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Problem

Honda of America relies on 400 suppliers in North America to provide more than 60 percent of the parts and materials for the Accord. What strategies could a business marketer follow in becoming a new supplier to Honda? What criteria would Honda consider in evaluating suppliers?

Step-by-step solution

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Step 1/3

Business Marketing:

It involves marketing of products and services across the globe in huge quantities to government bodies, institutions and businesses. The corporate procurement involves major share in terms of the marketing. It witnesses a single buyer can account for enormous level of purchasing activity.

Step 2/3

The strategies of becoming new suppliers to H through business markets are as follows:

• The requirements and essentials of the customer company must be spotted and provided with adequate services

• The cost provided by the competitors must be competitive from the prevailing market rates

• The social benefits are to be focused, which paves way in creating commercial attention in the business market

• By adapting sophisticated technologies that minimizes the customer company efforts

• By mobilizing transportation from nearest locations that reduces the logistics cost

Step 3/3

“H” Company would consider following criteria in evaluating its suppliers.

• The level of customer satisfaction desired to attain through service

• The reliability and the quality of the products since, they reflects the good will of H in the market

• The cost-competitiveness compared to the market trends

• The evaluation of the credit period offered (if applicable)

• The capability to meet the unpredictable demand of the product

• The geographic constraints in view of the expenses to be spent on logistics