not just your products, but your strategic B2B positioning as well. Ask questions like:
What do they like about your product?
What is the predominant benefit they receive?
Why did they switch to your product?
What do they wish was better?
The Competition and the Market
 
Where do you see your company fitting into the market? In consumers’ minds, you are already
competing against other contenders 
so make sure you know what you’re up against. One of the best ways is to simply gather
competitive intelligence, whether that be from their website, blogs, social media and
notably. reviews. Reviews are key to revealing what approvals — or disapprovals — current
consumers are experiencing with your competitors’ products. How can your company fill these
needs that your competitors aren’t delivering their promises on?

Do research not just on your competitors, but the industry as well. Where is the market demand
now but more importantly, where is it going? Use your positioning to fill the empty void in your
market to reach a new consideration of clients and maybe even contemplate the opportunity of
creating your own category.
Differentiation and Consistency
That distinguishing factor that makes your company stand out from your competitors? USE it. This
is what positioning is all about. See that a compelling story is crafted so your company will stand
out from the competition and brand advocates will continuously share with anyone who listens. 
Once you’ve established a brand position, keep to it. The second you change your brand’s story,
you confuse your clients. Remember consistency happens across your whole positioning strategy
— not just one individual element. This should include the messaging you are using for your
marketing, ensuring that the delivery is centered around your story.
 
While there are several guiding principles to elevating your strategic B2B positioning, due to the
differences and challenges each individual industry is facing, unfortunately, there is no one
standard solution.  As a specialist in your industry, you will know the in and outs of the market to
implement the best possible positioning for your company — these are simply just tools to help
you get started.
 Unit 3
Product and Pricing Strategy for B2B Markets
Industrial Products
Industrial Products are the products which are not directly used by the end customers but are used
by the industries. These products are used in Business to Business (B2B) scenarios mostly.
Types of Industrial products:
1. Raw Materials
2. Machinery
3. Parts
4. Tools & Supplies
The types above can be classified as industrial products as they are more suited to an industrial and
B2B setup. There are certain scenarios in which the same product might be used by both industrial
and consumer groups. A computer may be used by a consumer as well as industry but the uses of it
might be very different. Similarly cold storage can be used by both the groups but then the
performance and power requirement might be very different.
Example
Products like glue having high adhesive strength are not required by people in day to day to life
but are key requirement for various industries like automobile, leather etc. Similarly products
like heavy machinery and robotics might be used by car manufacturers but not by end users or
customers.
Hence, this concludes the definition of Industrial Products along with its overview.
Industrial Product lifecycle
The product life cycle is the succession of stages that a product goes through during its
existence, starting from development and ultimately ending in decline. It's typically broken up
into six stages. Business owners and marketers use the product life cycle to make important
decisions and strategies on advertising budgets, product prices, and packaging.
What are the stages of the product life cycle?
Development
Introduction
Growth
Maturity
Saturation
Decline
1. Development
The development stage of the product life cycle is the research phase before a product is
introduced to the marketplace. This is when companies bring in investors, develop prototypes,
test product effectiveness, and strategize their launch. Due to the nature of this stage, companies
spend a lot of money without bringing in any revenue because the product isn't being sold yet.
This stage can last for a long time, depending on the complexity of the product, how new it is,
and the competition. For a completely new product, the development stage is hard because the
first pioneer of a product is usually not as successful as later iterations.
Development Stage Marketing Strategy
While marketing typically begins in the introduction stage, you can begin to build “buzz” around
your product by securing the endorsement of established voices in the industry. You can also
publish early (and favorable) consumer research or testimonials. Your marketing goal during this
stage is to build upon your brand awareness and establish yourself as an innovative company.
2. Introduction
The introduction stage is when a product is first launched in the marketplace. This is when
marketing teams begin building product awareness and reaching out to potential customers.
Typically, when a product is introduced, sales are low and demand builds slowly.
Usually, this phase is focused on advertising and marketing campaigns. Companies work on
testing distribution channels and try to educate potential customers about the product.
Introduction Stage Marketing Strategy
This is where the fun begins. Now that the product is launched, you can actually promote the
product using inbound marketing and content marketing. Education is highly important in this
stage. Your target consumer must know what they’re buying before they buy it. If your
marketing strategies are successful, the product goes into the next stage — growth.
3. Growth
During the growth stage, consumers have accepted the product in the market and customers
are beginning to truly buy in. That means demand and profits are growing, hopefully at a
steadily rapid pace.
The growth stage is when the market for the product is expanding and competition begins
developing. Potential competitors will see your success and will want in.
Growth Stage Marketing Strategy
During this phase, marketing campaigns often shift from getting customers’ buy-in to
establishing a brand presence so consumers choose them over developing competitors.
Additionally, as companies grow, they'll begin to open new distribution channels and add more
features and support services. In your strategy, you’ll advertise these as well.
4. Maturity
The maturity stage is when the sales begin to level off from the rapid growth period. At this point, companies
begin to reduce their prices so they can stay competitive amongst growing competition.
This is the phase where a company begins to become more efficient and learns from the mistakes made in the
introduction and growth stages. Marketing campaigns are typically focused on differentiation rather than
awareness. This means that product features might be enhanced, prices might be lowered, and distribution
becomes more intensive.
During the maturity stage, products begin to enter the most profitable stage. The cost of production declines
while the sales are increasing.
Maturity Stage Marketing Strategy
When your product has become a mature offering, you may feel like you’re “sailing by” because sales are steady
and the product has been established. But this is where it’s critical to establish yourself as a leader and
differentiate your brand.
Continuously improve upon the product as adoption grows, and let consumers know in your marketing strategy
that the product they love is better than it was before. This will protect you during the next stage — saturation.
5. Saturation
During the product saturation stage, competitors have begun to take a portion of the market and
products will experience neither growth nor decline in sales.
Typically, this is the point when most consumers are using a product, but there are many
competing companies. At this point, you want your product to become the brand preference so
you don't enter the decline stage.
Saturation Stage Marketing Strategy
When the market has become saturated, you’ll need to focus on differentiation in features, brand
awareness, price, and customer service. Competition is highest at this stage, so it’s critical to
leave no doubt regarding the superiority of your product.
If innovation at the product-level isn’t possible (because the product only needs minor tweaks at
this point), then invest in your customer service and use customer testimonials in your marketing.
6. Decline
Unfortunately, if your product doesn't become the preferred brand in a marketplace, you'll typically
experience a decline. Sales will decrease during the heightened competition, which is hard to overcome.
Additionally, new trends emerge as time goes on, just like the CD example I mentioned earlier. If a
company is at this stage, they'll either discontinue their product, sell their company, or innovate and
iterate on their product in some way.
Decline Stage Marketing Strategy
While companies would want to avoid the decline stage, sometimes there’s no helping it — especially if
the entire market reached a decline, not just your product. In your marketing strategy, you can focus on
nostalgia or emphasize the superiority of your solution to successfully get out of this stage.
To extend the product life cycle, successful companies can also implement new advertising strategies,
reduce prices, add new features to increase their value proposition, explore new markets, or adjust
brand packaging.
The best companies will usually have products at several points in the product life cycle at any given
time. Some companies look to other countries to begin the cycle anew.
Product Life Cycle Examples
The Typewriter
Vine
Cable TV
Floppy Disk
1. The Typewriter
The typewriter was the first mechanical writing tool — a worthy successor to pen and paper. Ultimately,
however, other technologies gained traction and replaced it.
Development: Before the first commercial typewriter was introduced to the market, the overall idea had
been developed for centuries, beginning in 1575.
Introduction: In the late 1800s, the first commercial typewriters were introduced.
Growth: The typewriter quickly became an indispensable tool for all forms of writing, becoming widely
used in offices, businesses, and private homes.
Maturity: Typewriters were in the maturity phase for nearly 80 years, because this was the preferred
product for typing communications up until the 1980s.
Saturation: During the saturation stage, typewriters began to face fierce competition with computers in
the 1990s.
Decline: Overall, the typewriter couldn't withstand the competition of new emerging technologies and
eventually the product was discontinued.
2. Vine
Skipping forward to the 21st century, we see the rise and fall of Vine, a short-form video-sharing app that was
the source for many memes at its peak but eventually declined due to other platforms.
Development: Vine was founded in June 2012 and mainly competed with Instagram.
Introduction: The app was introduced to the public in 2013. Its differentiating factor was its short-form video
format — users had only seven seconds to film something that was hilarious, absurd, or a mixture of both.
Growth: Only two years after its release, Vine had over 200 million active users. Its popularity led to the
advent of the phrase “Do it for the Vine.”
Maturity: Because it was only in the market for a few years, Vine never reached the maturity stage. While
adoption was high, it was still a fairly new app.
Saturation: Vine competed in an already saturated market. Instagram, Snapchat, and YouTube were the
preeminent names in its category, and Vine soon started to decline in use.
Decline: When Musical.ly was introduced, Vine lost a large amount of its user base and shut down. It was
succeeded by Byte, a similar short-form video sharing platform, but none of these have been able to surpass
Tik Tok, which launched months after Vine’s end in 2016.
3. Cable TV
Remember the days of switching TV channels to find what to watch? I do — and they feel distinctly like
something of the past. While cable TV is still around, it’s safe to say that it’s nearing the decline stage.
Development: Cable TV was developed in the first half of the twentieth century. John Walson has been credited
with its invention.
Introduction: The first commercial television system was introduced in 1950, and by 1962, the technology saw
the first hints of growth.
Growth: After a decades-long freeze on cable TV’s development (due to regulatory restrictions), the technology
began gaining traction, and by 1980, more than 15 million households had cable.
Maturity: Cable TV matured around the 1990s. Around seven in ten households had cable.
Saturation: The start of the 21st century saw an oversaturation of this technology, and it also started to
compete with other modern developments such as on-demand services and high-definition TV (HDTV). While
the internet was still in its nascent stages, it would soon gain on cable TV as well.
Decline: From 2015 onwards, cable TV experienced a marked decline. Online video streaming services such as
Netflix and Hulu have taken precedence — and this trend is set to continue.
4. Floppy Disk
This relic was once a popular and convenient way to store and share data between computers. I barely
understood what they were growing up, and it astounds me to think of the very existence of cloud data
sharing and other mass memory storage means.
Development: The first floppy disk was developed in 1970 by IBM engineers. It was an 8-inch flexible
magnetic disk in a square case with 2MB storage capacity.
Introduction: It was introduced in 1971 and largely became known as the only way to transfer or store
data.
Growth: The floppy disk was majorly used in the 1980s-1990s.
Maturity: Sold well in the market during the 1990s. Improving with time, it could hold 200MB of storage.
Saturation: Major competitors emerged at the beginning of the 21st century. The invention of USB
cables, external hard disks, CDs and more gave people options to store their data.
Decline: The floppy disk faced a major decline up to Hewlett-Packard stopping production for the disk in
2009. The storage capacity for other products in the market grew to be more efficient.
When to Use the Product Life Cycle
Establish competitive authority. If your product is new and recently introduced to the market, you can advertise
it as a new and improved alternative to an existing product. If the product is established, you can vouch for its
long history of use in your branding.

Decide on a pricing strategy. Depending on the life cycle stage your product is in, you’ll choose how to price
the product. A new product may be priced lower to entice more buyers, while a product in the growth stage
can be priced higher.

Create a marketing strategy. Your product life cycle stage will determine which strategy to pursue. Maturity
and audience knowledgeability play a big role in the type of content you publish on your site and social media
profiles.
Respond before the product begins its decline
There’s no worse feeling than watching your product slowly become obsolete or be displaced by
a competing product. By keeping the life cycle stages in mind, you can create a strategy that
keeps you ahead of the curve as you reach the saturation and decline stages.
The product life cycle benefits businesses because they can shift their wording and positioning
to best market the product at the stage it is in. If your product has recently been introduced and
you try to market it as a long-established solution, consumers will see right through it and trust
you less as a result.
Product life cycle strategies
The product life cycle contains six distinct stages: Development, introduction, growth,
maturity, saturation and decline. Each stage is associated with changes in the product's
marketing position, You can use various marketing strategies in each stage to try to
prolong the life cycle of your products.
 Product Development Stage:
•Focus is on product
•Emphasis is on cost reduction
•Trials are the main tools
•Publicity of the product
•Minimum expenses to be maintained during this period
•Production capacity must be looked after
•Quality must be checked
Product introduction strategies
•Marketing strategies used in the introduction stages include:
•rapid skimming - launching the product at a high price and high promotional level
•slow skimming - launching the product at a high price and low promotional level
•rapid penetration - launching the product at a low price with significant promotion
•slow penetration - launching the product at a low price and minimal promotion
Product introduction strategies
During the introduction stage, you should aim to
•establish a clear brand identity
•connect with the right partners to promote your product
•set up consumer tests, or provide samples or trials to key target markets
•price the product or service as high as you believe you can sell it, and to reflect the quality level
you are providing
Product growth strategies
•Marketing strategies used in the growth stage mainly aim to increase profits. Some of the common
strategies to try are:
•improving product quality
•adding new product features or support services to grow your market share
•entering new markets segments
•keeping pricing as high as is reasonable to keep demand and profits high
•increasing distribution channels to cope with growing demand
•shifting marketing messages from product awareness to product preference
•skimming product prices if your profits are too low
The growth stage is when you should see rapidly rising sales, profits and your market share. Your
strategies should seek to maximise these opportunities.
Product Maturity Strategies
When your sales peak, your product will enter the maturity stage. This often means that your
market will be saturated and you may find that you need to change your marketing tactics to
prolong the life cycle of your product. Common strategies that can help during this stage fall
under one of two categories:
market modification - this includes entering new market segments, redefining target markets,
winning over competitor's customers, converting non-users
product modification - for example, adjusting or improving your product's features, quality,
pricing and differentiating it from other products in the marking
Product Saturation Strategies
1. Adding new features in products 
2. Improving services 
3. Reinforce the brand 
4. Improving price
5. Offer some discounts
6. Identify the root cause
7. Research competitors
 Product decline strategies
During the end stages of your product, you will see declining sales and profits. 
This can be caused by changes in consumer preferences, technological advances and alternatives on the
market. At this stage, you will have to decide what strategies to take. If you want to save money, you can:
•reduce your promotional expenditure on the products
•reduce the number of distribution outlets that sell them
•implement price cuts to get the customers to buy the product
•find another use for the product
•maintain the product and wait for competitors to withdraw from the market first
•harvest the product or service before discontinuing it
Another option is for your business to discontinue the product from your offering. You may choose to:
•sell the brand to another business
•significantly reduce the price to get rid of all the inventory
Product Marketing strategies for New
Products
strategies for B2B product marketing to boost leads and conversions:
1. Research & defining your niches and key personas.
As a B2B product or service, you likely have a multi-faceted product that can be of value to a
number of customers. But don’t make them figure that out themselves. Know who your key
customers are and tailor your product marketing strategy to reach and engage them. The best
place to start with this is persona development. Developing personas means creating a complete
profile of your target customers including their demographics, where they spend time online,
how they purchase, what they are searching for, and their biggest questions and problems. With
SaaS B2B,
2. Offer something of value for your
target markets.
The buying process for B2B customers is typically a bit more rigorous than B2C customers. Often
times there are others who need to sign off, existing business processes to consider, and much
more research and time involved before actually purchasing.
You will want to present your brand as authoritative, as the solution to your customers’
problems, and stay top of mind to potential customers. In this case, content is still king. 62% of
B2B buyers say they can make a business decision based on online content alone. 
Your company should have a focused and useful blog for your target customers. This helps to
build brand awareness but also showcase expertise in your area. Customers genuinely
appreciate when a company shares invaluable knowledge. It’s important your content speaks
directly to your customer segments and shows your product/brand as their solution.
Offer something of value for free with an exchange of an email. Make it focused on a customer segment
and use targeted landing pages for each. This way, your potential lead gets something helpful from your
team that adds to your credibility while you get a way to contact that and begin the sales process in the
future.
Some examples of what you can create are:
Guides
E-Books
Trainings
Webinars
For example, if one of your target customer groups is marketing teams, you can offer a free guide on
influencer marketing in exchange for an email and include how your tool can help them with their process.
What is the Experience Curve?
Introduced by the Boston Consulting Group, Experience Curve is a concept that states that there
is a consistent relationship between the cumulative production quantity of a company and the
cost of production. The concept implies that the more experienced a company is in
manufacturing a specific product, the lower its cost of production.
When the total production capacity (from the first unit to the last) doubles, the value-added
costs decline by a constant percentage. The value-added costs include the cost of
manufacturing, marketing, distribution, and administration.
Bruce Henderson, the group’s founder, led a study into a leading manufacturer of
semiconductors to analyze the relationship between cost behavior and production quantity. 

The research found that when the manufacturer doubled the volume of production, there was a
25% decline in the overall cost of manufacturing.

The curve shows that as the company increases its overall cumulative production quantity, the
unit costs decline at a constant rate. The decline goes on without limit and is surprisingly
consistent, even from one industry to another. In some cases, the absence of experience in
some industries may be viewed as an outcome of mismanagement.
Implications of the Experience Curve
A company that benefits from the effects of an experience curve enjoys several advantages over
its competitors. As the business grows and lowers its unit production costs, it will gain a bigger
market share over its rivals. It means that it will control a bigger portion of the market,
increasing its profit potential.

Since the company enjoys cost advantages over competitors due to the reduced cost of
production, it can develop a penetrative pricing strategy by setting a low price to attract more
customers to purchase its products. Other strategies used to increase market share include
increasing investment in marketing, production capacity, hiring more sales personnel, etc.
Criticisms of the Experience Curve
1. Complacency
One of the criticisms of the experience curve is that it makes market leaders complacent with
their achievements. By getting the benefits of experience curve effects, the companies become
reluctant to continually innovate and lower the unit costs because of their experience.

2. Inability to measure its effects

Another criticism of the experience curve is the inability to measure its effects or inaccuracy
cev
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What is after sales service?
After sales service refers to all the things you do for the care and feeding of your valued
customers after they buy your product. This type of customer aftercare is important for any
business, but especially for small businesses where every client counts.
It's not enough to say "Thanks" or "Let's keep in touch" after a sale is complete. Long-term
success is built on real and lasting customer relationships.
Top-quality after sales service is good for you because it's good for your customer. When you
help them get the most out of your product or service, they're naturally happier with it. That
makes them more likely to order again, and to tell the world, too.
Importance of After-sales Service
•A good quality after-sales service is a mandatory part of the “customer satisfaction” motto.
•It defiantly improves the brand image of a business and increases brand loyalty.
•After-sales service boosts the relation of trust between the seller and the buyer. Of course, trust
wins long term clients.
•Good after-sales service can promote “word of mouth” marketing. A happy customer itself is a
walking-marketer of the company. Positive feedback on social media platforms will definitely
attract more customers.
•After-sales service, if handled effectively, can work as a secondary income generator. A company
good with after-sales service can convince its customers to buy other products from the same
company.
Types of After-Sale Services
Pre-installation Services
All the products in the market come with some sort of manual with them. These manuals contain basic
information for using the product for the first time. It is very easy to use some devices for the first
time. Some devices demand expert advice.
Providing pre-installation services for items such as a copier machine or an air conditioner will greatly
facilitate the customer. 
Initial Training
Most of the household items are easy to use. They demand no training or expertise. Proper training is
mandatory before the usage of industrial machinery.
The medical equipment provided to the doctors demands technical expertise. This is essential that the
user is having complete information about the usage of a machine. Most of the time, the companies
arranging these machines provide the initial training.
Warranty
Types of After-Sale Services
This is one of the most common types of after-sale service. This is provided by almost all multinational
companies for all their products. The duration and warranty of specific items may vary.
Some companies allow their customers to replace their products if found faulty. The companies
encourage the repair of the dysfunctional part. Companies also offer variable warranty policies to their
customers.
Online Support
This is the latest type of after-sale service. It is mostly provided by e-commerce companies. But this is
not a hard-core principle. Almost all multinational companies have dedicated a helpline for their
customers.
The company helplines can be accessed conveniently round the clock. The company representative
listens to the query of the customer and provides proper guidance for convenience.
Types of After-Sale Services
Replacement/Return
Companies provide free replacement or even return of their product. This service comes with proper
terms and conditions are associated with it. After the sale of the product, this service lasts only a few
months.
Replacement can be either of the entire product or one part only. The return of the product is facilitated
with a refund or another product from the same company. However, every company has a different
policy.
Functions and Advantages
Some companies provide additional advantages and features. The lifetime guarantee of the product is
mostly provided in this context. Companies provide free access to their cloud storage systems.
This service includes the lifetime warranty offered on any dysfunctional part of a machine. Some
companies provide free counseling and guidance to their customers.
Types of After-Sale Services
Upgrades
This post-sale service is often provided by electronic or software companies. The upgrades
provided by the software companies for a limited time is a classic example.
The over-the-time update provided to the iOS users encourages them to buy apple products.
These upgrades are necessary for the functioning of the device. The companies deploy this
strategy for a limited usage of their products.
The customer may use his device over time, but it might not function as effectively as ever.
 Marketing Plan Project Strategy
Step#1 – Do a Situation Analysis
As the initial step, tell your potential customers about your products and services and the company as a whole. Then,
tell them how you are different from the competition and what sets you apart?

As an effective marketer in today’s highly competitive scenario, you must be aware of your niche market and also of
your competitors and rivals. Since the target audience is very specialized and segmented nowadays you have to
explain to them how you intend to add value to their purchase. You should make the situation analysis as succinct as
possible, embracing upon your strengths, weaknesses, external opportunities and threats.
Step#2 – Describe your Intended
Audience
The best way to do this is to create a concise single-paragraph profile about your potential client
base.
Base your description on demographic factors such as age, sex, annual income, geographic
location and family composition and also on lifestyle factors as well. You need to ask yourself
questions like – Are my potential customers conservative or innovative? Traditional or modern?
Introverted or extroverted? and would they really buy what I have to offer and in what
quantities? 
In case you are a B2B marketer, you would then be asking yourself what is the type of business I
want to sell to? What is their job title? Their geographic location? and size of their business? No
matter, what category your intended audience falls into, all you need to take care of is to
describe them concisely so as to formulate your public relations and media campaign.
Step#3 – Make a Note of your
Marketing Goals
After doing the above steps, it is now time to make a list of all those marketing goals that you
wish to achieve. For example, do you expect a 25% increase in your sales turnover? In brief,
make notes of some achievable and measurable goals.
Step#4 – Devise your Communication
Strategy
This is the most important part of your effective marketing plan. In this process, you would
outline and ponder upon the different tactics that you would need to reach out to your
prospects and achieve the desired goals. An effective Marketing Plan has to address the needs
of all types of prospects, whether they are cold or warm prospects.

More precisely, tactics such as various advertising, direct marketing, public relations and the like
are most suited for cold prospects. However, for the warm prospects, tactics such as permission-
based email, customer appreciation events, and loyalty programs would be more beneficial. It
has been observed that interpersonal sales efforts combined with effective marketing usually
does the trick when it comes to closing sales.
Step#5 – Set your Budget
Every business vowing to formulate a working Marketing Plan must necessarily invest a required
sum of money for it.
Thus, every business needs to beforehand allocate a budget for its Marketing Plan.
The business has many ways of procuring the budget amount for its Marketing Plan – newly
acquired funding, self-financing or borrowing. The only thing to be kept in consideration is that
devising a Marketing Plan is almost inevitable for each business.
Experts advise all newly set up businesses to adopt a mixed budget strategy, keeping in view the
affordability of those tactics.
Step#6 – Catalog Accelerators
Recognize the assets that can be used to accelerate success and boost marketing campaigns. Accelerators can
be of different categories such as status, priority, and type. Some of the ways to classify these accelerators
include the following:
Content (ebooks)
Audience lists (customers, subscribers)
Digital Marketing properties (apps, websites)
Sponsorships
Partnerships
A business can manufacture their entire marketing campaign around these accelerators. For example, a
business house can use assets like an ebook to augment the emails as part of their main promotional campaign.
Step#7 – Create Milestones
List all the industry and company events that may be relevant to your marketing plan. These
may be conferences, industry report releases and company announcements. Also, keep a track
of important dates in your marketing plan project calendar. Ask your Marketing Team to
formulate milestone-specific promotions with regards to a particular product launch or to
enhance an ongoing program.
Step#11 – Devise Campaign Tracking
It would be beneficial for your business to establish a process to make the campaign names
consistent with analytics, marketing automation, project management and marketing planning
systems. This enables a better tracking and reporting of results.
Step#12 – Develop Content
Build a digital marketing team and make some content for your website. In your content,
remember to write creative and engaging content. Write short paragraphs and also vary your
sentence length. Usage of vernacular is more suitable and grammar doesn’t need to perfect.
Your tone should be a conversational one and must capture the interest of the audience at all
times.
Step#13 – Market your Content
Only writing correct content won’t do any good unless it is promoted for a cause. You can take
the help of several free online tools such as Google Analytics and Google Adwords to track the
traffic to your site and if the content is being able to generate leads or not.
Mapping service opportunities across the product life cycle can boost sales