B2B marketing

Exam practice results • Question One • You are a Brand Manager for an international product of your choice, which appears to be in decline. You plan to rejuvenate and reposition this product in the international market. • a. Explain how you will reposition this product and justify your choice of international segments to be targeted. (10 marks) • b. Explain and justify how you will adapt or standardise the marketing mix to achieve this new positioning. (10 marks) • c. Explain and justify ONE method for evaluating your marketing plan. (5 marks) • (Total 25 marks) Exam practice results • • • Introduction Explanation of the PLC and the decline stage – i.e. many competitors, declining sales, etc. A. Repositioning Strategy Identify the current positioning for the product in decline stage, and indicate a perception map for the old positioning. The new positioning strategy is identified and justified. The new target segments are identified and justified, and this should reflect the explanation of the repositioning strategy TOTAL 10 marks b. Adaptation/Standardisation of Marketing Mix The objectives are identified The adaptation versus standardisation debate should be aired All elements of the marketing mix should be considered in relation to the targeted segment and positioning strategy TOTAL 10 marks c. Evaluation of marketing plan (only one required) Sales analysis (by division, by sales reps, by sales price level, by size of order, by region, by product, by customer, by distribution channel, etc.) Marketing costs and profitability analysis (revenue less marketing costs) Conclusions: summarise the key and operational decisions for this product TOTAL 5 marks • • • • • • • • Exam practice results • Question Two • A company based in an Asian country, which produces and markets fashion clothing, wants to become a truly international company and enter the European market or another international market of your choice. • a. Explain the differences between international and export marketing, and analyse the potential barriers to entry which this company might encounter when trying to penetrate markets. (15 marks) • b. Explain why the company needs to adapt its marketing mix when trying to penetrate markets in other countries. (10 marks) • (Total 25 marks) Exam practice results • • • • • • • Introduction – consideration of the growth of international marketingces between international and export marketing International marketing is an overall strategy that initiates international trade from a strategic level. The process of international marketing then devises appropriate marketing strategies based on market research. Export marketing is a distribution option available to the organisation, i.e. as opposed to actually having bricks and mortar in a country, exporting is an alternative channel option. Potential barriers to entry for international penetration Trade barriers, transportation difficulties, lack of trained personnel, lack of export incentives, lack of co-ordinated assistance, unfavourable conditions overseas, slow payment by buyers, lack of competitive products, payment defaults, language barriers, difficult and demanding bureaucracy These areas should be contextualised and supported by examples. Knowledge 5 marks Application 10 marks TOTAL 15 MARKS • • • • • • • • • • • • • Adaptation of the marketing mix and implications for brand To meet local or change needs of the different countries To fit in with the culture of the country, e.g. promotions and colours Language differences Media availability and (in certain countries) control over communications Legislation for product packaging, etc. Price may need to be changed because of increased costs of international distribution Different channels and thus experience may be required in certain countries Impact on the brand The name or message may need changing, so inconsistent global messages The potential use of a range of communications agencies in different countries may be difficult to control and again, have an impact on the core values of brand Conclusion – benefits of globalisation, etc. Knowledge – 5 marks Application – 5 marks TOTAL 10 MARKS Topics for today • Marketing in different spheres – B2b marketing – Marketing of services – Marketing for charities – Marketing for SMEs • E-marketing B2B marketing • The main implications of industrial (organizational) markets: –Geographical diversity –Size of the decision-making unit (Group decision making) –Size of purchase –Frequency of purchase –Negotiation of contracts –Lead time between order and delivery The decision making process Order Buy classes New task Problem recognition General need decision Yes Yes Modified rebuy May be May be Yes May be May be May be May be yes Straight rebuy No No Yes No No No No Yes Product specification Yes Suppliers search Proposal solicitation Supplier selection Order-routine specification Performance review Yes Yes Yes Yes Yes The buying center • • User – person, who is actively using product Influencer – users, suppliers, research and development staff, accountants, buyers, sales representatives Decider – management team, a tendering committee, an individual buyer, shareholders Buyer – the person who will handle the internal supplier sourcing, information seeking, and who will handle negotiations with the suppliers The gatekeeper – member of secretarial or administrative staff , handling the flow of information inbound and outbound through the organization • • • Organisational behaviour • • • • • Organisation size Nature of products purchased Organisational motivations Closer customer relationships Power of buyers Segmenting organisational markets • • • • • Industry type Company size Products of service type Buyers types (centralized/decentralized) Geographic location Relationship marketing in organizational markets • Two approaches to managing the supplier: – Adversarial – – – – Multiple suppliers Regular price quotes Little cooperation Quality and delivery thresholds – Collaborative – – – – – – Few suppliers Long-term and long-standing relationships Partnerships Frequent planned communications Integrated approaches to operations Quality and timescales designed Marketing mix for the organizational markets Product Features, design, volume, quality, customer specifications Integration and coordination Price Negotiated Tendering Highly competitive Promotion Personal selling, PR, trade press, direct marketing, exhibitions, sales literature Place Logistics, extensive channels, heavy duty products Exam practice • Question Two • You have been appointed as a Marketing Consultant to a businessto-business company of your choice, which is looking to gain funding for expansion, and therefore needs to write a marketing plan as part of its business plan. • a. Explain the components of a marketing plan which the company will need to write, discussing the synergistic planning process. • (20 marks) • b. Explain the role of the marketing plan in relation to the company’s approach to business. • (5 marks) • (Total 25 marks) Services marketing • An intangible product involving a deed, a performance or an effort that cannot be physically possessed • Characteristics of services: – – – – Intangible Inseparable from provider Instorable Inconsistent in quality Services marketing • Classification of services: 1.Consumer services (incl. non-for-profit: education, health; profit-making sectors financial services, personal and professional services, leisure, entertainment, tourism) 2.Business services: repairs and maintenance, consultancy, leasing/contract hire, transportation, recruitment, advertising, marketing research, financial services The service mix – physical evidence, people and process Physical evidence Place where the service is delivered Brand image Wearing uniforms Interior design and décor Physical contribution to the service experience People Staff training Staff empowerment Internal marketing Decision making capacity of staff Staff commitment Sufficient people resources Process Customer care Systems and processes 24/7 access Call centre Security system Service standard Quality assurance Billing Service quality • • • • What the customer expect Service specifications Employee performance Managing customer service expectations – making sure quality is achieved Service quality (SERVQUAL) Understand customer expectations Service specifications Employee (people) Managing service expectations Service quality Reliability Responsiveness Assurance Empathy Tangible/intangible dimensions SERVQUAL measures the gap between customer and management perceptions of the quality issue • Gap 1 – consumer expectations • Gap 2 – managers’ perceptions of consumer expectations – service quality specifications actually set • Gap 3 – service quality specifications – actual service delivery • Gap 4 – actual service delivery – external communications about the service • Gap 5 – resources Quality culture • • • • • • • Innovations Status Leadership Rewards Values Developments of a learning organization Empowerment to achieve challenging goals 12 golden rules to aid quality implementation and improvement • • • • • • • • • • • Set personal and corporate quality goals Establish personal accountability Check how satisfied customers are with your efforts Regard the next link as a valued customer Avoid error Perform tasks more effectively Utilize resources well Be committed Learn to finish what you have started Control stress Be ethical Monitoring and evaluating services • The difference in perceptions between employees and customers • The inseparability of production and consumption • The individuality of employees’ performance and customers’ perceptions Monitoring and evaluation processes • • • • • • • • • • Marketing research Data collection Observing respondents Interviewing respondents Customer satisfaction surveys Mystery consumer experience Evaluating dissatisfaction Monitoring image Performance appraisals Employee group discussions Exam practice • Question Three • You work for a service organisation of your choice and have noticed that there has been a problem with the service encounter as a result of staffing problems. This has led to an increase in customer complaints. • a. Explain the importance of customer relationships to this organisation and how they can be developed and supported by the marketing mix. • (10 marks) • b. Demonstrate how a plan could be developed for the staff (people) element of the service encounter to overcome these problems. • (15 marks) • (Total 25 marks) Charities – not-for-profit marketing • Key role – generate income in order to achieve the aims and objectives of the organisation • Charities entering retailing (Oxfam): sell donated goods, operated by volunteers • Organise high profile events Marketing planning for charities • Setting objectives • Environmental auditing (SLEPT) – – – – Research into the needs and the scale of needs Other charities Taxation benefits Social responsiveness to giving • Marketing segmentation and targeting for charities (donors, volunteers, clients) • Marketing planning and control – Generate high level of income from donations – Allocate funds sufficiently and effectively – Accountability to donors and society Not-for-profit organization • An organization whose prime goal is noneconomic. However, in pursuit of that goal it may undertake profit-making activities • Alternative non-profit-business marketing – activities conducted by individuals and organizations to achieve some goal other that ordinary business goals of profit, market share or return on investments Not-for-profit vs. profit marketing • Profit • Segmenting and choosing most profitable segment • Cover costs and generate profit, funds for investment and growth • Not-for-profit • Target those in need • Allocate funds and cover management costs • Account for the use of funds Marketing mix for charities • Product (benefits and feeling of well-being for the donors) • Place – charity shops • Promotion – sponsorship, publicity and PR • Price – the amount of money generated for the organization, and the cost of program implementation • People – unpaid support from volunteers • Physical evidence – physical evidence of how money is used • Process – income collection and distribution Exam practice • You are developing your 12-month marketing plan for a voluntary, not-forprofit organisation of your choice (such as a charity or community club). • a. Develop an outline marketing plan and select an appropriate marketing mix for this organisation. (20 marks) Marketing challenges for SMEs • • • • • • • Lack of resources Lack of money Poor cash flow Lack of formal budgeting Lack of experience Short-term planning Entrepreneurial and often unmanageable Marketing planning benefits for SMEs • Identify things company was not aware of • Prevent making costly mistakes • Set clear objectives and compare results achieved to the objectives • SWOT analysis • Marketing plan as part of business plan Virtual marketing • Market penetration – global access • Market development – Internet is used to sell existing products into new markets • Product development – support new products development • Diversification – new products into new markets Virtual marketing trends • • • • • Consumer time is scarce Consumers are looking to take control Convergence of technologies Shift from physical to digital technologies Shift from assets to knowledge Supporting marketing activities • Sales – Online purchase and brand awareness • Marketing communications – Websites • Customer service – Supplement call centres • PR – Updating information • Marketing research – Databases, data mining Internet marketing Advantages • • • • Cost reduction Competitive advantage Capability Communication improvements • Control • Customer service improvements Disadvantages • The Internet replace people • The possible demise of high street shops • The loss of personal touch • Security and privacy issues • Accessibility • Technological defects • Information overload Exam practice • The evolution of Internet marketing and digital technologies has moved rapidly. • a. Explain the business benefits of virtual marketing. (10 marks) • b. Explain how the marketing mix in organisations operating in a virtual marketplace can be different from marketing activities in traditional organisations. (10 marks) • c. Analyse the possible disadvantages of Internet marketing. (5 marks) • (Total 25 marks)