Business-to-business Project: The Analysis of LuminUltra Company - Case Study Example

 B2B Project and the Analysis of LuminUltra Company 1. How the LuminUltra Company in the upstream oil and gas industry gain traction with innovators or early adopter customers The LuminUltra company offers accurate and real-time quantifications of absolute bio-burden provide operators with the aptitude to locate the problem area in the entire system, enable treatment, and quantify the effectiveness of the same treatment in the shortest time possible compared to the long times realized with traditional methods. Such a quick feedback allows the proactive and expedient adjustment of system operations to make sure that localized difficulties do not result into big issues. Based on research on the information gathered from the company’s website, there is a profile created for early adopter consumers most likely to purchase the oil and gas products as well as the non-adopters or those who are least likely to purchase in the foreseeable future (Dubey, 2012). The upstream segment involves the extraction of gas and oil as well as the shipping of those raw materials to be processed. To gain traction in the industry, LuminUltra ensures that the early adopters remain a small number of consumers, nowhere near the quantity required for mass adoption. Similarly, these buyers must be youthful, high-income personnel who already can afford the services. It is expected that the early adoption be centered in locations that are primarily effective in terms of infrastructure. On the other hand, the innovators tend to be extremely sensitive to matters concerning the environment, price sensitive, and there are chances that they are accommodated specifically according to their capability and effort. Ultimately, mass adoption is often motivated by the expansion of competitive offerings. Consumers coming on board are referred to as early majority and includes those consumers whose probability to buy the services after the early adopter consumers are high. Such consumers have extreme distinct profiles, much higher than average and seem to reside in suburban and urban areas. 2. How the LuminUltra Company in the upstream oil and gas industry can change the marketing message to cross the chasm and gain mainstream customer support LuminUltra needs to come up with a tactical market communications schedule to fruitfully cross the chasm and achieve mainstream customer support. It is logical to argue that the complexity of the marketing messages makes it very broad to handle at some points in its operations. In the mainstream customer support, the target consumers consist of several realists. When the company starts to develop its communication efforts, it should centralize the fact that realists are skeptical and care less about the oil and gas products or the technologies related to them. Instead, such realists concern themselves with the company and the markets. Its message should position the rest of the products in relation to the specific business issues that realists consider precedence in their market segment (Lemstra, Hayes, Stanley, Heijl, & Tuch, 2011) Apart from changing the audience and the message itself, the company should bear in mind that the realists seek diverse types o evidence using the media very dissimilar from that of the markets earlier. Since realists are market-oriented, they are directed by market validation as opposed to technology validation, seeking the most cost-effective manner in which to address their business-related problems. Disregarding this fact will possibly prevent the company from crossing the chasm to the mass market. Most information is obtained basically from esteemed industry sources like publications and industry analysts. Successfully, the company has to develop beyond mainstream customer support. At this point, the marketing messaging effort must become much sophisticated than before. In this sense therefore, they will necessitate increased involvement from specialists such as PR firms, advertising agencies and designers. Lastly, the company’s message must make its way to the potential consumers through the correct medium. Giving the proper message and evidence through the wrong media only results in an individual not getting the right information. A broad range of media needs to be considered for every particular target customer. 3. How to alter the value proposition to customers so they move from Passive users to Proactive users In the business context, value proposition refers to that situation where an organization promises its customers that value will be delivered, and the customers in turn believe that they will experience this promise. It is a business strategy that aims at satisfying customers, after analyzing the costs and benefits to be experienced by the company. On the other hand, passive users refer to those users or consumers who only want to receive the advantages promised without coming up with any action in return. Proactive users tend to initiate change as opposed to reacting to the promises or merely just consuming the services without any action. In this sense therefore, value proposition statement seeks to convince potential customers that a certain good or service will be of more benefit or may give solutions to a number of problems. However, it is important that consumers learn to reciprocate rather than enjoy the services without giving back to the company (Bruce & Solomon, 2013). Research shows that most customers buy products that only suit their needs. In most parts of America for example, most consumers take an amazingly passive approach in purchasing a number of products, meaning that they do not seek out extra ordinary products unless they have specifically need them. This kind of consumer behavior can change I the following steps are taken: Give sufficient product information to boost understanding Given that value proposition states why a customer should buy a product or service, it is important that they get sufficient information about the same. For the minority users who are not confident with the kind of product, the possibility is that they lack information and understanding about it. When the information communicated is not transparent, then there are high chances of customer dissatisfaction. Where consumers suggest areas for a company to improve their services, they simply mean communication that is easily understood, greater speed, a named contact, and enhanced access to information online, especially for the younger consumers. Traditional distribution and marketing methods do not suit properly to the current consumer trend that use independent and objective sources of research prior to purchasing. The challenges for organizations are to pass across their propositions so that they can be represented fairly by the objective sources, permitting consumers to make choose wisely. A company will need to project its brand reputation and service messages broadly and consistently, in a number of media and sources, ranging from product sponsors and traditional intermediaries to its websites and finally to the current world of social media. Make brand messaging, awareness, and delivery of services more consumer-oriented Business ventures need to evolve their goods and service delivery channels to meet the changing needs and expectations of the customers, focusing specifically on enhanced data and transparency, a move particularly applicable for online access. Passive users who are used to authentically customer-centric business models like those of wholly internet businesses, will probably increase their demand for comparable engagement with the company, namely: smart use of their data to realize and respond to necessities, access when and where t is demanded by customers, as well as access to ideal customer-driven information to sustain purchase decisions and loyalty rewards. Seizing the chance to strengthen relationships should also include seeking proactive, innovative ways to identify customer loyalty either in terms of rewards or through service advantages that are valued most by the customers. The internet is the way forward Consumers want to use sources that can be trusted without the fear of sales bias. Even though family and friends may be a trusted reference point, it is believed that this step may be best taken to higher levels when extended to online sources lie social media, blogs, and comparison sites. With this in place, family and friends form part of an extended online channel. In addition to this, emerging markets have to ensure that the consumption rate increases. Consumers therefore need sources that they can trust, since their perceptions on products and services may directly affect the purchasing decisions of new sales. As this tendency for self-directed behavior grows, an increasing number of consumers will possibly take more control of the purchasing process (Midgley, 2010). Prioritize strategies used in social media in emerging markets The need to influence consumers to move from being passive to proactive users is particularly vital in a company, most specifically the oil and gas business. Clearly, this calls for more than mere advertising and thus there is a need to develop social media approaches that prepare them to present their products and themselves in a simple, easy-to-understand terms and language, customized to each consumer channel and segment. Personal interaction between the passive users and the company It is logical to argue that passive customers need personal interaction so that they can understand their financial needs and establish the kind of products to purchase. However, research shows that some of these consumers become self-directed to being proactive users on their own. It is true that consumers of all types prefer personal interaction when deciding on what to purchase, meaning that most of them still have no confidence to purchase goods and services without assistance (Mourdoukoutas & Siomkos 2010). Even while asking on the product purchase, most prefer personal interaction across all phases of life, though younger consumers are somehow more willing and ready to research as well as purchase without help. Although consumers are ready and willing to purchase more, they expect their organization to make it simple for them. The procedure has to be convenient, offering an opportunity for cross-selling during original purchase and through the channel of their choice. The description of goods should be simple so that it is easy for consumers to know exactly what they are buying. Other than this, passive consumers can b changed to proactive consumers by giving them incentives for each purchase that is repeated. Price discounts are one of the big reasons why users may want to be proactive, in addition to extra services at no extra cost. 4. The role of channel marketing in the B2B global marketing challenge Channel marketing refers to the process of promotional efforts at specified levels or links such as retailers, wholesalers, and distributors in a channel of distribution. It offers producers with local marketing information, entry to a proven customer foundation and a sales supremacy that can improve value to the advertisement of the products and also allow companies to depend on distributors to support, sell, and promote products. Channel marketing acts like an intermediary bridge between the variety of goods and services created by the producer and the variety demanded by clients. With promotion in place, marketing intermediaries draw customers and convince them to purchase goods and services. Such a process promotes sales promotion activities using personal contacts and the media (Kumar, 2012). Channel marketing help n negotiating prices and other business terms and conditions between the seller and the buyer. No sale can be experienced without agreeing on the terms of business and prices. Information can also be collected about competition and demand, from consumers and pass it to producers. Information can also be given to consumers about changes in design, new products, and styles of existing products (Hutt & Speh, 2012). Other promotional efforts noted in channel marketing include buying goods in cash from manufacturers and selling them to the company customers on credit. Financial assistance at diverse stages in the channel helps clients to get products and services even in times when they are willing to buy but are not in position of doing so. References Andzulis, J. M., Panagopoulos, N. G., & Rapp, A. (2012). A Review of Social Media and Implications for the Sales Process. Journal of Personal Selling and Sales Management, (3), 305-316. Baird, C. H., & Parasnis, G. (2011). From social media to Social CRM: reinventing the customer relationship. Strategy & Leadership, 39(6), 27-34. Boone, L. E. (2012). Contemporary marketing. Cengage Learning. Bruce, M., & Solomon, M. R. (2013). Managing for Media Anarchy: A Corporate Marketing Perspective. 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