MRKT 310 Principles of Marketing
B2B marketing. Student can differentiate the differences in marketing strategy between consumer markets and business markets.
Segmenting B2B markets. Student can identify the B2B market segments involved in a product or service offering
Marketing Information Systems. Student can identify at least three sources of input to a marketing information system for a product or service offering.
Marketing Metrics. Student understands the purpose of Return on Marketing Investment for the company, and can identify at least three metrics that should be used in a product or service offering to measure the effectiveness of marketing strategies.
Consider your product or service offering. Based on the categories of B2B markets discussed in the readings, name at least two of the B2B markets your company may be a target market for another company. Why?
Segmenting B2B markets.
Using the Harrison, Hague, and Hague behavioral-based segment model in the readings, which of those segmentation scheme might be most appropriate category for your company? Why?
Marketing Information Systems.
Identify at least three types of information your company should use in a comprehensive marketing information system for decision making purposes. Why did you chose each of them?
Identify and discuss at least one financial metric and three performance metrics that would be important to monitor your company�s strategic marketing planning for the marketing efforts you identified for your new marketing mix strategies.
- B2B Marketing
B2B marketing is reliant on similar principles as consumer marketing. However, they are implemented differently. For Samsung that deals with the manufacture of electronic products, there are varied B2B market groups. There are common buying elements and buyer size.
Companies in the technology industry faced by reduced buyers. Since these reduced number of buyers dominate the lives of the companies, database management is vital for B2B marketing. The CRM now gives databases to be up to date with the details of the end users and transactions. There is also an element of scale; the consumer markets have a controlled size that a person can purchase. There are large-scale buyers and small-scale buyers who’re spending vary greatly. It makes one company become a target make to a market with a high number of consumers.
The decision making the role in business dealing with electronics like phones is quite complicated or has the potential to be complicated. Placing orders of low value and threat may be left to lowly ranked staff while handling a common threat facing both companies is important to the business may require a bigger team with the necessary skills. Considering the complexity of decision-making unit and the several influences that may arise, it is clear the how hard it is to get the right decision in the B2B markets.
- Segmentation Scheme
The B2B markets have a limited number of behavioral or need regarding the segments in comparison to the end user markets. Among the reason is the small target audience found in the B2B markets. On the other hand, in the B2C market with several end users, it is viable and affordable to categorize the market into groups or segments (Mintz and Currim, 2013). These segments are few, and that is the reason as to why the needs of the end users vary to a reduced extent compared to the end user size. Additionally, the needs and the behavioral segments that arise in B2B markets are the same in the varied industries. The B2B markets segmented differently; there is those price based, brand based, service-based, and partnership-based. About the industry in which Samsung belongs, the quality and brand base segment would be most appropriate.
The quality and brand-based segment comprises of companies that look to have the most effective outcome for their products and are ready to invest in it. Samsung Company is keen on the brand it displays to its customers and innovation initiatives for its products. It constantly injects millions in the research and manufacture of new products.
- Marketing Information System
There is varied information in marketing information systems that would prove useful for Samsung Company. There is marketing research information will be important in resolving marketing issues. Most of the time, this information revolves around a precise marketing issue though it looks to go on and assess the market setting. In marketing intelligence information, this information looks to use sifted data from a target environment and use it to make a vital decision for the company (Jeffery 2010). They are of varied examples like informal research that is meant to acquire data for an objective and formal search that is meant to handle a precise issue facing the company.
This information is common with several agro-based businesses where businesspeople go through reports and economic data to gain useful information. It allows the management team in Samsung Company to interact with manufacturers and end users as well as rivals. The company to train its employees to take a keen focus on competitor’s activities, complaints from end users and other issues. Lastly, there is the use of marketing models to allow Samsung interpret data acquired and help in making vital decisions. This information involves analysis of variance, cash flows and elasticity among others. They are analytical in nature and useful for Samsung in coming up with vital decisions.
- Marketing Metrics
The marketing metrics are elements used to show the success of a company. One financial metric of great importance is the pre-tax net profit margin. This metric allows the managers of Samsung to know how much profit they get for a dollar for every sale. For the private companies, this is shown as a net profit before taxes in a stated financial time over sales (Farris et al., 2010). For a company with a bigger margin, it is necessary for the profit of a company. It can able to offer financial analysis and benchmarking processes to accounting companies and private setups. It can show how effective they are with expenses and if there is a need to lower expenses.
The performance metrics are used to assess the performance of a company’s advertising and website methods. There is the conversion rate that is the method used to change the website visitors into actual clients. Through the use of email opt-ins, use of product sales and subscriptions. There is also cost per action which is used to know Samsung’s effectiveness in advertising dollars in comparison to investment injected into the business. Lastly, there is value a buyer which assess the efficiency of the advertising methods into profitable clients. It helps the company, in this case, Samsung, to know if it will increase its budget.
Davies M. A. P., and Ardley B. (2012). Denial at the top table: Status attributions and implications for marketing. Journal of Strategic Marketing, 20, 113-126
Farris P., et al. (2010). Marketing metrics: The definitive guide to measuring marketing performance (2nd ed.). Upper Saddle River, NJ: FT Press.
Jeffery M. (2010). Data-driven marketing: the 15 metrics everyone in marketing should know. Hoboken, NJ: John Wiley & Sons Inc.
Mintz O., and Currim I. (2013). What drives managerial use of marketing and financial metrics and does metric use affect performance of marketing-mix activities? Journal of Marketing, 77, 17-40.