Business Marketing and Sales assignment
This assignment is being submitted on June 26, 2015
Question. 1. Pricing wheel: Used Kitchen Equipment B2B Sales
The given business model needs a definite pricing strategy , so we will apply the notion of pricing wheel, which can be further broken into following six steps:
Affirming Strategic role of pricing – Competitive and convenient pricing may be significant of for ensuring enhanced offering of the repaired products in B2B markets.
Prioritizing pricing objectives – The foremost objective is to establish brand image amidst competition, followed by securing the return on revenue, and lastly to have a price stability in varying B2B markets (Lou & Eagle, 2007).
Price determinants assessments – The external factors affecting price will be those of volume based, competition based and owing to prevailing market sensitivity for used kitchen equipments. The prime internal factor will be average cost, comprising of fixed costs and unit costs of repairing and transportation (Hinterhuber, 2004).
Deciding price strategy- this will be finalized on basis of customer value pricing pattern in industry, based on those of the complementary products pricing (supporting kitchen equipments) and more of the competitor’s pricing match (Lou & Eagle, 2007).
Selecting Pricing method- The ultimate method will be combination of average costs (discussed above), competitor-based pricing, and market demand based pricing segment.
Implementation and control over the set price- The cost determination will be assured to be uniformly implemented and with fixed pricing for a specified period (Hinterhuber, 2004).
Question. 2. Chain of derived demand: Personal Computer Industry
The impact of varying external (customers, market or economy) preferences, over B2B relations in a business, can be elucidated by understanding the derived demand chain for that industry. The derived demand chain, leads to increasing or decreasing value, moving from right to left. Thus the varying demand of personal computer results in gradually rising or falling demand value for subsequent entities in the derived demand chain. Moving from right to left, as the demand for finished Personal computer rises, there occurs a rise in cost of selling and retailing activities, followed by rise in distribution costs for supplying larger quantities. The value gets further raised for the packing and assembly units and finally, the value of individual components (raw materials for PC industry) rises. Hence, we can see the impact of varying customer preferences over the concerned Business to Business markets.
Question. 3. Key learning from B2B marketing course: Interaction with the President
Question. 4. Research Proposal: Expansion of B2B catering
As B2B researches are relatively costlier than B2C, owing to limited customer base. Hence a B2B research must be designed in accordance with the proposed business goals and available tactical analysis options (Whipple, 2003). For expanding the catering business, B2B research is proposed below. Objectives of the research: To conduct a B2B survey for analyzing prospective leads, evaluating their current requirement for the catering business and to use the results in expanding business via customized lead conversion tactics.
Who can commission the research: Any company, which is part of the current supply chain for the bakery client can commission this research, as all the vendors will be benefitted. An authorized survey agency will be commissioned by client to collect data and furnish results.
Market Segmentation and Target Audience for research: The target audience will be business prospects for bakery and catering services within the New York City viz. government offices, educational institutions, industrial setups and corporate office premises, within New York City. Hence, survey results will segment the open market into prospect B2B leads. Next step would be lead generation, based on prospects of sizeable demand, thereby developing customized B2B marketing approach plan, to address and convert the leads into business.
Research Evaluation and tactics: The results from research will also include various service factors which can be pitched upon during the B2B marketing approach, for effective lead conversion assurance. For example: The research can lead us to the current requirement of grad schools in New York reporting requirement of bakery stuff during the lunch timings.
Question. 5. Integrated Communication strategy: Building B2B channel
The business channel expansion communications plan, for the body lotions and soap manufacture client, will be based on prevalent techniques of synchronized integrated marketing techniques. The synchronized communications in B2B marketing is aimed at making the success a singular brand message propagated to customers at all possible touch points (Lou & Eagle, 2007).The approach strategy will use integrated marketing communications to address the B2B prospects via every pertinent mode like conventional and social media advertising, PR approach, promotional schemes, probating marketing outdoor event and meets, etc (Hague, Hague & Harisson, 2015). The above communication strategy will enhance the current channel by assimilating minute feedbacks and consequent customer response via blogging sites, updated interactive mobile technology and via social networks.
Erickson.M, Jullens.J and Kataria.G (2009). The New B2B Marketing Imperative. Developing fundamental capabilities to Capture market share. Strategy&. 2-8. http://www.strategyand.pwc.com/media/file/New_B2B_Marketing_Imperative.pdf
Hague.P, Hague.N and Harrison.M (2015). B2B Marketing: What Makes It Special? B2B internationa:Beyond knowledge. Online article. https://www.b2binternational.com/publications/b2b-marketing/
Hinterhuber, A (2004). Towards value-based pricing: An integrative framework for decision making. Industrial Marketing Management 33 (2004). 765–767. http://users.metu.edu.tr/mugan/Hinterhuber%202004%20value%20based%20pricing.pdf
Lou, C & Eagle J(. 2007)Reaching Global Executives: Megatrends in B2B Marketing. Economist Intelligence Unit. 3-11. http://graphics.eiu.com/upload/B2B%20Megatrends.pdf
Whipple, N (2003). Effective B2B Market Analysis Integrates the Research Process With the Business View. Resource Systems Group, Inc. 2-7. http://www.rsginc.com/sites/default/files/staff/94.%20GettingTheMostFromCustomerNeeds.pd