The Impact of Internet Use of Business-to-Business Marketing - Research Proposal Example

I. Introduction Along with the changing business world, s change as well, becoming more demanding and knowledgeable than before. The consumers of mass communication messages today are active and critical in the simple choices they make. As such, the mere purchase of everyday necessities has proved to be crucial in analyzing the consumer market at present. In turn, company management had shifted their focus on their clients or customers so as to stay successfully in business. The changing world has then placed much emphasis on the importance of communication for effective marketing. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered (Lowenstein, 1997). The long history and practice of people across different countries and cultural identities could be very overwhelming in the challenge that it presents to business and advertising individuals who have ambitions to take the extra mile of gaining a share of consumers and clients from varying localities abroad. Today the array of possibilities in applying the marketing strategy of international advertising is unimaginable. Instead of taking the technological barriers as hindrance and drawbacks in the international business operations because of the technological divide that cuts across the people from different social status, looking for avenues of more strategic and effective campaigns and treating such drawbacks as opportunities may result to favorable outcomes. Website is better market its services and increase client and customer satisfaction in its aim to gain competitive advantage from competitors as well as sustainable development for the organization's long-term goals. As such, the report outlines the (1) contextual analysis of the business organization, (2) its promotional objectives and business positioning, (3) the organization's promotional strategies, (4) the promotional mix of the business, (5) the implementation plan, and (6) the evaluation and control of the its online marketing project. Marketing Objectives An organization that offers products as well as services also depends on suppliers that deliver the company's raw materials. This condition leads to the buyer-supplier relationships within different industries. Such relationship is directly influence by the changes in the supply and demand variables based on the existing needs of the consumer population (Lee & Billinton, 1995; Katsikeas, Schlegelmilch & Skarmeas, 2002). The influence of the supplier is defined by its ability to dictate price and influence availability of materials. Other strengths of the supplier include their ability to (a) increase prices without suffering from a decrease in volume, (b) reduce the quantity supplied, (c) organize in a formal or informal manner, (d) compete in an environment with relatively few substitutes, (e) provide a product/material that is a critical part of the end product or service, (f) impose switching costs on their customers when they depart, and (g) integrate downstream by purchasing or controlling the distribution channels (Berry et al, 1998; Degraeve & Roodhooft, 1999; Anderson & Katz, 1998). According to Avlonitis and Karayanni (2000) 58% of the demand for rented holiday cottages caters to customers belonging to the A, B, and C1 socio-economic groups. Demands for independent family vacation packages are relatively higher compared to group outing packages. During the lean seasons, the notion of escaping from busy urban life to the countryside for a short and relaxing break is common among customers. Moreover, the purchase decisions of target customers are based on the offered services and amenities that will entertain them during the stay as well the customers trust to cottage owners and service providers due to high satisfaction level. Customer satisfaction is the primary aim of marketing. Most enterprises ensure the best possible chance of attaining long-term stability and competitive standing through comptehensive customer analysis and implementation of marketing communication plans. Marketing makes the basic assumption that customer satisfaction should be the primary aim of the business. Such satisfaction can be achieved and sustained through the provision of competitive products or services, at competitive prices (Spreng, MacKenzie & Olshavsky, 1996). It should focus on every aspect of marketing, not only on promotion and sales techniques, to persuade customers to buy but also on target market, marketing mix and the effective marketing strategy (Kotler & Armstrong, 2001) because successful marketing results in stronger products, happier customers, and bigger profits. Moreover, customers recognize the importance of knowledge in relation to the product being purchased. Several consumer behavior researches testified to this fact. Wong (2000) argued that a customer evaluates a product or a service. Such action is based on the customer's reaction from the using the product or service, which means that the product or service should leave a good perception to the customer's contentment. Frederick and Salter (1995) explained that it can be ensured that a customer is satisfied by taking into importance the value package, which includes: price, product quality, service quality, innovation, and corporate image. Others also stated the importance of maintaining or establishing a uniqueness of the product, while also understanding customers and what pleases them (Denton 1993). Customers should also understand the product and be allowed to set their own standards in order to be satisfied (Frederick & Salter 1995). Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today's ever increasing competitive environment (Lindenmann, 1999). Aside from having a strategic purpose, gaining customer loyalty is also a key corporate challenge today especially in this increasingly competitive and crowded marketplace because of the eventual profitability it will provide (Chow & Holden, 1997). Every business wants to have a regular customer base because customers dictate profits and how the customer is treated will reflect on whether the customers will remain loyal with the company or not. The discussion that follows enumerates the (1) corporate objectives, (2) marketing objectives, (3) marketing communications objectives, and (4) positioning of Lexus LS460 in initiating the business organization's drive towards the electronic transformation of its booking services to be able to market and advertise the offers of the company not just to client cottage owners but also to the basic individuals or groups of customers that the agency attends to. Marketing Objectives 1. To increase the market share of the agency in terms of contract cottage owners through greater bookings of customers; 2. To provide satisfying contract agreements to cottage owners that reflect the interest of both parties; 3. To provide highly satisfying booking services to the customers by exhausting the available resources of the agency; 4. To accelerate revenue growth by focusing on selected consumer group and expanding the customer-base; and 5. To initiate continuous optimization of marketing communication channels and activities to best showcase the services of the agency. Marketing Communications Objectives 1. To increase consumer awareness of the services offered by the agency more effectively by launching a company Website; 2. To exhibit the facilities and amenities offered by contract cottage owners to subsequently increase market share; 3. To penetrate other lucrative customer-base through the broad reach of the Internet as facilitated by the online portal; 4. To facilitate online transaction and booking services to the customers; 5. To encourage open communication between the agency and the customers using the Website as a feedback system that caters to the needs, suggestions as well as complaints of the clientele; and 6. To exhaust means of spontaneous and flexible developments and improvements of the online services that is reflective of the market trends in the industry. Target Market and Audience According to the Demographics of United States (2005), there are 2,563,355 Professionals both men and women between 15-64 years old. These professionals will be the target market of the company. Cultivating customer loyalty is about establishing a relationship between the company and its consumers (Chow & Holden, 1997). This is emphasized by Michael Lowenstein (1997) who considers that gaining consumer loyalty is a business's most advantageous strategic purpose because it has a constructive effect on company, culture, development and the bottom-line. Aside from being a strategic purpose, gaining consumer loyalty is also a key corporate challenge today especially in the increasingly competitive and crowded marketplace because of the eventual and inevitable profitability it will provide the company (Chow & Holden, 1997). Thus, the company will develop the present consumer base of residents and occasional shoppers and tourists by devising strategies that will make them patronize the company. The existence of other similar service providers in the area and the inevitable emergence of more competitors make it imperative for the company to be able to cultivate this consumer base immediately. In the case of home networking technologies, differentiation among households should be examined and investigated. The socio-economic status and demographics of consumers in a particular locality are cross-referenced and correlated with other market variables to guarantee that there is a market for the products. In effect, high-income generating consumers as well as the wealthy individuals in the society are highly considered as consumers or clients for this business. These people should also imbibe specific characteristics which include their tendency to appreciate technological products as time-conscious individuals who are busy with their everyday lifestyles who put high regard and value to time.. Communication Plan and Communication Objectives When considering channels for any campaign, including new product or service launches, integration across different channels can have a substantial impact upon response, compare to channels working in isolation. The typical example cited is often direct mail followed by telemarketing, where the mail pack serves to put the brand or product in the mind of the recipient, 'warming them up' to the telemarketing. There are also natural partners - as digital becomes a more accepted part of the marketing mix, it is unusual to find any communications strategy particularly product launches, which ignore the use of email and websites. A combination of email and website work can give high impact, high relevance, and high reach, must form a key part of any communication strategy (Boylaud, 2000). In this light, recommendations as to how the company of Lexus LS460 will conduct its marketing communications plans is governed by the assumptions that using the right mix of advertising tools which include television, Internet, print and radio along with the traditional marketing efforts to support the contemporary means of advertising will allow the company to get the best of online and offline advertising. As such, direct marketing has never been as precise, powerful and popular as it is today. With its new applications to database marketing, global commerce and the internet, it is no longer an option for company officers and marketing executives; it is a necessity. Direct marketing has grown beyond its roots in traditional mail order to embrace a host of new technologies, customer relationship building techniques and performance measures set the bar for the future of marketing communications. It has become a powerful tool that every business should consider as part of an overall integrated marketing strategy. Imagine how much profit a business organization can gain from combining these two powerful tools together. The Internet, as one of the most popular form of new mass communication technology, has long been of full use and advantage to all sorts of businesses especially those who are in need of efficient and wide market reach on which to channel their promotional messages. Business, information and entertainment have been communicated with ease through such technological revolutions. The Internet is changing the way we do business, whether it's finding new streams of revenue, acquiring new customers, or managing a business supply chain. E-commerce removes the geographical separation between regions, and made dealing with foreign trade a snap. As such, the arrival of broadband internet means that more and more people will shop online - suggesting there is plenty of room in the market for the convenience store and its competitors. Service differences are likely to smooth out, making it more likely that people will choose on the basis of price and brand loyalty. Moreover, e-marketing is a powerful tool that could be exhausted by the Group in achieving marketing its objectives through the use of available and up-to-date electronic communications technologies (Neumann and Sumser, 2002). The same advertising campaign does not necessarily mean that the strategy, plans and approached that will be utilized is similar. Too much generalization about a locality and the people who will be the target of the campaign may post danger on the success of the project. It is important to get close to the audience by knowing their culture. Of all the components of a marketing plan, the most essential of all these elements but most often, the most overlooked is the definition of the target market. And yet, no one can proceed to a communication plan without answering the question of who do the company have to convince to buy the product or service. Market segmentation is the identification of subgroups within the total market that the company wants to target. This fully recognizes that buyers of any product or service category need, desire, want and expect different performance characteristics from products or services in the category. It helps the company to position the product properly and prepare marketing strategies to satisfy a more focused range of consumer needs and wants. Furthermore, it is also a factor in effectively using limited marketing resources, identifying unique market niches, improving profitability and helping to retain consumer loyalty. In this regard, the market segmentation only serves as preliminary preparation for identifying the right consumers of the products. Targeting specific group of individuals by downsizing their number to those who have the purchasing power and the demand for the home networking technologies will be considered as the niche market of the business organization in selling their ideas and products. Defining the niche market will entail intensive market research and sales strategy for the business endeavor to succeed. Database Strategy Customer loyalty is not a one-sided arrangement with the company reaping all the benefits. The customers also expect to be rewarded for patronizing the company. Aside from assuring customer satisfaction, the company will also devise strategies that will make the regular customers buy more or try Lexus LS 460. This includes (1) distribution of samples, (2) discount coupons to customers in the some stores, (3) rebates, (4) price-off particularly a few months after the launching period, (5) bonus packs or tie-ups with the companies other products during the launching period, (6) sample packs, (7) special packs, (8) premiums, (9) free products for new customers, (10) warranty or free health consultation on booths, (11) prizes through raffle draws, (12) issuance of patronage card/reward, and (13) product sponsorships for contests that are both directly and directly associated to the lifestyle of the target market. Discount coupons and club cards will serve as a marketing strategy to developed similar loyalty schemes in order to identify and stimulate brand awareness in the market. These database marketing and loyalty programs, the ultimate promotion strategies for the retailer are powerful, highly segmented customer-oriented forms of promotions, encouraging customer retention and purchase activation. Creative Positioning The first marketing decision would be to decide if the company wants to maintain solely their present market and just plan incentives for them to consume more of the product. The major task here is to decide more usage situations for consuming the product. On the other hand, the second strategy would be for the company to go after the non-users. Most companies employ a dual strategy for attracting both users and non-users alike. In order to get an idea of how large the potential market among non-users is a market penetration study must be implemented called the Usage, Attitude and Image (UAI) study. Using this tool would evaluate the opportunities existing outside the company's present market. However, there is a disadvantage to focusing solely on non-users at the expense of the current users. Since Lexus LS 460 is a new products in the market that are still in need of active promotional campaigns and advertising, stabling a solid consumer base should primarily take into account. The loyalty of these people will serve the business organization when the time comes that the distribution of the products are made wide wherein the company will be targeting the incorporation of non-users in the consumer base. Furthermore, time acts as a market variable that should be similarly considered upon plans to expand the target market. 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