Business to Business Marketing - Assignment Example

?Business to Business Marketing Q Other than personal selling, analyse the other marketing communication tools that CCS can use in order to win new business. Recommended which communication tools are likely to be the most productive. Justify your answer. A.1 The process of marketing communication is considered as a tool which helps the different companies whether working on to market its products and services to both businesses and consumers. Moreover the tools of marketing of marketing communication helps the company to effectively communicate its brand and marketing ideology to a large number of consumers in both the existing and new markets. The company under question Cloud Creative Solutions Ltd. is found to work more based on the tool of personal selling while reaching the goods and services produced to the customers. Other than focusing on personal selling alone the company can also render focus on a large number of other marketing communication tools while marketing its different services conducted in the marketing sphere. The different marketing communication tools consist of both traditional means and also other sophisticated modes which depend on the use of internet and digital media. Traditional tools of marketing communication consists of advertising activities on a media plane like use of magazines, newspapers and through other visual and audio modes like radio and television. Moreover advertisements made at various places through the use of billboards can also be used by the company. Cloud Creative Solutions can also market the range of services offered through pasting of advertisements on transport vehicles and in entertainment venues like cinema houses. Other forms of marketing communication tools used by retail companies are using different forms of signage both inside and outside the store to attract the attention of consumers. Again the company can work to sponsor large number of events like sports, entertainment and other arts and crafts activities to help gain the views of large number of people. This also helps in enhancing the social image of the company to the external world. The company can also focus on the generation of events like trade shows wherein the consumers get the enlarged view of the different products and services marketed by the company from time to time. Cloud Creative Solutions can also create huge customer hype through the rendering of discounts, promotional coupons, bonus and other price and economy packs to the consumers. The company can also engage in the generation of contests and other sweepstakes to encourage the consumers participate in such events in large numbers and thereby gain access and knowledge of the services rendered. Thus Cloud Creative Solutions can depend greatly on the above discussed marketing tools rather than depending greatly on public relations and personal selling to market the large sphere of marketing services. These marketing communication tools in total constitute the realm of promotional tools in the marketing activities of the company (Shimp, 2008, p.7-8). While analyzing the above marketing communication tools it can be inferred that the emergence of the internet would effectively help service marketing companies like Cloud Creative Solutions to gain the attention of large number of consumers both in local and international markets. Moreover through the help of internet marketing the companies can present to the customers lucrative websites containing a large array of information pertaining to the different products and services rendered and thus helps the consumers to make effective choices. Again the internet is used as an effective marketing communication tool in that it helps in the spreading of marketing messages of the company to users spread along international boundaries in a highly faster mode than that of other traditional marketing tools depending on digital and printed media. Further the use of mobile communication is also considered as an effective mode for marketing communication activities conducted over both business to business and business to consumer interface. Through the use of mobile telephony the companies can help spread information of new product and service launches to large number of consumers in different target markets. Moreover the information relating to special contests and other marketing events can be informed to the consumers depending on the use of mobile phones through the use of short messaging options. Thus both the advent of internet communication systems and cellular phones has helped change the face of marketing communication practices of different companies (Danaher & Rossiter, 2006, p.35-40). However while making effective use of the mentioned marketing communication tools pertaining to the use of internet and cellular medium the company, Cloud Creative Solutions must effectively relate such to the targeted markets in question and also to the large array of services to be marketed. Through the use of the marketing tools the company can help in effectively advertising the products and services of its client base to their targeted markets at effectively low costs. Thus more number of business clients gains the interest of availing the services of the company (Capon, 2009, p.220). Q.2. Peter and Sarah are seriously considering employing a sales team consisting of between 6-8 full-time staff. This may include both inside and outside sales staff. Discuss the various ways that Peter and Sarah might organize the sales force, and recommend which approach you believe to be the most appropriate. Justify your answer. A.2 The different ways in which Peter and Sarah can organize the sales force within the organization can be enumerated as follows. The first way in which the sales force of the organization can be effectively organized is through the division of the total sales force in regards to specific geographical territories. In this fashion the individual sales persons can be assigned different territories which help the enhancement of the focus of the sales groups in effectively marketing the products and services of the company. Further the division of the sales groups depending on geographical territories also helps in reduction of the cost behind such allocating activities. Moreover the time and expenditure required to be incurred by the salespersons to move along the stated territories also get potentially reduced owing to the division of the territories assigned to the sales persons. However in depending on the division of the sales force based on geographical territories the companies suffer from a distinct disadvantage relating to the absence of division of labor as the sales force deployed along the several territories are found to perform different activities. Again the sales force of the organization can be divided based on along the different categories of products and services produced. In such divisions particular products or services are allocated against different sales persons that happen to enhance the association of such products and services attributes to the different sales persons. Thus the sales persons can effectively work to design the effective marketing programs to effectively market the same over the existing and new market bases in an extensive manner. However division of the sales force depending on the products and services produced happens to duplicate the efforts of the people working in separate geographical territories. The sales force working in different geographical territories are observed in marketing the same products and services which another sales person working in another territory also conducts. Thus the efforts of the sales persons become wasted in the course of such events. Another way in which the sales forces of the organization can be organized is based on dividing the total market based on different segments. The sales forces can be allocated along different consumer segments that increase the level of association of the sales people to the segmented consumer groups. Thus the sale people can effectively render decisions relating to the effective marketing mechanisms needed for selling the products and services on large scale to these consumers. The division of the sales force depending on the product and services attributes however suffers from some considerable limitations. Firstly it is observed that the sales people assigned to different territories happen to market the same product or service and secondly it may happen that two or more sales persons tend to call one customer accidentally which irritates the latter. The sales forces of the organization can also be organized based on the level of their competencies and selling abilities. This division would based on the system of division of labor would help the sales persons enhance their skill sets to become more productive in the long run. However such division is considered to be hypothetical for the implementation of the same counters large number of problems. Still some of the sales forces in the organization effectively work to help create the market for new products and services launched. These sales people are known as the developmental sales forces and help the organization in the above stated sector. The sales people working in such functions tend to conduct a large number of surveys before taking any particular decision pertaining to the launching of the new products and services. Effective market surveys helps the sales persons to render potential decisions keeping in mind the organizational potential for meeting increasing consumer demands which keeps on altering from time to time (Johnston & Marshall, 2009, p.108-112). Q.3 Peter and Sarah have highlighted the importance of relationships in B2B. Given the current economic climate, discuss to what extent relationship variables and business networks are likely to be important for CCS both now and in the future. Make reference to relevant IMP literature in your answer. A.3 The importance of building relationships in case of business to business marketing is well emphasized in the view of the different activities where different business houses conduct sales and purchase transactions among them. Management consulting firms operating based on the relationship matrix help in generating consulting assistance to different financial corporations like banks and insurance companies. Relationship building is render more importance in regards to business to business marketing for it encompasses a more enhanced approach than in cases of business to consumer interface. Large scale transactions and high amount of complexity involved in respect of business to business interface requires more involvement of relationships with the client base rather than in business to consumer based transactions. It is observed that in cases of business to business transactions there is huge amount of requirement for the parties involved in a transaction process to meet each other in company meetings. Moreover the requirement of enhanced business relationships in cases of business to business activities gets emphasized owing to the need to conduct large amount of high scale commercial transactions and also the development of effective networks and business alliances to help expand the realm of business activities. Thus it is observed that relationship building is considered to be a highly significant aspect in regards to the development of business to business dimension (Bannock, Davis & Trott, 2003, p.46). The relationships developed in regards to business activities in the business to business sphere happens to develop large scale networks aimed at expanding the business activities across international borders. It is observed that a business firm may operate through the use of direct relationships while conducting its business in a local region. However to pursue its activities on an international scale it needs to develop on its relationship scales to develop additional networks crossing borders. Thus a multi-national company operating across several countries need to develop its strategies to connect the different international subsidiaries with its headquarters through a mode of connected relationships. Herein a business subsidiary interrelates with another business subsidiary based on a certain relationship pattern which defines a specific network. This network developed thus can be differentiated with the network developed by the head quarters with that of the different subsidiaries located in other countries. Hence the development of relationship activities across the business sphere is found to have potential significance in the development of business networks both in regards to local and international cases (Forsgren, Holm & Johanson, 2005,p.77-78). Speaking on the enhancement of the relationship factor in business to business marketing activities the literatures and research publications published by the International Marketing and Purchasing Group can be closely observed. The literatures published by the International Marketing and Purchasing Group commonly known as the IMP literature thus reflects that parties to a business contract involving business activities between two or more companies depend more on effective relationships. Thus the sales, purchases and marketing activities concerning industrial products between two business companies develops based on the relationship patterns of the parties to such business contracts. Development of business networks in the relationship aspects of business to business activities of companies is observed to alter the face of marketing activities pertaining to business to business domain. IMP based literatures focused on the aspect of maintaining long term sales relationships rather than depending on purchasing activities conducted in a discrete fashion. In the second case the relationship activities of business to businesses conducted based on manipulation of the marketing mix variables to satisfy one’s own business needs in passive markets was countered in these literatures. In the third case the IMP literature also focused on setting up close business markets such that the parties to the business contracts can easily switch over to other business partners. Fourthly studies of business relationships between two or more business houses based on either empirical or theoretical models are differentiated in case of IMP literature (Maclaran et al, 2009, p.13-14, Ford, 2002, p.121-122). The networking relationship which one business organization shares with another is found to be increasingly explored by the IMP literature. IMP based literature further suggests that each of the separate business houses operates based on some unique networking models constituted by different types of business organizations helping the initial company to function effectively in the target market. Moreover the development of future business networks is observed by the IMP literature to depend largely on the past networking variables and interactions developed in the business sphere (Hart, 2003, p.155-156). The nature of the relationships between two companies is studied mainly along three parameters. Relationship parameters between two companies is found to develop strong ties with the different sets of activity performed between the two concerns measured along different categories like commercial, technical, administrative and other departments. The relationship patterns between the companies in turn are found to intensify the complexity of the business activities of either company to achieve all round productivity. Both the companies are required to adapt them to the changing environment focusing on reduction of business costs and enhance the productivity parameters. Again the relationship patterns of two companies also happen to significantly impact the different resources available with the companies pertaining to the category of manpower, technological and finance. Thus two companies working out to form effective business relationships focuses on generating accessibility to the different level of both tangible and intangible forms of resources to help gain collective competencies. Henceforth the level of positive business relationship between two companies can be judged from the manner in which each of the companies gain better accessibility to the organizational resources. Again development of relationship networks between two business corporations happens to increase the level of commitment which the business corporations tend to share with each other. Increase in the level of commitment among the two separate units helps in the designing of effective relationships to achieve common business goals. Again the networking of business relationships can also be observed to maintain strong interrelation among the three variables pertaining to the different levels of organizational activities, the different level of resources adhered to the effective fulfillment of such and the key players within the different organizations in such relationship frameworks working on such resources and activities (Hakansson & Snehota, 1995,p.28-35). Thus in relation to poor economic condition every business company must considerably work to make optimum utilization of the available resources through the development of effective business networks. The literatures based on International Marketing and Purchasing Group henceforth focuses on the development of effective business relationship between two companies which itself acts as a considerable business resource for helping the companies gain mutual productivity and profitability. Further the literatures based on International Marketing and Purchasing Group focus on development of effective controls within the existing business channels to help avail maximum gains from the resources available within the economy. Management of business channels reflects that a business corporation to gain maximum productivity can work on changing existing business agents and developing new relationships which would help the concern gain better accessibility to the economic resources. This literature further states that the development of effective business networking between two or more companies becomes highly dependent on the situational aspects of the external markets of such business companies. Focusing on the different market and economical situations the relationship components within the two business houses working to develop effective relationships can be managed to render desired results. Thus focusing on the International Marketing and Purchasing Group literature the business houses can design effective networks to counter the different levels of external changes that occur in the economic and business environment (Hakansson, Harrison & Waluszewski, 2004,p.106-108). In regards to the above discussion the case of Cloud Creative Solutions Ltd can be well analyzed. This company which is growing both in terms of increased turnover and also in gaining newer business clients is afraid of the current economic situation. The current economic and business situation has shown the company that in the external business market similar big business companies have failed to sustain any formidable relationship which they had made with their key business players. Looking at the above situation the two owners of the company Peter Wang and Sarah Harvey-Jones is increasingly focusing to develop the aspects of managing effective relationship with the customers on the one hand and on the other developing the potential of creating new relationships with other business houses while working on the sales and distribution networks. Working out effective business relationships with other companies in its business network would help the company gain access to the resource belt of the economy. Effective business networks and relationships developed through collaboration of business actors, resources and activities between Cloud Creative Solution Ltd and its key players would certainly help the former to reap high amount of business profits and gain larger market share in the future. The company in the light of changes in the external business environment can also focus on selection of new and effective business channels and networks to help render enhanced services to its clients. Bannock, G., Davis, E., and Trott, E. (2003). Dictionary of business. Bloomberg Press. Capon, N. (2009). Capon's marketing framework. Wessex Publishing. Danaher, P. and Rossiter, J. (2006). A Comparison of the Effectiveness of Marketing Communication Channels: Perspectives from Both Receivers and Senders. Retrieved on July 11, 2011 from: http://www.mailmarketing.com.au/files/AuspostDanahersFullReport_1_.pdf Ford, D. (2002). Understanding business marketing and purchasing: an interaction approach. Cengage Learning EMEA. Forsgren, M., Holm, U., and Johanson, J. (2005). Managing the embedded multinational: a business network view. Edward Elgar Publishing. Hakansson, H., and Snehota, I. (1995). Developing Relationships in Business Networks. Retrieved on July 11, 2011 from: http://www.impgroup.org/uploads/books/0-415-11570-1.pdf Hakansson, H., Harrison, D., & Waluszewski, A. (2004). Rethinking marketing: developing a new understanding of markets. John Wiley and Sons. Hart, S. (2003). Marketing changes. Cengage Learning EMEA. Johnston, M., and Marshall, G. (2009). Sales Force Management (Sie) 9E. Tata McGraw-Hill Education. Maclaran, P., Stern, B., Tadajewski, M., and Saren, M. (2009). The SAGE handbook of marketing theory. SAGE Publications Ltd. Shimp, T. (2008). Advertising Promotion, and Other Aspects of Integrated Marketing Communications. Cengage Learning. . Read More