THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt,ACIM(UK), FAEA(Dip in AEA-UK),FinstSMM(UK), CPM(Asia), MSLIM
Consumer brands are focused on value addition forthe end user or consumer Business to Business marketing is concerned addingvalue to the organization who is the customer who arenot the end user.
Consumer brands adopt emotional value platform B2B organizational buying are rational than emotional(LG buying CRM from Web Nibbler) So there adding value will be more focused onfunctional values.(E.g. Quality/deliverytime/cost/credit etc) In B2B buying situations there is an emotionalelement involved through relationship. This is the keysuccess factor in B2B marketing
More often B2B brand name carry the name of thecompany ,E.g. IBM/Intel This enables wide range of products to offer todifferent problem solving. Firms uses the brand name/identity as an augmentedbenefit, that is been offered to B2B buyers.
More people involved – DMU Low price and cost involved More time involved –DMP longer than B2C More loyalty involved- strategic alliance/partnership Segmentation is important Buyers are more rational Greater risk is involved Large volume is been sold
User They request with specificationInfluencer Difficult to identify inf. However any 1cud play. Ex MMDecider Depends on culture, structure and othervarious factors MD will decide andpurchasing manager going ahead with itBuyers With formal authority to purchaseGatekeeper Several people could control the flow ofinformation
More emphasis is on rational buying Depends on different requirement of the members inthe buying The type of industry that buys the brand The type of product
Sales representative Advertising & trade magazines Trade show Technical seminars Sales promo materials Direct mail advertising Packaging News paper /TV/Radio
A good cooperate brand name accts as a A credible source Facilitates building relationships with DMU’s Portray the benefits it offers to the buyer A value system
Service sector has been a key driving force of theglobal economy in the recent past. Computerization &technical innovation has brought in greater changes inservice sector Service element can also be used as a base forsustainable competitive advantage
To successfully develop & maintain service brandmarketers need to look at the following factors1. High quality top management and their commitment2. Vision3. Result driven4. Competitiveness5. Use of technology6. Consumer focus
Service brands follows the same process of FMCG1. Setting clear objectives2. Defining clear positioning3. Selecting appropriate values
Product definition- FMCG is well defied due tophysical entity Brand differentiation- FMCG by communicatingbenefit, service by building long term relationships Consumer motivation- FMCG consumer loyalty is hardto gain and retain, but service brand switching cost isless Measurement of brand strength- repeat purchasecould be used as a measurement but hard to do sowith service brands.
The biggest challenge associated with service brand isto bring in tangible element from intangible. To overcome marketers consider following1. Corporate branding2. Clear set of values –To over come problem of being acommodity E.g.hosphital3. Use of physical evidence – staff uniform/ corporatecolor/office décor/physical symbols/packaging4. Consistently in all above aspect is a key
Inconsistency could happen because of following reason1. Ineffective recruitment2. Conflict in the duties staff are required to perform3. Poor fit between staff and technology Firms can positive enhance the service brand by adoptingfollowing elements1. Reliability2. Responsiveness3. Assurance4. Empathy5. appearance
Recruiting the right people Training staff Provide support systems Retain the best people
Success of self service- Keels/ Cargills Professional management Cost advantage Centralized buying and where housing Discounts offer on their own wish In store promotional activity
Some assessment that needs to take in to accountwhen selecting own label suppliers are as follows Can they produce quality standards consistently Are they financially sound Do they adequate capacity to meet the current targets Transport infrastructure Is the production machinery up to date and wellmaintained Do they have good labor reactions
Coercive basis of power- the expectation of one party thatthe second will be able to punish if they fail to fulfill thewishes of the other Legitimate power- one party exerts legitimate powerwhen the other accepts the legitimate right to influencethem – franchisee agrees to run the business according tothe standards specified by the franchisor. Expert power- exists when retailer recognizes that thesupplier has certain expertise. E.g. sales training, stockcontrol etc Reward power- By manufacturer to retailer – to gainspace /shelf
Category management is a process which bothretailers and manufacturers manage product categoryas a business unit. The joint strategic planning withretailer to build total category sales and profit formutual benefits. Reasons1. Increasing number of new brands2. Consumer sophistication and changing needs3. Shrinking shelf space in retailers shelfs4. Therefore it is viable to manage brands as categoriesrather than individual entities
Research has shown that consumers relate well tounderdog stories in a survey of 2000 consumers in US. Avis rental Car – we are Number two, we try harder Addidas – Impossible is Nothing Oprah Winfrey – Tale of her struggle. Virgin Air – Battles faced by Richard Branson Lindit – Small confectioners. Apple – Humble beginning in a garage.