Business to Business Marketing

1 Business to Business Marketing To: David Thorpe and Angela Brown, TCL From: John Smith, XYZ Consulting Ltd Re: Business-to-Business Marketing Report 1.0 Introduction As requested, please find herewith our Business-to-Business Marketing report that addresses your marketing concerns. Business to Business Marketing is a process is concerned with creating demanding and thereafter keeping customers. This process varies from “Businessto-Consumer” (B2C) in that it handles huge quantities of products. B2B is basically shaped at generating new prospects and enhance the ties between the business and the customers. B2B marketing process has unstructured target audiences made up of changing groups. This is a result of finding best financial deals. This report basically shows some of the approaches that can be used in dealing with clients at TLC.

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2.0 Marketing Mix When thinking of marketing mix, it is pertinent to take into account the aspect of analyzing the current opportunities. This is what makes a company stay in competition no matter the arising crises. It is also important to consider of a strategic plan that identifies possible problems, and one that can develop a budget that is set for the corporate goals (Reichheld, 1996).

I believe that TLC has to focus on the target market in terms of pricing so as to have increased sales. Also to be addressed is the marketing decisions; they must be based on target product and at the same time not forget to inculcate promotion (Wallace, 2010). The target group must be aware of the existence and availability of the product through promotion. Apparently, most companies think of random budget cuts as a way of cutting marketing; this is completely unnecessary. It is important to update the operational marketing strategy that incorporates the highest gain. Promotion is also believed to help companies gain more sales (Trevino & Nelson, 2011). Never should the aspect of pricing be forgotten. This is because setting a reasonable price for the prospective market shows that one will have added up sales revenue. In order to come up with the sum of sales made, the aspects of promotion as well as price come in very handy. Since TCL is located in an ideal place, I suggest that a team of experienced sales personnel be established.

Competitiveness in the modification of the existing sales team strategy must be focused on current as well as future customers (Trevino & Nelson, 2011). It is believed that customers follow business reports and news keenly. This means that they can detect any clue that the returns are not strong enough. It is always important to deliver the right services to the right target at the right place and time (Trevino & Nelson, 2011). Whatever choice you make for your

3 distribution is influenced by the strategy as well as a number of circumstances. While conducting promotion, customers are able to obtain information which is necessary is deciding whether to buy a given product or not (Reichheld, 1996).

A promotion that does well boosts sales, hence spreading costs like advertisement in an extensive output. This can help TLC develop and build up a succession of messages and can be extremely cost-effective (Lenskold, 2003). Your marketing and public relations team should be refined into an intensive blend that delivers an appreciable amount of visibility and impact on a limited budget. Brand evaluation is also another vital organ of the marketing mix. This can be done by reviewing all your marketing assets. TLC should also consider updating its principal marketing materials (Lenskold, 2003). The team leads must ensure that all the materials including “brochures, website and other materials” are kept in sync with today's market and expectation of the client.

The lead management should as well ensure that they maximize the value of each lead.

When you first identify a new prospect there is a higher likelihood that such a prospect is in the awareness stage and as such not yet prepared to deal with one of the sales representatives (Lenskold, 2003). To help know the leads which portray the highest level of engagement, scoring becomes very useful. In the same way prospects can be nurtured as a way of establishing relationships that would grow into sales (Reichheld, 1996). One of the ways of doing this is applying a “lead nurturing program” whose automation can be helpful in realizing sales from prospects with time (Forsgren, Holm & Johanson, 2005). It is obvious that companies that have their leads well managed, as well as having their prospects turned in the early-stage, have a better chance of surviving any possible downturn. In most cases, companies start the purchasing procedure by networking with marketing along with channels that are available online before

4 speaking with a sales representative (Forsgren, Holm & Johanson, 2005). This now calls for TLC to integrate marketing and sales efforts to create a single revenue pipeline. Focus should be directed to a tougher selling space driven by a recession. I would suggest that TLC think about business development. This is a common way of identifying potential partnerships, especially during annual planning time (Wallace, 2010). This time will see a number of companies begin the process of chasing new deals. It is pertinent to coin an idea of identifying joint ventures that basically meet the target goals put in place. It is also important to get acquainted with the structure available, the management of the venture, as well as the amount to be invested earned by each party. After defining all these procedures, then the best business developer should be put in place to spearhead the project (Forsgren, Holm & Johanson, 2005).

Most importantly, it is of great importance to know the likes and dislikes of the customers; this is an effective marketing plan. Making the most out of the top sales distribution avenues to reach them and designing effective promotional material to educate them is an example (Comison et al. 2009). It is pertinent to have strategies that act as the impetus. When you have a clear competitive positioning strategy, brand, distribution strategy, sales process, pricing, among many others, you will have a breakthrough in getting and taking care of customers (Comison et al. 2009).

Relationship variables and business networks TLC needs a strategic relationship so that it can work with the aim of attaining a given goal that was unable to be achieved. I believe a joint venture would be the best option for TLC (Wallace, 2010). The relationship can be between a specialist marketing and research company and TLC, using the intellectual products of the former and the large client base and funding from the latter. TLC can also look for shareholders. This partnership can create and grow a business

5 providing retail and other support help to clients (Forsgren, Holm, & Johanson, 2005). However, relationships are best built if resources such as one’s money, time as well as energy and people along with other resources.

Every business needs to relate with others for a positive growth. It is important that TLC interacts with other clientele in order to gather additional knowhow. Ideas can be easily and effectively exchanged if a networking platform is in place. In the end, the business benefits in that it attains growth as well as development (Forsgren, Holm, & Johanson, 2005). The success of TLC will depend on the diversity and the quality of the existing relationships. Relationships that can result to meaningful output are worth putting resources into to ensure that such relationships grow to the desired level. Relationship economics is what takes center stage in this case. It entails knowing how to best get a worthy return as a result of investing in people (Forsgren, Holm, & Johanson, 2005). The aspects of understanding how to relate well, maintaining the established relationships as well as emerging with a valuable network of professions are also very important. Revenues and business growth is determined by making new sales among novel customers or making extra sales among old customers (Holm, Eriksson, & Johanson, 1996). This is where customer relationship comes into play. To realize your true potential, you must manage your customer relationships (Holm, Eriksson, & Johanson, 1996). To come up with a competitive marketing plan, a program defining the relationship with the customer comes in very handy. To realize royal customers, it is important for companies to first establish employee loyalty. The secret to being assured of customer retention without much effort is to come up with good customers from the word go. Handling loyal people in the right way makes it easier for one to end up treating everyone in the right way (Holm, Eriksson, & Johanson, 1996).

6 TLC should consider reviewing the “customer lifetime value”, abbreviated as CLV as a way of making sure that marketing is taken to a new level (Lilien & Grewal, 2012). “Customer Lifetime Value” can as well be utilized when working on ways of maintaining customers. It is always important to establish your customers’ segments as well observe their buying patterns.

This will enable you calculate all the purchases made, together with the time between those purchases. CLV can as well be used as a strategic plan to develop acquisition and marketing retention. B2B networking has a number of benefits. The end result is establishing new links, cementing already existing bonds and overall growth of the business (Lilien & Grewal, 2012).

This now calls for the implementation of the networking strategy. By establishing networks with other business persons, the business is bound to become better since such networks foster growth and development of business through sharing of ideas. The established relationships boost confidence in each other such that the individuals are not scared of referring others to their friends’ businesses. It also helps your business to support and be supported. It provides a valuable support network for your business, as you will be eligible to take part in seminars that will help increase your business tools and expertise (Lilien & Grewal, 2012). Much experience is equally exchanged between businesses. As a result, creativity is fostered and novel ideas as well as opportunities are formed. These help one stay aware of the most current happenings in the business arena. Business referrals help to strengthen one’s links with the clients and network.

Networks offer the characteristics of an integrated enterprise; at the same time as providing more flexibility in the way that enhancement of the joint operation is achieved. Research has established that non-financial bonds are better in building up trust and eventually the enhancement of performance.

The Importance of Networking

7 The way to having strong relationships in the business is by listening to people. The power of heeding to someone as they talk is more than doing the talking. Listening is an aspect that highlights ones’ virtues much more than talking. Also make sure that the concerned department devises a system to ensure that not too much time passes before connecting with your contacts (Glynn & Woodside, 2009). Honesty is also an important ingredient in fostering business relationships. It is evident that firm relationships surmount product quality in achieving breakthrough in the market. Respect is also another virtue and the heart of building business relationships. It plays a major role in holding together the functioning of teams (Glynn & Woodside, 2009).

3.0 Structuring the sales force Since you are in B2B system, your sales team is the voice of your company. In reality your reps may be the only people with direct customer interaction (Dana, 2001). They are accountable for finding out possible customers, making sales among already existing clients in addition to making sure that existing customers are taken care of sufficiently. The work of the salespersons also entails providing feedback in addition to bringing in value proposal. A company cannot blossom if it lacks the availability of the sales and marketing team as they key ingredients in revenue generation (Dana, 2001). However, they should be completely aligned in their quest to take note of the needs of the customers and the process they use to identify prospects, sell, close and manage. As a way of enhancing strategy, the team is advised to work together in order to provide worthy feedback (Pride & Ferell, 2009).

Minor developments in skills and processes of the team can frequently generate considerable results (Pride & Ferell, 2009). With the right attention to your pipeline and goals, it is evident that you always stay on track to hit your numbers and make adjustments as needed.

8 Your sales process and ‘customer relation management’ are important tools that can help you manage your team, forecast results and keep your team on course. The ultimate objective of the revenue should marry well with the marketing plan. Moreover, rewarding the salespersons accordingly would do wonders (Pride & Ferell, 2009). It is vital to be sensible concerning the accomplishment of a specific salesperson in a precise timeframe. This calls for hiring a dream team that would eventually become a successful one. To ensure that the salespersons enhance their skills they should both be trained and provided with feedback. It is best to also set up performance grading as well as provide feedback at the same time. The progress of the individuals should be determined separately in addition to determining the teamwork progress Good performers in the sales department should not be left unrecognized but instead they should be given better motivation. They must be encouraged to attend seminars or networks in order to refine their skills. It is a good thing to engage the team at all times as it plays a role of improving their skills as required. Since the media is an effective mean of making the business both credible and widely known, it should be widely used. Placing advertisements in magazines as well as websites are some of the ways that media can be used (Magee & Thompson, 2010).

Such actions can be viewed as publicity, which is healthy as it is not very costly and at the same time is enhances customer awareness about the services offered or available products. Publicity is best achieved if the PR program is taken seriously and not assumed as a thing of luck. Always ensure that publicity strategy relates to your goals. Customer retention entails offering unquestionable services to the customers; if a client gets the best customer attention, you will never have the worry of loosing one. This service team must ensure that all the emphasis is placed on ensuring that customers are getting customer services that are satisfactory, in accordance to value proposition and brand (Magee & Thompson, 2010). Creative programs

9 should be put in place as a way of enhancing the loyalty of customers. It is believed that it getting novel customers is always a more costly endeavor compared to keeping current customers. The slightest increase of the rate at which customers are retained will considerably play a role in your profit increase. Client retention will be determined by the value suggestion as well as the brand tactic.

There are some instances where the role of handing an existing client is given to the salesperson. This means that it is pertinent to retain the sales person and this can be done by having the representative get commission. If your sales reps do not earn commission on renewals, they will be forced to chase new business instead. Selling to a wider base of customers within the same group or getting new customers as well as obtaining referrals ensure that business relationships reach beyond initial boundaries (Magee & Thompson, 2010). Keep on offering value proposition as well as what your brand stands for. In this case, they can use data is essential in evaluating large groups of customers.

One can make use of tools and processes that support the existing strategies. Among the tools to be used are proposals and websites among others (Branagan, 2009). To make sure that little time is used to get maximum traction, the tools should be able to send out the marketing strategy in a very clear and consistent manner. Campaigns and programs should be linked to the goals that have been set up. A proactive approach can as well be attained of excellent planning as well as idea execution is put into consideration (Branagan, 2009). The way to realizing higher profitability is by establishing expertise. Despite the fact that the process of change may not be as fast as expected the end results are always pleasant and worth pursuing.

In some point where there is no special relationship with your customers, the use of data comes in handy in getting to know customers who have not purchased in the regular timeframe

10 (Read, 1998). Since they may be at risk of turning away, one can launch campaigns that advocate for retention and also support their stay. Bettering as well as putting to use the existent ‘customer retention strategy’ should be emphasized. This helps in coming up with the most remarkable ROI of the marketing programs (Read, 1998). ROI is the measure of the profit produced from each investment. Marketing campaigns are perceived as investments, and call for measures like monitoring and comparing them to other investments. This helps to ensure wise us of one’s cash (Lenskold, 2003).

4.0 Conclusion According to my survey, I believe that there are some factors that affect the smooth running of TCL. These factors need to be resolved as soon as possible as a way of realizing promising returns in the future. These factors also tend to influence the levels of trust in the business network. As a conclusion, the importance of having personal relationships in order to realize good B2B markets cannot be over emphasized. It is also evident that sales and customers should be visited once in a while by technical reps as a way of growing personal relationships as well as developing trust. Also important to note is that the possibility of B2B suppliers having loyal customer for a long period of time is very real. Personal relationships are diverse particularly in “up-and-coming” markets, especially those with significant value problems with local suppliers. Whereas a large number of customers are a thing to go for the salesperson, one should not over emphasize this and forget to establish few but solid relationships with customers.

Sales personnel in B2B market must conversant with the product and/or services being offered in the market. They should have clear “technical” and comprehensive know how of the services, as well as after sales service. Other skills that are necessary include knowing how to

11 solve problems amicably and managing the clients effectively among others. An effective sales team can end up realizing great success for the whole B2B. It is also evident that the concentration of expenditure amongst a few of those buying units presents both an opportunity and an expectation. The large spenders are given committed services that show a sign of their importance to the supplier. This implies that one has to meet customer needs all the times; otherwise a competitor will end up handling the customer better.

12 List of References Branagan, A., 2009. Making sense of business: a no-nonsense guide to business skills for managers and entrepreneurs. Kogan Page Limited, Great Britain.

Comison, C., Palcios, D., Garrigos, F., & Deveco, C., 2009. Connectivity and knowledge management in virtual organizations: Networking and developing interactive communications, information science reference (IGI Global). Hersbey, PA. Dana, L. P. 2001. Global marketing co-operation and networks. Haworth Press Inc., New York, NY. Forsgren, M., Holm, U. & Johanson, J., 2005. Managing the embedded multinational: a business network view. Edward Elgar Publishing Limited, UK. Glynn, M. S., & Woodside, A. G., 2009. Business-to-business brand management: Theory, research and executive case study exercises. Emerald Group Publishing Limited, UK. Holm, E., & Johanson, J., 1996. Business networks and cooperation in international business.

Relationships Journal of Business Studies, 27(5), 191-210.

Lenskold J. D., 2003. Marketing ROI: The path to campaign, customer, and corporate profitability. McGraw-Hill Companies, Inc., New York, NY. Lilien, G., & Grewal, R., 2012. Handbook of business-to-business marketing. Edward Elgar Publishing Limited, UK. Magee, G. B., & Thompson, A. S., 2010. Empire and globalization: Networks of people, goods and capital in the British world, c.1850-1914. Cambridge University Press, New York, NY. Pride, W. M., & Ferell, O. C., 2009. Foundations of marketing, Third edition. Houghton Mifflin Company, Boston, MA.

13 Read, L., 1998. The financing of small business: a comparative study of male and female business owners. Routledge, London.

Reichheld, F., 1996. The loyalty effect. Harvard Business School Press, UK. Todeva, E., 2006. Business networks: Strategy and structure. Routledge Inc., New York, NY. Trevino, L. K., & Nelson, K. A., 2011, Managing business ethics, Fifth edition. John Wiley & Sons Inc. NJ. Wallace E., 2010. Business relationships that last. Greenleaf Book Group Press, Austin, TX. Wood, G. J., Davidson, M. J., & Fielden, S. L., 2012. Minorities in entrepreneurship: An international review. Edward Elgar Publishing Limited, UK.