NMIMS Global Access
School for Continuing Education (NGA-SCE) Course: B2B Marketing
Internal Assignment Applicable for December 2016 Examination Assignment Marks: 30
1. Consider any organization in B2B industry & design a Supply & Value chain for the same. (10 Marks)
Answer : According to Michael Porter value is the chain of activities for a company that operates in a specific industry. For gaining the competitive advantages, Porter suggested that going through the chain of organization activities will add more value to the product and services than the sum of added cost of these activities. And thus, the company will gain marginal value for that product or service. If these activities run efficiently the company gains competitive advantage on the product or service. For this case the customers should transact the product or services willingly and provide return on value to the organization.
The value chain framework can be used as powerful analysis tool for the strategic planning and to build the organizational model ensuring an effective leadership model. The value chain concept can be applied also in the individual business unit and can be extended to the whole supply chains and distribution networks. To form a successful product for an organization it is important to add value in each activity that the product
72 Strategic Business Units
goes through during the life cycle. The best possible value can be achieved in the product development process by adding value in each stage. For that it needs all, or a combination of, value chain activities and a proper synchronization among all the related activities. A proper organization is required that contains all the required functional departments to perform these activities and a proper communication approach is required to synchronize the activities of these functional units efficiently.
Primary activities can be classified into product related and market related activities which are described below:
Product related activities: The activities that the organization performs to add value to the products and services itself. The activities are classified as:
1. Inbound logistics: For the production and development activities, organizations need inputs as goods which are received from the suppliers. Inbound logistics refer to all the activities related to receive goods from the suppliers, decision about the transportation scheduling, storing the goods as inventory, managing the inventory, and make the inputs ready to use for the production of end products.
2. Operations: These include the production process, development activities, testing, packaging, maintenance, and all other activities that transform the inputs into finished product.
3. Services: Organization offers the services after the products and/or services have been sold. These service activities enhance the product’s value in the form of after sales guarantees, warranties, spare parts management, repair services, installation, updating, trainings, etc.
Market related activities: The activities that the organization performs to transfer the finished products or services to the customers. The activities are classified as:
1. Outbound Logistics: The finished products are developed using the product related activities. Now activities are required to transfer the finished products to the customers via warehousing, order fulfillment, transportation, and distribution management.
2. Marketing and Sales: These activities include the advertising, channel selection, product promotion, selling, product pricing, retail management, etc. The activities are performed to make sure that the products are transferred to the targeted customer groups. Marketing mix can be an instrument to take the competitive advantage to the target customers.
Support activities: The activities that the organization performs to assist the primary activities to gain the competitive advantage. The activities are classified as:
1. Procurement: This is the purchasing activity of the inputs to transform these into finished products or services. Procurement adds value by the acquisition of appropriate goods or services at the best price, at the right time, and in the desired place with the desired quality and quantity. 2. Technology Management: This is very important in today’s technological driven environment. Technology can be used in production to reduce cost, to develop new products, increase customer service facility, build up cost effective process, etc. It supports the value chain activities such as research and development, process automation, process design, etc.
work positions by hiring, recognition, reward, appraisal systems, carrier planning, and employee development. They act as an advocate of the employees to motivate them and create a happy working environment. For the organizational changing situation, HR executes the strategic needs of the organization with minimum employee dissatisfaction and resistance to change.
4. Infrastructure: This includes the planning management, legal framework, financing, accounting, public affairs, quality management, general management, etc. These are required to perform the value added activities efficiently to drive the organization forward to meet the strategic plan and the objectives.
To form a successful product for an organization it is important to add value in each activity that the product goes through during the life cycle. The best possible value can be achieved in the product development process by adding value in each stage. For that it needs all, or a combination of, value chain activities and a proper synchronization among all the related activities. A proper organization is required that contains all the required functional departments to perform these activities and a proper communication approach is required to synchronize the activities of these functional units efficiently. In the solution section, porter's value chain activities are mapped into the related business functions.
2. Prepare a direct marketing campaign for an organization manufacturing metal sheets used in automobile industry applying any of the type/technique of direct marketing. (10 Marks)
Answer : Direct marketing campaign for Tata Steel :
Direct marketing reaches the consumer without the influence of any outside party. Its many forms include print ads, direct mail and even a simple sign. Many small businesses opt for a mixture of both indirect and direct marketing methods to get the word out.
Companies can use many types of direct marketing campaigns. The key is finding one that best suits your type of business. The first step in executing a direct marketing campaign is finding quality leads. The Direct Marketing Association provides lists of such leads. Another option is generating leads directly from ads. People who respond to ads are more apt to be interested in your offers. Direct marketing campaigns are designed to eliminate the middleman, including retailers and wholesalers.
Telemarketing
an insurance sales rep, you could say, "If I could show you a way to save money on your car insurance, would you be interested?" End the conversation politely if the person says no.
Newsletters
Most people purchase newsletter subscriptions by mail, email or the Internet. Find customers by mailing to them through mailing lists, or by placing classified or display ads in magazines. Select trade magazines that appeal to people who are likely to read your type of information. For example, advertise your bodybuilding newsletter in various bodybuilding publications. Create a sales letter and order form for people who respond to your offer. Offer a free newsletter to spark their interest. That way you have their address for future communications.
Infomercials
Infomercials are television commercials that companies use to sell products. You can run infomercials nationally or locally, the latter of which is the best way to test your offer. Contact some of your local stations to obtain their rates on infomercials. Select the times that your viewing audience is most likely to watch television. For example, teens are likely to watch television during the late afternoon or prime time, as they go to school during the day. Consider advertising late at night or even after midnight if your offer appeals to retired folks, those looking for work or night shift workers.
Postcards
Postcards are a popular type of direct marketing. One reason is that they are cheaper to mail than letters. Postcards are primarily used to generate leads. Write a headline that appeals to your target audience. The headline is the most important element of any advertisement, according to marketing expert Dave Dolak. Include at least one benefit in your postcard headline. For example, "Lose 10 Pounds This Month," is a benefit that appeals to people who want to lose weight. Include a toll-free number on your postcard for people to respond to your offer.
Create specific communications objectives
The in-depth case describes the SMART objectives used for visitor numbers and engagement. Specific goals were created on the site and in partner publications which could be measured. For example:
A ‘Book now’ call-to-action – to target women with a car urgently needing an MOT, service or repair
A competition entry call-to-action – some personas liked competitions and had cars A ‘how-to’ video call-to-action – some of the personas were about to go on holiday
and wanted to learn how to prepare their car for a long journey
Base campaign content assets and targeting around personas
Personas were created using a range of digital modelling techniques, combining such data as applied gender, age, needs and requirements, car knowledge level, etc. to create personas such as ‘bargain hunters’ and ‘explorers’.
The personas were used to determine content assets, engagement devices and drive a personalised one-to-one communication strategy to convert and build relationships with new customers on an ongoing basis.
Create an integrated multi-channel communications strategy
The campaign included online and offline ads to reach the target audience. The May campaign’s digital communications included two new online adverts, targeting male and female car owners separately. Advertorials appeared in Glamour and Easy Living magazines.
Stuart Sykes, Digital Marketing Manager, Unipart Automotive explained:
“The key learning was the integration of online and offline experiences - matching consumer experiences across contact points - not just driving traffic to home page but to relevant online content, such as specially developed landing pages, to reduce bounce rates".
3. Read the following Case & solve the questions given:
ABC is a leading brand of furniture in B2C segment having presence in various cities in India. ABC now plans to introduce in B2B category by launching a product line in the office furniture category. It intends to sell both Indian as well as imported furniture so as to cater to the different needs & wants of the target audience. It intends to target corporates but is not clear how to go about marketing & selling it to corporates (B2B) as ABC was always involved in selling home furniture (B2C).
Questions:
a. Suggest positioning strategies to be adopted by ABC for their new product line in B2B Category. (5 Marks)
Answer: Competitive positioning is about defining how you’ll “differentiate” your offering and create value for your market. It’s about carving out a spot in the competitive landscape, putting your stake in the ground, and winning mindshare in the marketplace – being known for a certain “something.”
Market profile: Size, competitors, stage of growth
Customer segments: Groups of prospects with similar wants & needs
Competitive analysis: Strengths, weaknesses, opportunities and threats in the landscape Method for delivering value: How you deliver value to your market at the highest level When your market clearly sees how your offering is different from that of your competition, it’s easier to influence the market and win mindshare. Without differentiation, it takes more time and budget to entice the market to engage with you; as a result, many companies end up competing on price – a tough position to sustain over the long term.
One of the key elements that many small to mid-size companies overlook is how they provide value at the highest level. There are three essential methods for delivering value: operational excellence, product leadership and customer intimacy.
1. Competition Strategies
These Product Positioning Strategies requires a unique or a superior product attribute in regard to a competing product. Positioning a Product against the Competitors product requires a claim of superiority. A very good example to understand this concept is of Avis Rental Cars. The superiority claim was, “We are number two. We try harder”
2. Reducing Competition Strategies
This concept of Product Positioning Strategies can help to differentiate a product in the dominant market of an already well established brand.
3. Product Benefits Strategies
In these Product Positioning Strategies the company focuses on defining and communicating the product benefit, unique features that the product offers to the targeted customers. In this strategy the companies emphasizes on the various product benefits. The product features include durability, availability, economy or reliability can be illustrated in this type of product positioning.
4. Product Attributes Strategies
Positioning a product based upon a specific attribute can also be compelling to the targeted audience.
5. Product Categories
6. Usage Occasions Approach
This concept is used when marketers positioned there product based upon the usage situation of the product by the tarred audience. These types of Product Positioning Strategies is done intentionally to expand the market for a particular brand. Introducing new and different uses of the same product will automatically expand the horizons for the product, increase the market share and will lead more sales.
7. Pricing Approach
Using the price and quality approach to position a product can ensure easy sales of a product. In this concept the marketers play with human perception and the thinking of associating quality with price. The customer often perceives that there is direct relation in quality and price i.e. the higher the price the greater the quality of the product. The Marketers use this Price – quality approach to position the products and can easily charge higher margins of profits.
b. Suggest a suitable sales promotion strategy for ABC’s new product line of office furniture. (5 Marks)
Answer : Product promotion is one of the necessities for getting your brand in front of the public and attracting new customers. There are numerous ways to promote a product or service. Some companies use more than one method, while others may use different methods for different marketing purposes. Regardless of your company's product or service, a strong set of promotional strategies can help position your company in a favorable light with not only current customers but new ones as well.
Contests
Contests are a frequently used promotional strategy. Many contests don't even require a purchase. The idea is to promote your brand and put your logo and name in front of the public rather than make money through a hard-sell campaign. People like to win prizes. Sponsoring contests can bring attention to your product without company overtness.
Social Media
Social media websites such as Facebook and Google+ offer companies a way to promote products and services in a more relaxed environment. This is direct marketing at its best. Social networks connect with a world of potential customers that can view your company from a different perspective. Rather than seeing your company as "trying to sell" something, the social network can see a company that is in touch with people on a more personal level. This can help lessen the divide between the company and the buyer, which in turn presents a more appealing and familiar image of the company.
Customers who come into your business are not to be overlooked. These customers have already decided to purchase your product. What can be helpful is getting personal information from these customers. Offer a free product or service in exchange for the information. These are customers who are already familiar with your company and represent the target audience you want to market your new products to.
Product Giveaways
Product giveaways and allowing potential customers to sample a product are methods used often by companies to introduce new food and household products. Many of these companies sponsor in-store promotions, giving away product samples to entice the buying public into trying new products.
Point-of-Sale Promotion and End-Cap Marketing
Point-of-sale and end-cap marketing are ways of selling product and promoting items in stores. The idea behind this promotional strategy is convenience and impulse. The end cap, which sits at the end of aisles in grocery stores, features products a store wants to promote or move quickly. This product is positioned so it is easily accessible to the customer. Point-of-sale is a way to promote new products or products a store needs to move. These items are placed near the checkout in the store and are often purchased by consumers on impulse as they wait to be checked out.
Customer Referral Incentive Program
