The Creative Life Corporation Marketing - Case Study Example

Business-to-Business Marketing Report Table of content 1.0Introduction 2 2.0 Marketing mix 2 2.1 Product 2 2.2 Price 3 2.3 Place 3 2.4 Promotion 4 3.0 Relationship variables and business networks 5 3.1 Reasons for engaging to B2B relationships 6 3.2 Connections between time dimension and success variables in B2B relationships. 7 3.3 Connections between structure dimension and success variables in B2B relationships. 8 3.4 Connections between value dimension and success variables in B2B relationships 8 3.5 Connections between process dimension and success variables in B2B relationships 9 4.0 Structuring the sales force 10 4.1 Product based 10 4.2 Territory form 11 4.3 Segment or customer based organisation 11 5.0 Conclusion 12 References 13 CITEMAN, 2006. Organizing the sales effort. Accessed on 27 April 2012 from: http://www.citeman.com/247-organizing-the-sales-effort.html 13 Dunay, P. 2012. 4 C's of B2B Marketing. Accessed on 27 April 2012 from: http://pauldunay.com/4-cs-of-b2-marketing/ 13 1.0 Introduction The report addresses the recommended marketing mix, importance of relation variables and networks and recommended approach on organisation of sales force. 2.0 Marketing mix The changes in TCL’s marketing can be addressed using the 4P framework. This shows that in order to maintain the competitive position, the decisions for marketing will be analysed on the basis of the four categories which include; product, price, place or distribution and promotion. Through application of the marketing mix, the management will be able to control these variables for better customer satisfaction in their market target. It is recommended that the attempts by the firm to generate a response that seems positive to the firm in terms of target market are accomplished through blending of the four variables of marketing mix in an optimal way (The Times 100, 2012). 2.1 Product Product in this case involves the services that TCL offers to the consumers. The range of the services offered by TCL and how the services are utilised is a marketing mix function. It is suggested that the firm should extend its services to cater for fluctuations that are seasonal such as economic downturn and also to match with competition. On the other hand, the firm may consider repositioning of its services in case of expansion in order to make the services more acceptable to the new target markets. Use of modern methods of advertising such as PR advertising will fit in TCL as it maintains goodwill among the clients and it will be a great tool for reaching existing clients and potential client base. It will not only be a public eye but it will maintain and build TCL’s brand image and also its identity (Quick-MBA, 2009). 2.2 Price The decisions made on pricing should put into consideration the profit margins and the response of various competitors on probable pricing. As the price of the services offered by the firm are essential in determination of the value of its sales, it more likely determined by the perception of the clients in order to make profit and at the same time retain the clients and earn more. It is suggested that the firm will periodically research the opinion of the consumers on the pricing of their services as this will indicate as this will clearly tell how the clients value the services they are looking for as well as what they are willing to pay for the services. This is because the pricing policy in the firm is expected to vary according to circumstances and time. Thus upon doing this then doing this, TCL will be able to maintain their clients and at the same time be able to fetch more clients on the grounds of understanding their needs (Dunay, 2012). 2.3 Place Placement involves the decisions made by the firm in relation to its distribution channels which connects the services provided by the firm to the targeted consumers. The system of distribution incorporates the facilitating, transactional and logistic functions. The decisions made by the firm on distribution will put into consideration the coverage of the market, the level of service and the logistics. Though the current location of TCL is the best for its marketing, it is suggested that for it to gain more clients, it requires to do some cost effective extensions to maintain its competitive advantage. This includes extending their brand in order to move with technology such introducing an ‘e’ to each segment, for instance, e-marketing and e-advertising. 2.4 Promotion Decisions on promotion are very essential in this firm as they are related to the potential of selling and communicating to the customers. It is recommended that since the firm may undergo some losses in the process of its promotion through large costs as compared to the price of their services as well as products, they should perform a break-even analysis while they are making decisions on promotions. In addition to a word of mouth that TCL is commonly using for promotion, it is suggested that it also adapts internet services due to their popularity as this will help them to sustain competitive environments through an internet marketing that is effective. This include using a cross linking way of promoting its services such as adding TCL’s website link to its clients’ link in a way that traffic from other websites will be directed to TCL’s website. Social media is another way for TCL’s effective marketing which includes free advertisement using services and sites such as twitter, MySpace, Face-book, social bookmarking sites among others. Though the firm may view promotion activities as being only signs of responding to problems such as retaining of customers through competitive advantage, it is also suggested that the firm must view promotion in another direction as it enables the organisation to build up and develop succession of messages which is extremely cost effective (The Times 100, 2012). Since business to business marketing is more demanding as compared to business to customer since a loss of client in business to business means a loss of a very big share for your firm, it is suggested that TCL should put into consideration the 4C’s framework or engine in order to fit with the advancing technology. This engine involves creation of the best content for the firm, connecting with the firm’s target market, sustaining the pattern of communications until the time when they are ready to convert then converting them at the moment of need. Through this framework, the firm will always have a fighting chance in order to make its efforts in marketing count toward the common goal of the firm which is sales (Dunay, 2012). In addition, it recommended that the firm apply the 4Rs framework of marketing mix which includes relevance, relationships, reputation and return. What the firm says and offers should always be relevant to the target markets the firm is serving in order to win the client’s confidence. It is also essential for the firm to develop a concrete relation with the relevant stakeholders as they play a great part in the future of the firm. The firm’s reputation is also built especially with the word of mouth and also the power of mouse in order to maintain its competitive advantage. Finally, there should be focus on production of return for the firm and stakeholders in a way that the firm will always create a win, win scenarios (Herbert, 2009). 3.0 Relationship variables and business networks A long term and a sustaining business relationship is seen as a key target in majority of business to business relationships as is serves as the main target for business activities to be successful. It is clear that TCL is paying more attention with its partners in the business such as PJW Media Production for mutual benefit. Successful relationships for this firm are a sign of improving the profitability of the firm under various circumstances which includes economic downturn. It is suggested that TCL should observe the following factors for its B2B relationship to be considered successful. First, there should be total commitment from senior directors in all the firms. There should be a strategic fit in such a way that the strategies and objectives in the chosen areas such as advertisement will be complementary as this makes activities successful such as outsourcing. Existence of a cultural fit is essential as employees from all the sides should comfortably work together to achieve each organisation’s goal. The firms should be prepared to share risks incurred and this should be addressed as part of the commitments. The allocation of resources in all the firms should be efficient and finally, there are expectations for sharing of knowledge and expertise. Through business to business relationships that are successful TCL is expected to increase its competitive advantage, increase its efficiency and make the organisational process simple (Wright. 2004). 3.1 Reasons for engaging to B2B relationships After the firms enters into business relations, they engage in a process of formation of a strong and an extensive service, economic, and technical ties that usually develops over time. These relationships are a valuable resource that is very important in the economic performance of the firms. Through these relationships, it is easier for the firms to produce services that are yield a unique value. It is recommended that TCL create and maintain relationships for the following reasons; the complexity of its services such that other partners will make it easier and successful, strategic significance of the services, services requirements, and financial risks that may be involved due to certain factors such as unexpected economic downturn (Huntley, 2006). The business to business relationship is very essential to TCL as it lead to the following objectives; the competence of the service, the client orientation and solution as in the case of its relationship with PJW Media Production in the process of outsourcing as this enables TCL to achieve its objectives even without enough investments to cater for the needs of its clients. Also, the relationships are essential in addressing the clients’ problems and networking as the firm develops reputation through provision of efficient services which is later reflected in the revenues. Business networking in this case will serve as a useful tool and it is suggested that it must be prepared and operated by use of a strategy. Equipped with a strong plan in mind, TCL will successfully increase ther business potential and their influence (Hedaa and Ritter, 2005). Business to business relationships dimensions are linked to success variables in various ways. 3.2 Connections between time dimension and success variables in B2B relationships. Through interactions, firms develop their relationships through sharing of skills and knowledge, observing one another and feeling the effect of these interactions. Thus they end up acquiring experience where through experience, mutual satisfaction and service quality of the relationship is incurred. Satisfaction is related to experience in a way that it involves measuring or evaluation of a purchase experience in cases where there is comparison between expectations and results. Through customer satisfaction, trust and commitment are developed which are considered to be the keys to maintenance of long term relations. Satisfaction is also viewed as attitudinal judgement in matters of purchase (Kamp, 2005). Satisfaction of the client results to an effective component which is which is developed or created through repeated usage of services. Satisfaction may also be viewed as a prerequisite in the retention and loyalty of the customers which in turn leads to market share and increased profitability. This shows the main focus of TCL where it maintains the support of its clients and competitive advantage through customer satisfaction (Powers & Reagan, 2007). 3.3 Connections between structure dimension and success variables in B2B relationships. Continuity is time where a firm maintains its relationship with different firms. Satisfaction can be regarded as buyer-seller aspect of relationships and it is very critical to continuity of the relationship. The relationships continuity is also dependent of negotiation which is a process where two parties attempt to have a joint decision. Complexity of the relationships in business is dependent on the kind or type of interdependence that exists between organisations. Complexity requires a coordination that is very effective where if it occurs, the parties that are interacting should be connected by mutual respect and shred goals. Mutual goals are considered to be a common understanding of expectation in a way that is communicative. Thus, relationships that are said to be power balanced are more stable than the unbalanced ones and rebalancing occurs to one party when the other tries to gain more power. In addition, social exchange develops a strong relationship with creation of interdependences between the parties. Thus, for TCL to be successful in business relationships, it is suggested that it understands the link between the structure dimension and success variables (Terho & Halinen, 2007). 3.4 Connections between value dimension and success variables in B2B relationships Personal value is related to emotions and feelings and may be considered as emotional satisfaction or emotional value. Personal value is the source of positive referrals and retention of relationships, while on the other hand; financial value is connected to satisfaction of economics which is shown by more market share, increased efficiency, and the willingness for more payments. The value knowledge is explained in terms of market intelligence, the outcomes of innovation and generation of ideas. It enhances emergence of innovative solutions, promotion of trust and improvement of mutual understanding (Lian andLaing, 2007). Relationships in strategic value enables risk reduction, better planning, enhance utilisation if assets and provides a foundation for building the business. There is also existence of strategic value if the firms improve their power of competition from the relationships that these firms are engaged in. in this case the link between success variables and value dimensions is very essential as it will increase the competitive advantage of the firm thus increased sales (Biggemann and Buttle, 2004). 3.5 Connections between process dimension and success variables in B2B relationships Adaptations are conscious attempt made by firms with an aim of improving the nature of relationship in the business and the benefits that are generated from it. Adaptation results to development of specific assets of relationships which include trust and personal relationships. Personal relationships are the foundation of long term relationships that exists between the providing firm and client firm in complex setting of services. Inter-firm adaptations results to considerable investments by a single or both firms and it consists of an influence considered to be significant on the ability of the providing firm to secure the required services (Archer & Yuan, 2002). Adaptations also have important consequences for firm’s competitiveness in long term. Cooperation in business to business relationships includes continuity, joint solving of technical problems, reciprocity, profitability concerns, willingness to make changes that are cooperated and owing favours. Thus for TLC to advance in acquiring new clients and maintaining its clients, it is suggested that it realises the link between success variables and process dimension (Caniels & Gelderman, 2005). The following table shows the B2B relationships success variables, features and dimensions which are very essential in for success of business to business relationship. 4.0 Structuring the sales force The main objective of the manager is organisation of resources to achievement of sales objectives. One of these essential resources is sales team. They need to be organised a way that the team’s maximum potential is utilised and also to ensure that there is achievement of objectives at lowest cost. Some of the methods for sales force organisation include product based, territory form and segment or customer based organisation. 4.1 Product based The management of sales team can be on the grounds of an individual product or service. This is most applicable in multi-product companies. The advantage of this method is that the profit contribution of each product is determined. The disadvantage on this method is on the basis that different sales people can call upon the same client but selling different products. This shows that there are more costs of serving that particular client. In case of the problem with the product, the client cannot identify the specific sales person that sold the product to him or her, thus angering the customer (Adobor and McMullen, 2002). 4.2 Territory form Sales territory involves a set of customer that is continuous with prospect accounts which are limited by geographical boundary. Some of these designs of territories include straight and circular line and clover leaf. It’s essential for a territory to be large for sales people motivation with equal earning opportunities. Sales person manager is able to design the sales territories that are most profitable by use of quantitative information and computer based models. The limitation is related to the products as sales person may not allocate uniform or adequate time to every product or service. Mostly sales persons specialise in fast moving and higher commission products. 4.3 Segment or customer based organisation In this case, a salesperson is allocated a customer or a market segment in certain industrial group. Sales team may be organised in various segments of services or products provided. This is important to the firm as it is able to specialise on market segment as well as specific requirements. It also assists in maintenance organisation of lean sales and also keeping the costs down. The limit is that in case the sales person did not serve the customer well, then the organisation’s future is affected (CITEMAN, 2006). Given that TCL offers a variety of services to its clients such as advertising, online marketing, public relations and website development among others, it would be better for the management to a adopt a segment or a customer based organisation method on its sales force. This is because the different services can be classified as the market segments where various salespersons will be allocated on the basis of their knowledge and qualification in different fields. Thus, every sales person will specialise in certain segment or client such as online marketing and local theme park respectively. Although the limitation may the sales person lack of better skills in serving the customer, this may be controlled through salesperson qualification and regular monitoring of the outcomes of the work in order to identify any defect at an early stage. However, as there is no perfect method for sales force organisation, commitment and monitoring will lead to higher revenues and profits for the firm. 5.0 Conclusion The current economic conditions have made TCL to focus mainly on retention of its clients and also it is in the move of winning new clients in order to maintain its competitive advantage. In order to improve its market mix it is recommended that it employs various frameworks for marketing which includes the 4C framework which incorporates creation, connecting, communicating and converting. Other essential frameworks include the 4Rs and 4Ps. In order to improve its business to business relationship, its success will depend on understanding the business relationship success variables, dimensions and features. Sales force is an essential resource for the organisational success and it is suggested that TCL employ the Segment or customer based organisation for organisation of its sales workforce. 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