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TRAINING REPORT
ON
"MARKETING STRATEGY"
Submitted to:-
MAHARISHI DAYANAND UNIVERSITY,ROHATAK
HARAYANA-122001
In partial fulfillment of the requirements
For the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
(INDUSTRY INTEGRATED)
(2nd Semester)
Submitted by:-
Name:
Regst. No.
Roll No:
Guru Gram Business School
Front of CCA School Dhanwapur road laxman Vihar,Gurgaon
Haryana-122001
July 2011
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CERTIFICATE
This is to certify Dinesh Vishwakarma, a student of the Maharishi
Dayanand University, Rohtak, has prepared his training report entitled ³Marketing
Strategy´ at Continental Manufacturing Co. , under the guidance . He has fulfilled
the requirement leading to award of the degree of BBA (Industrial Integrated). This
report is the record of bonafide training undertaken by him and no part of it has
been submitted to any other University or Educational Institution for award of any
other degree /diploma/fellowship or similar titled or prizes.
I wish him all success in life.
Sign of Faculty guid
Name of Faculty guid
Designation
Qualification
Seal of ELC
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DECLARATION
I hereby declare that Training Report conducted at
"CONTINANTAL MANUFACTURING CO."
353, MEHRALI ROAD, OPP. GOVT. COLLEGE,
GUEGAON-122001(HARYANA)
Under the guidance of
Mrs. Bhavana
Submitted in partial fulfillment of the requirement for the degree of Bachelor of
Business Administration (industry integrated)
To
MAHARISHI DAYANAND UNIVERSITY, ROHTAK
Is my original work and the same has not been submitted for the award of any
other degree/diploma/fellowship or other similar titled or prizes.
Place :Gurgaon Student's signature
Date: Name:
Regn. No.
Roll No.
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Acknowledgement
I would like to acknowledge and extend my gratitude to the Mr. Pravin Kumar
(Marketing Manager) who have made the completion of this project possible:
First of all, I would like to thank my Project Guide Mrs. Bhavna for her
great help. As she is being my Project Coordinator she provided me very necessary
and important guidance and support until the submission of my project.
I would also like to thank Ms. Nancy (TPO) of Guru Gram Business
School (GGBS), to provide me such a very exiting opportunity and for their goodhelp to provide a better coordination and control among all the activities related to
completion of the project.
Lastly, I would like to be very thankful to the whole GGBS Faculty for
their continuous effort in making the whole Project Activity very much learning
and Interesting.
I delivered my special thanks to my family members and friends for their constant
support during the project.
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CONTENT OF THE REPORT
1) General introduction about the sector.
2) Industry profile
i. Origin and development of industry.
ii. Growth present status of the industry.
iii. Future of the company.
3) ± Origin of organization.
4) ± Growth development and present status of the
rganization.5) ± Product and service profile of the company.
6) - Profile of the company.
7) ± Discussion on training.
8) ± Study of selected research problem
i. (Problem, objective, methodology)
9) - Summary and conclusion
10) Questionnaires
11) Bibliography
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1. GENERAL INTRODUCTION ABOUT SECTOR
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2 - INDUSTRY PROFILE
1. Origin and development of the industry:-
CONTINENTAL MANUFACTURING COMPANY establised in 1990 with the aim to
manufacture Precision and High Quality Plastic and Steel metal component. At
CMC, we have been serving OEM¶s in Gurgaon Fom very bigning and have made
good cutomer on base due to our industrial background sonce 1958. We have
specialization in manufacturing of deep draw components in seat metal and
injection molded plastic part with critical shape and size . A brief count of our
achievement and appritiation given by company¶s customer is given below
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II. Growth and Present Status of the Industry:-
There is two axis one shows series 1 in which targets achieved is given in crores.
Second axis shows the year I which targets achieved.
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III. Future of the Industry:-
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3. ORIGIN OF ORGANIZATION
CONTINENTAL MANUFACTURING COMPANY establised in 1990 with the
aim to manufacture Precision and High Quality Plastic and Steel metal component.
At CMC, we have been serving OEM¶s in Gurgaon Fom very bigning and havemade good cutomer on base due to our industrial background sonce 1958. We have
specialization in manufacturing of deep draw components in seat metal and
injection molded plastic part with critical shape and size . We have two uit &
offices they are given below:-
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4. GROWTH DEVELOPMENT AND PRESENT STATUS OF THE
ORGANIZATION.
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5. PRODUCT AND SERVICE PROFILE OF THE COMPANY
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6. PROFILE OF ORGNIZATION
Organizational structure
CEO
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7. DISCUSSION ON TRAINING
7.1 Definition:-
M arketing strategy is a process that can allow an organization to concentrate its
limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage
Developing a marketing strategy:-
Marketing strategies serve as the fundamental underpinning of marketing
plans designed to fill market needs and reach marketing objectives. Plans and
objectives are generally tested for measurable results. Commonly, marketing
strategies are developed as multi-year plans, with a tactical plan detailing specific
actions to be accomplished in the current year. Time horizons covered by
the marketing plan vary by company, by industry, and by nation, however, time
horizons are becoming shorter as the speed of change in the environment
increases. Marketing strategies are dynamic and interactive. They are partially
planned and partially unplanned. See strategy dynamics.
Marketing strategy involves careful scanning of the internal and external
environments which are summarized in a SWOT analysis. Internal environmentalfactors include the marketing mix, plus performance analysis and strategic
constraints. External environmental factors include customer analysis, competitor
analysis, target market analysis, as well as evaluation of any elements of the
technological, economic, cultural or political/legal environment likely toimpact
success. A key component of marketing strategy is often to keep marketing in line
with a company's overarching mission statement.
7.1.1 Types of strategies
Marketing strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic
strategies. A brief description of the most common categorizing schemes is
presented below:
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Strategies based on market dominance - In this scheme, firms are classified based
on their market share or dominance of an industry. Typically there are four types of
market dominance strategies:
Leader
Challenger
Follower
Nicher
I. Porter generic strategies - strategy on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while strategic
strength refers to the firm¶s sustainable competitive advantage. The generic
strategy framework (porter 1984) comprises two alternatives each with two
alternative scopes. These are Differentiation and low-cost leadership each with a
dimension of Focus-broad or narrow.
Product differentiation (broad)
Cost leadership (broad)
Market segmentation (narrow)
II. Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is on the
cutting edge of technology and business innovation. There are three types:
Pioneers
Close followers
Late followers
III. Growth strategies - In this scheme we ask the question, ³How should the firm
grow?´. There are a number of different ways of answering that question, but the
most common gives four answers:
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Horizontal integration
Vertical integration
Diversification
Intensification
Prospector
Analyzer
Defender
Reactor
IV. Marketing warfare strategies - This scheme draws parallels between
marketing strategies and military strategies.
Many architects make the mistake of thinking that marketing has only a peripheral
relationship to what their firm does. In fact, marketing works best when it is totally
integrated into the operations of your firm, when it¶s a part of everything you do.
You can¶t create a plan for how to improve your marketing and increase your
business without first considering your long-term goals²not just in terms of fee
revenue or winning work, but in terms of who you want to be and where you want
to go, both as a firm and as a professional. There are a number of ways strategic
planning
can help your firm:
_ Build a shared vision for the firm¶s future.
_ Articulate your vision so that it can be communicated to others.
_ Get approval and support for the vision from senior leadership and,
ultimately, your entire staff.
_ Create a framework for all future decision making.
_ Figure out (and agree on) how much you¶re going to spend onmarketing and other initiatives to make it happen.
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7.1.2 Strategic Planning:-
Strategic planning is the process of developing a vision of who you are as a firm
and what your longterm goals are. It¶s about more than just marketing; it can
influence everything: human resources, finance, information technology,
operations, hiring, promotions strategy, design process, client relationships, the
design of your office, and absolutely anything else that affects your firm and its
performance. Firms typically engage in strategic planning at defining moments in
their practice, when the firm¶s leadership changes or when the practice undergoessome kind of profound transformation. The strategic planning process enables the
firm¶s leadership to build a shared vision for the firm¶s future, articulate the vision
so that it can be communicated, and create a framework for all future decision
making. Because strategic planning is a process, not a document or a report, it isn¶t
effective for a small group of leaders to issue a fat document as the strategic plan
for the firm. It will probably go unread. It will certainly not achieve approval and
support from the people who need to understand it and act on it. Strategic planning
is best conducted as an open process, one that involves all your firm¶s key leaders.To begin the process, set up a strategic planning meeting, either as a retreat outside
the office or as an extended in-house meeting. (You may want to bring in a
marketing consultant to help you with this.) Figure out who should be there to give
input to the vision for your firm¶s future. Keep the group as small as possible, but
don¶t leave anyone out. Ask everyone to commit half a day for the meeting (two
hours just isn¶t enough), and to come relaxed and prepared to focus on the firm¶s
strategic direction. Gather any existing documents that attempt to define the firm or
its vision, such as mission statements, a firm description, marketing materials,
articles that have been written about the firm, and so on
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I. Markets for Industrial goods -
The market is the place where supply meets demand. Suppliers and customers
meet, discuss and evaluate the conditions for exchange of goods and services, and
exchanges take place. The conditions under which these exchanges occur,
especially that of price, are influenced by the characteristics and structure of the
market, for example, the number and market power of suppliers and customers.
Traditional economic analysis of markets presupposes that they are characterized
by certain basic features;' firstly, there is an assumption of free movement in themarket, and thus a customer will always buy where he obtains the best terms of
exchange at that moment; similarly, the assumption is that suppliers will move to
and from the market freely.' Thus, the market is portrayed as atomistic. Each unit
in the market is free and independent to do as it wishes. Also, as a result of this
free movement, the market is characterized by change, and stability is an
exception. Underlying these two assumptions is the further assumption that there is
little or no cost of transaction. In other words, it is assumed that there are no costs
in obtaining accurate information, or in negotiations, etc. One effect of thisassumption is that production costs are considered central and that sellers can be
simply represented by a production function.
The traditional economic theory of the market has of course been subject to
challenge and modification. However, it has influenced the models and principles
used in marketing management. The basic model that most of the literature in
marketing is built on is the marketing mix model. The key problems in marketing,
according to that model, are:
To allocate resources to different competitive means or mix elements.
To design each mean as well as possible within the firm's resource
limitations.
The market is often described in terms of response curves, each defined in relation
to a certain 'marketing decision variable' or to the whole mix of a company. The
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assumption is of course that the market consists of many individual customers that
are affected by the marketer's variables in accordance with a certain statistical
distribution. The same kind of influence can also be identified in the purchasing
management literature. The focus here is largely on the management of a single
purchase. This does not give full consideration to the factors which havecontributed to the way this purchase takes place, or to the effects of this purchase
on the subsequent dealings with the supplying company.'
II. Marketing Management -
The models and principles for industrial marketing management that are given by
the literature are normally related to the marketing mix model. The problems
identified in these are the allocation of resources and the designing of competitive
means. However, marketers in for example, a highly concentrated industry may
find different problems. The issues associated with the handling of ten very large
customers are of totally different character from those of handling 1,000 small
customers. Thus, marketers in firms in concentrated markets have a lack of
accurate models for analyzing their marketing problems. They have also a lack of
relevant data expressed in a systematic way about the behaviour of other firms in
the same situation.
III. Marketing Organization
Overall Organization
Belter's sales operations are split into three areas as follows;
(i) Sales Manger ² UK responsible for 60²70 per cent of total sales. Four area
offices handling all accounts, except two major ones which are managed from the
Company's main office.
(ii) Sales Manager ² Middle East, Africa, Eastern Europe, accounting for
approximately 20 per cent of total sales. One manager plus two sales engineers.
The Company is currently building up an agency²distributor network for this
territory.
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(iii) Sales Manager ² Western Europe, responsible for the remaining 20 per cent
of total sales. The sales manager is located in Brussels, with additional sales offices
in Germany, France, and Italy. The Brussels sales office is owned by Belter's parent group.
IV. Evolution of Marketing Organization -
Belter has often faced problems in the distribution of its products; in France, for
example, the Company had a combined agent and distributor operating until 1963.
Belter provided applications engineering but had no commercial involvement in
sales. The company found that it had no influence on pricing in the market and thisled to a rather artificial pricing structure and to a decreased market share. This
problem was not solved by the appointment of a second distributor. Mergers
amongst French suppliers have led to more competition in the market. The second
distributor did little to stimulate the first one or to improve the Company's overall
penetration.
In 1966 Belter separated out a number of products and major customers which
were not to be handled via distributors. These customers and products were to be
controlled by the UK sales operation. Also, from 1970, the Brussels office ceased
to have overall responsibility for sales to France and a Paris office was established.
The overall market situation faced in France (and in other European countries) is as
follows:
There are many actual and potential users for some products, which are not known
by the Company. Heavy competition exists especially on price, for large customers
who are often buying what they view as a commodity product. Belter's emerging
strategy has been to handle these large customers through its own sales offices.
The Paris office actively seek sales of large volume products as well as acting as a
`post office' for products specially developed for individual customers, which are
then handled from the Company's main office. Small customers and small volume
products are handled by the two French distributors. The development process in
Italy has been similar to that in France. Sales in Scandinavia do not justify a local
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sales office; sales here are handled through a distributor from the Brussels office.
A small number of major accounts are, however, handled directly from the UK.
7.2 Buyer²Seller Relationships:-
A Customer Relationship -
The three aspects of the relationship which are studied are competition, technicaldevelopment, and personal contacts.
This customer is Belter's largest and is responsible for 20 per cent of its total
business. The Company operates in the aerospace industry at the limit of current
technology. The relationship involves considerable development liaison on wholly
new products.
Competition -
Competition for this customer comes primarily from American suppliers. Thecompetition is on price and reflects the spare capacity in the American industry.
Competition from UK companies is also on price and comes from companies
having a wider production spread than Belter.
Development -
This customer has always relied on Belter alone for development work in this
product area. However, they have looked to other sources of supply when
development has taken place. The development process for a new product can bestarted either by a government development contract or by an order from the
customer. Belter acknowledged that it has to stand the costs of this development in
the latter case. The customer has intimate knowledge of all of Belter's procedures.
Methods of manufacture are agreed in detail and even the particular production
machinery to be used is specified. The closeness of the relationship between the
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two companies is indicated by the fact that the customer has approved Belter's
quality procedure and accepts their testing.
Contact Pattern -
Interpersonal contacts between Belter and its UK customer are summarized as
follows:
(1) Formal Contacts
Every six months Technical policy liaison meeting, jointly chaired by Belter's
Technical Director and the customer's Chief Materials Manager. Every six²nine
months Commercial meeting, Belter's Managing and Marketing Directors and
Sales Manager and the customer's Purchasing Director and Senior Purchasing
Staff.
Monthly Sales Manager visits customer's purchasing staff to discuss delivery and
order positions.
(2) Other Contacts
These can be studied according to the formally assigned responsibility. Personnel
who have full-time responsibility One sales office man has daily contact with the
customer. Additionally, one applications engineer is engaged on work for thiscustomer. Finally, one man determines market trends, and is in contact with the
customer's marketing personnel and customer's clients. Personnel with `half-time'
responsibility Four applications engineers also spend some of their time on the
customer's problems and are in personal contact with customer staff.
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7.3 PURPOSE OF A MARKETING PLAN:-
The purpose of a Marketing Plan is to:-
Define the Market
Refine the Production Plan to market requirements
Develop a marketing strategy
Minimize risk
Marketing Plan covering each commodity based on their own study of the local
market.
I. Market demand and prices -An assessment based on published market
information , discussions with local extension staff, farmers, dealers and buyers of
the commodity of the likely demand and prices on offer during the year and during
any period of seasonal shortfall
II. Market Requirement- Varieties, size, grading, packaging, maturity demanded by the buyers in the particular market.
III. Yield /Price Assumptions- How much commodity will be available? How
much premium grade? Second grade? Losses? If the commodity /crop is aimed to
be produced for a particular period e.g. for a low supply period, while the price
assumptions (expectation) may be higher some reassessment of yield and cost of
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production assumptions in the gross margin analysis or partial budgets is usually
necessary.
IV. Marketing Returns and Costs Calculate expected income and costs in
marketing
7.4 The Most Important Elements of Marketing:-
There are four important elements in the marketing process:
Prioritizing the customer: Marketing begins with the customer, not the
product. Knowing what the customer needs or wants is essential.
Process of selection: The farmer needs to know who to sell the product to.This will determine how and where the produce is marketed.
Promotion: The farmer is selling something that other people want to buy.
Naturally, it is helpful to let them know that the product is available and of
good quality. In thinking about these elements, farmers need to ask
themselves about the six Ps:
� people: Who are the customers? What do they want or need? Who is actually
going to market the product?
� plan: How is the product going to reach the selected customers? What are thesteps?
� product: What product is going to be marketed? Is the family producing what
the customer wants? What services (for example, a cooked product), if any,
are requested by the customer?
� place: Where is the product going to be marketed?
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� price: What price will the product be offered on the market for?
� promotion: How are people going to be informed that the product is available?
7.5 Supply, Demand, and Price:-
I n a free market, prices for inputs and products are determined by supply and demand .
I. Supply -
The Law of Supply :-
Like the law of demand, the law of supply demonstrates the quantities that will be
sold at a certain price. But unlike the law of demand, the supply relationship shows
an upward slope. This means that the higher the price, the higher the quantitysupplied. Producers supply more at a higher price because selling a higher quantity
at a higher price increases revenue.
A, B and C are points on the supply curve. Each point on the curve reflects a direct
correlation between quantity supplied (Q) and price (P). At point B, the quantity
supplied will be Q2 and the price will be P2, and so on.
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II . Demand
The Law of Demand :-
The law of demand states that, if all other factors remain equal, the higher the price
of a good, the less people will demand that good. In other words, the higher the
price, the lower the quantity demanded. The amount of a good that buyers purchaseat a higher price is less because as the price of a good goes up, so does the
opportunity cost of buying that good. As a result, people will naturally avoid
buying a product that will force them to forgo the consumption of something else
they value more. The chart below shows that the curve is a downward slope.
A, B and C are points on the demand curve. Each point on the curve reflects adirect correlation between quantity demanded (Q) and price (P). So, at point A, the
quantity demanded will be Q1 and the price will be P1, and so on. The demand
relationship curve illustrates the negative relationship between price and quantity
demanded. The higher the price of a good the lower the quantity demanded (A),
and the lower the price, the more the good will be in demand (C).
III. Price
A value that will purchase a definite quantity, weight, or other measure of a goodor service. As the consideration given in exchange for transfer of
ownership, price forms the essential basis of commercial transactions. It may be
fixed by a contract, left to be determined by an agreed upon formula at
a future date, or discovered or negotiated during the dealings between
the parties involved. In commerce, price is determined by what.
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a buyer is willing to pay,
a seller is willing to accept
the competition is allowing to be charged.
7.6 Industrial or business to business (B2B) marketing
An organization seeks to build a new warehouse. After documenting requirements,
it obtains three proposals from suitable construction firms. After a long process of
evaluation and negotiation, it places an order with the organization that it believes
offers the best value for money.
An organization needs legal services and obtains submissions from two law firms.
Analysis of the proposals and subsequent discussions determines that there is no
price advantage to placing all of the work with one firm, and the organization
decides to split the work between the two firms based on an evaluation of each
firm's capabilities.
A sales representative makes an appointment with an organization that employs 22
people. He demonstrates a photocopier/fax/printer to the office administrator. After
discussing a proposal, the business owner signs a contract to obtain the machine on
a fully-maintained rental and consumables basis, with an upgrade after 2 years.
I. Main features of the B2B selling process are:
Marketing is one-to-one in nature. It is relatively easy for the seller to identify a
prospective customers and build a face-to-face relationship. Highly professional
and trained people in buying processes are involved. In many cases, two or threedecision makers must approve a purchase plan. Often the buying or selling process
is complex, and includes many stages (for example, request for proposal, request
for tender, selection process, awarding of tender, contract negotiations, and signing
of final contract). Selling activities involve long processes of prospecting,
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qualifying, wooing, making representations, preparing tenders, developing
strategies, and contract negotiations.
II. Blurring between B2B and B2C
Industrial marketing can cross the border into consumer marketing. For example,
an electronic component seller may distribute its products through industrial
marketing channels (see channel (marketing)), but also support consumer sales.
Many products are equally desired by business and consumers²such as audio
products, furniture, paint, hardware, etc. Nonetheless, manufactures and service
providers frequently maintain separate industrial and consumer marketing
operations to reflect the different needs of the two channels.
III. Competitive tendering
Industrial marketing often involves competitive tendering (see tender, tendering).
This is a process where a purchasing organization undertakes to procure goods and
services from suitable suppliers. Due to the high value of some purchases (for
example buying a new computer system, manufacturing machinery, or outsourcing
a maintenance contract) and the complexity of such purchases, the purchasing
organization will seek to obtain a number of bids from competing suppliers and
choose the best offering. An entire profession (strategic procurement) that includes
tertiary training and qualifications has been built around the process of making
important purchases. The key requirement in any competitive tender is to ensure
that... The procurement process is agreed upon and it conforms with fiscal
guidelines and organisational policies. The selection criteria have been established.
A budget has been estimated and the financial resources are available.
A buying team (or committee) has been assembled.
A specification has been written.
It has been clearly established that a competitive tendering process is the best
method for meeting the objectives of this purchasing project. If (for example) it
was known that there was only one organisation capable of supplying; best to get
on with talking to them and negotiating a contract.
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Because of the significant value of many purchases, issues of probity arise.
Organizations seek to ensure that awarding a contract is based on "best fit" to the
agreed criteria, and not bribery, corruption, or incompetence.
IV. Bidding process
Suppliers who are seeking to win a competitive tender go through a bidding
process. At its most primitive, this would consist of evaluating the specification
(issued by the purchasing organization), designing a suitable proposal, and
working out a price. This is a "primitive" approach because...
There is an old saying in industrial marketing; "if the first time you have heard
about a tender is when you are invited to submit, then you have already lost it."
While flippant, the previous point illustrates a basic requirement for beingsuccessful in competitive tendering; it is important to develop a strong relationship
with a prospective customer organization well before they have started the formal
part of their procurement process.
V. Non-tender purchasing
Not all industrial sales involve competitive tendering. Tender processes are time
consuming and expensive, particularly when executed with the aim of ensuring
probity. Government agencies are particularly likely to utilise elaboratecompetitive tendering processes due to the expectation that they should be seen at
all times to be responsibly and accountably spending public monies. Private
companies are able to avoid the complexity of a fully transparent tender process
but are still able to run the procurement process with some rigour.Beneficial
Developing a sales strategy/solution selling/technical selling
The "art" of technical selling (solution selling) follows a three stage process...
S tage 1: Sell the appointment: Never sell over the telephone. The aim of the first
contact with a prospective purchaser is to sell the appointment. The reason is
simple; industrial sales are complex, any attempt to sell over the phone will
trivialise your product or service and run the risk of not fully understanding the
customer's need.
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S tage 2: Understand their needs: The best method of selling is to minimise the
information about your goods or services until you have fully understood your
customer's requirements.
S tage 3: Develop and propose a solution. The solution is (of course) developedfrom your (or the firm that you represent's) product or service offerings.
Marketing supports solution selling through methods like account-based
marketing²understanding a specific target organization's requirements as the
foundation of a marketing program. As research shows,[1]
sales success is heavily
weighted towards suppliers who understand the customer. In UK research, 77 per
cent of senior decision-makers believe new suppliers' marketing From cannon
fodder to preferred tenderer
VI. The key features of a successful industrial sales organization
In industrial marketing the personal selling is still very effective because many
products must be customized to suit the requirements of the individual customer.
Indicators such as the sales tunnel give information on the expected sales in the
near future, the hit rate indicates whether the sales organization is busy with
promising sales leads or it is spending too much effort on projects that are
eventually lost to the competition or that are abandoned by the prospect.
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RESEARCH PROBLEM
1. Identify your target market.
Which businesses need cleaning services? Which ones can afford it and will payfor it? Why?
In this case, I would think that small businesses may not be an ideal client. But
then again, define "small business." Are this referring to sales volume or number of
employees.
this can help small business right now as a marketing consultant that has worked
with a wide variety of businesses, including small companies:
" Small businesses are very price sensitive and prefer to do more themselves rather
than pay someone else." (They hold this belief even if it would free up more time
to be more productive. Go figure?)
2. Determine their wants and needs.
These businesses never have walk-in traffic. They do not have customers visitthem. So naturally, there is far less of a concern for a "clean office." Sure it would
be nice to have, but since no revenue will be lost if their office is not spectacular
looking, they are not motivated to do anything about it.
However, seek out the businesses that do deal with customers directly, especially
professional services where they have very high end clients visit them. Now they
need a very presentable office or they risk losing out on a lot of revenue.
3. Determine the level and type of demand.
Primary Demand : If a business does not already use your TYPE of service and is
not currently considering doing so, you will need to create "primary demand."
Simply put, you will have to convince them first to even want your type of service
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(or product) before you even get them to buy it from you.
S elective Demand : These businesses already use a service (or product) or are in the
market for it and are actively looking. In these cases you do not need to spend
much effort convincing them "why" they need it.
4. Develop a Hypothesis and a Solution to Match
After we know the target market, have defined their needs, and analyzed the
competitive picture (currently using or not currently using a service like mine
For example, start with business not currently using a cleaning service, but that
deal with customers or clients regularly at their location.
Develop a strong case for why they would be wise to invest in your cleaning
services. Show them on a break-even analysis that your fee will be well
compensated in either customer retention or converting a higher level of store
traffic or business appointments into paying customers/clients.
Then state your case why it is more cost effective and saves them valuable time to
outsource this to you rather than doing it themselves or paying an employee
overtime to do it. You can also emphasize that you are the "expert" at this, notsomeone's secretary so it is expected that you will do a far better job at it.
5. You must make AN OFFER.
Marketing message/sales offer to a business that does NOT currently use a
cleaning service
" If we have never considered using a cleaning service before, allow us to show
you how xyz Cleaning, Inc can make your store/office more presentable to
customers and how this newly improved appearance will affect your cash
register/bank statement.
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6. Develop your marketing message
Once industry organization understand the true needs your potential clients have
and the unique and competitive solutions you can offer, only then should
organization develop company's marketing copy -- your sales pitch.
The two examples above incorporate great marketing copy with a strong, benefits
related offer. organization can then deliver this through direct mail, telemarketing,
or a combination of both.
Avoid the fax marketing altogether. It's quite annoying, ties up there fax line, and
unless people have already heard of you, they are more likely to toss your message
in the garbage.
Try sending direct mail to the decision makers of these target companies and
describe the benefits they will experience from using your services.
7. Follow up
Even after identifying the businesses that are most likely to need your services,
after organization have identified a solution, and even after you contacted themwith a compelling offer, you still have to follow up.
Chances are they loved the sound of it when they got it. They had every intention
of following up with organization . But then just got busy. So company's follow up
call can make all the difference in the world and get company's foot in the door ...
in a very big way. Then it's up to you to deliver on your promise.
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8. ANALYSIS
M arket Analysis
The goal of a market analysis is to determine the attractiveness of a market and
to understand its evolving opportunities and threats as they relate to the
strengths and weaknesses of the firm .
Market size (current and future)
Market growth rate
Market profitability
Industry cost structure
Distribution channels
Market trends
Key success factors
M arket S ize
The size of the market can be evaluated based on present sales and on
potential sales if the use of the product were expanded. The following are
some information sources for determining market size: g overnment data
trade associations financial data from major players customer surveys
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M arket Growth Rate
A simple means of forecasting the market growth rate is to extrapolate
historical data into the future. While this method may provide a first-
order estimate, it does not predict important turning points. A better
method is to study growth drivers such as demographic information and
sales growth in complementary products. Such drivers serve as leading
indicators that are more accurate than simply extrapolating historical
data.
M arket Profitability
While different firms in a market will have different levels of profitability,
the average profit potential for a market can be used as a guideline for
knowing how difficult it is to make money in the market. Michael Porter
devised a useful framework for evaluating the attractiveness of an
industry or market. This framework, known as Porter's five forces,
identifies five factors that influence the market profitability: y Buyer power
y Supplier power
y Barriers to entry
y Threat of substitute products
y Rivalry among firms in the industry
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I ndustry Cost S tructure
The cost structure is important for identifying key factors for success. To
this end, Porter's value chain model is useful for determining where value
is added and for isolating the costs.
The cost structure also is helpful for formulating strategies to develop a
competitive advantage. For example, in some environments the experience
curve effect can be used to develop a cost advantage over competitors.
Distribution Channels
The following aspects of the distribution system are useful in a market
analysis:
Existing distribution channels - can be described by how direct they are to
the customer.
Trends and emerging channels - new channels can offer the opportunity to
develop a competitive advantage.
Channel power structure - for example, in the case of a product having
little brand equity, retailers have negotiating power over manufacturers
and can capture more margin.
M arket Trends
Changes in the market are important because they often are the source of
new opportunities and threats. The relevant trends are industry-
dependent, but some examples include changes in price sensitivity,demand for variety, and level of emphasis on service and support.
Regional trends also may be relevant.
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Key Success Factors
The key success factors are those elements that are necessary in order for
the firm to achieve its marketing objectives. A few examples of such factors
include:
y Access to essential unique resources
y Ability to achieve economies of scale
y Access to distribution channels
y Technological progress
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organizations. These organizations may range from small proprietary organizations
which operate locally to large multinational organizations with WATS line
interviewing facilities. Some organizations maintain extensive interviewing
facilities across the country for interviewing shoppers in malls.
Coding and data entry services include editing completed questionnaires,
developing a coding scheme, and transcribing the data on to diskettes or magnetic
tapes for input into the computer. NRC Data Systems provides such services.
Analytical services include designing and pretesting questionnaires, determining
the best means of collecting data, designing sampling plans, and other aspects of
the research design. Some complex marketing research projects require knowledge
of sophisticated procedures, including specialized experimental designs, and
analytical techniques such as conjoint analysis and multidimensional scaling. Thiskind of expertise can be obtained from firms and consultants specializing in
analytical services.
Data analysis services are offered by firms, also known as tab houses, thatspecialize in computer analysis of quantitative data such as those obtained in large
surveys. Initially most data analysis firms supplied only tabulations (frequency
counts) and cross tabulations (frequency counts that describe two or more variables
simultaneously). With the proliferation of software, many firms now have the
capability to analyze their own data, but, data analysis firms are still in demand.
Branded marketing research products and services are specialized datacollection and analysis procedures developed to address specific types of
marketing research problems. These procedures are patented, given brand names,
and marketed like any other branded product
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Types of marketing research
Marketing research techniques come in many forms, including:
Ad Tracking ± periodic or continuous in-market research to monitor
a brand¶s performance using measures such as brand awareness, brand preference,
and product usage. (Young, 2005)
Advertising Research ± used to predict copy testing or track the efficacy of
advertisements for any medium, measured by the ad¶s ability to get attention
(measured with Attention Tracking), communicate the message, build the brand¶s
image, and motivate the consumer to purchase the product or service. (Young,
2005)
Brand equity research - how favorably do consumers view the brand?
Brand association research - what do consumers associate with the brand?
Brand attribute research - what are the key traits that describe the brand
promise?
Brand name testing - what do consumers feel about the names of the products?
Commercial eye tracking research - examine advertisements, package designs,
websites, etc. by analyzing visual behavior of the consumer
Concept testing - to test the acceptance of a concept by target consumers
Cool hunting - to make observations and predictions in changes of new or existing
cultural trends in areas such as fashion, music, films, television, youth culture and
lifestyle
Buyer decision processes research - to determine what motivates people to buy
and what decision-making process they use
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Copy testing ± predicts in-market performance of an ad before it airs by analyzing
audience levels of attention, brand linkage, motivation, entertainment, and
communication, as well as breaking down the ad¶s flow of attention and flow of
emotion. (Young, p 213)
Customer satisfaction research - quantitative or qualitative studies that yields an
understanding of a customer's of satisfaction with a transaction
Demand estimation - to determine the approximate level of demand for the
product
Distribution channel audits - to assess distributors¶ and retailers¶ attitudes toward
a product, brand, or company
Internet strategic intelligence - searching for customer opinions in the Internet:chats, forums, web pages, blogs... where people express freely about their
experiences with products, becoming strong "opinion formers"
Marketing effectiveness and analytics - Building models and measuring results
to determine the effectiveness of individual marketing activities.
Mystery Consumer or Mystery shopping - An employee or representative of the
market research firm anonymously contacts a salesperson and indicates he or she is
shopping for a product. The shopper then records the entire experience. Thismethod is often used for quality control or for researching competitors' products.
Positioning research - how does the target market see the brand relative to
competitors? - what does the brand stand for?
Price elasticity testing - to determine how sensitive customers are to price
changes
Sales forecasting - to determine the expected level of sales given the level of
demand. With respect to other factors like Advertising expenditure, sales
promotion etc.
Segmentation research - to determine the demographic, psychographic, and
behavioural characteristics of potential buyers
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Online panel - a group of individual who accepted to respond to marketing
research online
Store audit - to measure the sales of a product or product line at a statistically
selected store sample in order to determine market share, or to determine whether aretail store provides adequate service
Test marketing - a small-scale product launch used to determine the likely
acceptance of the product when it is introduced into a wider market
Viral Marketing Research - refers to marketing research designed to estimate the
probability that specific communications will be transmitted throughout an
individual's Social Network. Estimates of Social Networking Potential (SNP) are
combined with estimates of selling effectiveness to estimate ROI on specific
combinations of messages and media.
Marketing research methods
Methodologically, marketing research uses the following types of research designs:
Based on questioning:
Qualitative marketing research - generally used for exploratory purposes - small
number of respondents - not generalizable to the whole population - statisticalsignificance and confidence not calculated - examples include focus groups, in-
depth interviews, and projective techniques
Quantitative marketing research - generally used to draw conclusions - tests a
specific hypothesis - uses random sampling techniques so as to infer from the
sample to the population - involves a large number of respondents - examples
include surveys and questionnaires. Techniques include choice
modelling, maximum difference preference scaling, and covariance analysis.
Based on observations:
Ethnographic studies -, by nature qualitative, the researcher observes social
phenomena in their natural setting - observations can occur cross-
sectionally (observations made at one time) or longitudinally (observations occur
over several time-periods) ±
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examples include product-use analysis and computer cookie traces. See
also Ethnography and Observational techniques.
Experimental techniques -, by nature quantitative, the researcher creates a quasi-
artificial environment to try to control spurious factors,
then manipulates at least one of the variables - examples include purchase
laboratories and test markets
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10.Questionnaires
1. What are the objectives of the marketing strategy? Are they clearly stated? Are
they consistent with the objectives of the firm? Is the entire marketing mix
structured to meet these objectives?
2. What marketing concepts are at issue in the current strategy? Is the marketing
strategy well planned and laid out? Is the strategy consistent with sound marketing
principles? If the strategy takes exception to marketing principles, is there a good
reason for it?
3. To what target market is the strategy directed? Is it well defined? Is the market
large enough to be profitably served? Does the market have long-run potential?
4. What competitive advantage does the marketing strategy offer? If none, what
can be done to gain a competitive advantage in the marketplace?
5. What products are being sold? What is the width, depth, and consistency of the
firm's product lines? Does the firm need new products to fill out its product line?
Should any product be deleted? What is the profitability of the various products?
6. What promotion mix is being used? Is promotion consistent with the products
and product images? What could be done to improve the promotion mix?
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7. What channels of distribution are being used? Do they deliver the product at the
right time and right place to meet consumer needs? Are the channels typical of
those used in the industry? Could channels be made more efficient?
8. What pricing strategies are being used? How do prices compare with similar
products of other firms? How are prices determined?
9. Are marketing research and information systematically integrated into the
marketing strategy? Is the overall marketing strategy internally consistent?