B2B

Home Depot is quite busy each morning because local contractors, home remodelers, and other small-business customers are buying the products they require for the days projects. Such small-business customers represent a huge market opportunity for Home Depot or Lowe’s. Describe particular strategies these retailers could follow to target and serve these customers.

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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.

The Strategies of the retailers to target and serve the customers are as follows:

• Modernization in the supply chain management

• By Creating distinctive brand images and strategic priorities

• To utilize social networking sites as a platform to enhance the brand familiarity

• Accurate and excellent marketing progress must be designed, which could reflect the requirements and characteristics of various businesses.

• The geographical location of the retailer must be convenient and at reasonable areas so as to gather abundant business.

• To develop the E-marketing initiatives that boosts the sale of product and service.

• To provide free installation or installation at low prices with best performances.

• Providing special benefits as free door delivery schemes on bulk purchases, which constitutes large share in purchasing which in turn leads to retailer profits.

model is calculated with the help of tracking signal.

0102

Problem

DuPont, one of the largest industrial producers of chemicals and synthetic fibers, spends millions of dollars annually on advertising its products to final consumers. For example, DuPont invested more than $1 million in a TV advertising blitz that emphasized the comfort of jeans made of DuPont’s stretch polyester–cotton blend. DuPont does not produce jeans or market them to final consumers, so why were large expenditures made on consumer advertising?

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D.P. is one of the largest producers of synthetic fibers. D.P spends millions of dollars annually on advertising the products which are made up of its cotton blend, though it does not manufacture the final product.

Step 2/2

• The raw materials plays a major role in any of the finished products, especially in clothing industry as it reflects the quality of the product

• The brand DP is extensively popular among the consumer groups for its quality and reliability

• Though the advertisement majorly focus on the final product, it indirectly promotes and is a value add to the raw material

• The goodwill of the product reflects the efficiency of the blended ingredient and components

• The genuinity of the material enhances the brand name of the clothing industry

Hence, the DP’s expenditure on the advertisement is a worthy investment that results in productive sales.

0103

Problem

What are the chief differences between consumer-goods marketing and business marketing? Use the following matrix as a guide in organizing your response:

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Business Marketing:

Consumer–goods marketing:

The giant business retailers selling product and services for personal consumption or to the end users are termed as ‘Consumer-goods marketing’.

The major differences between business marketing and consumer-goods marketing are organized in the following matrix table:

Details	Consumer- goods marketing	Business marketing

Customers	It involves consumption of personal or end users	It involves corporate procurement or single buyer bulk purchasing quantity
buying behavior	The purchasing depends on the requirements at that point of the user	It involves purchasing in bulk quantities with future forecast and major consumption
Buyer-seller relationship	Short – term relationship	Long and highly bonded relationship
Product	These are manufactured to meet the requirements of the consumers	The demand for the product is comparatively high
Price	It is a maximum retail price	It involves high discounted prices
Promotion	Highly required to meet the target consumers	The demand sustains with the organizational or institutional requirements
Channels	It involves various channels of marketing	It involves direct dealings that avoids middle-men and reflects profitable returns

0104

Problem

Explain how a company such as GE might be classified by some business marketers as a user customer but by others as an OEM customer.

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The User customers are the type of businesses that directly deals and make transactions with the customers. On the other hand, OEM (Original Equipment Manufacturer) customer supplies equipment to various companies to resell or incorporate into another product using the reseller’s brand name.

Step 2/2

GE is a US based company that deals with of electric appliances. It is apt to term GE as both ‘User customer’ and ‘OEM’ as on the following reasons:

• GE manufactures various appliances for its esteemed individual customers worldwide and possess a brand value, which depicts user customer

• It is also engaged in providing equipment to wide range of companies either to resell or to incorporate into another product to manufacture, which depicts OEM customer

For example:

GE produces and sells power-stabilizers for the equipment in the hospitals and the same is utilized for in-house purposes in its manufacturing concerns.

Thus, GE can be classified as ‘User customer’ and ‘OEM’

0105

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?

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Step 1/3

Business Marketing:

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

0106

Problem

Describe the key elements of a customer value proposition. Next, explain how a compelling value proposition might include points of parity as well as points of difference.

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Customer value proposition:

It has become extensively popular in the business markets. It captures the particular set of benefits that a supplier offers to advance the performance of the customer organizations.

The key elements of a customer value proposition are as follows:

• Price

• Time frame

• Intended customer

• Next best alternative

• Value experiences

• Value quantification

Step 2/2

Points of parity, the value elements with neutral performance characteristics as the next best alternative. Points of difference, the value elements that offers suppliers either superior or inferior to the next best alternative.

The compelling value proposition might include ‘Points of parity’ and ‘Points of difference’ as on the following reasons:

• The Emphasis on the points of parity involves increased manufacturing and service efficiency as customers find it more appealing

• The Key buying and influential characteristics may not be considered in terms of the improvement, if the prices are raised

• The point of difference reflects the growth of marketing and profits of the company

• It involves as the superior or inferior results are a part of the value proposition

0107

Problem

Consumer products are frequently classified as convenience, shopping, or specialty goods. This classification system is based on how consumers shop for particular products. Would this classification scheme apply equally well in the business marketing environment?

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Business Marketing:

Step 2/3

Convenience products:

The companies engaged in contracts and are recommended for the modifications of the products according to the needs and usage of products.

Shopping goods:

High demanded products are placed in common shopping carts, which helps purchasing personnel to define and grab relevant goods.

Specific goods:

It also helps in creating awareness about specific products with its established brands and provides a channel for choosing and selection.

Step 3/3

The classification scheme would be equally applied in the business marketing environment as on the following reasons:

• As the marketing of products involves in huge quantities to the major concerns

• These products reflects the functioning of the organization

• The goods would be more specific as it involves huge quantity demand

• These involve discounts and offers in the business marketing

• It is also convenient as single buyer involves in huge transactions

The business marketing environment possess convenience, shopping and specialty goods in its business transactions like consumer products. The historical business records and analysis also proves this statement widely. It is explained below in brief:

Cost reduction:

Business to business commerce is more loyal comparing to business to customers.

Through contacts and agreements, It is engaged in large exchanges of goods and services and provide cost reduction and convenience at one gathering.

0108

Problem

Evaluate this statement: “The ways that leading companies manage time in the supply chain—in new-product development, in production, in sales and distribution—are the most powerful new sources of competitive advantage.”

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Step 1/2

The companies must create and adopt the most powerful new sources of competitive advantages in order to survive, grow and prosper in the present day modern business era, The companies manage time in the supply chain to prosper in the long run management of the organization.

Step 2/2

The following aspects can be developed as the most powerful sources of competitive advantage as on the following reasons:

New-product development:

• The change is the essence for the sustainable growth of any organization

• It gives competitive advantage in the ever changing market trends

• It helps in meeting the desires of the consumer needs

Production:

• The introduction of the sophisticated technology results in high productivity

• It improves the quality efficiency and in turn develops goodwill among the consumer market

• The production efficiency techniques yields productivity with low investment

Sales and distribution:

• The innovative sales and distribution results in high profits

• It also develops a bondage with the customer base with innovative promotions

• The distribution channels paves new techniques and productive utilization of the resources

0109

Problem

Evaluate this statement: “The demand for major equipment (a foundation good) is likely to be less responsive to shifts in price than that for materials, supplies, and components.” Do you agree or disagree? Support your position.

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Industrial goods:

The industrial goods that are part of the finished product are termed as ‘existing goods’ that includes raw materials, manufactured materials and parts. The initial capital items that include installation and accessory equipment are termed as ‘foundation goods’. The suppliers and services which involve in organizational operations rather than becoming a part of finished product are termed as ‘facilitating goods’.

Step 2/2

I disagree with the statement that “foundation goods are likely to be less responsive than that for entering or facilitating goods” as on the following reasons:

• The company in the contemporary business era could not survive the competition without installation of proper manufacturing process and fixed equipment

• High end equipment’s and sophisticated computer technology could draft the programs for business operations

• Land and building assists in expanding business operations enormously and maximizes profits

• Accessory equipment includes personal computers, portable drills and other primary machines, which are necessary for daily workers at plant as well as in the office

• These goods are only subject to commencement of the operational process

0110

Problem

Many firms are shifting selected service functions to outside suppliers. For example, Harley-Davidson recently outsourced its transportation department function to UPS Supply Chain Solutions. What factors would prompt such a decision, and what criteria would a customer like Harley-Davidson emphasize in choosing a supplier?

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Outsourcing:

The outsourcing can be simply defined as ‘a contract with another company or an individual for the completion of the specific defined task. It is usually observed in any of the business activity of the organization. Though the concept of outsourcing exists from long, the recent market trends has raised its importance because of its cost effectiveness and quality of the work. An organization can outsource the work either as a whole or partial depending on the business requirements.

Step 2/3

The Factors that would prompt a decision for outsourcing are as follows:

• The world class technology can be accessed or utilized through outsourcing that gives dynamic results for the organization

• Outsourcing to the external agencies gives organization a risk free and effective work accomplishment

• The organization outsource to a company or an individual, where there is a competitive pricing in terms of operational and labor cost

• To focus on their core business processes

• It saves the cost on re-engineering by outsourcing to a concern with the required technology

Step 3/3

The criteria that a customer like HD emphasizes in choosing a supplier is as follows:

• 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 HD 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

0201

Problem

A small manufacturer developed a new high-speed packaging system that could be appealing to food-processing firms such as Pillsbury and General Mills. This new packaging system is far more efficient but must be priced 15 percent higher than competitors’ products. Because purchasing managers evaluate the “total cost of ownership” of major purchases, what selling points should the business marketer emphasize to demonstrate the superiority of this new product?

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When purchasing a product or service, purchasing manager is bound to consider and analyze carefully the invisible and additional costs of the actual purchase price. This possessing of products and services with their complete overall costs by an organization is termed as “Total Cost of Ownership” (TCO).

Step 2/2

Sometimes, business marketer looks to market a product or service to an organization which is expensive comparing to rival products in the market. It definitely needs a systematic and reasonable approach. The following are the selling points a business marketer should emphasize to demonstrate the superiority of a new and expensive product.

• Low acquisition costs:

The business marketers cover the transportation costs and eliminate labor of evaluating suppliers. Minimized delivery charges helps in smooth way of purchasing.

• No possession costs:

The product should be delivered with paid insured charges by the manufacturing companies along with less internal handling costs.

• Minimized usage costs:

Installation works are charged with reasonable rates. Special trainees are provided to educate employees in the usage and field repair.

0202

Problem

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Supply chain management explains how efficiently a firm source, procure, produce, and logistics the raw materials to the end customers. It showcases the list of activities that a firm may go through to deliver the products to the customers.

Step 2/3

In this context, to qualify as an effective supplier for H, the following strategies need to be considered. First of all, it is very important to establish a healthy relationship with company H and its purchase team. The purchasing team should find the new supplier trustworthy. Secondly, the new supplier should keep himself capable of delivering materials uninterruptedly. A continuous flow of materials, supplies, and services is required. Thirdly, the new supplier should have a good inventory management system, and also the materials should have good quality. The cost should be minimum without any compromise on quality. Further, the new supplier should be active in the new product development process. These are the things that the new supplier should take care of.

Step 3/3

H can use the following criteria to measure the viability and reliability of the new supplier. Company H should understand the total cost of the products that the new supplier provides. The cost should be correlated and compared together with the factors like transportation, material managing, quality, reliability, and value creation. The supplier should provide uninterrupted materials for the firm and the materials that are sold should be of premium quality. They should be an easy return and refund policy if the material is not satisfactory for company H. Company H will also measure if the suppliers are capable of providing additional materials on demand. Then, the traceability of the materials is also considered to ensure ethical purchasing. The overall cost should be low, and the value addition should be high once getting into a contract with suppliers. These are the criteria that company H may consider while selecting a supplier.

0203

Problem

Describe the total-cost-of-ownership orientation that purchasing managers use and illustrate how you could apply it to your next automobile purchase decision.

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The procurement managers analyze and use total-cost-of-ownership orientation towards the ultimate benefits of the organization. It is explained below in brief:

Total-cost-of-ownership orientation and its usage by procurement managers:

• Procurement managers look for ways to eliminate transportation and delivery charges.

• Proceeds to minimize internal charges.

• Negotiates for free installation works and formal charges.

• Make arrangements to import experts for educating employees.

Step 2/2

One could apply total cost of orientation to my next automobile purchase decision in the following ways:

• Bargain for the reduction or discount on the product

• To receive guarantee for a certain period

• Free repair and handling charges for basic works

• Better rate for exchange policy.

0204

Problem

Segmentation is a tool that marketers use to identify target markets. Increasingly, purchasing managers are using the segmentation approach to determine which suppliers are most critical to the goals of the organization. Explain.

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The process of selecting and grouping specific products and services to purchase or market by an organization is termed as “segmentation”. Segmentation is not as simple as it sounds for it is an integration of various strategies and policies.

In the contemporary business era, business marketers are widely using segmentation to identify target markets. Apart from this, segmentation approach is widely being used by procurement managers to determine the relevant and substantial suppliers to reach the goals of the organization. These goals are explained below in brief:

Step 2/2

Reasons to approach segmentation process by procurement managers:

• Segmentation aids in procuring unique portfolio of products and services.

• It provides special discounts and price reduction for bulk orders.

• Choosing specific products and services helps in accumulating pioneer work efficiency.

• Components that stimulate brand identity and revenue are given priority in segmentation markets.

• Segmentation business helps in evaluating best market suppliers that suits better for an organization.

0205

Problem

Compare and contrast the two general procurement strategies employed by the federal government: (1) formal advertising and (2) negotiated contract.

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Step 1/2

For the government public businesses affairs, they need to make some purchase from suppliers or bidders. Once the procurement needs are finalized and documented, the federal government employs two different major procurement strategies. They are formal advertising and negotiated contract buying.

Step 2/2

There are some similarities and differences between the two procurement strategies; formal advertising and negotiated contract buying. They are as below.

0206

Problem

Institutional buyers fall somewhere between commercial enterprises and government buyers in terms of their characteristics, orientation, and purchasing process. Explain.

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Step 1/2

Other than government buyers and commercial enterprises, there is one category of buyers called institutional buyers. They lie in between government buyers and commercial enterprise buyers based on several distinct characteristics.

Step 2/2

In the case of institutional buyers, they often make a budget as soon as they find procurement needs. They tend to spend only within the budget limit. They face strong competition and budgetary pressures that keeps them, specialist, to enhance efficiency and effectiveness. Institutional buyers offer unique services that stimulate multiple buying requirements. There is found a conflict between the professional staff and the purchasing department with the same buying. Another important factor is that most of the institutional buyers prefer group buying. This is to qualify discounts on purchases. This allows the institutional buyer to enjoy purchases at low prices with high-quality materials. The suppliers who sell the products to purchasing groups at institutions do deliver the products to individuals in the group also. Some institutions do make a purchase like larger commercial enterprise does. However, some are different and make purchases as the government does. The policies to select local vendors, the delegation of purchasing responsibilities are different from that of government buyers and commercial enterprises; but lie in between them. Institutional buyers make purchases or procurement by mixing these practices and functions of government buyers and commercial enterprises. This is why it is said institutional buyers fall somewhere between government buyers and commercial enterprises.

0207

Problem

Explain how the decision-making process that a university might employ in selecting a new computer would differ from that of a commercial enterprise. Who would be the key participants in the process in each setting?

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Step 1/3

Procurement is one of the processes in supply chain management where the company or firm buys materials that are required for their production or service process. The procurement process is different based on organizational settings like institutions, commercial enterprises, and the government.

Step 2/3

The decision process of selecting computers for universities and for commercial enterprises. The reason is that universities are institutional buyers and have unique characteristics and criteria while making the purchase. In the case of universities, they often make a budget as soon as they find procurement needs. They tend to spend only within the budget limit. They will prefer group buying by understanding how many colleges under the universities need computers. This is to qualify discounts on purchases. This allows the institutional buyer to enjoy purchases at low prices with high-quality materials. The suppliers who sell the products to purchasing groups at institutions do deliver the products to individuals (colleges directly) in the group also. They tend to reduce the administrative cost by standardizing the purchase and to gain greater competition from suppliers. However, in the case of commercial enterprises, the total cost of the products that the new supplier provides is given more importance. The cost should be correlated and compared together with the factors like transportation, material managing, quality, reliability, and value creation. The supplier who provides uninterrupted materials for the firm and the materials that are sold should be of premium quality. The purchase may or may not be a group purchase. They should be an easy return and refund policy if the material is not satisfactory and they will also measure if the suppliers are capable of providing additional materials on demand. The overall cost should be low and the value addition while making purchases. This is how their purchase decision differs.

Step 3/3

The key players in both cases are as below.

• University: The need for the purchase of computers will be identified by the purchasing analyst in each college. Then, this will be passed to the purchase manager. He then selects the best supplier and the buyer buys the computer.

• Commercial enterprise: Here, the purchase analysis identifies the purchase requirement. This information is transferred to the purchasing director. The purchasing director after analyzing transfers to the purchase manager. The purchase manager assigns the procurement details of the purchase officer. He then passes the information to a buyer who selects the best supplier and makes the purchase.

0208

Problem

Fearing red tape and mounds of paperwork, Tom Bronson, president of B&E Electric, has always avoided the government market. A recent discussion with a colleague, however, has rekindled Tom’s interest in this sector. What steps should B&E Electric take to learn more about this market?

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There are three markets in the business world. They are the business market, consumer market, and the third one is unique and different called the government market. The government market is mounted with paperwork and with red tape.

Step 2/2

Before entering the government market, the following information has to be understood. Here, B electrics and Mr. T should first understand the different marketing strategies that the government market focuses on. The first and foremost thing that should be considered is the rules and regulations. The government market is full of complex rules and standards that one must meet. Secondly, it is necessary for C electrics to develop agencies that can get information from the government offices. This is the only way in which the procurement plans can be easily made available. Thirdly, the government market gives more focus on innovative products. Thus, B electrics should invest more in the research and development team to respond to the government's needs. Fourth is that there should be a communication strategy for B electrics that can help to develop technologies that meet changing government needs. Further, it is also important to have a negotiation strategy for B electrics. This is to secure favorable terms with the government in relation to contract completion, cost, and payment cycles.

0209

Problem

General Electric (GE) has embraced e-purchasing and has saved more than $500 million per year by conducting online reverse auctions in buying a range of goods, including office, computer, and maintenance supplies. What new challenges and opportunities does this auctioning process present for business marketers who serve GE?

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Step 1/2

E-procurement is a digital world innovation in the procurement process. The companies and government can now procure products and materials through online platforms. It saves time and enhances the number of alternative bids that can be evaluated. Thus, the companies can make a good auction out of it.

Step 2/2

Like a coin has two sides, this e-procurement also have caused some challenges and opportunities for the business marketers those serves G. The challenges and opportunities are listed below.

0210

Problem

One purchasing executive observed, “Online auctioning is an appropriate way to buy some categories of products and services but it’s entirely inappropriate for others.” Agree or disagree? Provide support for your position.

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Step 1/2

E-procurement is a digital world innovation in the procurement process. It saves time and enhances the number of alternative bids that can be evaluated. In addition, online procurement initiates reverse auctions.

Step 2/2

Some critics comment that online auction for procurement is only suited for some products, not for all. The main reason behind this is because reverse auction. It is mostly suitable for electronics, automobile, and pharmaceutical industries. This way lower costs on procurement can be made possible. However, the same reverse auction harms the supplier relationship as savings of suppliers are overstated. Thus, the reverse auction is best for commodity-type products alone. The products and materials like diesel, duel, metal parts, and raw materials. The products that are specialized capabilities are not suitable to be traded over online platforms. Only a few suppliers can meet this specific quality and performance. Here, online procurement is cost-consuming without a fair benefit tradeoff. Thus, the statement, online auctioning is an appropriate way to buy only some category of products and services is agreeable.

0301

Problem

Ford revamped the way it purchases operating resources such as office, computer, and maintenance supplies. Instead of having employees fill out purchase orders that must be cleared by the boss days later, employees simply log on to an Internet system. They browse through the electronics catalogs of manufacturers, order from a preapproved group of suppliers, and get purchase approval in minutes. What new challenges and opportunities does the e-procurement system present for business marketers who serve Ford?

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Step 1/2

E-procurement is a digital world innovation in the procurement process. It saves time and enhances the number of alternative bids that can be evaluated.

Step 2/2

In this context, company F has implemented a new system where employees can quote purchases directly with suppliers preapproved in the online platform. This brought some challenges and opportunities for the business marketers who serve the company F. They are as below.

0302

Problem

Jim Jackson, an industrial salesperson for Pittsburgh Machine Tool, will call on two accounts this afternoon. The first will be a buying organization Jim has been servicing for the past three years. The second call, however, poses more of a challenge. This buying organization has been dealing with a prime competitor of Pittsburgh Machine Tool for five years. Jim, who has good rapport with the purchasing and engineering departments, feels that the time may be right to penetrate this account. Recently, Jim learned that the purchasing manager was extremely unhappy with the existing supplier’s poor delivery service. Define the buying situations confronting Jim and outline the appropriate strategy he should follow in each case.

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Step 1/2

Organizational buying concept is not an individual or a mere act but a process. Usually, buying behavior involves from requirements and critical decisions.

The pioneer organizations with better purchasing records specify attention not on products but on buying situations. There are three types of buying situations that are defined. They are;

1. New task

2. Modified rebuy

3. Straight rebuy

“Modified rebuy” is a typical buying situation in which decision makers in an organization desires to consider alternative solutions apart from existing ones to extract additional benefits. In this situation, JJ an industrial sales person for PM Tool is in a modified buying situation.

Step 2/2

The above described modified rebuy has following buying situations. These situations and the appropriate strategies JJ should follow in each case are given below in detail:

I. Simple modified rebuy involves fewer alternatives with mere information.

Buying departments must stress on choosing and execution of business operations with the suppliers even if the cost is a bit high. It enhances improvement in company’s selling operations.

II. Complex modified rebuy relates to a wide set of alternatives.

Purchase managers must ensure that the company proceeds for the purchase for lowest possible prices as there are ample of alternatives with abundant information and sophisticated technology in hand.

0303

Problem

Karen Weber, the purchasing agent for Smith Manufacturing, views the purchase of widgets as a routine buying decision. What factors might lead her to alter this position? More important, what factors determine whether Karen considers a particular supplier, such as Albany Widget?

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Step 1/3

Positioning of purchase is not an easy task but it requires effort and strategic movement. There are certain factors that affect the decision of positioning the purchase in a different category of needs.

Step 2/3

The salient factors that will stimulate to change the position of purchase in the given context are explained as follows. For KW, to change her position of purchase, the centralized buyer has to be changed to a decentralized system. Here, the purchase is made with short-term cost efficiency and profit consideration. This will give her a different position that the purchase of widgets may not be a routine purchase. Secondly, environmental forces may tend her to change her decision. The environment changes frequently and this stimulates the need for new technologies and widgets. It includes technological innovation and economic influences over business industries. These are the main factors that may lead her to change this position.

Step 3/3

In this context, the following factors may affect the decision of selecting the best-suited supplier like A widget. The major consideration is given to the total cost of the products that the new supplier. The cost should be correlated and compared together with the factors like material managing, quality, and reliability. The supplier who provides uninterrupted materials for the firm should be of premium quality. There should be an easy return and refund policy if the material is not satisfactory. The suppliers should be capable of providing additional materials on demand. The overall cost should be low and the quality should be high. These are the factors that determine K’s decision while selecting a supplier.

0304

Problem

Harley-Davidson, the U.S. motorcycle producer, recently purchased some sophisticated manufacturing equipment to enhance its position in a very competitive market. First, what environmental forces might have been important in spawning this capital investment? Second, which functional units were likely to have been represented in the buying center?

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Step 1/3

Companies often proceed to spend heavily, even though it is usually an increased budget on sophisticated manufacturing equipment regularly to ensure them competent in the business market.

Company HD recently purchased sophisticated equipment for business purpose. Particular environmental forces might have been important in spawning this capital investment. They can be categorized into two:

I. Economic influences

II. Technological influences

Step 2/3

They are explained as following:

I. Economic influences:

Industrial demands are prone to elastic demands of the consumer market.

• Demand for industrial products fluctuates from time-to-time.

• Companies must ensure to check and modify business activities concerning sensitive economic conditions.

• To survive in business competitions against eastern countries.

II. Technological influences:

Technological change in a firm triggers decision-making unit to increased capital investments.

• Sophisticated technology is known for its accuracy and speed

• Production of high quality goods

• Assures of surplus profits

• Guarantees for the survival in extreme competitions

Step 3/3

Company HD has represented some specific functional units in the buying centers and they are detailed below in brief.

• Environmental functional units:

Buying mechanism must consider the behavior of demand and economic prospects of the markets along with interest rates.

• Organizational functional units:

The objectives and policies of the firm must be taken into consideration and ensure that the buying transaction able to satisfy interests of the company.

• Other functional units:

Political and legal conditions must be satisfied for the smooth flow of the business. Firms possess enough knowledge to compete in typical market segments and technological changes.

0306

Problem

The Kraus Toy Company recently decided to develop a new electronic game. Can an electrical parts supplier predict the likely composition of the buying center at Kraus Toy? What steps could an industrial salesperson take to influence the composition of the buying center?

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Step 1/3

The concept of buying center involves in organizational buying behavior and emphasizes the powers and responsibilities of purchase groups. Individuals who take part in purchasing and its related activities along with sharing goals accumulation and risk bearing are collectively called as “buying center”. They hold special authorities and responsibilities.

Yes, definitely an electrical parts supplier could predict the likely composition of the buying center at KT Company.

Step 2/3

The above statement is explained below with following reasons:

• Buying composition could be analyzed by observing the market demand for raw material of the supplier.

• Previous sales records aids in dimension of buying center and its activity.

• The original market demand for new products and services are usually high afar and so buying center of the KT Company.

• There is so much for an industrial sales person to influence the composition of the buying center.

Step 3/3

Steps for sales person to influence the buying center:

• Highlight priority:

The specific priority provided in the service could be highlighted by the sales person to enhance sales growth and the composition of the buying center.

• Better publicity:

The new gaining could be well added with public fervor towards modern entertainment which is the base for buying center composition.

• Distribution and sales:

Sales person must ensure that the services are distributed and available for pubic to purchase where the demand is usually high.

0307

Problem

Explain how the composition of the buying center evolves during the purchasing process and how it varies from one firm to another, as well as from one purchasing situation to another. What steps can a salesperson take to identify the influential members of the buying center?

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Step 1/2

The evolving of the composition of the buying center is not just an act but a process. As the perspective of purchase activity accelerates, composition of buying center raises. It is explained below in detail:

Composition evolution of buying center:

• Personnel for procurement decisions form the basic structure in buying centers.

• Marketing department forces to play a vital role if procurement decisions effect the market ability of a film’s product.

• These transactions enhance engineers for new capital equipment, materials, and specifications.

• Production mechanism stimulates manufacturing executives.

• Top management would have a say for a substantial economic Endeavour.

Step 2/2

Usually this involving of the composition of the buying center varies from firm to firm as well as from a purchasing situation to another. It is explained below in detail:

It depends upon the company’s policies and procedures.

It depends upon the size of the company.

Economic cycles and inflations possess a prominent role in influencing g buying centers.

Market conditions, competitors etc.

Steps for sales person to identify influential members of the buying center:

• Extract information about the personnel with authoritative works.

• To extract the information about the experts and pioneers in the organization as they are normally composed of influential authority.

• Tracing the members who connect to the top management.

• Members who possess substantial relationship with suppliers.

0308

Problem

Carol Brooks, purchasing manager for Apex Manufacturing Company, read the Wall Street Journal this morning and carefully studied, clipped, and saved a full-page ad by the Allen- radley Company. Ralph Thornton, the production manager at Apex, read several articles from the same paper but could not recall seeing this particular ad or, for that matter, any ads. How could this occur?

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Step 1/1

CB, purchasing manager for AM Company along with production manager RT of the same company had a glance at the newspaper. Interestingly, only CB, the purchasing manager happened to recognize certain ad but not RT, the production manager.

There are many cognizable reasons for this event and are explained below in detail:

• Selective exposure:

In research, it is proved that individuals extract information in respect of their beliefs and attitudes.

• Selective attention:

Individuals only extract information or receive message which is relevant and satisfies their needs and requirements.

• Selective perception:

Selective perception makes individuals to analyze and interpret certain information according to their own beliefs and attitudes.

• Selective retention:

It is the art of retrieving grabbed information. It happens when individuals perceive that the particular issue relates to his criteria dispositions.

0309

Problem

Organizations purchase millions of notebook computers each year. Identify several evaluative criteria that purchasing managers might use in choosing a particular brand. In your view, which criteria would be most decisive in the buying decision?

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Step 1/2

Technically, it is not organization but individuals in buying centers make buying decisions. But each member in the buying center posses’ specific experience and unique personality followed by specified organizational function.

Several evaluative criteria are used by various personnel in the buying center. Some of the evaluating criteria that a purchasing manager might use in choosing a particular brand for products and services are given below in detail:

Evaluating criteria by a purchasing manager:

• Price advantage:

Purchasing managers initially and always considers about price advantage in purchasing. Purchasing managers prefer and proceeds for special discounts and low costs.

• Economical shipping and forwarding:

Makes orders for products, shipping, and forwarding for cheaper costs and ensures themselves for eliminations of hidden and other handling charges.

• Additional use of date:

Products are proffered by the purchasing managers which possess additional usage value with less maintenance costs.

Step 2/2

However, the following criteria would be most decisive in the buying center

Decisive criteria:

Efficient servicing and standardization:

Any product or services must possess efficient servicing and standardization. Efficient servicing helps an organization to extract maximum possible benefits. On the other hand, standardization helps in maintain and stabilizing the work without assessing hefty maintenance charges.

0310

Problem

The levels of risk associated with organizational purchases range from low to high. Discuss how the buying process for a risky purchase differs from the process for a routine purchase.

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There is no way of eliminating risk from organizational purchasing. Levels of risk associated with organizational purchase range from low to high.

However, buying processes differs in many aspects for a risky purchase and a routine purchase. It is explained below in detail:

• Decision making:

Individual decision takes place when the risk is low where decision makers grow in number when the risk is high.

• Personnel involvement:

Huge number of personnel with high designation is required for high risk purchases unlike routine purchases.

• Information:

Mere information is sufficient for low risk purchases where huge sources of wide variety of information are needed for a risky one.

• Effort required:

Tremendous effort is needed for risky purchases by buying centers where casual involvement includes in a routine purchases.

0401

Problem

A marketing research company found that 6 percent of its clients generated 30 percent of sales and nearly all of its profits. At the other end of the continuum, 70 percent of its clients provided annual billings (revenue) that were below break-even levels, because these customers required an extensive amount of service from research employees. The company took immediate action to terminate relationships with clients who would not give them a higher share of their marketing research expenditures. Evaluate this decision and suggest a set of criteria that the firm might use to screen new clients.

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Step 1/1

A market research company perceived that it is unable to extract even break-even level of costs from 70 percent of its total clients. Therefore, the company took immediate action to terminate relationships with these 70 percent of clients completely.

Decision evolution:

• It is very cognizable and wise decision to terminate the relationships with these clients.

• It helps in holding the losses.

• It provides vent for the company to screen new clients and there by assists in accumulating profits.

Below is the given set of criteria that the firm might used to screen new clients:

Criteria to screen new clients:

• The profit opportunities are analyzed and measured before adopting a client to the business.

• To determine the expected technical and economical benefits of a client and ensure of ability to fulfill the same.

• To analyze and compute the long term benefits that could be extracted from a client.

0402

Problem

Describe how a firm might use menu-based pricing to restore profitability to a high-cost-to-serve customer who demands extensive service and customized support.

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Usually companies often composed of two types of customers in their business transactions. They are categorized below in detail:

1. High- cost- to serve customer.

2. Low- cost- to serve customer.

• High- cost- to serve customers is the type of the customers who provide heavy additional expenditure to organizations before and after the sale. These are expensive to the organizations.

• Low- cost- to serve customers forms the category which needs basic cognizable support and services from the company.

Menu-based pricing:

Menu-based pricing is the separation of product price and cost of services. It is a transformation of paying a price for the benefit received by the customer. It helps a purchaser to analyze to pay for better service and appropriate time to make order in bulk to reduce costs.

A firm might use menu-based pricing to restore profitability to a high cost to serve customer who demands extensive service and customized support. It is explained below in detail:

Menu-based pricing to restore profitability:

• To provide additional services other than basic works, extra charges must be received.

• Installation, technical support, customer training etc must be consider as separate category and are made commercial.

• Fast deliveries are included with additional charges.

• Small order quantities must be separated from special discounts.

0403

Problem

Evaluate this statement: Large customers tend to be either the most or least profitable in the customer base of a business-to-business firm.

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Literally, a firm composes of three categories of customers in a business-to-business firm. These three categories of customer firms leave a business firm with its 100 percent total profits. The three types of customer firms are detailed in below:

1. Most profitable customer firms:

They consist of mere 20 percent of the total customer group and provide 80 percent of the sales and involves in 150 percent to 300 percent of total profits.

2. Average profitable customer firms:

These consist of nearly 70 percentages of customers. They reach break-even profits.

3. Least profitable customer firms:

These firms compose of mere 10 percent of customers and lose from 50 to 200 percent of total profits.

Statement evaluation:

Yes, it is rightly stated that large customers tend to be either the most or least profitable in the customer base of a business-to- business firm. It is supported by various previous business records and events. Even if the large customers fail to be most profitable, they appear in providing least profits to the firm. It is very rare for large customers to involve in the middle of the profit providers card.

0404

Problem

Sony develops “collaborative relationships” with some suppliers and “transactional relationships” with other suppliers. What criteria would purchasing executives use in segmenting suppliers into these two categories? Describe the steps a business marketer might take to move the relationship with Sony from a transactional relationship to a more collaborative one.

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Step 1/1

In business scenario, buyers and sellers design and implement various types of relationships concerning market and purchasing situations. Customers usually adopt two types of relationships with the sellers. They are explained below in detail:

Transactional relationship:

Transactional relationship is the relationship where there is no scope of large exchanges between buyers and sellers. It involves where there are various alternatives in the market and supply market is stable.

Collaborative relationship:

Collaborative relationship refers to a rigid and long- term mutual goal oriented system. It furnishes a path for essential purchases and emphasizes operational linkages.

There involves particular criteria that purchasing executives use in segmenting suppliers into these two categories. It is explained below in detail:

Criteria for segmenting suppliers:

Collaborative relationship:

• To build strong and lasting business relationships.

• To attract investing resources.

• To receive business planning.

• To receive expert aid on strategy and coordination issues.

• To design best qualitative and quantitative products and services.

• To attain ultimate customer satisfaction.

Transactional relationship:

• Executive works which require no accurate loyalty.

• To procure products for minimum possible price.

• To receive technical support and other benefits for no cost.

• Executives prefer transactional relationships where there is no reason to approach a single vendor.

Sometimes business marketers prefer to move the relationship from transactional relationship to a more collaborative one. Steps are provided below to perform the above transaction.

Steps to change from transactional relationship to a collaborative relationship:

• Firstly, to receive business planning.

• Secondly, to receive expert aid on strategy and coordination issues.

• Thirdly, to design best qualitative and quantitative products and services.

• Fourthly, to attract investing resources.

• Fifthly, to build strong and lasting business relationships.

• Sixthly, to attain ultimate customer satisfaction.

0405

Problem

Some consulting organizations persuasively argue that by properly incorporating suppliers into their product-development process, firms can cut their bills for purchased parts and materials by as much as 30 percent. Explore how a buyer–seller partnership might create these cost savings.

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Step 1/1

According to business research and records, it is quite true and practical that by properly incorporating suppliers into their product-development process, firms can cut their bills for purchased parts and materials by as much as 30 percent. This requires a best pair of buyer-seller partnership in the business arena. It is explained below in brief:

• Analyzing and identification of accurate raw goods and services helps in cut -short of purchasing bills.

• By making the vendor firms a key participant in the product design and development.

• Reducing miscellaneous and wastage costs as much as possible by taking the necessary guidelines from vendor.

• Grasping essential information about the prices of the raw products and future prices that would be.

• To engage with a few specific and limited number of vendors as far as possible in order to make bulk orders for special discounts.

0406

Problem

Concerning buyer-seller relationships, compare and contrast the features of a collaborative relationship versus a transactional relationship in the business market. Describe how the operational linkages might differ by relationship type.

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Step 1/3

Buyers and sellers often have different relationships as they enter into business transactions. This is mainly based on the market conditions and the characteristics of the purchase situations.

Step 2/3

The two buyer-seller relationships often discussed are transactional relationships and collaborative relationships. These two terms are compared and contrasted as below.

Step 3/3

The main difference between the relation type and operational linkage is as follows. Operational linkage focuses and reflects on how the system, routines, and buying behavior of buyers and sellers are connected that facilitate the operations. The exchange of information is not considered in this contest. However, in the case of relationship type, it explains how the operational linkage stimulates mutual commitments. Relationship type explains the commitment that seller and buyer may have with each other. Further, the trust one party has for another one is also discussed in relation to types.

0407

Problem

Why is the cost of serving a long-standing customer far less than the cost of acquiring a new customer?

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It is inevitable for any organization to spend more or less to serve a customer and even to acquire a new customer. It is quite true that the cost of serving a long-standing customer is far less than the cost of acquiring a new customer. It is explained below in detail:

Reasons for occurring hefty costs in acquiring a new customer:

• To acquire new customers, it needs specific research and business analysis which always leads to heavy costs.

• Serving long standing customers proceeds on routine agreements and conditions where as to acquire new customers lead to compromises and special offerings of benefits.

• Distribution channels are to be created for new customers.

• To arrange specific new performance measures to satisfy new customers demands.

• Incurs costs to capture market analysis for new customer demands.

0408

Problem

Discuss the switching costs that Southwest Airlines would incur if it began to phase out its fleet of Boeing airliners with replacements from Airbus. What steps could Airbus take to reduce these switching costs? How might Boeing counter to strengthen its relationship with Southwest?

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It is inevitable for any business firm to move business operations from one firm to another. This transaction of switching from one business organization to another by firms leads to certain losses and costs. These losses or costs are termed as "switching costs”. These switching costs are of two types. These switching costs are as follows:

1. Investments

2. Risk of exposure

When SW airlines began to phase out its fleet of B Airliners with replacements from AB, SW Airliners would incur switching costs of investments.

SW Airliners switching costs of investments:

• The investments made in previous airliners are lost.

• New investments are required to train the employees to execute new airliners operations.

• Basic business procedures are to be changed as it varies from organization to organization.

The new partners for SW Airlines, AB also possess switching costs in the name of risk of exposure. Following steps could be taken by AB airlines to reduce these switching costs.

Step 2/2

Steps to reduce switching costs:

• AB Airliners must invest resources for secured and mutual commitments which last for long.

• Assisting customers with proper planning along with SW Airlines to secure long-term relationships with customers.

• To highlight the name and value of services which helps in procuring benefits?

• New operational linkages and information sharing mechanisms must ensure to be quite similar with previous business transactions. It assists without causing any investments for personnel training programs.

Even when SW Airlines began to phase out its fleet, B Airlines might counter to strengthen its relationship with SW Airlines.

Steps to strengthen relationship with SW Airlines:

• B Airlines must pursue SW Airlines loyalty by providing efficient services.

• Must create opportunities to expand the relationships.

• To make continuing dialogues for mutual commitments.

0409

Problem

Describe how an office supply firm may have a core offering of products and services for a small manufacturer and an augmented offering for a university.

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Step 1/1

A value proposition features the products, services, ideas and solution offered by a business marketer for a customer organization to reach the goals. Pioneer business suppliers base their value propositions on specific elements that matters most to customers.

A mere office supply firm can have a core offering of products and services for a small manufacturer and an augmented offering for a university by following business relationship strategies.

Core offering of products and services for a small manufacturer:

• This business transactions leads to execute unbundling strategy.

• Unbundling strategy helps in providing products with attractive price, quality, and other essentials required by the customers.

• Augmented services like consulting, technical assistance, delivery are offered.

• Augmented services are offered at commercial basis.

Augmented offering for a university:

• Collaborative relationship involves in providing augmented products.

• Augmented features such as cost-reduction, technical assistance, delivery guarantees etc.

• Augmented services include price premiums by the customer groups.

0410

Problem

Knowing how to be a good partner is an asset in the business market as Cisco Systems clearly demonstrates. Describe the characteristics of a successful strategic alliance and outline the steps that alliance partners can take to increase the odds that alliance goals will be achieved.

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Strategic alliances explain the healthy relationship between firms/companies to improve their operational performances. Two or more firms can get into strategic alliances on agreed objectives and terms.

Step 2/3

A successful strategic alliance relationship will have the following characteristics. First of all, the firms will be able to access the latest market technology with the help of partner firms. Secondly, the firms in the strategic alliance can attain economies of scale. They get exposed to more markets and thus, can enjoy economies of scale. Thirdly, the firms can launch their products quickly in new markets. They can use the distribution channel and marketing strategy of the partner firm that will minimize their cost of operation. Finally, it helps to share risks and costs. A successful strategic alliance allows the firms to share their uncertainty and cost with each other. Thus, they can minimize the threats and impact of these challenges and risks.

Step 3/3

There are five major steps through which a successful strategic alliances relation can be established. First of all, they should build a dedicated alliance function. The firms should measure the value and benefit that they can incur with this strategic alliance. Secondly, they should develop a joint venture proposition. Here, they should develop and share strategies with specific value propositions that can be delivered to the customer. There should be a close statement for value proposition between the firms and they should jointly offer them to the customers. Thirdly, the firms should develop a close work relationship between them. Interpersonal connections and collaborative strategies to be developed. This helps to develop effective communication and work relationship. The fourth step is to establish a connection between boundary and spanning. This means the managers of the firms should have strong and healthy relationships and communication. This way they can share their common goals and norms creating social relationships. Finally, integrate the point of contracts that they have. They can integrate their relationship strategically, tactically, operationally, interpersonally, and through cultural integration too.

0501

Problem

Cogent is a rapidly growing company that makes software which identifies people using biometrics—fingerprints, faces, eyeballs, and other personal characteristics. The firm is making terminals that allow customers to pay for products with their fingerprints. Assess the potential of the “pay by touch” system and suggest possible market segments that might be receptive to the new offering.

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Step 1/2

Organizations formulate and implement number of ideas and thoughts in their business activities. But it is to be noted that mere acknowledging of customer’s requirements are not sufficient but understanding their awareness and injecting new comforts with reasonable measures paves the way for success.

C company introduces “pay by touch” system into the business markets for customers to pay for products. The potential of the pay by touch system is given below in detail:

Potential of the pay by touch system:

• It requires a unique set of potential customers which could merge with the latest technology.

• It must be able to provide greater flexibility comparing to competitors.

• Introducing a new technology highlights the name of the organization and laterally provides highway for the super sale of newly introduced software.

There are possible market segments that might be receptive to the new offering. These market segments are provided below and explained with reasons.

Step 2/2

Market segments receptive to the new offering:

• Profit potential customers segmentation:

Pay by touch is technically an easy and simple way to complete the pay transaction. It is economical and enhances substantial relationship towards the organizations.

• Transactional customer segmentations:

These are usually large and very knowledgeable customers. These customers are more concerned about products and services and acts flexible and pro to the technological changes.

0502

Problem

Automatic Data Processing, Inc. (ADP) handles payroll and tax-filing processing for more than 300,000 customers. In other words, firms outsource these functions to ADP. Suggest possible segmentation bases that ADP might employ in this service market. What criteria would be important to organizational buyers in making the decision to turn payroll processing over to an outside firm?

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Step 1/3

Market segmentation is the art of analyzing and classifying of potential customers in various groups posing some common characteristics which helps in formulating and implementing a set of business criteria by the business marketers. Broadly, business markets can be segmented by two bases.

1. Macro segmentation

2. Micro segmentation

• Macro segmentation focuses on the elements such as size, location, and organizational structure.

• Micro segmentation usually requires enormous market knowledge which includes buying decisions criteria, importance of purchase, and attitude towards vendors.

ADP incorporation which handles payrolls and tax-filing processing for its customer organizations requires some specific segmentation bases to employ in this service market.

Step 2/3

Suggested segmentation bases:

• Product/service application:

In this basis, a marketer divides the market on the basis of specific end-use applications. This segmentation requires NAICS (NORTH AMERICAN INDUSTRIAL CLASSIFICATION SYETEM).

• Value in use:

It is an economic value of a product or service to the user in an application. This economic value varies by customer application.

• Purchasing situation:

The first time or initial buyers are ignorant of any primary information. These buyers must be analyzed and provided adequate awareness about market and its products and services. These set of buyers can be segmented as a group.

Step 3/3

Criteria to outsource business process:

• Product quality:

The products quality is the primary aspects of the organization. It is the measuring scale to scale the efficiency of an organization.

• Reliable delivery:

The distribution and sale of the products alone depends upon the delivery posses. Unreliable deliveries often shatter ultimate designed products.

• Technical support:

Specific type of business organizations is unable to procure adequate technical support to their own business processes. It would be an appropriate move to outsource the process for the expert technical support.

• Price:

Sometimes, it is better to outsource apart or a whole segment of a specific business activities. It could reduce the expenditure on training the employees and maintenance cost.

• Supply continuity:

By outsourcing a part of business process, a firm could concentrate on the main activity and the processed work could be extracted without any obstacles or breakages.

0503

Problem

FedEx believes that its future growth will come from businessto- business e-commerce transactions where customers demand quick and reliable delivery service. Outline a segmentation plan that the firm might use to become the market leader in this rapidly expanding area.

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Step 1/2

To be successful in business, it is very essential to analyze and forecast business and its events that would be in the future. Based on this, the segmentation plan is to be made.

Before a final decision is made, the marketer must weigh the costs and benefits of a segmented marketing strategy. Given below is the segmentation plan that the firm might use to become the market leader in this rapidly expanding area.

Step 2/2

Segmentation plan:

• The sales force must be organized in a proper way.

• Analyzing technical and services required by the organizations in the future segments.

• To evaluate sources to provide the services.

• To evaluate media outlets to advertise for the new segments.

• To develop outline strategy to ensure continue service support to the customers.

• To employ adequate adaptations which are required for international market segments.

0504

Problem

Sara Lee Corporation derives more than $1.5 billion of sales each year from the institutional market (for example, hospitals, schools, restaurants). Explain how a firm such as Sara Lee or General Mills might apply the concept of market segmentation to the institutional market.

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Step 1/2

Market segmentation is the art of analyzing and classifying of potential customers in various groups possessing some common characteristics which help in formulating and implementing a set of business criteria by the business marketers. Broadly, business markets can be segmented by two bases.

Even though companies like SL and GM make better profits in institutional markets like hospitals, schools, restaurants, there is a need and purpose to divide these markets into specific categories. This categorizing of profit providers helps in analyzing the future profits and required modifications if required.

The application of market segmentation concept by these organizations to the institutional markets varies in some aspects. These aspects are explained below in detail.

Step 2/2

Application of market segmentation concept to institutional markets:

• Firstly, companies select their marketing endeavors to segments which include profitable customers.

• Secondly, Company’s ability and resource commitments are evaluated and measured which are essential to serve customers.

• Thirdly, profitable elements are analyzed and scrutinized in a proper way to reap maximum possible benefits.

• Lastly, companies implement business strategies to widen the relationship with profit providing customers and endeavors to convert bad customers to better ones. The bottom level customers are either discouraged or weeded out.

0505

Problem

Some firms follow a single-stage segmentation approach using macrodimensions; others use both macrodimensions and microdimensions. As a business marketing manager, what factors would you consider in making a choice between the two methods?

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Step 1/3

Step 2/3

Broadly, business markets can be segmented by two bases.

1. Macro segmentation

2. Micro segmentation

• Macro segmentation focuses on the elements such as size of market, its location, and structure of organization.

• Micro segmentation refers to further division of macrosegments on the basis of characteristics of consumers. These characteristics include buying behavior, decision making factors, perception towards distributers.

Pioneers in business strategy often recommend a two-stage approach to business market segmentation.

1. Identification of meaningful macro segments.

2. Classification of macro segments into micro segments.

Some firms follow a single stage segmentation approach using macro dimensions where as others use both macro and micro dimensions. Specific factors are responsible for the variance in the application of stage segmentations approach in the business activities.

Step 3/3

As a marketing manager, one would consider the following factors in making a choice between the any two given choices:

• Consumer behavior and factors influencing their buying decision: Consumer at different geographic locations have different buying behavior. They have different criterion for their choice and thus might require only single stage or more complex two stage segmentation.

• Consumer needs: The foremost basis of segmentation is to identify the customer needs. The customer might have less complex set of expectations and needs while it may also have sophisticated and hidden needs. According to this single or two stage segmentation is selected.

• Type of business: Based on the type of business the market can be profitable just on basis of location and size. If the business offers product and services which require in depth market knowledge and analysis of external environment, two stage segmentation is used. Otherwise single stage is used.

• Market dynamics: The market dynamics such as level of competitiveness, uniqueness of product, consumer awareness etc. determines the choice between single or two stage segmentation.

• Profitability of segments: It only make sense to invest in segment which is more profitable. If investing in macrosegments can provide much better profitability than microsegment, then single stage segmentation is used.

• Goals of company: If company wants to create personalized experience and value to the customers then it has to choose highly specific market segments and pursue two stage segmentation.

0507

Problem

Although qualitative forecasting techniques are important in the sales forecasting process in many industrial firms, the marketing manager must understand the limitations of these approaches. Outline these limitations.

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Step 1/2

The production of goods and services alone depends upon the forecast of demand and sales that could be in the future. There are various approaches that business organizations use for sales forecast. Among those, two primary approaches to forecast sales are named below:

1. Qualitative.

2. Quantitative.

Step 2/2

Qualitative techniques:

Qualitative techniques proceed with informed judgment and rating schemes. Personnel such as executives, distributers, and sales persons analyze the market, economy, and customer behavior to estimate sales forecast.

Even though qualitative forecasting techniques are important in the sales forecasting process, in industrial firms the marketing manager must understand the limitations of these approaches. These limitations of qualitative forecasting techniques are sketched below in detail:

Limitations of qualitative forecasting techniques:

• The top-executives of the company who makes judgments on future sales may fall short due to lack of experience in direct sales and marketing.

• There are no proper standards are measures to reason the judgment.

• Sales force composite analysis often stumbles when market and technological aspects change.

• Untrained and ineffective sales persons may gather and form inaccurate estimates.

• Forecasting is based on factors that cannot be measured directly, as a result unexpected situations has to be faced by the business units.

For example: Forecasting is done based on the present market situation, which may differ in the future.

• Invalid expert opinion may ruin the forecasting process. Businesses rely on the opinions of the industry experts. If the opinion of the expert goes wrong the forecasting is incorrect.

0508

Problem

As alternative methods for demand forecasting, what is the underlying logic of: (1) time- series and (2) regression or causal methods?

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1. Qualitative.

2. Quantitative.

Step 2/3

Demand forecasting is done by obtaining the information through interviews, and by collecting the expert’s opinion. The information gathered from the customers is found to be suitable for the short-term forecasting. Whereas, the information gathered from the opinion of experts are found to be suitable for the long-term forecasting.

The complex statistical methods are the alternative methods for demand forecasting. Some of the complex statistical methods are:

Time-series:

This method does not need any formal knowledge of the market, and need only the time series method. Time-series uses historical data showcase trend and growth rate of sales. The limitation with this method is that it expects the past to repeat in the upcoming future.

Regression:

Regression technique chooses key factors which determine the sales in the past and practice in a mathematical system. The regression method determines the degree of association among the set of variables. The variables are dependent and independent.

Although time-series and regression analysis are the alternative methods of demand forecasting, there involves specific logics in understanding and employing these techniques in their respective aspects. They are summarized below in detail:

Step 3/3

Before using historical data for regression methods, experts must not neglect analysis of economic and industrial factors that may take place in the future market.

Business managers must adopt casual methods where markets exhibit sensitivity and time-series performs better where markets not respond to environmental changes.

0509

Problem

What limitations must be understood before applying and interpreting the demand forecasting results generated by causal methods?

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Quantitative techniques of demand forecasting comprises systematic are objective forecasting. It includes two methods which are;

1. Time-series.

2. Regression.

This regression method is also called as “casual method”. But before applying and interpreting the demand forecasting results generated by casual methods, analysts must understand some limitations of this typical mathematical approach. These limitations of casual method are discussed below in brief:

Limitations of casual method:

• Casual methods use factors which affected past sales and convert them into a mathematical theory. It may pose serious blunders of the conversion method is inaccurate.

• The conversion method into mathematical model cannot be reliable for long range forecasts.

• The economic variables used by casual methods are taken from survey institutes. They may not be accurate.

• The independent variables must be associated to sales demand in a logical way. These independent variables could not stimulate sales demand individually.

• The historical data which is required for eliminating future sales demands may not be found that easy always.

0510

Problem

What features of the business market support the use of qualitative forecasting approaches? What benefits does the business market analyst gain by combining these qualitative approaches with quantitative forecasting methods?

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1. Qualitative.

2. Quantitative.

Qualitative techniques:

The qualitative technique composes of two essential components to develop a sales forecast. They are named below:

1. Executive judgment

2. Sales force composite

3. Delphi method.

Qualitative approaches acquired certain special characteristics in the business forecasting analysis. Some of the features of business markets which support the use of qualitative forecasting approaches are given below:

Features of business markets that support use of qualitative forecasting approaches:

Executive judgment method:

• Executive judgment method comes into play when historical information is limited or unavailable.

• Executive judgment method involves in sales forecast where the higher officials not prefer to pass sales forecasting responsibility to anyone.

Sales force composite:

• Sales force composite sales forecasting usually takes place where buyer -seller relationships are close.

• When sales forecasting process by experts is expensive.

Delphi method:

• Delphi method serves better when there are specific and accurate estimations about business market.

• This method involves usually in sales forecasting for long-term estimations.

• It suits for new and unique products and services.

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A business market analyst could gain particular benefits by combining these qualitative approaches with quantitative forecasting methods. They are discussed below in detail:

Benefits by combining qualitative approaches with quantitative forecasting methods:

• Composite forecasting model (which includes qualitative and quantitative factors) spots the blemishes in forecasting.

• These combined forecasting results aids in evaluating the accuracy of other forecasting approaches.

• Taking into consideration many varied business aspects, combined forecasts always provides accurate results.

• Combined forecast technique eliminates false estimates and could boost future profits.

0601

Problem

Commenting on the decision-making process of his organization, a senior executive noted: “Sometimes the process is bloody, ugly, just like sausage meat being made. It’s not pretty to watch but the end results are not too bad.” Why do various functional interest groups often embrace conflicting positions during the strategic decision process? How are decisions ever made?

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Every organization needs to make the right decisions to be successful. Decision making process takes place at every level. Managers take decisions time to time and see that the decisions are communicated to the right people.

The strategic decisions need to take into consideration, the issues that matter to the organizations long term objectives. The resources of business units and other products need to be allocated in the right manner. Decisions regarding corporate strategies, the possible alliance partner and also the technology to be applied in the organizations are taken by managers.

Strategic decision process involves the different functional groups and ensures active participation from these groups. There are different steps in decision making. Initially the problem needs to be understood first. The next step is to gather information. The information should be obtained from the right sources and necessary tools need be used to attain information. The different alternatives need to be evaluated and then the correct alternative must be chosen. The right decision taken must be executed and the last step is to evaluate the results based on the decision made.

Therefore it can be concluded that decision making is a continuous process in an organization. Decisions are made at all levels in an organization to attain success and to achieve the goals of the company.

0602

Problem

Describe how the primary focus of marketing managers at the corporate level differs from the focus marketing managers take at the business-unit or functional level.

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Marketing strategies are generally customer oriented. The strategies are developed based on the requirements of the customers and develop the product before the competitors develop. Most of the organizations develop three levels of strategies, the corporate strategy, business- level strategy and the functional strategy.

1. Corporate level- The policies made in this level gives an outline in the development of strategies. This level explains how the company competes with others. Marketing in this level helps to assess the competitiveness and also the market attractiveness of the firm. Marketing enables better customer orientation in decision-making.

Managers play a very important role in taking the customers point of view while making decisions. These decisions are made based on the customer’s beliefs and values. The managers also have the responsibility of take care of the shareholders requirements.

2. Business level- This strategy how the organization fairs itself with other competitors. This level mainly coordinates activities to form proper strategies in an organization. The marketing helps in the planning procedures and gives details regarding its customers and competitors.

3. Functional strategy- The main aim of marketing in functional level is to coordinate and allocate resources to attain the objectives of the organization.

Marketing managers have to take utmost care while making decisions. The managers need to sensitive and should use communication tools sensibly and understand the requirements of shareholders, customers etc.

0603

Problem

A day in the life of a business marketing manager involves interactions with managers from other functions in the firm. First, identify the role of R&D, manufacturing, and logistics functions in creating and implementing marketing strategy. Next, describe some of the common sources of conflict that can emerge in cross-functional relationships.

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Organization is said to be successful when the marketing manager integrates the functional areas of a company. The manager must understand the potentials of the departments like R&D, manufacturing and logistics. The manager should capitalise on the strengths of the departments and create marketing strategies. These strategies should benefit the customer requirements. The marketing managers have a major role of implementing the marketing strategies.

An organization’s success value is based on the internal business processes. The internal processes need to be aligned properly. The company that uses product leadership strategy concentres more on innovation. The company that uses low cost strategy gives more importance to operations.

Considering an illustration where a Company AB, manufactures automobiles. This company has a very good strategic alignment. The company’s employees are trained well. The organization gives importance to product quality and takes into account the cost strategy.

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The company develop new products and gives a lot of importance to innovation of new automobiles at a low cost. The employees of the company come up with new ideas and techniques to innovate products. Innovation of new products enables AB Company to stay on top among its competitors.

The company tries to understand the requirements and needs of customers, thereby design products based on the customers’ needs. AB Company has a continuous strategic alignment which has made the company successful.

0608

Problem

Describe why a business-to-business firm that plans to enter a new market segment may have to realign its internal business processes to succeed in this segment.

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A business to business firm needs to realign its internal business processes before entering into the market segment. These types of firms are usually larger in size and may require more employees. Each business to business firm may have different internal business processes.

The first step before entering into a new segment for a business to business firm is innovation. The company should create new products and attract customers. Customer service is very important in business to business firm. The company may lose its customers if proper service is not given to customers.

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The goods should be delivered on time and also the quality of the product is very important. Customers prefer superior quality products. The cost of the product should be reasonable, only then customers would go for the product.

Once the product is sold to the customer, post sales service is very important. Warranty, repair services need to be provided to customers. If all these services are given to the customer, then a business to business firm would be successful.

0609

Problem

Describe how the learning and growth objectives in a balanced scorecard might differ for a firm pursuing a low-total-cost strategy versus one that emphasizes complete customer solutions.

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A balance scorecard enables to give a better idea for managers to understand the financial measures and thereby help in the performance of the organization. The scorecard gives an insight of four perspectives like financial, customer, internal business processes and learning and growth.

Learning and growth focuses on the intangible assets that needs to align its strategies to attain long term goals. It is the responsibility of the employees of the organization to understand and satisfy the requirements of customers.

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A company that uses a low- cost strategy would gain greater value from total quality management. Whereas a company that stresses on total customer solution strategy would gain more from customer relationship management.

0610

Problem

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One of the competitive ways that firms use to succeed and to gain competitive advantage is the cost advantage. Cost advantage strategy explains that the company is enjoying a lower cost of production that helps them to maximize their profit.

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Cost advantage is attained in two ways. One is through lowering the operating cost and second through lowering the cost of capital investment. Business process outsourcing and subsidies have been emerged to contribute to these cost advantage practices. However, some critics comment that these cost advantage that rapidly developing economies enjoy will end in five or ten years. It is not true that the cost advantage will evaporate. The reason is that the economies are growing and the population is also growing. Thus, to satisfy the increased population/market needs, companies should be encouraged to produce more at a reduced cost. This will increase the subsidies again in these developing nations. The business process outscoring is expected to grow again causing a lower cost of operation in the future. The firms can control the RDE cost properly, the cost advantage can still be enjoyed by these developing countries. In addition, technology is growing and new equipment and technologies are also contributing to minimizing the cost of operation. In short, the statement in the question is not agreeable.

0703

Problem

Describe the characteristics of products and services that would represent poor candidates for outsourcing.

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Outsourcing is the process of subcontracting certain activities like manufacturing to a third party. It is very important to decide upon relocating certain processes like R&D, manufacturing and customer services to RDE’s as it involves economic and environmental factors.

The main criteria for outsourcing to RDE are, the products and services should favour high labour cost, high growth potential, large RDE markets, good manufacturing and delivery of services and products.

Therefore, services that are relocated usually have a well defined process map. It is a must be keep a check on the criteria before going ahead with outsourcing.

0704

Problem

In addition to cost advantages, describe the other ways that rapidly developing economies can contribute to competitive advantage.

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Competitive advantages allow the firms to provide products and services to the customer better than their rivals can provide. One firm can attain a competitive advantage in various forms ranging from production to customer service.

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One of the most common competitive advantages that firms concentrate on is the cost advantage. In addition to the cost advantage, there are some services or ways in which the firms gain a competitive advantage. They are as follows. First of all, by gaining market access. Firms can get a competitive advantage as they enter into fast-growing markets. For example, China and India are the fastest growing economy and entering these countries can help to attain a competitive advantage. A new line of businesses can be introduced in these growing economies to gain market dominance. Secondly, capabilities advantages. This explains the use of human talent in the countries. The human capital is high in the fastest-growing countries in terms of population. China and India have the highest population comprising youths. They are highly talented and engineering or management graduates. Firms can use these talents by outsourcing or by recruiting them. This way research and development, customer needs, and product quality can be improvised. Finally, outsourcing decision. To use human talent and technological improvement, the firm can outsource their research and development or customer service wing to the developing countries. India is one of the highest outsourcing countries. This can also help the firm in other countries to gain a competitive advantage by getting highly focused and improved performances.

0705

Problem

The European aerospace consortium Airbus is a strong competitor to Boeing and is climbing toward its long-stated goal of winning 50 percent of the over-100-seat airline market. What criteria would a customer like UPS or British Airways consider in choosing aircraft? What are the critical factors that shape competitive advantage in the aircraft market?

Problem

A supplier of copper tubing and wire has adopted a multi-domestic strategy to enter the eastern European market. What factors should it assess in these countries in order to formulate its marketing strategy in each one. Explain.

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Multi-domestic strategy allows the firm to start business in another country. By using multi-domestic strategy, the products developed can be developed in the local market and given to the customer.

The factors that are to be assessed are the cultural, administrative or political, geographical and economic factors of a country. Every country has a different culture. It is important for the company to look into the culture of each and every country. Every country has a different administration and political scenario. Certain countries encourage businesses whereas certain countries have their own restrictions.

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The geographical condition of a country should be taken into consideration. Before entering the market the company should know who the users of the product would be. The last factor is the economic status of the country.

Every country has a mixed population. The requirements of the people are also different. Some people would be ready to spent lot of money on their needs whereas there are people who spend only for their necessities. Based on the economic criteria the product’s pricing strategy should be decided.

Therefore, by looking into all these factors the strategist would be able to understand the differences between countries.

0709

Problem

Why would Hewlett-Packard assign product-line responsibility to a subsidiary located outside the United States?

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When the company’s product line widens many countries provide the home base for certain product lines. The country that has the best advantage on location is given the responsibility is taking the particular product line forward.

The country that has the most favourable conditions, specialize in the products and the provide products to satisfy the customers. The company H has shifted many of its product line to another country which has better conditions in taking the product line forward.

0710

Problem

A global strategy begins with a unique competitive position that offers a clear competitive advantage. What steps can a global competitor take to ensure that the strategy is implemented in a consistent way in countries around the world?

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Global strategy searches for competitive advantage with different choices in strategy. The company’s competitive position in one country gives a better position in other countries as well. It is important to have an integrated global strategy and in order to set that following steps have to be followed.

1. Construct a different competitive position – The firm should plan a global business and product line which is totally unique from its competitors. The pricing of the product be less than the competitors and give a different value to the product. The product should satisfy the customer’s requirements.

2 Stress on a fixed positioning strategy - The Company should have a long term objective to have a unique positioning. The firm should offer customers choice of products where the firm can capture more customers.

3 A clear home base needs to be established - The firm must establish a home base, where the technology, strategy can be developed and maintained.

4. Develop leverage product line at different countries- The product line has to be set in a home base in a country which has the best location advantage. The country should lead the selling of the product line to satisfy the customer.

5. Other activities need to be dispersed- The raw materials, and other parts that are used to make the products need to be purchased from a cost effective location. Certain activities can be done from the nearby market area; this can offer products to customers according to their preferences. The products that need innovation of technology can be done in countries which are developed and have good facilities.

6. Co-ordinate and integrate activities – It is important to coordinate the different activities happening in different locations or countries. Proper information system needs to be developed to coordinate. There should be personal relationship among managers in different locations. Ideas and suggestions need to be transferred among the managers.

All these would benefit a firm to build a successful global strategy. A well developed global strategy of a firm would enable the company do be a role model among its competitors.

0801

Problem

Evaluate this statement: A brand is much more than a name, and branding is a strategy problem, not a naming problem.

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A brand is much more than a name which requires marketing strategies to create branding.

A marketing business firm is identified on the basis of the brand and also the products and services the company offers. Brand is a very important intangible asset to the company. Marketing department of a company puts a lot of efforts to create a brand image for its products. It is said that brand is much more than a name. Brand is an identification feature which the customers use before taking a buying decision. The customer’s emotional attachment and the loyalty towards a product can be created through a good brand image. It is highly influential unseen feature for a product and its company. Certain products are treasured by customers.

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A brand is a name, symbol or logo given by a company to identify its products and services among its competitors. To promote the company’s product, branding is essential. In this competitive world branding is a strategy, which requires lot of thinking, planning and coordination. The strategy needs to fit into the market and attract consumers towards the products. Branding is a continuous process, where changes have to be made wherever necessary to meet the customer’s requirements. The company needs to set a proper branding team to promote the company’s products.

0802

Problem

Identify two business-to-business brands that you would deem to be strong and distinctive. Next, describe the characteristics of each brand that tend to set it apart from rival brands.

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Branding strategies differ from one company to another. The strategies one uses to differentiate from that of their competitors may vary based on the nature of their product.

Suppose a company C which is a well-known firm that uses technology to deliver videos. The company’s motto is to bring people together. The Company C connects people and removes the barriers to communication. The Company C uses innovative techniques and introduces new products from time to time. The products offered are reliable, unique, good quality products and are easy to use. The customers perceive and identify the products as unique and innovative and easy to use products. The company promoted its brand image for its products as simple and new products.

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Company F is a logistics firm, which is very well established throughout the world. The company does its activity with speed and reliability. The company is liked by its customers for their quick speed and response. The company provides services globally. It provides good customer service. The company invents new business services to satisfy customers. It created its brand image based on its quick delivery and better customer service. Customers view and identify company F as a brand for its speed and reliability.

Every company has its own identity and brings about distinctive characteristics so that they stay on the top when compared to its competitors. The branding strategies may be developed on different attributes and product features of a company which depends upon the nature of their business.

0803

Problem

Using the customer-based brand equity framework as a guide, describe the distinctive components of Apple’s brand strategy.

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Company A has turned to be one of the most successful brands in the world. Company A is renowned for its innovation in its products. The products are user friendly and are very popular among consumers in the market. The marketing and distribution strategies of the company helped them built strong brand image among the consumers.

The company is into making of consumer electronics, computer software, I pod’s, mobile phones etc. The products created are of superior quality. The products are unique, stylish and innovative. They are highly protected by patents and copy rights.

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The customer based brand equity (CBBE) model gives a better idea on what the consumers have learned and understood regarding the brand. The thoughts, feelings and perception in the minds of consumers can be represented in the form of a model. The model comprises of brand salience, brand performance, brand imagery, consumer judgements, consumer feelings and resonance.

Salience - The main feature of this company is its innovation of products. The products are unique and have a great value in the minds of consumers.

Performance - The brand offers good quality products and is user friendly to consumers. The performance of the product is good as it’s reliable and durable.

Imagery – The brand is more of a psychological attachment to the consumers. Social media has become very popular among youngsters; this brand is often chosen by consumers to use the social media. At time consumers feel it as a social need.

Customer judgement – Consumer judge the product keeping in mind the quality, credibility, consideration and superiority.

Customer feelings – The consumers feel a sense of happiness and excitement with the brand A. It is the emotional feeling consumers have towards the brand.

Consumer- brand resonance- Consumers feel a strong bond or attachment to a particular brand. Similarly consumers are loyal and have a strong connection with brand A. This helps the consumers to keep purchasing different products of the same brand.

The relationship between the consumer and the brand is therefore very important. The products must be thus produced keeping in mind the requirements and needs of the consumers. Company A is successful in creating a superior brand image in the eyes of customers and customers love themselves to see associated with its products for a social status and product features.

0804

Problem

Describe why a brand-positioning strategy should include points of difference and points of parity. Provide an illustration to support your case.

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Brand positioning is establishing a unique position in the minds of consumers regarding a particular brand. It is establishing a products or company’s image in respect to competitor’s products in the minds of customers. Brand positioning should have points of difference and points of parity.

Points of difference are the strong and favourable factors of a brand that makes it unique to consumers. For example Brand F has created a unique style of logistic supply by making the delivery quick and reliable using GPRS technology that is unique from that of its competitors.

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Points of parity are elements that are developed which help to develop a break even with competitors. This makes the consumer think about a brand along with other competitors. For example the brand F is chosen among its competitors because of the innovativeness of products, the brand fits into the consumers requirement.

Many top brands have been able to establish a unique association with consumers. Differentiation strategy is one of the techniques used to create brand image by the companies to stand ahead from that of their competitors.

0805

Problem

Regis McKenna notes that “no company in a technology-based industry is safe from unanticipated bumps in the night.” In recent years, many industries have been jolted by technological change. In such an environment, what steps can a product strategist take?

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In the present world technology is very dynamic in its nature. Innovate or die is the motive of technological firms. The changes that take place in technologies are more rapid compared to any other industry. A new technology makes the existing technology obsolete. Therefore may firms have started creating products according to the needs and requirements of customers to survive in the technology industries.

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Strategists have created a popular tool which is the technology adoption life cycle. This life cycle gives a better understanding of the technology development and adopting it according to the requirements of customers.

Customers can be technology enthusiasts where they are interested in finding out the latest innovations. These consumers often see how products are perceived by other consumers.

The next set of consumers is visionaries, who like to publicize the benefits of innovation. But at times the marketer finds it difficult to satisfy the visionaries as they require special demands and unique product modifications.

The next group of consumers are pragmatists, they believe in technology. Pragmatists are analytical. They make technology purchases in the organization. They are conservatives are hesitant to buy high tech products.

The main job of the high tech firms is to identify pragmatist consumers and ensure that they are satisfied with a minimum set of basic features and services to make a purchase decision.

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Therefore firms design their product according to the category of customers in the technology adoption lifecycle in an ever changing environment.

0806

Problem

Bradley Gale, managing director of The Strategic Planning Institute, says: “People systematically knock out income statements and balance sheets, but they often don’t monitor the nonfinancial factors that ultimately drive their financial performance. These nonfinancial factors include ‘relative customer-perceived quality’: how customers view the marketer’s offering versus how they perceive competitive offerings.” Explain.

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Perceived quality is intangible. It is a feeling of consumers towards a particular brand. The consumers generally have a perception towards a particular product based on the product’s features, performance, reliability and durability.

A product must include benefits and services to satisfy and to provide more value to customers. The main aim of a business marketer is to provide superior market perceived quality products as compared to competitors. More stress has to be given to total quality management and to customer satisfaction. The products should be made keeping in mind the requirements and needs of consumers.

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The marketer must make his product offerings on the basis of the customers’ requirements. The perception of the customers towards the product impacts the purchase decision of the product. The customers should be provided with superior quality service that adds value to the product physical attributes. Providing value added services acts as a competitive strategy to the companies.

0807

Problem

Distinguish among catalog items, custom-built items, custom-designed items, and services. Explain how marketing requirements vary across these classifications.

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Industrial products differ from consumer packaged goods firm. Industrial products lines are divided into four types; catalog products, custom- built products, custom- designed products and industrial services.

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The following are the product lines of industrial firms:

1. Catalog products – These products are offered based on certain configurations and anticipation of orders. The product line decisions concerning adding, deleting or repositioning of products comes under catalogue products.

For example, automobile spare parts are produced based on specifications and received orders.

2. Custom- built products - These products are offered with accessories and other options. Customers can make alterations to their requirements.

For example, the marketer provides with many facilities in a workstation from purchase to checkout rather than offering one single service.

3. Custom –designed products – These products are designed to meet the requirements of particular group of customers. A product can be a unique item made according to the company’s capability and the consumer buys it according to their capability.

For example, companies order small tools according to their requirement and specifications.

4. Industrial services – The Company provides services like maintenance, technical service to the consumer rather than offering the original product. Customers buy these services.

For example, services of repairs to machines and cars are offered to the customers.

Each product gives a unique problem to the business marketer. Product management can be described as management of capability. Therefore on the basis of the product category the marketing capabilities should be designed and offered to the customers.

0808

Problem

A particular product strategy will stimulate a response from the market and a corresponding response from competitors. Which specific features of the competitive environment should the business marketing strategist evaluate?

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As Companies innovate to produce new products, even other companies are forced to make changes and bring about new innovations to products. Sustainability is a new trend which forces companies to change in terms of thinking about their products, processes and business models.

Sustainability is the integration of environmental, economic and social factors that leads into business decision making. Many business strategists feel that sustainability is an important part of value creation. Companies that make the right strategy have a better advantage over their competitors. A well managed business that uses lot of resources, expertise and management can manage problems better and would have a greater impact in the society.

When a company’s product or service provides superior quality product, better pricing to consumers then there is customer value to the product. The add- on benefits of a product gives value added services to the product and this enables satisfaction to the consumers. The consumers get attracted to the product which has an advantage over its competitors.

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It is important to jot out a strategic marketing plan for an existing product line. After identifying a product market, planning product strategy needs to be given attention. Product positioning analysis is a useful tool. Product positioning creates a place for the product in a particular market. There are different steps involved in product positioning.

The first step is to identify the relevant set of products that are competing. The second step is to identify the important criteria that consumers use to differentiate between different brands they prefer. The third step is to collect necessary information from customers regarding their perception towards the product. After understanding the present position of the company’s product the analyst can determine the competitive strength of the product. The fifth step is to understand the different preferences of market segments and the current position of the product. The last step is to select the strategy options.

Therefore company’s performance of the product would be better than its competitors by doing the product positioning strategy.

0809

Problem

Moving across the technology adoption life cycle, compare and contrast technology enthusiasts with pragmatists. Give special attention to the strategy guidelines that the marketing strategist should follow in reaching customers that fall into these two adoption categories.

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The changing high technology markets create opportunities and challenges for the product strategist. Technology adoption life cycle is a popular tool at high technology firms.

Technology enthusiasts are customers who like to experiment and explore. They prefer innovative products. These consumers can understand how products are perceived by others in the organization. Technology enthusiasts lack control over resource commitments.

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The strategy to attract technology enthusiasts is to provide more innovative products.

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Pragmatists’ consumers are analytical. These consumers use technology purchases in organizations. Pragmatists often believe in technology evolution. They adopt new technology only when everybody else does it. They purchase from only those people who have good name in the market.

Identification of pragmatists is the key to the winning strategy. The main strategy for pragmatists is to provide products that suit and solve their problems.

0810

Problem

Firms such as Microsoft, Apple, Sony, and Intel have experienced a burst of demand for some of their products. During the “tornado” for a high-tech product, the guiding principle of operations for a market leader is “Just ship.” Explain and discuss the changes in marketing strategy the firm must follow after the tornado.

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The tornado strategy stresses on product leadership and operational excellence in manufacturing and distribution. Usually in a tornado strategy there would be one winner who stays as leader until a new innovation comes and creates a new tornado.

After the tornado it’s the main street, which is usually calm and quiet. This stage is a period of aftermarket development. Competitors increase production and supply becomes more than demand. There may be price fluctuations and heavy advertisement cost has to be borne for product marketing. The main goal in main street strategy is to develop value based strategies, which target the end users. This strategy gives more emphasis to operational excellence in production and distribution.

Many companies do not survive the main street as they find it difficult to adjust after the tornado. When the company alters its strategy the company can remain in the competition till the next tornado. The companies have to come with new offers and new promotional policies to compete with the competitors.

0901

Problem

Research by James Quinn suggests that few major innovations result from highly structured planning systems. What does this imply for the business marketer?

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JQuin’s research suggests that only few major innovations result from highly structured planning systems because we can plan overall product development process to achieve our goal but it is not necessary that the process will be executed in the same manner as planned so each and every innovation cannot result from structured planning.

Generally organizations focus on the concept that the product development process should be of high quality and for that the planning structure should be flexible enough to make certain changes during development process. Changes in the early stages like investigation can be economic but if the changes are at later stages then they can be quite expensive.

Only few new products or services are developed through structures planning otherwise most of the products or services follow unstructured or disordered route for development.

0902

Problem

Compare and contrast induced and autonomous strategic behavior. Describe the role of the product champion in the new-productdevelopment process.

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Induced Strategic Behavior- Induced strategic behavior is related with the traditional strategic concepts of the organization.

• A manager defines those market needs which are related to the strategic concepts of the organization

• Innovation in induced strategic behavior is of incremental type i.e. new product is developed but for existing market and through existing resources of the organization

• All the levels of management i.e. top, middle and operational level are involved in hierarchical way for consistent work flow and decision making process because of that the roles and responsibilities are prescribed properly

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Autonomous Strategic Behavior- Autonomous strategic behavior is related with the new opportunities for the organization in different categories.

• Autonomous strategic behavior is different from the strategic concept of the organization

• Innovation in autonomous strategic behavior is of major type i.e. new product is developed through new resources of the organization

• Initially informal channels are used for communication so at that time roles and responsibilities cannot be defined properly

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Role of Product Champion in New Product Development

A Product Champion is an individual who plays a major role in the new product development process. Also, he is the one who has overall idea of the project goals and objectives.

Product Champion is the person who developed idea for the new product, find out its opportunities, calculate related risks, explore technical feasibility and defines about it.

The major roles of the product champion are:

• To lead the technical team in the company towards converting the plan into the desired action

• Recognize different needs and resources necessary

• Need to analyze the nature of the market and provide suitable marketing strategies

• Make the work done in a pleasant atmospheres without any conflicts

0903

Problem

The breakthrough products for many companies did not emerge from the formal new- roduct-development process. Instead, they were championed by a few resourceful employees. What steps can organizations take to motivate and support corporate entrepreneurship?

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To motivate and support corporate entrepreneurship organizations should focus on following two dimensions:

• Natural Motivation- Natural motivation comes from the inner soul of a person. When a person wants or enjoys doing some work then he/ she will be motivated naturally. Sometimes when external rewards are not enough to motivate a person then his/ her inner soul can naturally motivate him/ her.

Step 2/2

• Work Environment- Providing work environment according to the requirements of entrepreneur can enhance opportunities for them

Corporate entrepreneurs want opportunities to directly interact with customers so that they can solve customer’s problems with their highly innovative ideas and also need to contact with other technologists to get the technological advancement for problem solving

0904

Problem

Compare and contrast a low-end versus a new-market disruptive strategy.

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Step 1/3

Disruptive Strategy

Disruptive innovation means a product or service which is not as good as currently available products or services. Disruptive strategy has several other benefits of these products and services like they are easy to use, more convenient and economic to attract new customers.

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Types of Disruptive Strategy

• Low- End Disruptive Strategy- Targeted customers of low- end disruptive strategy are those customers who want to buy a good product but either at lower or discounted price.

The organization should be able to produce the product at lower price which will be beneficial for both the organization and the customers. Discounted or lower price will attract the customer at the low end of the market while increased sale will maximize the profit of the organization.

After being lower cost the performance of these products should meet all the requirements of low- end of market.

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• New Market Disruptive Strategy- Targeted customers are non-consumers i.e. those customers who were not able to buy products because of money and use them because of lack of skills.

Initially the profit can be less but later on it will definitely going to be increase.

The performance of the new products or services is definitely enhanced specially in terms of convenience and simplicity.

0905

Problem

In many markets, a new entrant might consider a strategy that provides potential customers with a product or technology that is “good enough” rather than “superior” to existing options. Describe the key tests that a disruptive strategy must pass in order to stack the odds for success in its favor.

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Key Tests- To be successes a disruptive strategy must pass the following key tests:

• Low- End Strategy Test- There should be potential customers at the lo- end of the market who wants to buy product or service which is “good enough” rather than “superior” to existing products or services if they can get it at lower or discounted price.

Targeted customers of low- end disruptive strategy are those customers who want to buy a good product but either at lower or discounted price.

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• New Market Disruptive Strategy- Targeted customers are non-consumers i.e. those customers who were not able to buy products because of money and use them because of lack of skills.

Existing customers cannot use the product or service at their doorstep they have to go to some other place to use the product or service.

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• Final Critical Test- The innovation should be disruptive among all the major competitive firms in the industry.

If any of the competitive firm will be working on the same idea then the disruptive strategy will not pass in order to stack the odds for success in its favor.

0906

Problem

In fast-changing high-tech industries, some firms have a better record in developing new products than others. Describe the critical factors that drive the new product performance of firms.

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Critical factors that drive the new product performance of firms:

By comparing with some standards three critical success factors are identified which drive a firm’s new product performance-

• New Product Development Process- Most of the organizations work on the concept that the new product development process should be of high quality.

The development process should have complete information about the key concept of product, benefits through product, decision points, target customers and target market before the actual development work start.

New product development process should b flexible enough to make certain changes during actual development.

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• Resource Commitment- Research & Development budget, necessary manpower and all the other resources required to fulfill the organization’s objective will be invested in new product development.

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• New Product Strategy- Most of the organizations set new product performance goals like profit impact of new product on organization.

Through new product strategy organizations can save time, money and other resources because new product strategy will help organizations to maintain product planning.

0907

Problem

Rather than planning for and investing in just one version of the future, some firms use low-cost probes to experiment with many possible futures. Evaluate the wisdom of this approach.

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Inventors of successful products did not focus or invest only on one version of the future but they focus and invest on variety of low cost research to provide multiple options to the customers.

When organizations focus only on a single version they will be at high risk of failure because of uncertain future market environment and challenging competition. On the other hand multiple versions increase the probability of success because from a variety of versions maximum customers will get the product according to their requirements.

Multiple versions generally cover-up all the future needs like developed according to new market, according to new technologies, customized according to the requirements of customers.

If the multiple versions of product created for future are based on proper research then probability of unanticipated future is decrease and success of multiple versions of product will increase.

0908

Problem

Describe how Marriott might employ lead user analysis to better align its properties and services with the needs of the executive traveler.

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Lead users are referred to those individuals who has an intensive expertise over a specific problem that does not has any other resolution means. Lead users are ideal to meet the needs and requirements of the future of a product or service because they innovate new technologies, products, methods, and services so they are considered as creative and innovative customers.

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Lead user method is a market research instrument hat is used to seek people to develop new innovative products or services. This method is preferably used to meet the requirements of industrial goods market rather than consumer goods market. Lead user projects are handled by a team of four to six managers from distinct departments like technology, marketing, sales, etc.

Company M can employ the lead user analysis starting from identifying the need of the customer and preparing an innovative and responsive team. The company can use this method for aligning their services to identify and analyze the dynamic trends of the market so that they can hire the lead users accordingly to develop an innovative product or service according to the requirements of the customer.

The company can use lead users to forecast the future market demand of the customers and help the company to encounter upcoming bulk of that marketplace. It will help them identify the underlying business trends and use them to create an opportunity for the company to acquire a leading position.

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Lead users may also the company M to increase easy accessibility for their customers to book the services, contactless payment, safety and hygiene, and many more. Lead users can help them enhances their hospitality and create market opportunities for them.

0909

Problem

New industrial products that succeed provide clear-cut advantages to customers. Define product advantage and provide an example of a recent new product introduction that fits this definition.

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Product Advantages

New industrial products that succeed provide following advantages.

• From a customer’s point of view product advantages is related to the cost, quality and performance of the product

• Every successful product provides clear cut advantages like getting product at low or discounted price, high quality and better performance, to their customers

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Example

Vsacn, a pocket sized imaging device developed by GE Healthcare engineers from around the world is an example of new product introduction.

When GE’s CEO Jeffrey Immelt demonstrate Vscan, he say that Vscan could be the stethoscope of the 21st century. Vscan incorporates several powerful capabilities as compared to the other stethoscopes presently available in the market.

Several capabilities of Vscan like- is portable, can be used by doctors to diagnose disease and confirm symptoms, can be used in clinics, hospitals, emergency rooms or primary care setting, will definitely going to provide clear cut advantages to its customers.

0910

Problem

Evaluate this statement: “To increase the speed of the newproduct- development process, a firm might follow one strategy for unpredictable projects and an entirely different one for more predictable ones.”

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To increase the speed of the new product development process, organizations generally use “Experimental Strategy” for unpredictable projects and “Compressed Strategy” for predictable projects.

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• Experimental Strategy for Unpredictable Projects-

Generally experimental strategy is used to speed up the product development of uncertain projects.

Because of market environment and rapidly changing technologies, the product development process is highly uncertain. So to speed up the product development it is essential to use real time interactions, multiple design iterations, experiments, testing and should have flexibility, which is the key concept of experimental strategy for unpredictable projects.

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• Compressed Strategy for Predictable Projects-

If the market environment and technologies are well known and they are not changing rapidly then compressed strategy is used to speed up the product development.

In this strategy product development follow a predefined process of certain steps which should be followed and completed in the defined manner and time.

1001

Problem

Local contractors who handle home remodeling and other building projects turn to Home Depot or Lowe’s for many products, tools, and materials. Describe how these retailers could adopt a solutions marketing focus to serve those customers.

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An individual who buys various products in a lesser quantity from various wholesalers and sells them to the end-users is known as a retailer. Thus, a retailer is the last link in the distribution chain from the manufacturer to the end-user.

The process that defines, educates, and provides access to the complete and the integrated solution that provides the customer value by assisting the customers in solving their issues is known as solution marketing.

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Rather than beginning with a product the solution-centered approach starts with the customer issue analysis and it ends by finding the services and products that are essential to solve the customer issues. Thus, Company HD and Company LO could have implemented a solution-centered approach by researching on an analysis on the issues of the contractors in the locality and then by identifying the services and products that are essential to solve the issue.

In the next step Company HD and Company LO could have sold the products and services of the local contractors are in need, even if it is necessary to order the products that are not presently available in the stores. In this way both the companies must have shown their pre-selected brands that are available in the store to the contractors. These retailers might have also reinforced their relationship with the contractors by collecting their particular needs and having a track on them for a particular time to make sure that their needs are met.

1002

Problem

When a company buys a high-end document processor from Xerox or Canon, it is buying a physical product with a bundle of associated services. Describe some of the services that might be associated with such a product. Develop a list of the elements or points of interaction that might be reflected in a customer experience map. How can buyers evaluate the quality or value of these services?

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The impression that a customer has on a specific brand on a whole aspect throughout the journey of a buyer is known as a customer experience. The main outcome of the customer experience is their view about the particular brand and this might have an impact on various factors that are related to the bottom line that is inclusive of the revenue.

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A significant service that is linked with Company X or Company C might offer to their customers would be the training that they provide to the customers and the employees on the way to utilize their equipment in a proper way and also to make use of the equipment’s special features. It would also be significant for these companies to provide timely and efficient service recovery programs at the time when it is necessary for a machine to undergo a repairing process or if there is a breakdown. The potential end-users might gather the information that are related to quality and value of these company’s services from their present customers.

1003

Problem

Explain why the growth opportunities for many firms, such as IBM or GE, are far greater in services than they are in products.

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Customer experience management is a process where the customer of a firm is given more importance and tries to maximize their satisfaction level. A firm should identify the gap between customer expectations and actual experience.

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The firms like I and G were found more towards service excellence than products. It is found that their service sectors are growing dramatically than their product wings. The main reason behind this is that these firms follow a solution-centered perspective. They dig out the customer problem and then identify which product or service is best for their problem as the solution. Their focus is on interaction rather than transaction-based. They give co-create value for the customer by offering an integrated product that is associated with services that are specially designed for the customer experience. This helps firms like I and G to attain competitive advantage and profitability. This is why their growth opportunity is great in services than products,

1004

Problem

Leading service companies such as American Express and FedEx measure customer satisfaction on a quarterly basis across the global market. Discuss the relationship between customer satisfaction and loyalty.

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Leading companies always emphasis more on customer satisfaction. All their marketing efforts are directed towards improving the product or service features according to the tastes and preferences of customers. Therefore they conduct an analysis and study the customer satisfaction and loyalty to design future strategies of marketing.

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Customer Satisfaction and Loyalty:

Customer satisfaction is a measurement of customer’s attitude regarding products, services and brands. A customer is generally satisfied when his/her expectations are being met through the product. Customer satisfaction merely does not guarantee that these customers will be continuing with the same brand. Once a customer derives the utmost satisfaction from a product he develops a loyalty towards the product or brand which will lead to repeated purchase.

Customer loyalty is a behavior which shows that the customer is purchasing the same brand repeatedly. Satisfied customers are six times loyal than unsatisfied customers. It is not necessary that a satisfied will be a loyal customer. Loyal customers generally forgive some unsatisfactory experiences and remain committed with the brand.

Therefore companies try to analyze the things and factors that make a satisfied customer became a loyal customer.

1005

Problem

Many firms have a recovery process in place for situations when their products or services fail to deliver what has been promised to the customer. Illustrate how such a process might work.

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When some products or services, provided by any organization, fail to deliver that had been promised to the customer’s, organization use service recovery to respond to customer’s queries. Customer’s retention and loyalty are dependent on providing perfect service from the company’s. Hence service recovery process helps in maintaining the customer satisfaction and loyalty.

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Service recover is a process through which organizations solve their customer’s post sale problems. Organizations hire specialists for different service areas to resolve customer service problems effectively. These specialists communicate with the customers and get to know about their problems and ask if they want any specific solution of their problems. Then specialists make plan of action to solve the problem and execute the plan.

If the service demands a repair for a product or good then expert reaches to the place of customer and gets the product repaired and serviced.

When the customer gets satisfied with the service recovery and say that his/her problem is solved, then only specialist can close the complaint.

1006

Problem

A new firm creates Web sites and electronic commerce strategies for small businesses. Describe the essential elements to be included in its service product.

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When a new organization creates websites and electronic commerce strategies for small businesses then following elements should be include in its service product-

Tasks in typical sales cycle

It does not matter what we are selling, the sales process follow the same tasks which are as follows:

I. Approach- Approach is the first task involved in the typical sales cycle. Here the sales person begins to contact with the customer and convince him/her for meeting.

II. Needs Assessment- To sale a product to any customer it is necessary to understand the needs of that customer. After understanding the needs of customer we can determine how the salesperson can actually be of service.

III. Bid and Proposal- Make a proposal to explain how the product we are selling can fulfill the requirements of customer.

IV. Negotiation and Sales Closure- This task involve some decision taking authority from seller side to negotiate the price and terms & conditions.

V. Fulfillment- Deliver the product to the customer provides assembly and installation if required.

VI. Customer Care Support- Provide all the post sale service and support to the customer

1102

Problem

Using a multichannel integration map (see Figure 10.3), illustrate how a firm might cover small and medium-sized businesses versus large corporate customers.

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Multichannel model coordinates the activities of many channels such as field sales representatives, channel partners to enhance the total customer experience and profitability.

Besides that, organizations can use multichannel map to integrate the activities of different channels and increase the overall profitability of the organization

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Using a multichannel integration map, a firm can cover small and medium size business versus large corporate customer in the following way:

• Organizations can use partner channels to cover small and medium sized business customers, which can significantly increase overall market coverage for the organization and results in higher profit margins. When organization will get higher profit then they can use their sales force to concentrate on large corporate customers.

• For small and medium sized business, firms can shift from most expensive (direct sales) to lower cost (Internet) sales channels to increase the overall profit of the organization and can reach maximum consumers in more markets efficiently.

• A firm can serve essential corporate accounts through sales representatives and the middle market through channel partners, call centers and the internet.

Strategies to cover small and medium size business houses versus large corporate customers:

Organizations should use multichannel map to integrate the activities of different channels and increase the overall profitability of the organization

• Organizations have to shift from most expensive to lower cost sales channels, which can increase the overall profit of the organization so organization can increase its market.

1103

Problem

Explain how a direct distribution channel may be the lowest-cost alternative for one business marketer and the highest-cost alternative for another in the same industry.

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Direct distribution channel is organized and managed by organization itself so the cost of direct distribution channel is completely depends on organization and their marketing strategy.

If the customers are well defined then direct distribution channel can be lower cost alternative on the other hand if the customers are amorphous then it can be the highest cost alternative.

If the market is completely arranged then direct distribution channel can be lower cost alternative on the other hand if the market is unknown or unmanaged then it can be the highest cost alternative.

If the number of customers for the same product is large then direct distribution channel can be lower cost alternative but if the number of customers are less and they used to buy the products from different brands then it can be the highest cost alternative.

1104

Problem

Describe specific product, market, and competitive conditions that lend themselves to: (a) a direct channel of distribution and (b) an indirect channel of distribution.

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Direct distribution channel is a marketing strategy which does not use intermediaries and managed by organization itself.

Direct channel of distribution is appropriate when-

• The number of customers is large and they are very specific about their requirements from the product so the products are customized for them.

• Organization knows their targeted customers very well.

• The organization wants to respond quickly according to market conditions.

• The price of the product or service can be negotiated with top level management.

• Organization wants to maintain direct relationship with their customers.

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Indirect distribution channel use at least one or more type of intermediaries so we can say the indirect distribution channel depends on intermediates to perform distribution function.

Indirect channel of distribution is appropriate when-

• Customers are not well defined and market is widely dispersed.

• Organization wants to cover more geographical area by reaching to the end users.

• There are number of products bought by a customer.

• Organization wants to reduce some operating cost like sales, inventory, promotions, etc.

1105

Problem

Compare and contrast the functions performed by industrial distributors and manufacturers’ representatives.

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Industrial Distributors

• The marketing strategy of an organization can be judge on the basis of quality of its industrial distributors

• Industrial distributors provide complete intermediary from maintaining inventory, product sold, delivery, installation, credit and after sales services ALSO

• Key responsibilities of industrial distributors are to contact with all the customers, provide product to each and every customer on time, assemble and install, if required, and provide after sales services

• Generally organizations use industrial distributors in heavily concentrated business market because the most use of industrial distributors is for maintenance, repair and operations (MRO) supplies

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Manufacturer’s representatives (Reps)

• Reps are also called selling hands of manufacturer’s because they perform the complete selling process on behalf of the manufacture

• Reps work in limited geographical area so they know very well about the market potential

• Reps provide only sales force to the organizations which make the use of it quiet economic so rep is best alternative for the organizations which cannot afford to maintain their own sales force

• Generally reps are so experienced in their serving areas that they can provide all the information about their serving industry from information about innovations, latest trends, latest technologies, etc.

Differences

Manufacturers’ representatives are given commission based on their sales and not paid if they doesn’t make a sale but the industrial distributors doesn’t belong to this category, they are almost like partners with the manufacturers.

Manufacturers’ representatives could be run either by a single person or group of people whereas the industrial distribution should have the minimum sales support.

Manufactures representatives provide more economic benefits to the manufacturers than that of the industrial distributors.

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Similarities

Both the industrial distributors and manufacture representatives are independent and build a good relationship with the manufacturers.

Both provide the additional services to the customers which include installation, warehousing, repair etc.

1106

Problem

What product/market factors lend themselves to the use of manufacturers’ representatives?

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Following factors are the main reasons to the use of manufacturer’s representatives (Reps):

• Reps provide only sales force to the organizations which make the use of it quiet economic so rep is best alternative for the organizations which cannot afford to maintain their own sales force

• As reps provide only sales force then organization kept its goods with it which gives the organization more control in the market while with indirect sales channels goods are kept with distributors

• Working with reps involved only either their fixed salary or commission but working with sales channels involves lots of other operating cost. So working with reps can eliminate all the operating costs

• Reps work in limited geographical area so they know very well about the market potential

1107

Problem

Describe why it might be necessary for a business-to-business firm to serve some customers through reps, some through distributors, others exclusively online, and still others through a direct sales force.

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The needs of each and every customer are different so it is necessary for an organization to segment its market to serve the customers according to their requirements. For this purpose organizations use the market segmentation strategy.

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Some of the main reasons business to business firms chose all kinds of approaches in serving the customers are:

• Type of Customer

Generally organizations use following three different approaches for different types of customers-

I. Large accounts are handled by organization’s own sales force.

II. Medium sized market is handled by reps.

III. Small repeat orders are handled by distributors.

• Price

Price is an important buying factor. Different customers want to buy product in different price segments, some customers want economic product, some medium range while some expensive one

• Customer expects multiple approaches of firms

Customers want to experience the buying though online at the same time by the sales force. Depending upon his feasibility and time he chose the respective approaches. If the firms fail to provide different ways of selling, the customer might switch to the other service provider.

Hence, these reasons force the firms to utilize all the available approaches to serve the customers of different kinds.

1108

Problem

Explain how a change in segmentation policy (that is, entering new markets) may trigger the need for drastic changes in the industrial channel of distribution.

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Segmentation policy is a marketing strategy in which wide target market is subdivided into different segments like customers, businesses, geographical area, buying behavior, price, etc. Market segmentation help the organizations in competing with its competitors, getting aware about the needs of customers, better utilization of market resources and targeting customers.

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The marketing policy of an organization is completely depends on market segmentation and different market segments require different distribution channels even for the same product. Not only market segments but also distribution channels reflect overall marketing goals of an organization so the management developed different effective distribution channels for different marketing segments to achieve the marketing goal of the organization.

The distribution channels are developed on the basis of different market segments, if there will be any changes in segmentation policy then the distribution channel have to be changed accordingly to achieve marketing goal of the organization.

1109

Problem

Both business marketers and distributors are interested in achieving profit goals. Why, then, are manufacturer-distributor relationships characterized by conflict? What steps can the marketer take to reduce conflict and thus improve channel performance?

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Sales and profit of any organization can be improved by changing the nature of business marketers and distributors working relationship. Although both business marketers and distributors are integrated in achieving profit goals after that their relationship is characterized by conflicts.

In business marketers and distributors relationship marketer depends on distributor and distributor depends on marketer which highly influences the financial conditions of both of them. So it is quite necessary to reduce their conflict and improve overall performance.

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Some reasons of conflicts in business marketers and distributors relationship are as follows-

• Conflict occur when either marketer or distributor think only about themselves without considering how their decision will impact the others

• Conflict can be occurs if both of them don’t want to communicate to resolve the problems of differences between them

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Conflicts can be eliminate from business marketers and distributors relationship if

• Both of them communicate more

• They include channel wide committees

• Both of them get committed to working relationship

1110

Problem

For many years, critics have charged that intermediaries contribute strongly to the rising prices of goods in the American economy. Would business marketers improve the level of efficiency and effectiveness in the channel by reducing as far as possible the number of intermediate links in the channel? Support your position.

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Intermediary is a third party or a middleman which or who make it possible to provide the product from manufacturer to end user. Basically intermediary facilitates the contact between buying and selling party.

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Intermediary’s selection is an ongoing process some intermediaries leave the channel for their own reasons while some are terminated by business marketers. Performance of the each and every individual intermediary is evaluated continuously and on the basis of this evaluation business marketers replace poor performers with potentially better ones.

Except replacing poor performers business marketers re-evaluate the list of potential intermediaries with the help of salespersons of the organization and customers which result a reduce list of intermediaries.

An internet product is a complex array of physical and intangible elements. It usually includes software, hardware, extranets, intranets, services, and information.

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In this context, company C has developed a control system that regulates large gas turbine engines. The key elements that C should develop for this internet product are as below.

• Website: The company should develop a successful website with programs. It usually requires software to develop sites effectively. This also acts as a marketing tool for the firm to improve sales.

• Information/services: the website developed should have information about the business, products, and other details. Internet catalogs are useful in this context. It will have details of materials, products, and other kinds of services that C gives along with the control system.

• Hardware: There should be a tangible product available at their warehouse so that they can be delivered to the customer on order. If that is software, a CD is a tangible product that can be shipped for installation. In addition, it can be an invoice paper.

• Intranet/extranet: The firm should provide both extranet and intranet. Extranet helps to contact suppliers, vendors, and the set of customers Intranet helps to share information within the server and the connected computers within the organization to ensure the customer order is processed.

1206

Problem

Find a business marketing company’s Web site and evaluate how easy it is for a potential customer to move through the site and eventually purchase a product.

It is obvious that the internet marketplace will surely result in stiffer price competition in the business-to-business marketplace. Through the internet, the buyers get a wide range of information about the product and service that they need. Thus, it actually bolsters the bargaining power of the buyer. Business marketers lose control over price due to this effect. The difficulty to purchase a product, marketing it, or distributing it is easier and customers can easily move or shift their purchase from one seller to another seller. Thus, the rivals to compete with each other effectively, have to come up with stiffer price competition. The firms cannot attract customers by simply adding value-added services. The reason is that the same product can be availed from another seller at a lower price. The customer will go with purchasing the product alone rather than going for a high price and getting value-added service with the product. The reason is that customer only needs the product to satisfy his need and may not get interested in value-added service. This makes the rivals take only one competitive advantage, that is pricing. This is the reason why it is said that e-commerce will result in stiffer price competition.

1301

Problem

What is supply chain management, and what are the types of functions and firms that make up the typical supply chain?

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Supply chain management is process in the business that helps companies in linking manufacturer to the supplier of raw material. Supply chain management also helps in linking the manufacturer to the end user of the product.

Effective Supply chain management further helps the businesses in linking supplier and customers to enhance the efficiency and effectiveness.

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Following are the types of functions and firms that make up a typical supply chain:

• Main objective of Supply chain management is establishment of coordination and collaboration of activities between various partners.

• In the business the various participants may include suppliers, intermediaries, third party providers and customers.

• Supply chain management helps the business in minimizing the cost and increasing the revenue by way of enhancing the efficiency and effectiveness of various processes.

• SCM helps the companies in delivering various goods and services on the prescribed time. This helps companies in winning new customers and eventually helps companies in garnering more revenue.

• SCM further helps the companies in integrating the process of procurement to manufacturing which further helps in cost reduction.

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Thus, these are a few types of functions and firms that make up a supply chain management.

1302

Problem

Explain how an effective supply chain can create a strong competitive advantage for the firms involved in it.

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Effective Supply chain management further helps the businesses in linking supplier and customers to enhance the efficiency and effectiveness.

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Effective Supply chain management can create a strong competitive advantage for a firm in following ways:

• With the help of effective supply chain management manufacturer can deliver the product at right time, which can create more demand of the product. The customers are satisfied with the services which would eventually lead to more demand from the customers.

• Effective supply chain management helps the businesses in reducing the costs. Therefore, the profits of the company would increase.

• A company that uses supply chain management in its operation can lead to reduction in the wastage that occurs due to lack of coordination between various departments in an organization.

• The company would be able to respond in a flexible way in case a company uses the supply chain management technique. Accompany would be able to response in a better manner as there would be adequate availability of the products in case of emergency due to better coordination between various departments.

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Thus, these are some of the ways in which a company can develop competitive advantage through the use of effective supply chain management.

1303

Problem

Explain why cooperation among supply chain participants determines whether the supply chain is effective.

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Primary objective of Supply chain management is coordination and collaboration of activities performed between the business partners in order to increase efficiency and effectiveness of the processes.

The increased efficiency results in various benefits for the businesses. Some of the benefits include cost reduction, waste management and increased revenue. A business participant includes suppliers, intermediaries, third party providers and customers.

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Cooperation among supply chain management determines whether the supply chain management is effective or not in following ways:

• The degree of effectiveness and efficiency of a supply chain can only be achieved in case a company has cordial and good relation with the suppliers as suppliers are mainly responsible for increasing efficiency.

• Information is required to be communicated from the manufacturer to the suppliers. Coordination between the various parties involved in the supply chain management allows the parties to communicate seamlessly with other parties.

• The various activities that are required to be conducted on continuous basis or improving the efficiency and effectiveness of various processes could only be achieved through coordination between the parties.

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Thus, these are a few ways which shows the importance of coordination between the manufacturer and the supplier in order to make the supply chain management more effective.

1304

Problem

Explain the different elements of “waste” that exist in supply chains and how supply chain management focuses on eliminating the various elements of waste.

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Waste management is one of the major challenges that persist in supply chain management. Generally waste occurs because of ineffective supply chain management which often results from lack of coordination among the suppliers.

There are different types of waste that occur in supply chain management. The most common waste arises from lack of inventory management.

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Different types of wastes in supply chain management are given below:

• Deterioration in the value of a product due to lack of sales. Due to ineffective inventory management often it happens that a company is required to produce more goods in case of increase in demand, which often results in depreciation of value of the goods in case the products remain unsold.

• Wastage of valuable resources like labor costs, transportation costs etc., are consumed in the inventory management. These wastes often hamper the profits o the company.

• Wastage of time in transportation of delivery of goods and raw material from one place to another due to lack of coordination between the suppliers.

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Following steps can be taken by the companies in order to eliminate wastes in supply chain management:

• Establishing of warehouses at strategic locations so that the raw materials and finished goods can be transferred faster and in an inexpensive manner.

• Proper cooperation and coordination between all businesses parties involved in a supply chain could considerably reduce the wastage in the process of supply chain.

• The transportation facilities that are used in manufacturing a product could be used according to the type of product.

Thus, above given are a few types of wastes in a supply chain management and the manner in which these wastes could be eliminated.

1305

Problem

Describe the role the Internet plays in enhancing supply chain management operations.

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Step 1/3

Internet has been playing a pivotal role in managing supply chain management process. In fact in modern business environment, internet is one of the main components of supply chain management process.

Step 2/3

Internet helps in supply chain management process in following ways:

• Proper communication plays an important part in effective supply chain management and internet help the supply chain management participant in communicating effectively.

• Second most important factor in effective supply chain management is fleet management in which internet helps the companies.

• In managing large data related with various quantities and transactions that takes place between various parties, internet plays a vital role through the use of cloud based applications. Various parties can have access to the various types of data at the same time and can share pivotal information with the help of cloud based software.

• Internet can also be used to identify the demand and market research process can also be carried out by the use of internet in an effective manner.

• In order to identify the potential suppliers and buyers internet can be of great help for the companies.

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Thus, these are some of the ways in which internet can be used by companies in order to make the process of supply chain management more effective and efficient.

1306

Problem

Adopting the perspective of an organizational buyer, carefully illustrate how the most economical source of supply might be the firm that offers the highest price but also the fastest and most reliable delivery system.

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Step 1/3

Suppliers form an essential cog in the wheel of supply chain management. The manufacturers rely heavily on suppliers in order to provide them the requisite raw materials at the given time and quantity in order to meet the demand from the consumers.

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Reliable and faster suppliers provide with greater return on investment as compared to less expensive and ineffective suppliers. This is mainly because a manufacturer is able to produce the good at a faster rate when the supplies are provided in the lesser time.

Hence in case a manufacturer that makes a particular good to be available faster is generally preferred over those companies that la behind in making the goods available. Therefore, the manufacturer is able charge higher profits in return of providing the product at earliest.

Step 3/3

A reliable supplier also allows a manufacturer to deliver the product at a particular given time. This also enhances the reputation of the manufacturer and makes loyal customers for the company. This in turn allows a continued flow of revenue for the company.

Thus, the higher price charged by the suppliers are compensated in terms of higher profits from the consumers and loyal customers that become a continued source of revenue for the company.

1307

Problem

Describe a situation in which total logistical costs might be reduced by doubling transportation costs.

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Step 1/3

Logistic cost includes transportation cost, fleet management, undamaged product delivery and timely delivery. Transportation cost is not the only cost incurred in logistic management and timely delivery is considered even more important for effective supply chain management.

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Sometimes companies even pay double the amount for transportation in order to ensure faster delivery of the product. In such cases transportation cost is double but overall logistic cost is reduced by timely and reliable deliver.

Step 3/3

Even in such cases the transportation company arranges all the logistic facility and they charge higher price for transportation. In such cases company save all the other expenses associated with the logistic and so reduces the cost of logistic.

1308

Problem

A key goal in logistical management is to find the optimum balance of logistical cost and customer service that yields optimal profits. Explain.

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Step 1/3

A dilemma that arises before various companies is to determine the cost of providing logistic services by the company. The companies should be in a position to determine the impact of the services provided by them onto the customers.

Step 2/3

In most of the industries there are various forms of supply chain services such as next-day delivery, specialized labelling and customized handling. In delivering such types of services companies often incur an extra cost.

In most of the cases companies do not track the cost of providing these extra services and the impact of providing these services on the customer’s profitability.

Step 3/3

In order to measure this problem many companies are using the cost-to-service analytics. Many companies are using such analytics in order to measure the effect of providing additional services on the company’s profitability

Thus, the data obtained through the use of analytics has been used by the companies is shared with vendors and suppliers in order to change the system and make the process of delivering services more profitable to the companies.

1309

Problem

Explain how consistent delivery performance gives the organizational buyer the opportunity to cut the level of inventory maintained.

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Step 1/3

All the companies want to keep fewer inventories because a lot of resources are wasted in managing inventories. These resources can be invested in some other assets and can provide the company with valuable return of investment.

Step 2/3

Higher inventories might also force a company to arrange warehouses and incur other inventory management expenses. Higher inventory might also result in making the end product obsolete due to introduction of latest version of a product.

Step 3/3

Therefore, in case a company is consistently providing products to other companies then it allows the company to make prediction about the future demands. This further allows the company to manage the inventory levels as per the demand predictions.

Hence, consistent delivery of the products give the buyer to cut on the maintenance of the inventory.

1310

Problem

An increasing number of manufacturers are adopting more sophisticated purchasing practices and inventory control systems. What are the strategic implications of these developments for business marketers wishing to serve these customers?

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Step 3/4

Many companies are using various strategies to reduce the cost of inventory and manage the inventory levels in a better manner.

Following strategies are being used by various companies in order to reduce the inventory time and cost:

• Just in time strategy in which a company purchases the raw materials whenever it requires. Manufacturers make arrangement of such facility in which they can purchase raw material anytime when it is required in manufacturing.

• Reduction in lead time, wherein companies try to reduce the lead time in the manufacturing a product at the manufacturing facility.

• Customization of product includes arrangement of all the raw materials required in manufacturing a product at a place and based on the requirement the products are manufactured at the facilities.

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Thus, above given are some of the strategies that have been adopted by various companies in order to reduce the inventory cost and time.

1401

Problem

Describe the core benefits and add-on benefits that FedEx provides to its business customers.

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Step 1/2

Benefits are those services or values that a customer gets from a business transaction. There are two types of benefits. They are core benefits and added-on benefits. Core benefits are the basic value or service that customers get or meet the need of the customer's expectation. Added-on benefits are those attributes that are not required but add value to the customer experience.

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The core benefits and added-on benefits that firm F gives to its customer is listed below.

1402

1403

Problem

Explain why it is often necessary for the business marketer to develop a separate demand curve for various market segments. Would one total demand curve be better for making the industrial pricing decision? Explain.

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Step 1/3

Demand for all products in different market differs according to taste and preferences of local customers and their willingness and capacity to spend money in different market segments.

Step 2/3

Business marketers have to develop different demand curve for different market segments because of following reasons:

• Demand of different product is different in different market segment and that depends on the taste and preferences of local customers and their willing capacity to purchase the product.

• The requirement of each market segments is different. A segment would prefer cheap and quality product and on the other hand other segment would prefer quality product. Thus, companies are required to develop different demand curves for different segments.

• Demand of different products is also based on different seasons therefore, companies are required develop different demand curves for different segments.

Step 3/3

It would not be a rational decision for the business marketers to develop a single demand curve for making industrial pricing decision because a single demand curve would not take into consideration various aspects that are related with various segments.

The demands for different products vary according to the segments, tastes and preferences of the customers and also according to the seasons. Therefore, a single demand curve would not be ideal for making pricing decisions.

1404

Problem

Evaluate this statement: To move away from the commodity mentality, companies must view their products as customer solutions, and then sell their offerings on that basis.

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Step 1/3

Customers are the main source of income in a business for a company. A company takes into consideration the need and requirements of the customers that the company would serve while manufacturing the product.

While making any decision for producing a product the company must evaluate all the possible needs that the product would serve. After analyzing the need served by the company do the company should go for pricing the product.

The company should not set up a mentality wherein the focus should be on manufacturing a product first and then analyzing the needs that the product would fulfill. In that case the company would be hard-pressed to find the needs of the product.

Step 2/3

Based on the needs served by the product the company should take the decision of pricing the product. The company should analyze the segments to which the business is catering.

A company that is into B2B settings has a product in the offering that would lead to automation of processes across various business settings and in the process reduces the cost of operation of the company can demand a higher price for the product.

Step 3/3

A company should not price the product arbitrarily and have a pricing based on the needs and requirement served by the product. Thus, a company should price a product based on the needs that it serves and charge the customer based on those needs.

1405

Problem

Compare and contrast commodity value versus differentiation value, highlighting the significance of each in setting a price.

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Economic value represents the cost saved and revenue gained that customers realize by purchasing the firm’s product. Some product and features provided are unique and different across a category and this provides economic value to the product.

Step 2/3

Commodity value is the value that the customers assign to product features that resemble those of competitor offering.

In the commodity value features of products of different companies is similar which allows the customers to easily move from one company product to another company product based on their paying capacity.

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Differential value is the values associated with product features that are unique and different from competitors. Therefore, customers are not able to easily move from one product offering to another product offering. Alternatives in products are limited in case of differentiated products.

1406

Problem

The XYZ Manufacturing Corporation has experienced a rather large decline in sales for its component parts. Mary Vantage, vice president of marketing, believes that a 10 percent price cut may get things going again. What factors should Mary consider before reducing the price of the components?

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Step 1/3

MV is vices president of XYZ manufacturing which is based in USA. There has been a decline in the sales of component part of the company. The vice president of the company has decided to cut the price of the product by 10 percent in order to revive the sales.

Step 2/3

Following factors should be considered by MV before taking the decision of price reduction of components part:

• In case the price of the components parts is reduced by 10 percent then would the product be accepted by the customers and penetrates into the market. The VP should also consider the fact that whether the customers would be able to pay for the reduced price.

• Competitor pricing for the same type of product is also an important factor in making such decision.

• Pricing of alternative product is also an important factor in making such decision.

• It should also be considered that whether the company has recovered the development cost of the product.

• The company should also take into consideration the fact that the company has acquired the production efficiency.

Step 3/3

Once following things are taken into consideration, the company can move forward and take the decision of reducing the price of the product.

1407

Problem

A business marketing manager often has great difficulty in arriving at the optimum price level for a product. First, describe the factors that complicate the pricing decision. Second, outline the approach you would follow in pricing an industrial product. Be as specific as possible.

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Step 1/3

Pricing decision is an important and a complicated decision for any marketing manager. Business marketers have to consider several factors before making the pricing decision.

The cost price of the product, the profit margin and the selling price of the product are needed to be taken into consideration before pricing a product.

Step 2/3

Following are the factors that complicate the pricing decision:

• The marketers should be aware of the paying capacity of the consumers. The price of the product should be fixed at a level where the customers are satisfied in paying the price of the product.

• The marketers should also take into consideration the cost of manufacturing of the product before setting the price of the product. The cost of the product should not be stretched too high so that it would become difficult in setting the selling pro\ice of the product.

• The extra cost used manufacturing the product should also be included in setting the selling price of the product.

• Competitor pricing for the same type of product should also be kept into consideration before making pricing decision.

Step 3/3

The approach to be followed in pricing of industrial product is given below:

• The total cost associated with manufacturing of the product should be determined.

• Market research to determine the customer’s willingness to pay for the product should be also carried out.

• A research regarding the competitor’s pricing for same type of product should also be done.

• The number of alternatives available in the market and their pricing for the similar types of the products should be gauged in order to arrive at the actual pricing decision.

Based on the above information company should price the product which should prove to be reliable and competitive.

1408

Problem

Rather than time to market, Intel refers to the product development cycle for a new chip as “time to money.” Andrew Grove, Intel’s legendary leader, said, “Speed is the only weapon we have.” What pricing advantages issue from a rapid product development process?

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Step 1/3

INTC is a USA based chip manufacturing company. INTC generally refers product development cycle for new chip as “time to money”.

One of the leaders of the company has stated that speed in developing new product is the most important weapon of the company. Due to its speed in developing new products the company has been able to capture large market share.

Step 2/3

The company is able to develop the products at faster rate; this allows the company to introduce the product earlier as compared to its competitors and hence the company charges a higher price for introducing the latest technology in the market.

The company skims the market by charging higher price for the product and as the company starts acquiring efficiency in the production system, gradually the prices of the products starts declining.

Step 3/3

Thus product development cycle is considered as “time to money”, as soon as the product is introduced in the market, the company starts making money from the customers for introducing the latest technology in the market.

1409

Problem

If a competitor’s price cut threatens only a small portion of expected sales, the sales loss from ignoring the threat is probably much less than the cost of retaliation. Agree or disagree? Explain.

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Step 1/3

Competitor pricing is one of the most important factor in pricing of product by a company. Sometimes competitors cut the price of a product and this makes other companies to cut their prices as well in order to maintain sales and demands of product in the market.

Step 2/3

Sometimes price cut by a competitor has very less effect on companies as in case the price cut by the competitor affects only a small segment of its business. The company in that case would not consider retaliating to the price cut as the loss of sales due to price cut would be more as compared to not reducing of the price.

Step 3/3

The companies also have many product lines, thus a company would consider all the options before going for the price cut.

1410

Problem

Many companies, including GE, Quaker Oats, and United Technologies, report millions of dollars of savings from using reverse auctions rather than traditional purchasing methods. Of course, business marketing strategists fear that these auctions will transform their products and services into commodities. Propose particular strategies that marketing managers might follow to deal with this challenging situation.

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Step 1/3

In today’s scenario most of the USA based companies use reverse auction of raw material rather than using traditional method of purchasing. In this process companies save million of dollar every year.

Business marketing strategists have often expressed their fear and concerns that these auction practices can transform their product and services into commodities.

Step 2/3

Following strategies should be used by marketing managers in order to deal with such situation:

• Change the raw material in the form of a differentiation product (with different special characteristics) so that the fear of being treated as a commodity is foregone.

• Companies should develop special professional ways of alternative of auctions. In that way strategists can remove the fear of products being treated as commodities.

Step 3/3

Thus, following are the given ways in which a company can work so that the products and services are not treated as commodities.

1501

Problem

Although the bulk of the promotional budget of the business marketing firm is allocated to personal selling, advertising can play an important role in business marketing strategy. Explain.

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In most of the company most part of promotional budget is allocated to personnel selling and less amount in advertising even though advertising play an important role in business marketing strategy.

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Following are the ways in which advertising can play an important role in marketing strategy:

• Advertising can add to effectiveness of personal selling. Research has shown that the effectiveness of personal selling increased when the people were exposed to advertising.

• After the customers have been exposed to advertisement their interest towards the products increased and the people started listening about the product specification more clearly.

• Advertising also lead to increased sales efficiency and the brand awareness of the product increased which resulted in greater market share for the company.

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• Advertising also helps a company in placing a new product and services in the market. This results in people getting awareness about the new product which increases the overall marketing efficiency.

• Advertising also increases the reach of a sales person to many people and helps the influences buying behavior of the people.

• A marketing manager can use various modes of communication that can be used to increase the product awareness. The various modes can have profound effect on the customers.

• The customers from having no knowledge about the product to brand preference, to conviction and ultimately to actual purchase. Advertising can play a pivotal role in increasing the sales of the product.

Thus, following are the ways in which advertising can play an important role in marketing strategy.

1502

Problem

Evaluate this statement: “Social media channels have fundamentally changed the way in which many business customers compare alternatives and make buying decisions.”

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Step 1/2

Social media nowadays plays an important role in getting feedback about a particular product and comparing the alternatives available for the product. Following are some of the ways in which social media is playing an important role at the B2B front:

• Buyers can get quick response and feedback about a particular product from the current users instantly.

• Various reviews about the product are also available online. The buyers can make use of the reviews for deciding about the choice of the product.

• The buyers can have in depth information about the product through various social media platforms. The buyers can also analyze that whether the product would be suitable for them or not by going through various social media sites.

• Buyers can also have information about the services being provided by the company. After analyzing the various parameters with the help of information obtained though social media platforms, a buyer is in a position to make the decision of buying a particular product.

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Thus, above given are some of the ways in which social media is changing the way in which business customers are comparing the alternatives.

1503

Problem

Breck Machine Tool would like you to develop a series of ads for a new industrial product. On request, Breck’s marketing research department will provide you with any data they have about the new product and the market. Outline the approach you would follow in selecting media and developing messages for the campaign. Specify the types of data you would draw on to improve the quality of your decisions.

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Step 1/5

BMT is a USA based industrial product manufacturer. BMT want to create an advertisement for its new industrial product. The marketing research department can provide all the information related with creation of advertisement of the new product.

Step 2/5

The company will like to communicate the launch of its product to its existing customer, the companies which it has been pitching its existing products and various other prospects that it has lined up.

Various media platforms can be used by the company for advertising its products. The company can use a mix of the social media platforms, conferences, tradeshows, seminars and other events to advertise its new product.

Step 3/5

Social media can be used as an effective medium by the company to advertise its product. Nowadays, trend has changed and many companies are using the social platforms quite effectively.

Companies spread the news of launching of new products on popular networking sites. The news of launching of new product spreads very quickly on the networking site and its gives due momentum to the company to pitch the product to the customers.

The companies also post videos about the new products on various networking site. This also elicits interest in the prospects and they are inclined towards gathering information about the product.

Step 4/5

Business companies generally attend industry conferences and tradeshows throughout the year in order to meet the buyers and suppliers and advertise about the launching of any new product.

These platforms can also help a company to advertise its product as industry buyers and suppliers are available which provides the perfect audience for launching of the product.

Step 5/5

Information about the number of people attending a conferences and tradeshows and the number of such events to be held can become helpful for the company as it can estimate the reach of advertisement by the company.

Similarly information about the number of followers on social media sites could also be of help for a company as it can also determine the reach of the company to its prospects.

Thus, this is a way through which a company can outline a campaign about advertisement of its newly launched product.

1504

Problem

Outline how you would evaluate the effectiveness and efficiency of a business firm’s advertising function. Focus on budgeting practices and performance results.

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Evaluation of advertising is important function of marketing team. Company has spend so much fund on the advertising expense so after certain period of time company should evaluate the performance of advertising to find the benefit of advertising versus advertising costs.

First of all company should analyze all segments, products wise and get information about those products and what company actually produces like product and services.

Step 2/3

Based on the information gathered about the products and services of the company advertisement performance can be measured by using following technique.

• The impact of advertisement cannot be measured at short instance. Advertisement is generally used to make the consumers about a product. Thus, the impact of advertisement can be analyzed by measuring the sales figures at the beginning and end of each year.

• The effectiveness of advertisement can also be analyzed by measuring the amount of dollars spent for creating awareness.

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• The response from the sales people can also be used to measure the effectiveness of advertisement. It generally happens that people show interest in getting information about a product just after being exposed to an advertisement. Thus, in case an advertisement does not raises interest in public, then that advertisement can be considered as ineffective.

Thus, above are given some of the ways in which the effectiveness of advertisement can be measured.

1505

Problem

Explain how a message in a business-to-business advertisement in the Wall Street Journal ay be favorably evaluated by the production manager, unfavorably evaluated by the purchasing manager, and fail even to trigger the attention of the quality-control engineer.

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Step 1/3

Research on the effectiveness of business-to-business print advertisement has highlighted that marketing managers should take into consideration a rational approach before going for print advertisement.

A print advertisement must consist of the product specifications, description of the product and the benefits that the product offers to the customers.

The ads can be made more effective by highlighting the quality of the product and information related with the performance of the product.

Step 2/3

Following are the reasons due to which a production manager might be more interested in a print advertisement published in a business magazine as compared to a purchasing manager and a quality engineer:

• The printed advertisement might have contained the information that might have information related with the production techniques, the methods that might lead to increase in efficiency and the other process enhancing techniques.

• This type of information might not be of any use for a purchasing manager or a quality engineer. Thus, a purchasing manager might have unfavorable attitude towards the advertisement and the ad might not trigger any response from a quality engineer.

Step 3/3

Thus, above given are a few reasons that might lead to a response form a production manager, might lead to an unfavorable response from a purchasing manager and might not trigger any kind of response from a quality engineers.

1506

Problem

Given the rapid rise in the cost of making personal sales calls, should the business marketer attempt to substitute direct-mail advertising or online advertising for personal selling whenever possible? Support your position.

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Step 1/4

Direct mails or e-mail are some of the marketing tools that are utilized by marketing managers. Direct mails are used to deliver the advertisement messages that are intended by the marketer managers to be delivered to selected individuals.

The direct mails or the e-mails may contain sales information about a new product being introduced by the company, or may contain product brochure or a sample of the product.

The main function of direct mails or e-mails is that they are used to deliver the product information directly to the selected individuals. The individuals to whom the direct mails are sent are qualified on various parameters.

Step 2/4

In case any individual shows interest in the product and replies on the e-mail received that person can be contacted by a salesperson over the phone and a meeting could be scheduled for explaining the details of the product.

The individuals even though haven’t shown any interest in the product are also contacted over the phone and are explained about the product specifications. The interested candidates are then scheduled with a meeting with a salesperson.

Step 3/4

Direct mailing cannot replace personal selling as direct mailing is only used for disseminating information about the product. It is used to trigger the interest of the customer towards the product.

The salesperson cannot make direct calls to the customer and explain about everything about the product to the customer. This would increase the cost of selling the product as the salespersons would be required to first generate interest of the customers and then would be required to sell the product.

Step 4/4

Thus, direct selling and personal selling should not be used as alternative to each other but rather they should be used in order to complement each other. Direct mailing should be used to generate the interest of the customers and personal selling should be used to sell the product.

1507

Problem

Describe the role that online advertising might assume in the promotional mix of the business marketer. How can the business marketer use the Web to form close relationships with customers?

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Step 1/4

Online advertisement has changed the way a product is promoted by a marketing manager. Nowadays online advertisement has become an integral part of the marketing mix.

Online advertisement includes the use of direct marketing and e-mail marketing. Direct marketing is used by the marketing managers to formulate personalized messages and send them to the prospective customers.

Step 2/4

The direct mails could be used by the marketing managers as a promotional campaign, sales force support, communication with distribution channels and as solution for special marketing problems.

Direct mails have been used by the companies to project the image of the companies in the respective fields. Direct marketing can also be used to directly target the decision makers in various companies.

Step 3/4

The businesses can also use web in order to promote a product and establish relation with the customers of the product. Businesses are making the use of e-mail marketing in order to send personalized e-mail to the customers.

E-mail marketing is less costly as compared to direct mail marketing. Direct marketing involves use of printed material for marketing which makes it an expensive affair. Also, the e-mail campaigns are quicker in getting response from the customers.

Step 4/4

Thus, these are the ways in which the marketing managers are making use of online marketing for promoting the product. These online marketing tools have been gradually incorporated in the promotional mix.

1508

Problem

It is argued that business advertising is not expected to precipitate sales directly. If business advertising does not persuade organizational buyers to buy brand A versus brand B, what does it do, and how can we measure its effect against expenditures on other marketing strategy elements?

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Step 1/3

Advertising is not expected to bring in the sales in short space of time. Advertisement is carried out in order to create awareness about the product, loyalty towards the product and to stimulate the customers to make purchases for the product.

Even though it is expected that advertisement would bring the results instantaneously nut it is expected that advertisement would have some effect on the sales performance of the company.

It is widely considered that the advertisement programs must be held accountable and the company that have taken into consideration the measurement of effectiveness of advertisement are generally more profitable as compared to other companies.

Step 2/3

It has been widely accepted that advertisement affect knowledge, awareness and other parameters. These criteria make it possible for the companies to measure them. Thus, the marketer does want to measure the advertising criteria that makes individual to move through the purchase decisions.

Thus, in case a company A is not being able to promote its product and compete against another company B, then it should measure the parameters such as knowledge, awareness, and other things that are a direct result of advertising.

Step 3/3

The measurement of the effect of advertising against the expenditure is a difficult thing to achieve. The effectiveness of advertisement can only be measured on the basis of evaluation of parameters such as recall, awareness, recognition, motivation and preference.

Marketing research companies can be roped in to conduct a research on the effectiveness of the advertisements as against the expenditure carried out on advertisement.

1601

Problem

As drivers of relationship marketing effectiveness, compare and contrast relationship breadth and relationship composition.

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Step 1/2

The business organization’s success alone depends upon the marketing relationships and its effectiveness with other business-to-business firms, sales persons and individuals. It is a network of relationships. Some particular elements acts as drivers of relationship marketing and ensures towards the enrichment of its effectiveness. These elements are termed as “drivers of relationship marketing effectiveness”. Given below are the drivers of relationship marketing effectiveness.

1. Relationship quality

2. Relationship Breadth

3. Relationship composition

4. Relationship strength

5. Relationship efficacy

Among the above drivers, relationship breadth and relationship compositions play yeoman services. Their variances are provided below in brief:

Step 2/2

Relationship composition:

• Emphasizes:

Relationship breadth stretches the importance of developing, understanding about customer’s needs and demands. RC focuses on decision-making authorities and contact portfolio.

• Value proposition:

RB ensures to provide information, profits, and quality to its customers to maintain relationships where as RC search for ways to reach influential decision makers.

• Necessity:

RB works for internal ties which are very essential to serve customers to reap abundant profits. RC stretches the importance of building relationships with key decision-makers to acquire hefty returns.

1602

Problem

Some customers are more open to relationship marketing initiatives than others. Under what conditions would customers tend to be more responsive to relationship-building fforts by the salesperson?

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Step 1/1

Supplier organizations and sellers initiate and employ various relational ties with customers to strengthen the relationship marketing. They are discussed below in detail:

Relationship marketing (RM) programs:

1. Social RM programs are the social engagements with customers to strengthen the relationships and to enhance special status of customers.

2. Structural RM programs are specially designed for the purpose of gaining the loyalty of customers by providing increased productivity and efficiency in services.

3. Financial RM programs provide economic benefits like free-shipping and handling, special discounts etc.

Even the organizations initiates several RM programs, some customers tend to be more open than others. It is because they indulge in specific conditions. These special conditions are explained below in brief:

• Risk:

When the customers face or even acknowledge a hint of trouble, laterally poses attention towards the sales persons initiating RM programs. Customers anticipate expert aid from the sales person.

• Uncertainty:

RM initiatives by sales persons, stimulates a sense of hope in the customers minds and provides a gentle perspective of the future course of events. It helps in risk reduction if there is any.

• Dependence:

RM programs generate added flexibility with the help of personal interaction with the sales persons. These programs provide added advantage with pioneer prospect.

1603

Problem

On the basis of return on investment, why do financial relationship marketing programs (for example, discounts) often fail to pay off?

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Step 1/2

Salesperson is an individual who activates a sales account for the business. Sales account is defined as the customer buying the product or service at the point of contact with salesperson.

Step 2/2

As the salesperson calls a customer in the business market, she or he should be aware of certain players and elements in the market. It includes buying center, purchasing requirements, and the competition. The following information should be collected while planning a call for sales accounts.

• Competition: The sales personnel should identify the possible competition in the business market. The customer need can be met with his product or any products that its rivals offer. Thus, what products are readily available in the market and what value they offer to the customer needs to be known. In addition, a differentiating strategy needs to be developed at the same time.

• Purchasing requirements: The customer may have various requirements to meet with products. Thus, salesperson should understand all requirements that a potential customer might have during the purchase time. It may be price, quality, quantity, or some specific ingredient or attributes. These attributes need to be correlated with the product that they have to offer them.

• Buying center: A buyer center is a decision-making unit that includes certain individuals. These individuals play different roles in purchase decision-making. A buying center includes users, influencers, buyers, deciders, and gatekeepers. The salesperson should understand who is the prospect he or she is about to call. This helps to use the correct persuading message and content during the call. The content the user requires is different from that of an influencer requires. Understanding who he or she is in the content will help to draft a sale pitch appropriately.

1604

Problem

When planning a sales call on a particular account in the business market, what information would you require about the buying center, the purchasing requirements, and the competition?

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Step 1/4

Planning is the first step in the any business. Planning provides an outline of future actions that needs to be taken by the company, company’s sales strategy and the potential buyers of the products.

Before the planning, marketing manager requires information about the buying center, purchasing requirements and competition for analyzing the target market.

Step 2/4

Following information are required about the buying center, competition and the purchasing center while planning a sales call on a particular account:

Buying Center

The buying center provides information to the sales persons about the trends in consumer buying behavior of the product.

They get information about place and modes of purchasing of the product by the customer. Based on the information gathered, sales person can plan the mode and way for pitching of the product to the customer.

Step 3/4

Purchasing Requirements

From the information about purchasing requirement a person who is intending to make a call gets to know the frequency of the purchase of the product made by the customer. Based on this information sales person pitches for the product to the company.

This also provides information to the person making the sales call about the need of the product required by people. In case of recent purchase of the product the company would not buy the product and hence making a call would be a waste of time.

In case the person who is planning to make the call knows that the company is in requirement of the product, then it would help the person making the call in pitching for the product in a better way.

Step 4/4

Competition

Knowing about competition in the market is also very important for the sales people. Information about the competitors makes the sales people to make a comparison between the strength and weaknesses of the product.

Thus, sales person who knows about the strengths of the product would be able to pitch the product in a better manner as it would give the product an edge over the other.

Knowing about the weaknesses of the product would also make the sales people to be more aware about the product and this will also help the sales people to counter any questions or doubt that might arise during the process of pitching.

Thus, these are a few information points that a sales people need to have before making a call to a particular account.

1605

Problem

Some business marketers organize their sales force around products; others are market centered. What factors must be considered in selecting the most appropriate organizational arrangement for the sales force?

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Step 1/2

Most of the marketing strategy depends on the type of product company produces. Some of the products are sold due to their unique and special features.

In such types of products the sales force is generally organized around products as the selling of the product is generally influenced by the unique selling prepositions.

Step 2/2

On the other hand some products are sold not on the basis of unique features but due to their needs. These products are generally not differentiable for other competitors and thus the focus is more on meeting the consumptions

Consumer goods which do not require expert knowledge for selling also fell in this category. Advertisement is main factor for increasing the demand of this type of product. Therefore, in such types of products companies organize their sales force according to market.

1606

Problem

Christine Lojacono started as a Xerox sales rep several years ago and is now a key account manager, directing activities for five key accounts. Compare the nature of the job and the nature of the selling task for a key account manager with those of a field sales representative.

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Step 1/3

CL is working with X corporation as a sales representative. At the time when her job was as sale representative then her job responsibilities included meeting customers, providing product knowledge, convincing them about the usability of the product and converting the prospect in to sale.

Step 2/3

Now, CL has been promoted to the position of key account manager in X corporation and has been in charge of directing five key accounts.

Responsibility changes when an employee is promoted to a higher position. Therefore, there are changed set of priorities for CL as key accounts manager with respect to the responsibilities performed as a sales representative.

Step 3/3

Key accounts represent the major businesses for the organization. These organizations are generally responsible for buying large volume of product for the company.

Thus, the responsibilities related with handling of key accounts increases when there is a transition taking place between being a sales representative and a key accounts manager.

The key account manager would be responsible for handling all the sales related activities of the key accounts. The key account manager would also be responsible to ensure that the company is able to retain the customer once the subscription or the demand ends.

Thus, above are some of the points that compare the nature of job of a sales representative and that of a key accounts manager.

1607

Problem

Explain how a successful sales training program can reduce the costs of recruiting.

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Training is one of the most important factors for any successful business. Training provides employee a basic insight as to how the industry and the company work.

Many companies have different sets of processes and all sets of processed require different sets of skill. Therefore, it is important for the employees to understand the process and the product and hence, training is required for the employees.

Step 2/3

A successful sales training can reduce the cost of recruiting because of following reasons:

1. Most of the employee leave the job because they are not well prepared to face the demands that selling requires. This arises as adequate training has not been provided to the sales people by the company.

Thus, providing of training to the sales people would make the employees more confident about the process and would eventually reduce the turnover rate and hence the cost of recruiting will reduce.

2. Another reason of attrition in organization is employees are not able to familiarize the organizational environment. Thus, training should be provided to the employees in order to make them more familiar with the company.

Training also makes the employees to adjust with the environment and reduces the prospect of turnover and hence reduces the cost of recruiting.

Step 3/3

Thus, due to the above given reason the attrition rate increases which eventually increases the cost of training. Therefore, proper training is required in order to reduce the attrition rate and the cost of recruiting.

1608

Problem

Develop a list of skills and characteristics that distinguish between high performers and average performers in a sales organization. Next, average performers.

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Step 1/3

A sales employee requires certain skills that are required to carry out the job of sales. Some people are good in carrying out the job of sales as compared to others. There are certain skills that differentiate good performers from the average performers.

Step 2/3

Following are some of the skills that are possessed by high performers while carrying out the sales process in an organization:

• High performers generally possess excellent communication skills. They are good in both oral and written communication.

• High performing sales people general possess excellent convincing skills. They are able to send the message across to the customers.

• Sales people that are high performer have excellent knowledge about the product and processes of the company. They know about the different variants of the product. They have all the details about the product specification.

• Proper knowledge about the target customers is also one of the things that separate the high performing sales people from the average performing people.

• Customer’s taste and preferences are also known to the high performers.

Thus, these are some of skills possessed by the high performers that separate them from the average performers in the organization.

Step 3/3

Following steps can be taken by a company to improve the sales skill sets of the employees:

• The company can provide training to the sales people about various processes. Training can also be provided by the company about the products of the company, its major competitors and the strengths and weaknesses of the product.

• Information obtained through market research regarding the trend in market about the products and the opportunities available for the company can also be provided to the sales people. This will make the sales people more confident about dealing with the sales process.

• Case studies can be created about the process of selling and it can be studied by various sales staffs. This would educate the sales people about the rights and wrongs that might have taken place while being on the ob.

• Constant feedbacks about the performance of the sales people should also be provided. This would iron out the weak areas of the sales people.

Thus, following step scan be taken to improve the skill sets of the sales people while being on the job.

1609

Problem

To make effective and efficient sales force allocation decisions, the sales manager must analyze sales territories. Describe how the sales manager can profit by examining: (a) the potential, (b) the concentration, and (c) the dispersion of territories.

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Step 1/3

One of the ways to improve sales and motivate sales employees is by efficiently allocating territory to the employees, where the company wants to sell its product.

The sales manager gets all the information about the territory that is required to be allocated. The information like potential at a particular territory, concentration of the resources and the geographical location of the territory is determined.

Step 2/3

A sales manager can allocate the territories based on the three criteria of potential, concentration and the geographical location. The decisions based on these parameters results in better allocation of the strategy.

The potential

Sales manager can allocate the territory according to the potential of sale in a particular territory. In such territory generally sale is higher so manager can reduce the number of sale force.

Step 3/3

Concentration

Another way to allocate territory is on basis of concentration of product. In such territory generally the numbers of prospects are concentrated in a particular area. A sales person can cover large number of area by making a few calls.

Dispersion

Allocation on the basis of geographical location can also be done. In the potential areas that are dispersed over large geographical area the sales are generally lower because of time wasted in covering large amount of area.

1610

Problem

Research suggests that the greater the salesperson’s satisfaction, the greater the customer satisfaction. Given the important relationship, what steps can a business-to- usiness firm take to nurture and sustain job satisfaction in the sales force?

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Step 1/3

In many research it is found that in case a sales person is satisfied then they are able to sell the product in an efficient and effective manner. This further results in the satisfaction of the customers as well.

For example in case a customer had purchased a product from a store and the customer was treated in a very effective manner as the sales employees were satisfied with their jobs.

Step 2/3

This led to the formation of good brand image of the company in front of the customer. This would further propel the customer to buy again from the same store.

In case the sales employees are not satisfied with the job, then the customers would not be treated in an effective manner. This might result in loss of sales for the company and might lead to creation of bad image of the company.

Step 3/3

Following steps can be taken by the business to business firms to nurture and sustain job satisfaction in the sales force:

• Job satisfaction also dependents on the salary being paid to the employees. Money paid also works as a motivation factor for the employees.

• Treating and respecting employees for a job well performed also results in employee satisfaction. Thus, emphasis should be given on treating the employees well.

• Personal development of the employees is also an important step in making the customers satisfied. Providing training related with job and the personal grooming of the employees increases employee satisfaction.

• The needs and wants of an employee should be taken care of by the employers. The employees should be given patient hearing about the requirements in an organization.

Thus, following are some of the steps that could be taken by the organizations which would result in increased job satisfaction of the employees.

1701

Problem

Discuss why a firm that plans to enter a new market segment may have to develop new internal business processes to serve customers in this segment.

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Step 1/2

Internal Business Process

Internal business processes are an important function of the business. It refers to the processes internal to the organization. Some of the internal processes are as follows:

1. Customer relationship management

2. Innovation management

3. Supply chain management

Internal business processes remains unique to an organization. These are the forces that grant the company a competitive advantage.

For example: Amazon boost to its supply chain management process, which enables it to deliver product at low cost than its competitors.

Step 2/2

The need of the segment or market varies with the location and product. Thus internal processes and strategies must be reshaped to meet he need of the new segment.

Further the customer segment varies with market and thus the preference. Internal business process is requiring researching about customers taste and preference and making changes accordingly.

1702

Problem

Not all customer demands can be satisfied profitably. What steps should be taken by a marketing manager who learns that particular customer accounts—including some long standing ones—are unprofitable?

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Specifically speaking,

1. A sales manager can search for options to reduce the number of sales calls on unprofitable customers

2. Or, he/she can find ways to make sales person more effective with those unprofitable customers.

1703

Problem

Describe the relationships between and among the four central perspectives represented in the balanced scorecard and included in a strategy map: financial, customer, internal business process, and learning and growth.

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Step 1/2

Balanced Score Card

Balanced score card is a framework that helps organizations to monitor the strategic processes. It combines the past performance with performance drivers.

Step 2/2

1. Internal business process: External business process totally depends on the performance of the internal business processes. Right internal business processes give company a competitive advantage in the market. Internal business process helps in formulating and implementing strategies to generate get maximum revenue.

2. Learning and growth: Learning and growth is second most important factor for a successful organization. Learning is a continuous process. Both management and employees have to learn according to new trends and customers’ requirements. This helps in determining and developing efficient ways for fulfilling the requirements of customers.

3. Customers: Customers are most important factor in any business. They are the source of the revenue. Company focusing on customers’ perspective, often formulates strategies by considering customers’ perspective on top priority. Even, if it comes at a cost.

4. Financial: Ultimate objective of all business is to earn profit and maximize wealth. Profits come from the business by selling products and service to the customers and increase the value of shareholder equity.

1704

Problem

Last December, Lisa Schmitt, vice president of marketing at Bock Machine Tool, identified four market segments her firm would attempt to penetrate this year. As this year comes to an end, Lisa would like to evaluate the firm’s performance in each of these segments. Of course, Lisa turns to you for assistance. First, what information would you seek from the firm’s marketing information system to perform the analysis? Second, how would you know whether the firm’s performance in a particular market segment was good or bad?

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Step 1/1

By analyze and comparing the attributes of each segment with the industry and company’s own benchmarks one can evaluate company performance. This helps in deciding whether the firm is making or losing money in terms of segment.

1705

Problem

Susan Breck, president of Breck Chemical Corporation, added three new products to the firm’s line 2 years ago to serve the needs of five NAICS groups. Each of the products has a separate advertising budget, although they are sold by the same salespersons. Susan requests your assistance in determining what type of information the firm should gather to monitor and control the performance of these products. Outline your reply.

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Step 1/2

The information necessary to monitor and control the performance of products would include the following:

1. Market share

2. Average revenue per sales representative

3. Number of customers

4. Sales relative to capacity

5. Sales growth rate

6. Contribution margin

7. Return on investment

Step 2/2

This information helps to analyze and compare the performance of the different products with the successful products of the company and the market. It also enables one to compare the products in terms of input and output.

For example, Contribution margin helps to evaluate the performance of particular activities in reference to demand these products make on the organizations resources.

1706

Problem

Assume that the information you requested in question 5 has been gathered for you. How would you determine whether advertising and personal selling funds should be shifted from one product to another?

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Step 1/4

The information necessary to monitor and control the performance of the products would include the following:

1. Market share

2. Average revenue per sales representative

3. Number of customers

4. Sales relative to the capacity

5. Sales growth rate

6. Contribution margin

7. Return on investment

Step 2/4

For example, Contribution margin helps to evaluate the performance of particular activities in reference to consumption of the organization’s resources.

Step 3/4

Based on the above information, the given company can produce products meeting the requirement of the customers. The gathered information about the pricing of competitors’ products and the paying capacity of NAICS group can be used to compare the performance of the products.

This entire information forms the basis for making sound judgement All this results in forming the can From the information it is found that some product requires more advertisement and personal selling expenses than other product. Based on the analysis of information she can shift advertisement and personal selling cost from one product to other.

Step 4/4

For example:

Marketing manager can take following steps:

1. Reducing the expenditures on particular products

2. Increasing the output of the system

3. A sales manager can search for options to reduce the number of sales calls on unprofitable products

4. Or, he/she can find ways to make sales person more effective with those unprofitable products.

1707

Problem

Hamilton Tucker, president of Tucker Manufacturing Company, is concerned about the seat-of-the-pants approach managers use in allocating the marketing budget. He cites the Midwest and the East as examples. The firm increased its demand-stimulating expenditures (for example, advertising, personal selling) in the Midwest by 20 percent, but sales climbed only 6 percent last year. In contrast, demandstimulating expenditures were cut by 17 percent in the East, and sales dropped by 22 percent. Hamilton would like you to assist the Midwestern and Eastern regional managers in allocating their funds next year. Carefully outline the approach you would follow.

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Step 1/4

Seat-of-the-pants approach refers to decision making process in which one makes decision using institution and experience rather than a plan.

Step 2/4

But before producing the product company is required to do research about the requirements and preference of the customers as well as the competition analysis.

Step 3/4

The company is required to make a breakeven analysis before making a decision on increasing and decreasing the marketing budget.

For example, if company is thinking of increasing the marketing budget by 25 percent, it is sure from that sales will not increase by 25 percent (from the experience).

Thus, company needs to analyze the percentage increase in sales that will create a situation of no profit and no loss.

Step 4/4

The same is true about the decision of decreasing the marketing budget.

It is not acceptable to an organization that cutting a marketing budget by $20,000 creates a decrease in profit by $30,000.

Thus, situation is required to be thoroughly analyzed before going for any decision.

1708

Problem

Your company produces electric motors for use in appliances, machinery, and a variety of other industrial applications. The CEO of the company wants the chiefmarketing officer (CMO) to create a dashboard ofmarketing indicators that could be reviewed by top management to evaluate the contribution of marketing to overall firm performance.What advice would you give to the CMO in terms of criteria he or she should use in designing the dashboard? That is, what will be required to make the dashboard effective?

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Creating Marketing Dashboard

Mr. X is Chief marketing officer at ABC Company which produces electric motor, appliances, and variety of other industrial product. CEO of the company asks MR. X is to create Dashboard for marketing indicator that could be reviewed by top manager to evaluate the contribution of marketing employee.

Basic Criteria Mr. X should choose before making marketing strategy is mention below:

1. Categorize the product according the level of demand and supply and based on categorization he can made dashboard.

2. Categorize the product according to price and quantity sold and based on categorization he can made dashboard.

3. He should do market research before making the dashboard to make dashboard effective.

4. Categorize the product according to customer level and their expanse capacity and based on categorization he can made dashboard.

1709

Problem

Using the marketing strategy center concept as a guide, describe how a strategy that is entirely appropriate for a particular target market might fail because of poor implementation in the logistics and technical service areas.

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Step 1/4

Marketing strategy center approach emphasizes the importance of the cross-functional relationships between departments in executing marketing strategies.

It is a concept that integrates various departments into decision making process.

Cross-functional relationship refers to the relationships between the inter-dependent departments such as marketing and operations or marketing and logistics.

Step 2/4

Strategy formulation is the first step of strategy implementation in an organization. Sometime company develops strategies using various strategy centric concepts appropriate for targeting a particular market.

This may include option such as quick delivery of the product, 30 minutes delivery of pizza, one day delivery of cell phones etc.

Step 3/4

Effective logistics management helps the company to distribute the product and services at right time and right place.

If company implements a marketing strategy to increase demand of the product without considering the logistics and supply chain capabilities, company can end in a state if complete despair.

Because of extensive marketing there will be a demand in market but company will not be able to deliver on time.

Instead of boosting the revenue, this situation often destroys the company’s image in the new market.

Step 4/4

Example: If someone orders a product for a special occasion but company deliver’s it on the next day due to insufficient operational and logistics capacity.

This situation will create a bad name due to word-of-mouth publicity by the customer. Additionally, company will lose the customer for lifetime.

1710

Problem

Describe how the strategy implementation challenges for a marketing manager working at DuPont (an industrial firm) might be different from those for a marketing manager working at Pillsbury (a consumergoods firm).

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Strategy Differentiation

DP industry and P industry are two well-known companies. DP industry produces industrial product while P industry produces Consumer goods.

Marketing manager of the both the firm has different perspective and approach in strategy implementation. Generally the strategy implementation differs according to type of product.

For example, marketing strategy for an industrial product differs from the marketing strategy for a consumer product (consumer goods). This is because the customers as well as their requirement remain very different.

Step 2/3

Customers of industrial products constitute industries and corporations. These customers use these products for the operations of their company and are generally more attentive and educated. They have their own specific requirements pertaining to product.

Industrial suppliers often design products on make-to-order strategies i.e. they produce products on demand of customers and as per their requirements. This is because no one product fits all requirements.

Thus, in case of industrial products marketing strategies focuses on individual customers. Products are often displayed through exhibitions and formal gathering and product launch.

Step 3/3

Direct selling model is most preferred for these types of product.

Customers of consumer goods constitute mass public. Requirement and needs of the customers remains same throughout. For example, in current case it is “to satisfy hunger or to have food.”

For the consumers good company uses tools of mass communications such as promotions and advertisement to increase the demand of product.

Companies sell consumer goods through retail stores. Thus, they also are a type of customers. Thus, marketing managers also need to concentrate on retail stores while implementing strategies.

Alan Zimmerman B2B

0101

Problem

What are the main characteristics of B2B marketing?

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Step 1/3

B2B marketing is the process of selling goods and services to other businesses. B2B marketing encompasses both industrial and trade company sales, broadening its scope. Customers include businesses, retailers, governments, and other organizations.

Step 2/3

The following are the characteristics of B2B marketing

Complex buying process - Business buying requires multiple decision-makers and finance team approval. Businesses may choose the lowest quote to cut costs and increase product sales. B2B vendors must have extensive market and product knowledge because numerous important people are involved in purchasing critical things.

Reasonable purchase - A company, in contrast to a private individual, will make a purchase after carefully weighing the costs and benefits. Even if the price is right, no business-to-business customer will buy a product that has not been thoroughly evaluated. A supplier's history and standing in the market may also factor into buyers' judgements.

Products that are complicated - The purchasing of B2C items is influenced by the company's brand building and awareness activities. B2B marketers should have the necessary technological specifications. The information supplied should be factual and meant to instil in the buyer a sense of worth.

There are fewer buyers and more sellers - The business-to-business (B2B) industry has a smaller number of potentially large and medium-sized customers. P The B2B marketing approach includes making presentations, raising brand recognition, collaborating with a customer to implement any relevant product updates, closing the deal, and offering support long after the sale has been made. Products are evaluated based on their product attributes, technical consultation, product efficiency, value creation, and on-site support services.

Segmentation is restricted - A product's market can be broken down into subsets based on factors including consumer need, disposable income, and product characteristics. Since B2B buyers are really not concerned with how their items will be used, they do not even put themselves in the shoes of the average consumer while making purchases. The challenge is in determining which market to target and engaging them in order to form a sustainable strategic partnership.

Step 3/3

Since many significant people are involved in acquiring crucial items, B2B marketing is characterised by deep market and product understanding of B2B buyers. Products are evaluated based on their product qualities, technical consultation, product efficiency, value creation, and on-site support services. There are fewer potential large and medium-sized customers in the business-to-business (B2B) industry.

0102

Problem

What are the most important tools a B2B product manager would use to achieve his/her objectives?

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Step 1/3

Businesses which buy goods or services to be utilized in the production of goods and services which are sold, rented, or provided to others are included in the business-to-business market. Additionally, it covers retail and wholesale businesses which buy products to resell and rent them to other people (Kotler and Armstrong, 2001).

Step 2/3

The most important tools that a B2B product manager would use to achieve his/her objectives are as follows:

• Analytics

• User onboarding

• Customer feedback.

• Collaboration and productivity.

• Product strategy and road mapping.

• Project and task management

• Design and wireframing.

Step 3/3

As stated, are the most critical assets a B2B product manager would use to accomplish his or her goals.

0103

Problem

What are the 12 major differences between B2B and consumer marketing? How would these differences affect formulating a B2B strategy?

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Step 2/3

The 12 major differences between B2B and consumer marketing and the ways in which these differences would affect formulating a B2B strategy are as follows:

• Internal to company: These include factors like variations in the duties of product management responsibilities, marketing strategy=corporate strategy departments' interdependence.

• Customer/marketing: These include factors like more thoughtful choices, more purchasing effects and places, narrower customer base, various segmentations, more channels as well as markets, a greater emphasis on one-on-one interactions with customers.

• Uncontrollables/environment: These include factors like less end-user information, derived demand, technology.

Step 3/3

The 12 key distinctions between business-to-business (B2B) and consumer marketing along with how these distinctions could effect developing a B2B strategy are as stated.

0104

Problem

How can a manager avoid the “trappings” of marketing?

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Step 2/3

A manager could avoid the trappings of marketing by the following ways:

• Assurances of backing from senior management.

• Establishing a marketing company with product management.

• Innovative methods for strategic or marketing planning.

• Full marketing information systems (MIS).

• Raising marketing budgets for training, analysis, as well as advertisement.

Step 3/3

As stated, are the methods by which a manager can avoid the trappings of marketing.

0105

Problem

What role do relationships play in B2B marketers?

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Step 2/3

The role that relationships play in B2B marketers is as follows:

• The creation and upkeep of client relationships is essential to corporate marketing achievement.

• The successful marketer tries to build a relationship rather than just observing a sequence of transactions among a consumer as well as a supplier.

• Although there isn't always a long-term commitment, the exchange should really be considered more than a straightforward transaction.

• To build, maintain, enhance, and commercialize client connections in order to achieve the goals of all parties concerned, according to one definition of marketing

• This is accomplished through reciprocal transaction as well as promise fulfilment (Grénroos, 1990).

• The vendor makes a number of promises regarding goods, services, money, management, data, relationships with others, as well as other obligations.

• The buyer makes a number of pledges regarding product use as well as payment. Both parties profit as well as the connection is strengthened when commitments are kept on both ends.

• New sets of commitments could be made by both parties to keep the relationship growing after earlier ones have been kept (Calonius, 1986, 1988).

Step 3/3

As stated, is the role that relationships play in B2B marketers.

0106

Problem

What are the major goods classifications of B2B products?

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Step 2/3

The major goods classifications of B2B products are follows:

• Entering goods and services: These include raw materials, constituent parts, and materials as well as goods and services, including those that are components of other goods and services. Automotive headlights, wood, metallic ores, plastics and aluminium shaped parts, or electronic goods like electronic components are a few examples of these things.

• Foundation goods and services: These are goods that are made into other goods. Installations as well as auxiliary tools are included in this. The former includes things like buildings and offices, whereas the latter include machine tools. The foundational items are not incorporated into the final products. Several of the foundation commodities could be expensed, even if the majority of these are capital items.

• Facilitating goods and services: These consist of goods and services that aid a company in achieving its goals. These items don't even get into the product or the manufacturing process. In general, expenses instead of capitalization are used to account for facilitating products and services. Market analysis services, cleaning products and services, copiers, as well as minor hardware are a few instances of facilitating goods and services. The two categories of facilitating items are typically supply and commercial services. Items that are frequently referred to as MRO are included in this category.

Step 3/3

As stated, are the main goods classifications of B2B products.

0201

Problem

How would you expect a government department to go about buying a new computer system?

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Decision making unit:

The industrial purchasing decision are made by multiple people in the organization and the complete decision-making process consists of many stages. The decision making is influenced by number of factors. Buyers are impacted by both individual, personal factors, as well as organizational and environmental factors. Business customers are the one who buy on behalf of the organization rather than for personal use. The decision-making unit of the organization undertakes research and development and based on the approval the decision to purchase a product, or a service is undertaken.

Step 2/2

Government organization is a type of business consumer which purchases product for the government’s use. The decision-making unit in government organization is generally characterised by a tender system where firms bid for a contract. Government department would start its buying of new computer system with internal approvals and then approach external firms for tender offer. The offer which gets approved would be accepted and accordingly purchases would be made.

0202

Problem

How might internal politics affect a buyer’s behavior?

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Decision making unit

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The industrial purchasing decision are made by multiple people in the organization and is undergone by number of process. The decision making is influenced by number of factors. Buyers are impacted by individual, personal factors, organizational and environmental factors. Business customer are one who buy on behalf of the organization rather than for personal use. The decision-making unit of the organization undertakes research and development and based on the approval the decision to purchase is undertaken.

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Internal politics of the organization does impact the decision making of the buyer. Internal politics would influence the items to be purchased and from where to purchase. There could be certain employees who would earn commission from certain vendor and thus they would put forth the application to purchase from that vendor. The own benefit of a person could impact the decision making.

0203

Problem

What factors might be prominent in the buying decision for cleaning materials?

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Decision making unit

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Cleaning materials are related to hygiene and thus one becomes extra careful before buying cleaning materials. The factors that influence buying decision for cleaning materials is quality of product and its pricing. The brands of the cleaning material and budget would impact the buying decision.

0204

Problem

What are the major features of the Nordic vs. the marketing management school of thought?

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Marketing management and the Nordic school of thought are two distinct approaches to marketing that have evolved over time. They have different focuses and philosophies that have influenced the way companies develop and execute marketing strategies.

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Nordic School of Thought:

• Emphasizes customer orientation and the importance of understanding consumer behavior.

• Focuses on relationship building and creating long-term customer loyalty.

• Views marketing as a holistic and integrated process, involving multiple stakeholders.

• Believes that companies should aim to create mutual value with customers through co-creation and collaboration.

Marketing Management School of Thought:

• Emphasizes the need for scientific and data-driven decision making in marketing.

• Views marketing as a functional area within a company, separate from other departments.

• Focuses on developing and implementing marketing plans and strategies that meet specific business objectives.

• Believes that the goal of marketing is to maximize profits and shareholder value.

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The Nordic school of thought and the marketing management school of thought have different perspectives and priorities, but they both play important roles in shaping modern marketing practices. Companies can benefit from incorporating elements of both approaches, such as understanding consumer behavior and using data to inform marketing decisions, in order to develop effective and sustainable marketing strategies.

0205

Problem

What factors might a supplier take into account when evaluating a purchasing company?

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When evaluating a purchasing company, suppliers must consider a variety of factors that will affect their ability to do business with them. This evaluation process helps suppliers to assess the potential risks and opportunities associated with a given customer, and determine if they are a good fit for their business.

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An organization should consider the below factors for evaluating the suppliers:

• Financial stability: The supplier must evaluate the purchasing company's financial health and creditworthiness, to determine if they will be able to pay their bills in a timely manner.

• Volume of business: The supplier must consider the volume of business they expect to receive from the purchasing company, and whether this volume will be enough to justify the resources they will need to invest in the relationship.

• Logistics: The supplier must consider the logistics of delivering goods to the purchasing company, including the shipping distances, transportation costs, and delivery times.

• Lead times: The supplier must consider the lead times that the purchasing company requires for deliveries, and whether they will be able to meet these demands.

• Payment terms: The supplier must evaluate the purchasing company's payment terms, to determine if they are acceptable and if they align with their own credit policies.

• Contract terms: The supplier must evaluate the terms of any proposed contracts, to ensure that they are fair and reasonable, and that they protect their interests.

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In conclusion, when evaluating a purchasing company, suppliers must consider a range of factors that will impact their ability to do business with them. This includes factors related to the purchasing company's financial stability, volume of business, logistics, lead times, payment terms, and contract terms. By carefully evaluating these factors, suppliers can make informed decisions about whether or not to do business with a given purchasing company, and can minimize their risks while maximizing their opportunities.

0206

Problem

How might the directors of a company go about setting standards for evaluating suppliers? What objective criteria are available?

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Setting standards for evaluating suppliers is an important task for the directors of a company. The process of supplier evaluation helps a company to select the best suppliers, negotiate better terms, and manage supplier relationships effectively.

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Steps for Setting Standards:

1. Define the objectives: The first step in setting standards for evaluating suppliers is to define the company's goals and objectives for its supply chain. This will help to determine what criteria are most important for the company.

2. Identify the criteria: The directors should then identify the objective criteria that will be used to evaluate suppliers. These may include factors such as price, quality, delivery times, sustainability, and ethical behavior.

3. Establish a weighting system: The directors should establish a weighting system that assigns a numerical value to each criterion, indicating its relative importance.

4. Develop a scoring system: Based on the weighting system, the directors should then develop a scoring system that will be used to evaluate suppliers.

5. Create a scoring matrix: The scoring matrix should be created using the criteria and weighting system established in the previous steps. The matrix will provide a way to objectively evaluate suppliers based on the established criteria.

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Objective Criteria:

• Quality: The supplier's ability to meet quality standards, as well as their history of delivering high-quality products and services.

• Price: The supplier's pricing structure and their ability to offer competitive prices.

• Delivery times: The supplier's ability to meet delivery deadlines and their record of on-time delivery.

• Sustainability: The supplier's commitment to sustainable practices, such as reducing waste and minimizing their impact on the environment.

• Ethical behavior: The supplier's history of ethical behavior, including their compliance with labor laws, environmental regulations, and industry standards.

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In conclusion, setting standards for evaluating suppliers is a critical task for the directors of a company. The process involves defining the company's goals and objectives, identifying objective criteria, establishing a weighting system, developing a scoring system, and creating a scoring matrix. By using these standards, the company can objectively evaluate suppliers and make informed decisions about its supply chain, ensuring that it selects the best suppliers and negotiates the best terms.

0301

Problem

Why should firms consider industry, resource, and institutional factors in developing strategy?

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Strategies are basic needs in the world of competitive advantage. It is important to be knowledgeable as well as develop unique capabilities for sustaining in the hypercompetitive environment.

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Firms must consider industries, resources as well as institutional factors in developing strategy due to the following reasons:

• Resources as well as industries are important for strategy implementation. They help in the economic development of the firms.

• Industries contribute to income generation as well as provide employment opportunities. It helps in increasing resource efficiency as well as facilitating international trade. Cheap resources can be targeted to maximize production. Institutional factors like research, inequality as well as labor markets are also equally important.

• Focusing on the given things will help to survive in the hypercompetitive market.

• The development of strategies will also help in meeting the standards as well as conditions of the market. These will help in attracting customers, increasing demand as well as developing premium products in the market.

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As stated above, these are the reasons why firms must consider industries, resources as well as institutional factors in the development of strategy.

0302

Problem

How might a firm apply basic defense strategies in a hypercompetitive environment?

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Strategies are basic needs in the world of competitive advantage. It is important to be knowledgeable as well as develop unique capabilities for sustaining in the hypercompetitive environment.

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Firms must apply basic defense strategies in the hypercompetitive environment as follows:

• Firms can use the industry-based approach. It includes a differentiation process. Firms can focus on being unique and create differentiation in the market. The product must be unique and must be able to attract customers. This will make customers pay a premium for the product.

• Another strategy can be referred to as cost leadership. It includes minimizing production as well as marketing costs. The firm must focus on sacrificing profits. Yet, it must create products from the cheapest sources. This will help in creating cheap products, that will stand out and cause an increase in the demand for products.

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As stated above, these are the two types of strategies that firms can use in a hypercompetitive environment.

0303

Problem

What is the difference between vision and mission?

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For the business to operate in the global business environment, strategic planning is relevant. The strategic planning process begins with an understanding of the business and its environment as a whole. It focuses on reaching the objectives of the organization and becoming competitive.

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The difference between vision and mission has been discussed as follows:

Vision: The vision of an organization reflects the management’s perception or view of the organization and its function. Vision makes the objectives and characteristics of the organization very clear to the stakeholders of the organization. It is not mandatory that an organization should possess a clear vision.

Mission: The mission highlights the reason for which the organization exists or the purpose of the organization. A well-defined mission is necessary for an organization, unlike a vision. It is a written formal document that reflects corporate values, purposes, and reasons for the operations of the organization.

0304

Problem

How might a firm plan for entering a former communist country such as China?

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Some of the ways through which an organization can plan to enter a communist country like country C have been discussed as follows.

The organization can make use of strategic management tools like PESTLE analysis. Through this, the political, economic, socio-cultural, technological, legal, and environmental factors of country C can be analyzed. Instead of implementing a global strategy, a localized strategy can be implemented in this country. This enables the organization to generate a position in the communist market. In order to enter this market, franchising is a better option for the organization.

0305

Problem

What would be the most appropriate competitive strategy for a small firm wishing to enter a well-established national market?

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When an organization operates globally, it faces many challenges as well as opportunities. It is essential that an organization have effective strategic planning in order to eliminate challenges and make use of opportunities. Depending on the market in which the organization is operating, effective strategies can be formulated.

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Consider a small firm that wants to expand its business operations into a well-established market. The competitive strategy that can be adopted by a small firm has been discussed as follows:

The organization can select the focus strategy. Through this competitive strategy, the organization can select a small target segment in the market and promote its business operations there. This approach enables the organization to gain reputation and visibility in the market and, hence, gradually expand its business segment.

0401

Problem

Describe the environmental impacts on the marketing department’s ethical decision making.

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Ethics refers to a code of conduct, a view of what is proper or incorrect behaviour (Lawrence and Weber, 2011). Ethics serve as a set of guidelines for right and wrong behaviour. Religion, business and professions, families, friends, schools, as well as the media are all sources of moral judgments. Each of these factors contributes to the way a person thinks about morality and ethics.

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The environmental impacts on the marketing department’s ethical decision making are as follows:

• Simply put, impact on the environment is how a particular activity influences the environment. It is crucial to evaluate or quantify the impact of business actions because almost all of them have an impact like some are positive, but some are usually negative.

• The results of these measurements as well as assessments will guide decision-making including subsequent actions. This holds true for other company practices as well as marketing. Since the goal of marketing is to expand the company, many of their actions directly affect the environment.

• Social interactions as well as cultural perspectives on what it means to live are all parts of society. The technical, educational, as well as scientific infrastructure, as well as government interference, are two of the most crucial components of this environment.

• Climate, topography, flora and fauna life, as well as natural resources all fall under the category of the physical environment. Whatever is regarded as appropriate behavior is greatly influenced by how one perceives the physical surroundings. For instance, people in the People's Republic of China are much less bothered regarding air pollution compared to the people in Western Europe.

• Last but not least, the environment of the industry has a significant impact on people's ethical behaviour. The criteria by which acts must be evaluated are frequently thought to be appropriate practices that are becoming industry norms. The root of people's dubious actions is frequently competitive forces.

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As stated, are the effects of environment on the marketing department’s ethical decision making.

0402

Problem

What are the major competing views of corporate responsibility? Describe in detail.

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Ethic basically refers to moral values and behaviour of a system or an individual. In a working profession, an individual or employee must have some ethics and code of conduct of the work must be good.

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Corporate responsibility is described as the impact made by the organization on the society, environment and also economy.

1) There are mainly four types of corporate responsibility that is environmental responsibility, ethical responsibility, philanthropic and economic responsibility.

2) Corporate responsibility is essential for having a good impact on society and environment. There should not be any bad effect due to the organization work and operations.

3) Environmental responsibility is a value that an organization must follow and behave environmentally friendly. Company must ensure reduction of practices that are harmful to the surrounding.

4) Ethical responsibility is described as the moral values and state of behaviour an individual or a company must conduct in order to reduces unfair means of operation.

5) Philanthropic means the idea of the company to make society a better place to live and survive.

6) Economic responsibility refers to the term that deals with financial decisions of the company for profits, loss and share.

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Corporate responsibility is needed for proper and fair conduction of work and operation in the company. Each and every company must follow corporate responsibility.

0403

Problem

Compare and contrast the deontological, consequentialist, and virtue theories of ethics.

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Three moral theories that assess morality according to various criteria include consequentialism, deontology, and virtue ethics.

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A defined set of principles determines whether an action seems good or evil, in accordance with the ethical theory called deontology. These guidelines define what constitutes ethical behaviour and what does not.

According to the consequentialist theory, the results of an action determine whether it will be good or bad. It is desirable to take actions that result in more benefits than harm, but it is bad to take actions that have the opposite effect.

According to the virtue concept, our attention should be on the sort of people (like organizations) that humans should be as well as the ethical role models that they should emulate, rather than on the laws to follow.

Deontology as well as consequentialism are fundamentally different in that deontology emphasizes the correctness or incorrectness of activities themselves, while consequentialism emphasizes the results of the activity. The virtues are emphasized in virtue theory.

Deontology as well as consequentialism were founded on laws that aim to direct us toward the proper course of conduct, while virtue ethics places a heavy emphasis on the idea of character.

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As discussed above, these are the differences between the deontological, consequentialist, and virtue theories of ethics.

0404

Problem

List the key ethical issues in international B2B marketing and describe some key issues in at least three of these areas.

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Any marketing tactic or piece of content that is targeted towards a company or organization is known as B2B (business-to-business) product marketing.

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The following are the main moral concerns in global business-to-business marketing:

• Communications for marketing

• Product

• Sales

• Market Research

• Personnel

• Distribution

• Pricing

Communications for marketing

Ethics norms must be followed in a wide range of situations, including advertising. Consumer advertising has traditionally been thought to be "puffery" of the product. However, in the case of company promotion, this usually backfires. However, several managers who have previously worked in the consumer sector for the duration of their careers have expressed a desire to exaggerate benefits in advertisements.

The misuse of private information would be a brand-new source of worry. Over the Internet, several corporate marketers have gathered a lot of personal data about clients and future clients. If moral guidelines have to be kept intact, the usage of such information needs to be thoroughly considered.

Distribution

Trying to provide distributors throughout the world with the exact same criteria and rewards is a difficult challenge. A jumble of distribution strategies can frequently develop from adapting to local market realities. A company must apply its ethical principles to its distribution strategies across multiple markets. Furthermore, in connection with the bribery topic from earlier, whatever a manufacturer's advertising staff is, they should be wary of inflated revenues. Accounting systems must be in existence to identify unusually significant commissions that could potentially lead to bribes, as required by the Foreign Corrupt Practices Regulations.

Market research

Researchers must be honest when describing their backgrounds and experiences. They must be careful to plan and carry out research in the most economical manner possible.

Researchers must take care to secure the data as well as only present findings that are backed up with the data. Additionally, researchers need to describe their non-research job precisely. Contracts must adhere to the standards set by the European Society for Opinion and Marketing Research (ESOMAR) or even other professional groups.

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As discussed above, communications for marketing, product, sales, market research, personnel, distribution and pricing are the key ethical issues in international B2B marketing.

0405

Problem

How important is the question of bribery in international business? What is being done on an international basis to counter it?

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A bribe will be offered whenever one party offers anything of value or currency unlawfully in order to alter a conclusion or procedure. Bribes can frequently be offered to escape charges or get around laws or restrictions.

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When businesses offer, guarantee, or provide a bribe toward a foreign government to gain a benefit inside an international commercial transaction, like trying to win a contractual relationship, an oil and gas stipulation, or a functioning license, they are engaging in "foreign bribery" or even the corruption of overseas officials.

Bribing public figures to gain a benefit in international trade raises severe ethical and political questions, compromises sound government administration and long-term economic growth, and distorts global trade.

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The fight against bribery and corruption within global business has been led by the Organization for Economic Co-operation and Development (OECD). According to the OECD, it is illegal to bribe any foreign government servant in order to win or keep business abroad. By concentrating on the "supplier side" of bribery—the individual or organization that proposes, commits, or provides a bribe—the agreement helps forge a closer partnership between governments, corporations, and individuals seeking to promote ethical and fair business practices.

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As discussed above, it can be said that the question of bribery in international business is very important. The OECD combats bribery throughout international trade to support growth, lessen poverty, and increase market trust.

0406

Problem

What are the most important international marketing ethical problems?

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A moral conundrum that needs to be handled within an organization is what is referred to as an ethical problem in the workplace.

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The mechanics of this interaction give rise to a number of ethical problems. There are also concerns with regard to the goods, prices, advertising strategies, distribution methods, and market analysis.

Ethical concerns with the most significant ethical issue in international marketing concerns price fixing. Any group of individuals who are on the same end of the business spectrum may agree to establish the price under which they will purchase or trade a product or service. Generally, prices of goods and services decline as a result of competition among various competitors for consumers.

The main ethical issue with international marketing seems to be price discrimination. Price discrimination is the practice of charging various customer groups varying rates for the same product, typically based on how much they are prepared to spend.

The most significant ethical dilemma within international marketing seems to be one involving marketing communications. Every marketer will typically have to deal with issues related to dialect, society, the accessibility of local assets, and the stage of economic growth, competitiveness, and communication choices with diversity in the intended market, relevant laws, as well as the company's goals while marketing towards international consumers.

Enterprises that build distribution channels and have varying demands and objectives are the source of place-related ethical issues. This distribution channel would be a group of people and businesses that work together to move goods from a manufacturer to a consumer. These marketing channels as well as distribution channels may have other names.

One of the most significant ethical concerns within international marketing would be one associated with market research. Throughout every level of business operations, firms can greatly benefit from market research. Overall effectiveness and return on investment for promotional operations can be considerably increased by developing and implementing market approaches using precise customer information.

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As discussed above, it can be said that price fixing, price discrimination, marketing communications, distribution channels and market research are the most important international marketing ethical problems.

0407

Problem

What is cultural/ethical relativism? What are the drawbacks to this approach and how can a manager adapt to local cultures while maintaining ethical standards?

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Integrity, empathy, and devotion are among the other moral values that are encouraged by ethical norms. Additionally, moral norms cover rights like the ability to keep information confidential, the liberty to be safe from harm, as well as the ability to live.

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The idea which is based on cultural standards is known as ethical relativism. In other words, when a behaviour is acceptable or unacceptable, it is determined by the moral standards of the culture in which it occurs. This same behaviour could be morally acceptable in one community but unethical in another.

The following are some drawbacks of cultural relativism:

It develops a system that is driven by individual prejudice. Due to the way humans function, every culture has some inherent biases.

It'd be a total mess. Underneath the principle of ethnic relativism, individuals would be free to live any way they chose as long as they were able to uphold their personal moral standards, since there is no such thing as "bad" or "good."

It might encourage an absence of diversity. Cultural relativism could enable the reintroduction of slavery in the southern U.S. Men would be able to bar women from voting once more. Employers wouldn't longer be able to offer employees a decent salary or even any wage at all.

It isolates people from each other and hinders moral development along with the advancement of humanity.

Managers can adapt to local cultures while maintaining ethical standards by encouraging ethics within the business through seminars, conferences, and other similar programs. Training seminars serve to reaffirm the organization's code of conduct, define acceptable and unacceptable behaviors, and discuss potential ethical conundrums.

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As discussed above, it can be said that the idea which is based on cultural standards is known as ethical relativism. It might encourage an absence of diversity, it isolates people from each other. These are some drawbacks to this approach.

0408

Problem

What are the key elements of a successful corporate ethics program?

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Depending on the firm, ethics program might include in-depth training and assessment, and they frequently use codes and standards to govern decisions as well as behavior. They also communicate corporate objectives.

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The following are the essential components of an effective business ethics program:

Standardize and share procedures.

Making definite staff are informed and attentive of the rules and procedures they must obey with is crucial to a firm's capacity to foster an integrity-based culture.

Educate and train

The overall success of any program depends on organization-wide teaching and development. The codes of conduct and ethics must be discussed with new employees and accepted in writing at that time. They should also be reviewed frequently to ensure maximum success.

Monitoring and Audit

Every internal system must be tested to ensure that it is functional. The compliance department should prioritize auditing as well as monitoring their ethics and compliance program.

Reporting

A formalized disclosure system should be in effect as part of an organization's ethical and accountability program. Each employee as well as each stakeholder must have access to a secure, confidential reporting system.

Discipline

An organization-wide set of penalties should be devised to handle non-compliance whenever technologies and program are implemented, and these penalties should be accessible to all users.

Respond to each accusation.

By reacting to concerns, companies demonstrate a concern for the emotions or circumstances that led the traitor to come forth in the original instance. Serious problems like theft and abuse ought to be easily and quickly resolved.

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As discussed above, it can be said that these are Standardize and share procedures, Educate and train, Monitoring and Audit, Reporting, Discipline, Respond to each accusation are the key elements of a successful corporate ethics program.

0501

Problem

What are the major differences between consumer and business to business market research?

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Market research is the main focus for any effective program in marketing. This is mostly when any manager is planning to enter any foreign market. Market research determines the targeted customers, buying decision of customers and potential sales of customers.

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Market research helps managers to determine competitors approaches and their motives. Business decisions should be made, after ample information is gathered to reduce risks and uncertainties. In the setting of business to business, market research is used for examining, competition, forecasting, searching market potential, developing trends and developing sales quotas and forecasts.

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The marketers of product and consumers both conduct research in relation to product acceptance and product attributes. Consumer market research deals with packaging and marketing. Business market research determines members of buying centers and aims at market potential. The major differences between consumer and business to business market research are as follows:

Table1. Differences between consumer and business to business market research

0502

Problem

What are the advantages and disadvantages of using the Internet for market research?

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Market research is the orderly and objective identification, assortment, investigation distribution and use of evidence for decision making. Marketing research is the main focus for any effective marketing program. Market research helps to determine the potential customers, buying behavior of customers, potential sales to each customer and competitor’s approaches.

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In the settings of business to business, market research is used for forecasting, trend development, finding potential of market and competition examining. Market research also facilitates in developing sales quotas and sales forecasts. Advent of the internet in the market research enabled collection of both secondary and primary data. The advantages of using internet for the research of market are as follows:

1. Internet had enabled users to reach respondents without any telephone or mail systems.

2. Virtually it is possible to get the data source to anyone, anywhere in the globe through the internet.

3. Faster, accurate information development and comparing sources of data at low cost is possible through the internet.

4. The marketing information system facilitates in developing, storing and using information from every source to frame effective plans and strategies for marketing.

5. Internet is used for both focus groups and surveys in market research, as they are less costly than live focus groups and tele surveys.

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There are numerous disadvantages of using the internet for market research. The disadvantages of using internet for the research of market are as follows:

1. For any business-to-business market research, the cost of internet project is similar or higher to that of the telephone project.

2. There is lack of email addresses sources of the respondents and requires paying every respondent incentive for getting involved in the project.

3. Falling of completion of surveys via internet and overuse of the panelists are problems in using internet for market research.

4. Internet focus groups and internet surveys does not provide clarity in who is responding. There is misinterpretation and confusion in the market research on using internet to determine the respondent’s identity.

Hence, the above advantages and disadvantages are present, when using internet for market research.

0503

Problem

If you were the marketing director for a keyboard manufacturer whose major customers are personal computer manufacturers, how could you design the most effective market research program? What are the key steps in the process for you?

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Market research can be referred to as a process that is required by companies/businesses to determine as well as understand customer values. It helps in the development of products as well as create marketing strategies for the company's success.

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Following are the steps required for creating the most effective market research for computer manufacturers as customers, from keyboard manufacturers:

• Determination of information requirements – it includes defining the problems that the computers might face without having keyboards. Make the customers believe that the keyboard manufacturers have the best managerial information.

• Research design – it involves establishing the objectives of the research and the regions where research is to be carried out. After obtaining information from a trusted source, the best research technique is to be selected. This will be useful for getting adapted in different countries.

• Development of secondary as well as primary data – primary data will allow the company to conduct its research and execute the plan. Secondary data includes information collected from other companies' research that might prove useful to the keyboard manufacturer.

• Carrying out surveys – the computer manufacturers can be interviewed or contacted for their expectations and needs from keyboards. It can be either through phone, mail, personal mode, or online methods.

• Observation and experimentation – the keyboard manufacturer must observe the computer manufacturer's employees. This will help in identifying how computers can be used with keyboards easily. After analysis, the keyboards must be put out to test. Trials must be sent to the selected customers.

The key steps in the process are as follows:

• Determination of information requirements.

• Development of Research design.

• Development of secondary as well as primary data.

• Survey conductance.

• Observation.

• Experimentation.

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As stated above, these are the steps that are required in the development of the market research process.

0504

Problem

When would you choose the personal interview method versus the focus group method to gather data?

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Data collection can be referred to as a method that involved fashionably collecting information on a topic of interest. It can be obtained through various methods like personal interviews, hypotheses, or focus groups.

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The personal interview method for gathering data can be used in the following cases:

• When detailed or deeper information is to be gathered from the target population.

• When the behavior or attitude of the respondent is to be recorded.

• When the topic of the survey is complex. Personal interviews will help in gaining direct and good responses.

• When any major marketing decision has to be made.

• When time and financial constraints are present.

The focus group method for gathering data can be used in the following cases:

• When in-depth knowledge of a social issue is to be obtained.

• When only selected individuals are to be interviewed rather than a sample of the population.

• When the topic of the survey requires a lengthy explanation or verbal data.

• When feedback on a particular product is required. It can be before or after the usage of the product.

• When stakeholders need broad as well as creative ideas from the diversified group.

• When extra information is needed for preparing for creating qualitative studies.

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As stated above, these are the areas where personal interviews and the focus group method can be chosen for data collection.

0505

Problem

Suppose you were to be assigned to develop a sales forecast for tempered glass to be used in office buildings in Singapore. What are the major steps you might take to get to an acceptable forecast?

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Sales forecasting can be referred to as the estimation of future revenues of a particular sales unit. It can be done on a monthly, quarterly, or annual basis.

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The following are the steps taken to get an acceptable forecast:

• Defining market segments is important to develop market potential. Both markets, as well as sales forecasts, must be considered. It can include several workers in the market, their administrative as well as desk workers, and the amount spent on each worker. It can also include the share of the company and its potential in the territory.

• Analysis and the use of the Delphi technique – it helps in obtaining consensus based on expert opinions. The process can be further made affordable as well as the least time taking by using it online.

• Input from experts in the form of executive judgment. This will help in the development of the final forecast.

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As stated above, these are the steps taken to obtain an acceptable forecast.

0506

Problem

What are the advantages and disadvantages of in-house versus outside vendor completion of market research?

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Identification as well as the establishment of business goals are important to the success of business projects. Vendor involvement in completing projects and their selections is crucial to the success of the business.

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In-house vendor completion involves completing tasks or projects by the team members of the company itself.

• Advantages – helps the retailers to gain extra revenue. Businesses have a greater form of control over their team. Helps in upgrading the skills of team members, thus resulting in better results. The schedule of tasks works by the business needs.

• Disadvantages – the process is expensive and possesses a higher amount of ongoing costs. The process would take away more of the business's resources. The team members might have to suffer from overtime. Delay in the process flow along with a reduction in the job pool.

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Outhouse vendor completion involves hiring vendors from outside of the companies for competing for specific tasks. The vendors can be either freelancers or workers of any agency, who are expertise in the projects.

• Advantages – it is highly cost-effective. The process would be flexible and would not require a lengthy amount of time for new members. The process will provide access to expertise and talented, diversified agencies. There would be a reduction in the workload of an in-house team.

• Disadvantages – Lack of clarity in communication might disrupt or delay the project/task. There is less control of the business owners over the project.

Step 4/4

As stated above, are the advantages as well as disadvantages of the in-house and outsourced vendor completion concerning market research.

0507

Problem

Suppose you were the marketing communications manager for a company in India developing software. What steps might you take to implement a benchmarking program to improve your department’s results?

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Step 1/3

The benchmarking process can be referred to as the measurement of businesses' performances in competitive markets. It helps in obtaining a better understanding of the business potential and its improvement as compared to the past.

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Following are the steps taken to implement benchmarking program for improving department results:

• It is important to carry out research in the software developer market. This will help in identifying the customer base as well as understanding the industry.

• Next would be to identify competitors that lie within the same industry. It is important to understand trends in the market and carry out businesses as per the needs of customers.

• The next step would be to outline the objectives and implement them with the business strategies. It is important to communicate the objectives effectively with the stakeholders.

• Developing action plans which involve tasks, assigning people for completing the tasks as well as implementing deadlines.

• The last step would be to monitor the results. The performance must be analyzed, and learning from past mistakes must be done to avoid them in the future.

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As stated above, these are the steps that have to be taken for implementing benchmarking programs for the improvement of department results.

0601

Problem

What are the major differences between consumer and business to business segmentation techniques?

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Step 1/3

Segmentation divides a market into small groups of customers with the similar interests and needs, in order to better target specific market segments with specific products or marketing strategies. Consumer and business-to-business (B2B) segmentation techniques differ based on the type of customer being targeted.

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Differences:

1. Customer Needs: Consumer segmentation is focused on individual needs, wants, and motivations, while B2B segmentation focuses on organizational needs and priorities.

2. Buying Process: The buying process for B2B is more complex and involves multiple decision-makers, while consumer buying is typically based on individual preferences and emotions.

3. Product Features: B2B products are often more technical and require a deeper understanding of the product, while consumer products are more focused on emotional appeals and benefits.

4. Price Sensitivity: B2B customers are often more price sensitive due to budget constraints, while consumers may be more willing to pay a premium for certain products.

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Understanding the differences between consumer and B2B segmentation is crucial for businesses to effectively target and reach their desired customer segments. By using the appropriate segmentation technique, businesses can develop more targeted marketing strategies, increase their conversion rates, and ultimately grow their business.

0602

Problem

Describe how segmentation, targeting, and positioning are related to one another.

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Segmentation, targeting, and positioning (STP) are three interrelated components of a successful marketing strategy. They help a business identify, reach, and retain its desired customer segments.

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Relation between segmentation, targeting and positioning is given below:

1. Segmentation: It divides a market into small groups of customers with the similar set of interests and needs.

2. Targeting: It helps to evaluate each market segment's attractiveness individually and select one or more than one segments to target with a marketing mix.

3. Positioning: It is the process of creating a unique and compelling image of a brand in the minds of the target customers. It also helps in differentiating the brand from competitors.

The output of segmentation is a list of market segments that the company can target. From this list, the company then evaluates each segment and selects the most attractive segment or segments to target. Finally, the company positions its products or services in a way that differentiates them from competitors and appeals to the targeted customers.

STP is a crucial step in creating a successful marketing strategy. It helps a business to focus its resources on the most promising segments, and to differentiate itself from competitors in the minds of target customers. Effective STP can result in increased sales, market share, and customer loyalty.

0603

Problem

Enumerate the tests of a good market segment.

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Segmentation divides a market into small groups of customers with the similar interests and needs. A good market segment must meet certain criteria in order to be useful for a business.

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Tests of a Good Market Segment:

1. Identifiable: The segment must be large enough and have distinct characteristics that allow it to be easily identified.

2. Reachable: The segment must be accessible through marketing channels and have the resources to purchase the product.

3. Substantial: The segment must be large enough to generate a significant profit for the business.

4. Differentiable: The segment must be different from other segments in terms of its needs, wants, and behavior, and be able to respond to a unique marketing mix.

5. Durable: The segment must be stable over time and not be easily affected by external factors.

6. Actionable: The segment must be actionable, meaning that the business can develop and implement a marketing mix that effectively targets the segment.

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These tests provide a framework for evaluating potential market segments and ensuring that a business is targeting segments that are likely to result in increased sales and profitability. Effective market segmentation is an important step in creating a successful marketing strategy, as it allows a business to target its resources towards the most promising customer groups.

0604

Problem

List identifier segmentation variables and response profile segmentation variables.

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Step 1/3

Market Segmentation divides a market into small groups of customers with the similar interests and needs.

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There are two main types of segmentation variables: identifier variables and response profile variables.

Identifier Segmentation Variables:

1. Demographic: Age, gender, income, education, and occupation.

2. Geographic: Region, city size, climate, and proximity to major transportation hubs.

3. Psychographic: Values, attitudes, interests, and lifestyle.

4. Behavioral: Purchase history, brand loyalty, and usage rate.

Response Profile Segmentation Variables:

1. Benefits Sought: The specific benefits or solutions the customer is seeking in a product or service.

2. Attitude Toward Product: The customer's overall evaluation of a product or service.

3. User Status: Whether the customer is a current user, non-user, or potential user of a product or service.

4. Usage Rate: How often the customer uses a product or service.

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Understanding the different types of segmentation variables is crucial for businesses to effectively segment their target market. By using the appropriate variables, businesses can develop more targeted marketing strategies, increase their conversion rates, and ultimately grow their business.

0605

Problem

What might be the problem of applying segmentation across different cultures and countries?

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Step 1/3

Segmentation divides a market into small groups of customers with the similar interests

and needs. However, applying segmentation across different cultures and countries can present challenges.

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Problems in applying segmentation across different cultures and countries can be the following:

1. Cultural Differences: Cultural norms, values, and beliefs can vary widely between countries, making it difficult to develop a segmentation strategy that is effective in multiple cultures.

2. Language Barriers: Language differences can also pose challenges for cross-cultural segmentation, as it can be difficult to translate marketing materials and messages effectively.

3. Economic and Political Factors: Economic conditions and political systems can vary greatly between countries, making it difficult to develop a segmentation strategy that is applicable across multiple markets.

4. Data Availability and Quality: The availability and quality of data can also vary between countries, making it difficult to accurately segment different markets.

5. Consumer Behavior Differences: Consumer behavior can also vary greatly between cultures and countries, making it difficult to develop a segmentation strategy that is effective across multiple markets.

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Cross-cultural segmentation can be a challenging task. Businesses need to be aware of these challenges and carefully consider them when developing and implementing their segmentation strategy. Effective cross-cultural segmentation requires an in-depth understanding of the target markets, as well as the ability to tailor marketing strategies to meet the unique needs of each market.

0606

Problem

Apply the nested approach to segmentation to a multinational bank.

Problem

How do perceptual maps help in positioning?

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Perceptual maps are graphical representations of how customers perceive a brand or product in relation to its competitors. In marketing, perceptual maps are used to help position a brand or product in the minds of customers.

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Perceptual maps help in positioning by allowing companies to visualize how customers perceive their brand or product in relation to its competitors. This information can be used to identify gaps in the market and to differentiate the brand or product from its competitors.

For example, a company might use a perceptual map to identify that its product is perceived as having high quality, but a high price, compared to its competitors. This information can be used to reposition the product as a premium offering with a value proposition that emphasizes quality.

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Perceptual maps are a useful tool in positioning, as they help companies to understand how customers perceive their brand or product in relation to its competitors. By using this information, companies can differentiate their offerings and create a unique value proposition that resonates with their target market. Effective positioning is an important step in creating a successful marketing strategy, as it helps to establish a strong brand image and differentiates a company from its competitors.

0610

Problem

What obstacles might a firm expect in implementing its segmentation, targeting, and positioning procedures?

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Step 1/3

Implementing a successful segmentation, targeting, and positioning (STP) strategy is critical for a firm to achieve its marketing objectives. However, there are several obstacles that a firm might expect when implementing its STP procedures.

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The obstacles that a firm might expect could be:

1. Data Availability: A lack of accurate and relevant data can hinder the segmentation process and lead to ineffective targeting and positioning.

2. Market Fluctuations: Changes in market conditions and customer preferences can render existing segmentation and targeting strategies obsolete.

3. Resource Constraints: Implementing an STP strategy often requires significant financial and human resources, which may not be available to smaller firms.

4. Resistance to Change: Employees and stakeholders may resist the changes that come with implementing a new STP strategy, leading to slow adoption and ineffective implementation.

5. Inadequate Customer Understanding: A lack of understanding of customer needs and behaviors can lead to ineffective segmentation, targeting, and positioning.

Step 3/3

Implementing a successful STP strategy requires careful planning and execution. Firms must overcome various obstacles to effectively target and position their offerings in the marketplace. Despite these challenges, a well-implemented STP strategy can result in increased market share, customer loyalty, and overall business success.

0611

Problem

Assume you are the marketing vice president for a firm selling interior lighting equipment. How might you go about segmenting your markets on a worldwide basis?

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The marketing vice president of a firm selling interior lighting equipment faces the challenge of segmenting the global market to effectively target and position their products.

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The following steps can be followed to segment the global market:

1. Identify the market: Define the target market and gather data on consumer behavior, cultural differences, and market conditions.

2. Conduct market research: Use surveys, focus groups, and other research methods to gather information on consumer needs and preferences.

3. Evaluate segmentation variables: Consider demographic, psychographic, geographic, and behavioral factors to determine the most relevant segmentation variables for the global market.

4. Develop market segments: Based on the segmentation variables, develop market segments that are distinct and homogeneous.

5. Evaluate segments: Evaluate the size, growth rate, profitability, and accessibility of each segment to determine which segments to target.

6. Select target segments: Select the target segments that offer the best opportunity for success and align with the firm's marketing objectives.

Step 3/3

Segmenting the global market is a complex process that requires a comprehensive understanding of consumer behavior, cultural differences, and market conditions. By conducting market research, evaluating segmentation variables, developing market segments, and selecting target segments, the marketing vice president of the interior lighting equipment firm can create a successful worldwide marketing strategy that effectively targets and positions their products in the global market.

0701

Problem

What are the key environmental factors to be considered when entering a new market?

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Step 1/5

Market entry tactics:

Getting into new markets involves a lot of research and patience that eventually decides the fate of the new business venture. The firm should be firm and resilient about all the decisions that would affect the flow of the business, especially, when entering in the international markets. The best tactic to distinguish between markets and choosing the best market would be segmentation. The next step is market entry that should be initiated once the segmentation is completed and the specific market is chosen.

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Environmental factors:

The key factors include economic, political, demographic, social, legal, and cultural factors are the most important aspects to consider while entering a new market. The market entry strategy decides the fate of the business and the time it will take to flourish in the market. The most fundamental part of any market strategy is to analyze the environmental factors accurately and appropriately.

Step 3/5

The stability and equilibrium of the governing body and the political climate must be kept in mind before entering a new market. The unfavorable consequences can be met if the public opinion or awareness shifts the focus. The thorough economic research of the market must be done such as interest rates, inflation status, and exchange rates to prevent the entry in wrong market.

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The demographic research should be conducted such as the dominant language, cultural pattern, or their local currency. The way that people live and their cultural background is very important for the acceptance or denial of any new strategy of the market. The socio-legal factors include the assurance of government aid before investing the resources for their development. The previous records of different associations and their respective success should be kept in mind before entering a new market.

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Marketing environment:

The factors that govern the reach and success of the brand refers to the overall environment. The ability of the firm to inter-communicate, deliver, produce, and market the products is based on the internal and external factors influencing the market. The environment incorporates the internal environment, micro and macro environment respectively. The organizational control is specific to the internal environment while the forces and factors under which the operation happens refer to the micro-environment. The factors influencing all the industries and large-scale production is the macro-environment.

0702

Problem

Describe the product market expansion guide using both Ansoff’s and Day’s approaches.

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Step 1/3

The technology environment has a significant impact on judgments about entering a market. Technology can compel a company to exit an industry or provide the door for it to do so. Internet services have also drastically lowered the cost of communications to any market anywhere in the globe. They also give customers quick and easy access to competitive product and service options from vendors in numerous locations, allowing consumers to consider more companies when making a purchase (Heide and Weiss, 1995). Many people think that technology is the main force propelling businesses into new markets.

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The description of product market expansion guide using both Ansoff’s and Day’s approaches is as follows:

• A two-by-two framework called the Ansoff Matrix, also known as the Product/Market Expansion Grid, is utilized by management teams as well as the analyst community to assist design as well as assess growth projects.

• The tool specifically assists stakeholders in conceptualizing the degree of risk connected to various business expansion.

• Day (1990) expands each axis by including a third option (Related). On the grid's product and market axes, this is positioned between Current and New.

• A less hazardous method of growth than marketing strategy or diversification is bringing related products to current or related markets through product enhancements or line expansions.

• Unsurprisingly, diversifying into markets with items or services that are entirely unrelated to the company's current market segments is the riskiest course to pursue.

• A company's management may believe that if it succeeds in one area, it may expand into other fields to use these skills in new ways, but as Day points out, "in actuality these projected synergies are most often myths."

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As stated, is the explanation of a product market expansion strategy that combines Day's and Ansoff's methods.

0703

Problem

What are the advantages and disadvantages of being a first mover into a market?

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First movers are goods or services that are introduced first to the market and enjoy a competitive advantage because of this. Before the competition enters the market, they allow a business to build a solid brand recognition and assist it win over customers. Manufacturing is the process of turning raw materials, parts, or components into completed products that satisfy the needs of the consumer.

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A company could utilize a first-mover strategy to introduce a new service or product to the market. As a result of being the initiator, the organization acquires a competitive advantage.

Advantages of being a first mover:

• First movers can define the standards for the industry as other businesses enter the market because their product and manufacturing techniques were the first to be used. The firm can specify the manufacturing and marketing procedures, as opposed to relying on guidelines created by another business or operating within the boundaries of a pre-existing market.

• When first movers introduce a brand-new product to the market first, they may have a long list of vendors to choose from. To assure a cost-effective strategy that offers clients a high-quality product, first movers can bargain exclusive contracts with the top producers and other supply chain participants.

• One of the opportunities first movers have, is the ability to obtain a competitive and strategic edge by being the first business to enter a market.

• First movers can learn new information on the essentials of the sector's success.

• Being a first mover, by establishing significant entry barriers, market participants can be deterred from entering the market.

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Disadvantages of being a first mover:

• If the industry is such that there are frequently changes in technology, it may invite severe negative impacts on the operations of the company. The advantage of employing cutting-edge technology in this case goes to the late adopters.

• The technical know-how can be easily copied or imitated by the late movers, who may finally be able to drive out the market leader.

• Being the first mover is extremely expensive since the company needs to generate demand for the product in the market, which necessitates significant marketing expenditures.

• Due to their capacity to surpass the first mover in the development of skills and procedures, the late movers may eventually become so strong that they can steal their clients.

Step 4/4

As stated, are the advantages and disadvantages of being a first mover into a market.

0704

Problem

Describe the proactive and reactive reasons for entering foreign markets.

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Step 1/4

The decision to penetrate a foreign market is among the most challenging of all decisions concerning new markets. A long-term commitment from management is necessary because without it, the entry into the market would fail because the competitors already present in the country in question are frequently fully focused on what is, for them, their domestic market.

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The proactive reasons for entering foreign markets:

• When anticipated profits take longer to materialize, a company with proactive motives, especially one that is aiming for further earnings, will frequently stay the course.

• One seasoned international manager claimed that doing business internationally takes more time, is tougher, as well as costs more than everyone in the company anticipates.

• Long-term profitability may be attained by a company that has genuine or perceived benefits in technology or product.

• Obtaining insider knowledge of clients, distributors, or rivals in overseas marketplaces can also serve as a proactive justification for expanding internationally.

• Another proactive driver is economies of scale. It's possible that entry into a certain product market won't be supported by the domestic market, particularly in a tiny country.

• It could be required to produce a lot of things in one location to compete with other big businesses. Lastly, a sizable market can be a key justification for expanding.

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The reactive reasons for entering foreign markets:

• Typically, reactive motives don't provide permanent results.

• To keep its rivals out of a foreign market, a company may be reactively motivated by competitive pressure to think globally.

• Many businesses enter these circumstances too quickly and discover themselves unready for the challenges they face.

• Similar reactive types of motivators include excessive production, overcrowded domestic markets, falling domestic sales, as well as surplus capacity.

• The fundamental notion is that international markets are employed as "safety valves" to pick up the slack for diminishing domestic sales whenever the domestic market contracts.

• The effects in these situations are short-lived, and then when local market activity increases, managements who are not committed to doing business internationally frequently scale back or stop their operations in foreign markets.

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As stated, are the proactive and reactive factors for entering international markets.

0705

Problem

Why is it important to have a clearly communicated competitive advantage in a foreign market? List those given in the text.

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It is important to have a clearly communicated competitive advantage in a foreign market due to the following reasons:

• If there is a compelling incentive for people to try a product, a company will have the simplest time doing so. Cost savings are undoubtedly a strong justification.

• When evaluating what a consumer would spend to purchase a company's product or service to the competitor offering, it is critical for the company to comprehend all customer expenses, especially import tariffs as well as VAT.

• A purchasing company will save money by using less labor or producing more via manufacturing or marketing if the technology is more cost-effective.

• Several businesses are successful due to their cachet, either from outstanding branding or from the goodwill of their place of origin.

• A further clear advantage that is simple to explain is improved quality. Each good or service's quality must be stated in the context of the consumer.

• Some buyers could associate quality with robustness, while others would believe it has to do with the finished product's aesthetic.

• Customers' perceptions of quality are the only ones that really matter.

• Environmental acceptability is the ultimate and most straightforward competitive advantage.

• Recyclability or biodegradability may be a major selling factor in the EU where environmental issues are more significant than in the US.

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The benefits of having a clearly expressed competitive advantage in a foreign market are as stated.

0706

Problem

What are the major macro and micro considerations in choosing a particular market?

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The major macro considerations in choosing a particular market:

• Country

• Economic

• Political/legal

• Cultural

• Technological/infrastructure

• Geographic

Step 3/4

The major micro considerations in choosing a particular market are as follows:

• Market

• Customer

• Key segments

• Purchase criteria

• Market size and growth

• Competition

• Product acceptance

Step 4/4

The main macro and micro factors to take into account while selecting a market are as stated.

0707

Problem

What are the three schools of thought about how firms enter international markets? Describe each in detail.

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The three schools of thought about how firms enter international markets are as follows:

• Gradual involvement or Uppsala model: The first school of thought, known as the gradual engagement or Uppsala model, contends that enterprises initially engage in international trade by employing low-resource options like licensing or exporting. As the company expands its knowledge and expertise, it adopts more resource-intensive market entrance strategies and increases its risk tolerance.

• Transaction cost analysis: Transaction cost analysis is the foundation of a second strategy. In this strategy, businesses preserve internal tasks they can execute more affordably and contract out tasks they can complete more affordably to other businesses. When making these selections, businesses take into account all costs, such as those associated with handling marketing, manufacturing, sourcing, as well as quality control.

• Location specific factors: These includes micro-geographical features of the site availability of the land, essential utilities, visibility etc.

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As stated, are the three schools of thought about how businesses enter foreign markets.

0708

Problem

Describe the role of networking in foreign market entry.

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Step 1/2

Each and every organization operating in the business environment focuses on expanding their business either nationally or internationally. When considering international expansion, is more complex and challenging than national expansion. Depending on the nature of the target market, the organizations will have to formulate effective strategies.

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The role of networking in foreign market entry has been discussed as follows.

The network in a business environment possesses three important components: actors, activities, and resources. The actors in the network perform desired activities or control the resources available. The firms within the networks perform various interactions and exchanges of resources. The impact of these interactions and exchanges is huge and influences all actors within the network. This makes the network very dynamic.

Hence, during the market entry process, the network or the dynamic group enables the organizations to develop an effective market entry strategy. Through proper interaction and sharing of resources, the risks involved in entering the market will be reduced. Networking provides necessary backup and support for organizations entering the foreign market.

0709

Problem

What are the three basic ways to enter foreign markets?

a. What are the main differences between agents and merchants?

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The three basic ways to enter a foreign market have been discussed as follows.

• Exporting: This is the approach through which the products are exported to the target market. The organization will have to obtain export licensing in order to enter the desired market.

• Investment: This is an approach through which organizations make investments in their target markets. This can be done through opening showrooms in the target market, strategic alliances, etc.

• Contract: This is an approach through which the organization provides authority to some other firms to run its business operations. Franchising is a contract-based business; foreign market entry tactics

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a. The main differences between agents and merchants have been discussed as follows.

The agents can be considered the brokers that operate between the actors in a network. They can be representatives of manufacturing organizations. The merchants are the direct dealers or distributors of the manufacturing organizations. They can either be wholesalers or retailers.

0710

Problem

Describe the advantages and disadvantages of the various investment and contract market entry strategies.

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The advantages and disadvantages of various investment and contract market entry strategies have been discussed as follows:

Sole venturing

This is a market entry strategy through which an organization opens its own showroom or shows its physical presence in the target market.

Advantages

• Through sole venturing, the organization can establish its standardization, policies, procedures, etc. effectively.

• The profits will not be shared and can be used for further business expansion.

• The privacy of business operations, strategies, etc can be maintained.

Disadvantages

• The cost of production will increase as physical layout and infrastructure have to be built and maintained.

• The risk involved in marketing and promotion, the success of the business, etc is very high.

Contract

This is a foreign market entry strategy where the organization enters into a contract with the organization in the target market. Licensing, franchising, etc are some of the strategies for entering the foreign market.

Advantages

• The risk involved in market entry, like financial loss, is very low.

• The risk involved in marketing and promotion is less.

• The success of the business can be ensured.

Disadvantages

• Sharing of information and resources can lead to unethical use of it.

• Profits will also be shared along with the risks.

• The bad reputation of one firm can impact another firm too.

0711

Problem

What are the strategy decision rules for choosing the most attractive foreign market entry alternative?

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In order to select the most attractive market entry alternative, the important strategy decision rules have been discussed as follows.

• The stability of the government and other authoritative associations has to be taken into consideration when making a market entry decision.

• The economic stability of the target market is important to consider while making decisions.

• The socio-cultural values, buying behavior, and nature of the population of the target audience have to be taken into consideration.

• The technological savvy and accessibility of the target audience are other important factor to consider.

• The environmental factors of the target market that can influence business operations should also be taken into consideration.

• The legal and regulatory framework operating in the target market has to be considered while making decisions.

0712

Problem

What are the main reasons for strategic alliances?

a. What are the critical factors in choosing one partner versus another?

b. What are the most important factors for success in an alliance?

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Step 1/4

The organization adopts various market entry modes depending on its functions, requirements, etc. Each market entry mode has its own advantages and disadvantages. The management of the organizations should carefully conduct research in order to determine the most effective market entry modes.

Step 2/4

The main reason for a strategic alliance has been discussed as follows:

• The partners involved in strategic alliances can remain independent from one another.

• The partners in strategic alliances share the profit generated as well as control the operations.

• The partners should make contributions to the operations of the organizations.

• Skills will be enhanced and can block competitors.

• It provides learning opportunities for both parties.

• Costs of procurement, production, technology, etc can be shared.

Step 3/4

a. Some of the critical factor in strategic alliance while selecting the partner has been discussed as follows.

• The past performance of the partner, like sales, market share, etc.

• Capabilities of the partners, like facilities, size of the firm, etc.

• Reputation and relationships that exist among its stakeholders.

• The goals and strategies of the partner.

• The compatibility of the partner, like product lines, markets, etc

Step 4/4

b. The important factors for the success of the strategic alliance have been discussed as follows.

• The effective and careful selection of the alliance partners.

• The organization's design

• Built-in flexibility

• Effective communication

• Effective leadership

• Balancing the authority of the management of both partners

• Careful negotiation, clear definition, etc

0713

Problem

If you were faced by a blocked market, what actions would you take?

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Step 1/2

Blocked markets are the markets that are protected by the government by erecting trade barriers like tariffs, restricting entry, etc. In order to protect the interests of local business operations the government of the market imposes such blocks for foreign investments.

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Step 4/5

The reason behind the lifecycle of product is the continuous development of new methods and technologies creating scopes and threats. Moreover, trade globalization, reducing market entry barriers permitted new technologies to enter into new markets. No firm can attain success without being replaced by newer, advanced, and less costly alternatives in its product lifecycle process. Firms undertaking rigorous development and research programs proved to be more successful.

Step 5/5

Creating a project environment for innovation and skills and resources to produce new products. Suitable strategies to fit the new product and appropriate system for new product development with effective product positioning strategies will bring success for firms to diffuse innovation and new product into the product lifecycle. Hence, diffusion of innovation related to the lifecycle of product.

0804

Problem

What are the strategic choices a firm can make in each stage of the product lifecycle?

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A product is defined as the offerings that satisfies the expectations of customers. The strategy of product of any firm deals with decision making of features, quality and total offerings. The lifecycle of a product is affected by the marketing activities.

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The product lifecycle confirms that the firm is involved in the product development process. There are four main stages of product lifecycle. Introductory, growth, maturity and decline stage. The strategic choices that a firm can make in every stage of the product lifecycle are as follows:

1. In the introductory stage of product lifecycle only few strategic choices can be done. Few product variations are offered in this stage of product lifecycle. Likewise, pricing of products can be high to large investments or low to establish share of market. Firms cannot afford for penetration strategy can go for strategic alliance with recognized firm for access to established channel network.

2. In the growth stage of product lifecycle, firms add some extensions and added service to main product to differentiate from competitor’s product entering market. Pricing continues at penetration level or skimming. Firms are driven to respond to new competitors to reflect new competitiveness. Channeling distribution through strategic alliance. Promotion convinces customer that the firm requires the type of product to create benefits of one specific brand versus another.

3. In maturity stage, the competition is huge and there are various kinds of services and product offerings that are served by various segments. There are not many choices for price settings and price is set by the customers and suppliers. Distribution is through as many numbers of channels as possible. Promotion deals with making customers’ aware of different brands. Firms focus on overall objective to hold share of market through communication, pricing and distribution and maximize profit aiming key segments.

4. In the decline stage there are fewer competitors. Prices are kept low or high depending upon the competitors’ number. Place can be selective distribution or through direct sales.

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Hence, the above strategic choices can be made by a firm during the product’s lifecycle.

0805

Problem

What are the main factors that affect the speed of acceptance of an innovation?

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Adoption of innovations refers to the process by which an individual or organization adopts a new product, service, or technology.

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Factors affecting the speed of acceptance of an innovation:

1. Complexity: The more complex an innovation is, the slower its adoption rate. Innovations that are easy to understand and use tend to be adopted more quickly.

2. Relative advantage: Innovations that offer significant improvements over existing products or services are adopted more quickly. If an innovation is seen as having a clear advantage over the current option, it is more likely to be accepted faster.

3. Compatibility: Innovations that are compatible with existing values, norms, and practices of potential adopters are more likely to be accepted quickly.

4. Trialability: Innovations that can be easily tried on a limited basis before full adoption are more likely to be adopted faster.

5. Observability: Innovations that have visible results are more likely to be adopted faster. If people can see the positive impact of the innovation, they are more likely to adopt it.

6. Social norms: Innovations that are consistent with social norms are more likely to be adopted faster. If a new technology or product aligns with the prevailing values and beliefs of a community or society, it is more likely to be accepted faster.

7. Marketing and communication: Effective marketing and communication can speed up the rate of innovation adoption. When potential adopters are aware of an innovation and understand its benefits, they are more likely to adopt it quickly.

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In conclusion, the speed of acceptance of an innovation can be influenced by several factors such as perceived usefulness, ease of use, relative advantage, compatibility, observability, complexity, trialability, and reversibility. Understanding these factors can help organizations and individuals to effectively implement new products, services, or technologies, and to make the most of their benefits.

0806

Problem

Describe the differences between the product lifecycle and the technology adoption lifecycle.

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The product lifecycle and technology adoption lifecycle are two important concepts that help organizations understand the stages a product or technology goes through from its introduction to its decline.

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Difference between Product Lifecycle and Technology Adoption Lifecycle:

Product Lifecycle: The product lifecycle refers to the stages a product goes through from its development to its decline. The stages of the product lifecycle include development, introduction, growth, maturity, and decline. The product lifecycle focuses on the product itself, including its sales, market share, and profits.

Technology Adoption Lifecycle: The technology adoption lifecycle, also known as the innovation diffusion theory, refers to the stages an innovation goes through as it is adopted by individuals and organizations. The stages of the technology adoption lifecycle include innovators, early adopters, early majority, late majority, and laggards. The technology adoption lifecycle focuses on the process of adoption and diffusion, including the factors that influence the rate of adoption, such as perceived usefulness, compatibility, and complexity.

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In conclusion, the product lifecycle and technology adoption lifecycle are two different concepts that focus on different aspects of a product or technology. The product lifecycle focuses on the product itself and its performance, while the technology adoption lifecycle focuses on the process of adoption and diffusion. Understanding both of these concepts can help organizations to better understand their products and technologies and to effectively manage their lifecycle.

0807

Problem

Name the five phases in the new product process and describe each.

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The new product process refers to the steps a company takes to develop and bring a new product to market. A well-structured new product process can help a company to minimize risks, reduce development costs, and ensure the success of a new product.

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Phases in the new product process:

1. Idea generation: This phase involves generating and evaluating new product ideas. Ideas can come from internal sources, such as employees, or external sources, such as customers, competitors, or market trends.

2. Concept development and testing: This phase involves developing a detailed concept of the new product and testing it with potential customers to assess its viability and potential demand.

3. Marketing strategy development: This phase involves developing a marketing strategy for the new product, including market segmentation, target market identification, positioning, pricing, and promotion.

4. Business analysis: This phase involves conducting a thorough analysis of the potential market size, competition, costs, and expected financial performance of the new product.

5. Commercialization: This phase involves launching the new product, including manufacturing, distribution, and marketing activities. Ongoing evaluation and adaptation of the product and marketing strategies are also important components of this phase.

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A well-structured new product process can help a company to minimize risks, reduce development costs, and ensure the success of a new product. Each phase of the process is important, and companies should take the time to thoroughly understand and execute each step to increase the likelihood of success.

0808

Problem

What are some ways of getting ideas for new products?

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Product development is the process of creating new products or improving existing ones. It is a crucial activity for companies as it allows them to innovate, meet customer needs, and stay competitive in the market. One of the most important aspects of product development is the generation of new product ideas.

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There are several ways that companies can generate ideas for new products. Some of the most common methods include:

1.Market research: Conducting market research can help companies to identify gaps in the market and areas where there is a high level of customer demand. This can include conducting surveys, focus groups, and interviews with customers and industry experts.

2.Customer feedback: Companies can also gather ideas for new products by soliciting feedback directly from customers. This can include using customer service channels, such as email or social media, to gather input and ideas.

Product evolution and marketing plan evolution are closely related, as changes to one often require changes to the other.

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Product evolution refers to the process of improving or updating a product over time. This can include changes to the product's features, design, packaging, or other aspects.

Marketing plan evolution, on the other hand, refers to the process of updating a company's marketing strategy and tactics to align with changes in the product or in the market. This can include changes to the target market, positioning, messaging, or promotional activities.

When a company makes changes to its product, it often requires corresponding changes to its marketing plan. For example, if a company releases a new version of a product with new features, it may need to update its messaging to highlight these new features and the benefits they provide to the customer. Similarly, if a company changes its target market for a product, it may need to update its marketing plan to better reach and appeal to this new target market.

On the other hand, changes in the market or in the competition can also drive changes in the product and in the marketing plan. For example, if a company's competitors release a new product that outperforms its own, the company may need to make changes to its own product and to its marketing plan in order to stay competitive.

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In summary, product evolution and marketing plan evolution are closely related and changes in one often require changes in the other. Product evolution involves the process of improving or updating a product over time, while marketing plan evolution involves updating a company's marketing strategy and tactics to align with changes in the product or in the market. Both are crucial to stay competitive and to meet the needs of the customers.

0812

Problem

What are the rules for developing effective global cross-functional project teams and how does the Internet relate to this?

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Developing effective global cross-functional project teams is essential for organizations that want to successfully execute projects on a global scale.

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The following are some key rules for developing effective global cross-functional project teams:

1.Clearly defined roles and responsibilities: Each team member should have a clearly defined role and set of responsibilities within the project. This will help to ensure that everyone understands what is expected of them and that there is no overlap or confusion.

2.Strong communication: Effective communication is critical for global cross-functional teams, as team members may be located in different parts of the world. The team should establish regular communication channels, such as video conferencing and instant messaging, to ensure that everyone is on the same page and that any issues can be quickly addressed.

3.Cultural sensitivity: Global cross-functional teams often consist of members from different cultural backgrounds, it is important to be aware of and respect cultural differences. Team members should be trained on cultural diversity, and the team should establish guidelines for communicating and working with people from different cultures.

4.Shared goals and objectives: All team members should understand the project's goals and objectives and be committed to achieving them. It is important to establish common goals and objectives that align with the organization's overall strategy.

5.Flexibility and adaptability: Global cross-functional teams often face unexpected challenges and changes. It is important for team members to be adaptable and flexible in order to effectively navigate these challenges.

6.Leverage of technology: The internet and technology can play a crucial role in the success of global cross-functional teams. It allows the team to easily communicate and share information, regardless of location and time zone. Tools such as project management software, virtual meeting platforms, and cloud-based file storage can facilitate collaboration and coordination.

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In summary, effective global cross-functional project teams require clearly defined roles and responsibilities, strong communication, cultural sensitivity, shared goals and objectives, flexibility and adaptability and leverage of technology, particularly the internet, to facilitate collaboration and coordination. By following these rules, organizations can ensure that their global cross-functional teams are set up for success and able to effectively execute projects on a global scale.

0813

Problem

What is a global product and what kinds of strategies may be employed for global product development?

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A global product is a product that is developed and marketed to be sold in multiple countries worldwide. It is designed to meet the needs of a diverse customer base and is typically adapted to suit the cultural, economic, and regulatory requirements of different markets.

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There are several strategies that can be employed for global product development, including:

1.Standardization: This strategy involves developing a product that is the same in all markets, without making any changes or adaptations. This approach is typically used for products that have a universal appeal and that can be manufactured and sold at a low cost. The advantage of this strategy is that it allows for economies of scale and reduced costs, but it can also limit the product's appeal to certain markets.

2.Adaptation: This strategy involves making changes to a product to suit the specific needs and preferences of different markets. This can include changes to packaging, labeling, and instructions, as well as changes to the product itself. This approach is typically used for products that have a high level of cultural or regulatory variation. This strategy allows for greater market appeal but also increases costs and complexity.

3.Multi-domestic: This strategy involves developing a product that is customized for each market. This approach is typically used for products that have a high level of cultural or regulatory variation and that are sold in a small number of markets. This strategy allows for a high level of market appeal, but it also increases costs and complexity.

4.Transnational: This strategy involves developing a product that is customized for each market, but with a consistent brand and marketing strategy. This approach is typically used for products that are sold in a large number of markets and that have a high level of cultural or regulatory variation. This strategy allows for a high level of market appeal and consistency, but it also increases costs and complexity.

5.Glocalization: This strategy involves taking a local approach and adapting a product to meet the needs of a specific market while still maintaining a global perspective. This approach is a balanced approach where the product is adaptable to the local market but still maintains a global identity.

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Each strategy has its own advantages and disadvantages, and the choice of strategy will depend on factors such as the level of cultural and regulatory variation across markets, the size of the target market, and the company's resources and capabilities. By carefully considering these factors and selecting the appropriate strategy, companies can ensure that their global products are well-suited to the needs of their customers and are set up for success in the global market.

0814

Problem

Describe country of origin and its effect on global products.

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A global product can be defined as a commercial product that can be legally marketed around the world of the same brand name. The products which involve technology and solve the problem of the people globally and have good reviews as experienced by the customers internationally are referred as global products.

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Products are basically processed and manufactured from certain place.Country of origin can be defined as the goods which are produced or were sufficiently processed in a country with a criteria established by article 35 code.

1) The countries have positive impact globally if the countries are advanced in technology and the goods have good quality.

2) Basically, some of the brands represent the country and its operations. Country of origin is a psychological effect that shows the perceptions and attitudes of the consumer when purchasing a global product.

3) Products that come from under developing are riskier and have poor quality and customers chances of buying the product is very low.

4) Consumers associates the value and quality of the product through brand and country of origin. Consumers have some perceptions and insights about the brand and countries that produce global products.

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Customers always go with technology a country has and the brand of the product. Some of the countries and brand have such an image that the customers around the world rely on the products and have positive response.

0815

Problem

List the most important branding decisions. Should a firm always have a global brand?

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A brand which may be considered as national or international must go through some decisions before selling into the market. Country of origin has an impact on global product due to its technology and the image that the brand and country and brand has possessed.

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Branding decisions is essential for selection and positioning of the product in the market. Some of the important branding decisions are as follows.

1) The strategy applied to the brand matter a lot in the company. The elements , components and the value propositions taken from customer should make good decisions.

2) Name of the brand should be chosen wisely and uniquely that must attract the customers.

3) The sponsorship partner should be chosen wisely because the brand needs some amount at the initial stage of the business and compete in the market.

4) Brand quality is also an important factor of the company. The brand must and should have better quality of production, selling and manufacturing goods.

5) Brand development which deals with the features, services, and benefits of the goods must also be decided firmly for growing in the market.

A firm at initial stage must look after the branding decisions made so far and try to introduce the product in the international market. A firm must always have a global brand as the company will have lot of influence in the global market and gain profits. Global brand of a firm will have more customers which will increase the sales and market shares around the world. Hence, an increase in market share will also help the value of a brand.

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Branding decisions must be made considering clear set of factors and elements in the firm.

A brand manager must be able to decide the right choice for the goods.

0816

Problem

Draw a country market portfolio for any products and countries you may choose.

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0817

Problem

Describe the strategies you might undertake based on the placement of country/product on this matrix.

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Products are basically processed and manufactured from certain place. Country of origin can be defined as the place where the goods are produced or majority of the processing was done in the particular region.

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Some of the brands represent the country and its operations. Country of origin is a psychological effect that shows the perceptions and attitudes of the consumer when purchasing a global product.

1) Country of origin has an impact on global product due to its technology and the image that the brand and country and brand has possessed.

2) Consumers associates the value and quality of the product through brand and country of origin.

3) Branding decisions is essential for selection and positioning of the product in the market. Consumers have some perceptions and insights about the brand and countries that produce global products.

4) Product from a particular brand must use advance technology and meet the customer value preposition in the market.

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The brand that satisfies the customers have good quality and meet the needs of the customers. Brand must also have good strategy decisions to grow in the international market.

0818

Problem

Why are packaging and labeling especially important in global business to business markets?

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The products which involve technology and solve the problem of the people globally and have good reviews as experienced by the customers internationally are referred as global products. The brands that produce goods internationally have gone through some of the good branding decisions to stand in the global market.

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The goods and products that need to be transported from one place to another must be labeled and packed for security and safety.

1) Most of the online shopping companies or applications have good packaging and labeling and are ahead in the global market.

2) Customers look for quality and safety of the products. Companies need to make sure that the products reaching the country must have be delivered safely for the price paid.

3) Packaging is important for the brands so that customers are satisfied with the product and safety the company has taken to deliver the product.

4) Labeling and packaging of the products defines the image of the brand. The factors also describes the professional and ethics of the brand.

5) A global business is recognized for its morality, quality of the goods and manufacturing strategies possessed.

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Packaging and labeling is important to ensure safety of the products. Customer do not like damaged products and products must be worth the price.

0819

Problem

How do customers define quality and what role does ISO 9000 play?

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Customer value preposition defines the requirements and problems of the customers. Basically, companies or brands work on customer value preposition. Customers always look for quality of products at a reasonable price.

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Quality according to the customers can be defined as measured as degree of perfection or excellence. Quality is defined in the section ISO 9000 as the extent to which the characters of an object fulfill the requirements.

• ISO is described as the international standards which deal with quality management and quality assurance.

• ISO can help a company or brand to fulfill customer’s needs and achieve improvements and make changes for the responses received.

• ISO plays a vital role in quality management of the company. The section involves customer focus, improvement, process approach and organizational improvement.

• The products that have ISO certification have great influence on the customers and in the market. Such products are said to have good qualities and meet the requirements of the customers.

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ISO 9000 has certain standards that satisfies the customers and brings out the best qualities and improvements in the brand. Customers value ISO certification.

0820

Problem

Relate core competencies to global sourcing. What costs must be included in this decision and what major problems would a firm possibly encounter in outsourcing?

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Core competencies are the tools and aptitudes that make up a company’s competitive advantages. Global sourcing is the technique of obtaining goods and services from the global market notwithstanding national boundaries. The goal of global sourcing is frequently to take advantage of worldwide efficiencies in the delivery of a good or service.

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Buyers who are sophisticated are aware that practically every situation presents them with a “make or purchase” choice. A company can either develop and produce all necessary goods and services in-house or outsource those that are outside of their core capabilities. Companies usually chose to outsource either to reduce expenses or obtain access to superior technologies.

Decisions on outsourcing are significantly impacted by core competences. The company will be able to outperform its rivals in its core capabilities. However, the company must be careful to focus management attention on a small number of these tasks. Outsourcing of key competencies is obviously unacceptable since once these core competencies have been chosen, companies should focus its effort on preserving supremacy. Companies can consider outsourcing as a means of cost-cutting and enabling management concentrate more of its attention on what is actually crucial to the company’s performance if these capabilities are clearly defined. Although there are costs associated with finding and managing firms for outsourcing, the company should carefully consider an outsourcing alternative where the costs are outweighed by the advantages. In a global setting, the outsourcing debate becomes crucial. Since a company may decide that domestic production and an export market entry plan will result in anticompetitive pricing in a particular market, product sourcing and marketing should be considered as an iterative process.

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The following are the costs that should be included:

In a global setting, the outsourcing debate becomes crucial. The costs that should be included are the cost of production, packaging, transportation, and installation, training, applicable import tariffs, value-added taxes, and currency exchange rates.

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The following are the major problems that a firm might possibly encounter in outsourcing:

There are some problems that a company might face when outsourcing its core competencies. On-time delivery and thorough product knowledge are the problems that a form might possibly encounter in outsourcing.

0901

Problem

What are the unique aspects of services and how does this affect the management and marketing of these services?

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For every successful business to business organization, there is combination of goods and services, and it is seen that services are more profitable than products. Improving skills in marketing services will improve performances in firms.

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Services are more vital in global business and is becoming more and more vital for every firm’s offering. The unique characteristics of services are as follows:

1. Intangibility: services cannot be felt, touched or tried out.

2. Consumed when produced: Consumption and consumption of services takes place at the same time.

3. Participation of user: Even when the user is absent where the service is being provided, users can participate in every production of services.

4. Perishability: Services cannot be inventoried.

5. Variability: Due to the labor-intensive nature of the services, and differences in quality of services for each person, so services vary.

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Managing and marketing of services can be profitable and helps firm to acquire a favorable relationship with customers. Management of the unique characteristics of services is carried out by firms in the following ways:

1. Intangibility characteristics requires improving and differentiating the tangible clues to establish service evidence.

2. Examining carefully during training and selection of marketers is required to manage the consumed and produced service characteristics efficiently.

3. Understanding customers’ expectation and involving more customers to participate in service performance is needed for effective management process.

4. Altering work for demand and supply to avoid extreme chase demand or strategies of capacity level to manage perishability characteristics of service better.

5. Standardizing low cost, low-capacity employees or recruiting high cost, high-skilled employees. Directing employees to meet customers expectation can manage variability of service characteristics.

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In case of marketing of services, identifying the relative segment is essential. Service segments in marketing are narrower than the product segment. The unique features of services affecting marketing of services in the following ways:

1. Services for businesses requires to be customized for every individual customer. Segmentation of service needs to be accomplished with satisfaction level of customers, as this is the key determinant of the success of service.

2. Products are the offerings of service, that customers see, including all processes and outcomes.

3. Distribution of services is usually not possible, except for highly important service.

4. Pricing of services moves around managing the demand of customers.

5. Promotion of services has vital aspects, like need for internal marketing to employees.

Hence, the unique characteristics of services affects marketing and management of services by the above ways.

0902

Problem

List the various combinations of services and goods which may be offered by a firm.

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There are certain similarities between marketing of intangible services and tangible products. But there are numerous differences also. Every successful business to business firm offers a combination of services and products, and it is true that, services are more profitable than products.

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In the true sense, there are few services or pure goods offered by firms. Most of the firms offers some portion of services and some portion of goods. The various combination of goods and services that may be offered by a firm are as follows:

1. Tangible pure goods: Firms offering products like paper and lubricant, with a very smaller number of services mostly offer pure tangible goods.

2. Tangible goods with convoyed services: Firms offering highly technical products require planning, maintenance, training, and installation that depends mostly on services.

3. Hybrid: There is an equal offering of services and goods by these firms. The service part of the offering is equally vital to the product part. Example is fast food delivery restaurants. Main services with support of services and goods: Service is the most important part of offering for these firms, and goods and service support system are also present. Example is business traveler on an airline who purchases transportation service and buys tangible products like food and tickets.

4. Pure service: Firms offering pure services like consulting and advertising. Very small number of tangible goods are required by these firms.

Hence, the above combination of services and goods are offered by firms.

0903

Problem

How do marketing, operations, and human resources work together in a services business?

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Services are intangible in nature. Management should focus on the tangible clues of service to its customers to make them informed of what they expect. The unique characteristics of service are intangibility, consumed when produced, variability, user participation and perishability.

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The three main functional fields in the management of services are the operations, human resource and marketing. Human resource, marketing and operations work together in a service business in the following ways:

1. The functions of operation include the employees, equipment and facilities that involves in the service operation of the business of a firm. Most of the service operation are not visible to the customers.

2. The service of marketing system shares the delivery of services with the operation team. Marketing of service also delivers other components like billing, sales personnel, advertising and research.

3. Customer interfaces in the services are carried out by the part time marketers, reporting to the marketing service teams.

4. The operation service team must understand the vitalness of the relations with the customers.

5. Human resources must be capable to select and train the right candidates to meet the objectives and goals of the organization.

6. Training of employees in the human resource, internal marketing and empowerment are the primary factors for the achieving of high-quality in-service management.

Hence, human resource, marketing and operation must work together in the above ways for effective service management.

0904

Problem

Describe the most important customer needs in product support services.

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The service of product support is a marketing tool. In the business-to-business markets the support of sold equipment is as important as product itself. Moreover, the support service of the product offered can most often set a vendor as its competitors. It is seen that failure to provide services can cause problem in the global market.

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Customers need and purchase of goods and related services follows a lifecycle approach. The most vital customer requirements in the product support services are as discussed below:

1. How often the failure to provide service takes place: The number of failures to provide expected services to customers will decrease customers purchasing decision for the equipment and related service.

2. Experiencing interruption: When there is interruption or gap in providing the product support service for the required product, customers might feel dissatisfied and switch to other similar services.

3. Cost of the downtime: The cost of the interruption or gap of providing the service are to be borne by the product support service provider for effective customer relationship management.

4. Uncertainties in the above aspects: Customers suffer costs to repair items and lost wages for idle employees during failure of providing support service.

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After blueprinting of a service, it is possible to carry out a detailed business analysis for estimation of potential profitability of the service. The service can then be organized an introduced in the limited manner for testing in the market, prior to commercialization. Firm A delivers fast food items to its customers. The steps involved in blueprinting development for the service provided by Firm A are as follows:

1. Understanding the culture of the people in the society and building entrepreneurship accordingly.

2. Creation of the organization to train and make employees understand and handle delivery services suitably.

3. Testing the idea by sending skilled individuals to carry out the delivery of fast food in the nearby locality.

4. Monitoring the outcome of the services by taking customers’ feedback.

5. Rewarding risk takers like investors and financial partners for taking risk of providing funds and investing in service delivery business.

Hence the above example is of development of blueprinting in local service business of fast-food delivery.

0910

Problem

If you were developing a new service for an oil field lubricant firm, what are the key steps you might use and what rules would you apply to make this new service successful?

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The development of a new service is an important and complex process that requires careful planning, research, and execution. When developing a new service for an oil field lubricant firm, there are several key steps and rules that should be followed to ensure its success.

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Key Steps in developing a new service for an oil field lubricant firm would be:

1. Conduct market research: Conducting market research is an essential first step in the development of a new service. This research should focus on understanding the needs of the target market, identifying potential competitors, and evaluating the potential demand for the new service.

2. Define the value proposition: The value proposition is a clear statement of the benefits that the new service will offer to its customers. This statement should be based on the insights gained from the market research and should clearly differentiate the new service from its competitors.

3. Develop the service concept: Based on the value proposition, the service concept should be developed. This includes defining the key features and functions of the new service, as well as the processes and systems required to deliver it.

4. Design and test the service: The next step is to design and test the new service. This should include conducting prototypes or simulations of the service, as well as pilot tests with customers. Feedback from these tests should be used to refine and improve the service.

5. Launch and promote the service: Once the service has been developed and tested, it should be launched and promoted. This may involve developing a marketing and communications plan, as well as establishing partnerships and distribution channels.

Rules to Ensure this new service successful would be:

1. Focus on customer needs: The new service should be developed with a clear focus on meeting the needs and wants of the target market.

2. Differentiate the service: The new service should be differentiated from its competitors, offering unique and compelling benefits to customers.

3. Deliver excellent service quality: The quality of the new service should be of the highest standard, meeting or exceeding customer expectations.

4. Continuously improve the service: The new service should be continuously improved and refined, based on customer feedback and market trends.

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In conclusion, developing a new service for an oil field lubricant firm requires careful planning, research, and execution. The key steps in the development process include conducting market research, defining the value proposition, developing the service concept, designing and testing the service, and launching and promoting the service. To ensure success, the new service should be developed with a focus on customer needs, differentiated from its competitors, delivered with excellent service quality, and continuously improved based on customer feedback and market trends.

0911

Problem

Name the major differences in marketing services versus products.

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Every successful business to business firm operation comprises of combination of services and products. Services are more profitable than products. The skills and abilities of service providers requires to be improved for better services to meet customer’s satisfaction.

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Services are intangible processes, activities or performances that are exchanged from producer to user. Products or goods are tangible and they can be transported or exchanged via different medium in between the producers and users. Only perishable products need to be exchanged between producers and users within a specific time length. Marketing of services and products have major differences due to the differences in their characteristics. The major differences between marketing of products and services are as follows:

1. Marketing of services products are difficult to identify as they come into existence at similar time they are purchased and consumed. Marketing of products or goods are easy as they can be identified and separated easily from one another.

2. Services are inseparable and involves customers participation and cannot be sold by ownership transfer as they have no title. Products have specific title and can be separated and transferred during marketing.

3. Services cannot be inventoried. Products can be inventoried.

4. Services are labor-intensive in nature, so there is difference in the quality of services provided. Products of similar nature and characteristics provides similar service quality.

5. User participate in the production and providing of services, so it is critical to understand the expectation of customers for a service. Products can be produced and provided accordingly to meet the customers’ need.

6. Managers use prices and promotion to move demand from peak periods to non-peak periods as services are perishable and cannot be inventoried. Products can be moved from peak to non-peak periods without changing price or promotion.

Hence, the above differences are there between marketing of products and services.

0912

Problem

What are the key problems in moving from a product-centric to a service-oriented business and how would you overcome them?

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The transition from a product-centric to a service-oriented business model can be challenging, as it requires a significant shift in focus and approach. A service-oriented business model places a greater emphasis on delivering value to customers through ongoing services and support, rather than just selling products.

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Key Problems in moving from a product-centric to a service-oriented business could be:

1. Changing the mindset: One of the biggest challenges in moving from a product-centric to a service-oriented business model is changing the mindset of employees, who may be used to thinking about the business in terms of product sales and development.

2. Redefining the business model: Another challenge is redefining the business model, as it requires a shift from a focus on product development and sales to a focus on delivering value through services and support. This may require changes to the organizational structure, as well as the development of new processes and systems.

3. Building customer relationships: In a service-oriented business model, customer relationships become much more important, as they are the foundation of ongoing service delivery and support. Building these relationships takes time and effort, and requires a focus on customer needs and satisfaction.

4. Managing the service delivery: Managing the delivery of services and support can be challenging, as it requires a different set of skills and processes compared to product development and sales.

Following methods could help a person to overcome these challenges:

1. Employee training and education: Employee training and education is crucial in overcoming the challenge of changing the mindset of employees. This can include training on the new business model, as well as the skills required to deliver services and support.

2. Business model innovation: Redefining the business model requires innovation and creativity, and may involve experimenting with new service delivery models and partnerships.

3. Customer-focused culture: Building customer relationships requires a customer-focused culture, where customer needs and satisfaction are a priority. This can be achieved through customer feedback programs, regular communication with customers, and a focus on delivering excellent service quality.

4. Investment in technology: Managing the service delivery requires investment in technology and systems, such as customer relationship management systems and service management software. This can help to streamline processes, improve efficiency, and enhance the overall customer experience.

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In conclusion, moving from a product-centric to a service-oriented business model can be challenging, but is an important step for businesses looking to remain competitive and deliver value to customers. The key problems in this transition include changing the mindset of employees, redefining the business model, building customer relationships, and managing the service delivery. Overcoming these challenges requires a combination of employee training and education, business model innovation, a customer-focused culture, and investment in technology.

0913

Problem

What are the critical problems in marketing services internationally and how would you deal with them?

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Step 1/4

Marketing services internationally can be a challenging task for companies, as there are several critical problems that can arise. These issues can make it difficult for companies to effectively promote and sell their services in foreign markets. However, by understanding and addressing these problems, companies can successfully market their services on an international level.

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Following are several critical problems that can arise when marketing services internationally:

1.Cultural differences: Different cultures may have different values, customs, and beliefs which can affect the way a service is perceived and received.

2.Language barriers: A lack of fluency in the local language can make it difficult to communicate effectively with potential customers.

3.Legal and regulatory differences: Different countries have different laws and regulations regarding the marketing and sale of services, and companies must comply with these regulations to avoid penalties.

4.Different consumer needs and preferences: Consumers in different countries may have different needs and preferences for services, which can affect the marketing and positioning of the service.

5.Logistics and distribution: The logistics and distribution of service can be more complex than physical goods, and companies must consider how to deliver the service to customers in different countries.

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To deal with these critical problems, companies can take the following steps:

1.Conduct market research to understand the cultural, legal, and regulatory differences in the target market.

2.Hire local staff who are fluent in the local language and familiar with the culture to help with communication and to help with compliance with local laws and regulations

3.Adapt the service offering to meet the needs and preferences of consumers in the target market

4.Develop a logistics and distribution plan that takes into account the specific requirements of the target market

5.Develop a marketing strategy that takes into account cultural differences and language barriers, and use local media and influencers to promote the service.

6.Foster a strong relationship with the local partners such as agents, distributors, and suppliers to ensure the service is delivered effectively and efficiently in the target market.

7.Continuously monitor and evaluate the market situation, and adjust the strategy as necessary to respond to any changes in the market conditions

Step 4/4

Overall, international marketing of services requires a thorough understanding of the target market, flexibility in adapting the service offering, and an effective communication strategy to overcome cultural and language barriers.

B2B

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Michael Hutt B2B

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