4(b) Industrial (B2B) Marketing

8/8/2019 4(b) Industrial (B2B) Marketing.

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4 (b) Industrial (B2B) Marketing.

Marketing Information Systems .


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Internal Accounting System. The earliest and the most basic Information System used by the

Marketing Executive is the Internal Accounting System.

The heart of the Accounting System is the Order Shipping(Dispatching)-Billing Cycle.

This System generates Reports mostly on a monthly basis givingthe following information:

1) Orders Booked. 2) Billed Sales. 3) Pending Orders. 4) Inventory-Levels. 5) Receivables 6) Payables. 7) Comparison of ActualPerformance Vs Budgeted Performance. 8) Gross Profit, Directand Indirect Expenses, and Net Profit. 9) Branch wise, Salesmanwise, Region wise Performance 10) Customer wise Performance-Sales, Outstanding, Age wise Outstanding. 11) Collection,

Payments made. 12) Product wise Performance. In some Companies, a Marketing Information-Planning

Committee is appointed to provide only as much information asrequired to make Marketing Decisions on time.


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Marketing Intelligence System. Internal Accounts System supplies Marketing Executives with Results

Data.

Marketing Intelligence System supplies Executives with HappeningData.

Marketing Intelligence System can be defined as the way in whichCompany Executives are kept current and informed about changingconditions in the Macro- Environment and Task Environment.

All Executives engage at different times in four models of scanning the

Environment:1) Undirected Viewing: General exposure to information, where the

viewer has no specific purpose in mind.

2) Conditioned Viewing: Directed exposure not involving active search, toa more or less clearly identified area or type of information.

3) Information Search: A relatively limited and unstructured effort to

obtain specific information or information for a specific purpose.4) Formal Search: A deliberate effort-usually following a pre-established

plan, procedure or methodology to secure specific informationrelating to a specific issue.


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Marketing Intelligence System( Contd).

Marketing Executives carry on Marketing Intelligence mostlyon their own, through reading News Papers, Trade Publications,

Business Magazines, through sub ordinates, Competitors,Customers etc.

A Company can take 3 steps to improve Executives IntelligenceSystem:

1) Train the Sales Persons to be better at Intelligence Gatheringand Reporting on time.

2) Utilize additional Intelligence Resources.

3) Buy Information from specialized Market Research Services.

Sales Representatives are Companys Eyes and Ears Of MarketPlace: They meet Buyers, Dealers, and Competitors regularlyand can pick up significant information and feed to Company.

They should be well trained for this job and their job should befacilitated by designing call reports that are easy to fill in.

The Intelligence Performance of Sales Reps should beconsidered while deciding increments.


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Marketing Intelligence System.

(Contd) Other Means of Gathering C

ompetitive Intelligence:

Sometimes it is desirable to hire one or two full time specialists inMarketing Intelligence Gathering.

They can learn about competitors activities through activitieslike:

a) Purchasing Competitors Products and knowing their Prices.

b) Attending Open Houses and trade shows. c) Reading Competitors Published Reports and attending

Shareholder meetings.

d)Talking to Competitors former employees and presentemployees, dealers, distributors, suppliers, freight agents etc.

Purchase of Special Marketing Intelligence Services:

Certain Market Research Organizations sell weekly, BimonthlyReports on movement of Brands, Prices, Deals etc, which giveuseful information.

Improving Intelligence Processing Activity: A centralizedMarketing Intelligence Centre can offer several services to

improve the processing and dissemination of intelligence throughtrained analysts.


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Improving Intelligence

Processing Activity(Contd). The usefulness of gathered Intelligence depends on its accuracy,

retrievability, and speed in moving to higher management levels where itcan be used.

The first service a centralized Marketing Intelligence Center can offer isIntelligence evaluation. An Analyst trained in Data Evaluation would beavailable to examine any Information and renders a technical opinion as

to how much confidence can be placed in it. A Second important service is Intelligence Abstraction. Trained

Abstracters can condense and edit incoming information to make it moreuseful for Executives.

Dissemination involves getting Information to the right people in the rightform in the shortest feasible time. Among the devices used are newsletters, telephone calls, cassettes teletype services, and interconnected

company computers.

The Fourth service is Storage and Retrieval. Each company shoulddevelop a master indexing system and organize all existing Informationinto easily accessible files.

The Fifth service is Purging, where old Information that is no longeruseful is removed, to keep the amount of Information within limits.


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Marketing Research System. Besides Internal Accounting Information and Marketing Intelligence,

Marketing Executives need specific studies of problem and opportunity

areas. They may need a Market Survey, A Product-Preference Test, A Sales

Forecast by region, or an Advertising-Effectiveness Study.

These Studies require talents of skilled researchers, who can applyprinciples of Sample Size, Sample Design, and QuestionnaireConstruction to the task. These researchers usually make up the

Marketing Research Department of the company.Organizational Characteristics Of Marketing Research: Most large

companies have formal Marketing Research Departments headed by aMarketing Research Manager who normally reports to the MarketingVice President and in some cases to top management or other officers.

The Marketing Research Manager is considered a major member of theMarketing Team and performs such roles as Study Director,

administrator, internal company consultant, and advocate.

In smaller companies the Department consists of a few professionalresearchers and in larger companies may comprise one to two dozen fulltime employees. They may be specialized by skill( survey expert,statistician, behavioral scientist,by industry or by type of project.


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Categories Of Marketing Research

Firms.

Marketing Research Firms fall into three major categories:

1) Full Line Marketing Research Firms. These Firms offerGeneral Marketing Research Services. Their clients range fromcompanies that are too small to support their own MarketingResearch Department to large firms who subcontract a portion of

their work to relieve backlog or to obtain an independent point ofview.

2) Specialty-Line Marketing Research Firms: These Firmsspecialize in particular Marketing Research Services, such asMarket Analysis and Forecasting, Survey Research Work,Packaging Research, Product Research, or Brand Name Testing.

They may also specialize in either Consumer or Industrial Goods.3) Syndicated Information-Selling Firms: These Firms specializein gathering continuous Trade or Consumer Data, which they sellto clients on a fee-subscription basis.


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The Scope Of Marketing

Research. Marketing Research Departments have been steadily expanding

their activities and techniques.

The Ten Most Common Activities are Determination of Market

Characteristics, Measurement of Market Potentials, Market Share

Analysis, Sales Analysis, Studies of Business Trends, Competitive-

Product Studies, Short Range Forecasting, New ProductAcceptance and Potential, Long Range Forecasting, and Pricing

Studies.

These Studies have benefited over years from increasingly

Sophisticated Techniques.

Many of them-such as Questionnaire Construction and AreaSampling-came along early and were quickly and widely accepted

in the corpus of Marketing Research Practice.

Others-such as Motivation Research and Mathematical Methods-

came in uneasily, with prolonged and heated debates among

practitioners over practical usefulness. But they too settled in the

corpus of Marketing Research Methodology.


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Managements Use Of

Marketing Research. In Spite of rapid growth of Marketing Research, there are many

companies that are still without it or that use it poorly. Several otherfactors stand in the way of its greater utilization:

1) A Narrow Conception Of Marketing research: Many Executives seeMarketing Research as only a fact-finding operation. The MarketingResearcher is supposed to design a Questionnaire, choose a Sample, carry

out Interviews, and report results, often without being given a carefuldefinition of the problem or of the decision alternatives beforeManagement. As a result, some of the fact finding fails to be useful. Thisreinforces Managements idea of the limited good that can come fromMarketing Research.

2) Uneven Caliber Of Marketing Researchers.

3) Late Results.

4) Intellectual Differences. Intellectual divergences between the mentalstyles of Line Managers and Researchers often get in the way ofproductive relationships. All too often the Marketing Researchers Reportis Abstruse, complicated and tentative, whereas the manager wantsconcreteness, simplicity, and certainty.


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Marketing Management-Science

System( Operations Research). An increasing number of Organizations have been

adding a Fourth Information Service to help theirMarketing Executives-Management Science

( Operations Research).

A Management Scientist applies Scientific Methodologyto Organizational Problems in the search for improvedunderstanding, prediction, and control. They will study

various alternative solutions available for Problemsand recommend the one best suitable for theOrganization.

Management Scientists are often called ModelBuilders, and quite appropriately, because Model is

one of the central defining concepts in their field.

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4(b) Industrial (B2B) Marketing