...A NEW MARKET IN B2B ENVIROMENT: Understanding the B2B Dynamics Seminar Report ii ABSTRACT With the rise of globalization and saturated local markets, many companies started chasing international opportunities that would help them expand to new countries and increase their brand recognition around the globe. One of the challenges that companies face while entering a new market is defining the right price and pricing of their offering to be competitive and successful in the market. In B2B area, there are not any wide research on pricing issues that companies face in the markets that they are planning to enter and the effects of business relations on pricing. This paper focuses on market entry strategies and market entry modes, the fundamentals of pricing in a new market and the differences of B2B and B2C pricing. The study covers market entry modes and its impact on profitability, value creation in B2B area and the key aspects of pricing behaviour while entering a new market. This study in general provides a framework for implementing the right pricing strategy while entering new markets and defining the right pricing behaviour in B2B environment. This framework enables companies to understand the dynamics of B2B environment covering buyer-supplier and distributors relations and providing pricing models for companies to be a competitive player. Tamur, O. iii PREFACE This paper discusses the concepts of pricing and pricing behaviour in a new market in B2B environment...
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...contacted by a sales person.” This is more or less describes what most of think it is. Every Cold Calling agent is given with a list of leads and then is given a target to finish. So we assume that the cold caller picks up the sheet and dials one number after the other pitching what the company offers. This may have been true until some time ago. But recently cold calling has out-grown its definition. It has become an intelligent process. A cold call can no longer be successfully completed by an “Audiobot”. Pre-recorded messages may have already become a thing of the past. Marketers worldwide have understood that to annoy your customer is not the best way to sell your product. So what is actually happening now? A typical cold caller in a B2B market today, does not pick up the sheet and start calling. The first task is preliminary research. They research a company on the internet. If the target has a website, then half the work is done. The caller collects as much information as possible and designs his/her pitch. Now once the pitch is designed, they try to locate the right person to talk to. In...
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...DOAN NGOC HA DEMAND CREATION OF ONLINE SERVICES FOR B2B AND CONSUMER MARKET – FOOD DELIVERY IN VIETNAM Master of Science Thesis Prof. Olavi Uusitalo has been appointed as the examiner at the Council Meeting of the Faculty of Business and Technology Management on January 9th, 2013. ABSTRACT TAMPERE UNIVERSITY OF TECHNOLOGY Master’s Degree Programme in Business and Technology Management DOAN NGOC, HA: Demand creation of online services for B2B and consumer market – Food delivery in Vietnam Master of Science Thesis, 75 pages, 4 appendices (4 pages) January 2013 Major: Industrial management Examiner(s): Professor Olavi Uusitalo Keywords: online service, customer demand, B2B and consumer market, online marketing, food delivery The evolution of the Internet and the dynamic of the economy nowadays have created opportunities for young companies to enter the online market. The source of these opportunities comes from the changes of customer behavior as they get used to the digital world. New Internet-based products and services are created to offer more and more benefits to customers. Interestingly, the dynamic of the market does not only come from the changes of customer behavior but also from the fast development of technology and innovative ideas. Successful products and services even shape the behavior of customer in using Internet. It can listed here the famous examples of Amazon in changing online purchasing behavior of customer or Facebook in changing the way people communicate...
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...B2b market globally. After considering the different ways in which our economy can be improved, we can understand the current state of the economies by analyzing the marketing strategies that are undertaken by business houses in a nation. Marketing strategies will help the business grow in volume and hence is an essential element for an enterprise to survive. When a certain industry is under tough competition, that is if there are multiple players competing for the same prize there shall be an increasing successful marketing industry providing these services. The profits and growth of the marketing industry - be it online, viral or one to one, reflects on the mood of the economy. Today, China has an online market place that has also catered to international business called 'Alibaba.com'. The USA has various sites like Alibaba (B2B & B2C site) named Ryze that is similar to alibaba but also includes networking in it's gamut. India has various sites, the most popular (popular not successful) is indiamart.com. Comparing the worthiness of these sites - Alibaba.com takes first position among all. US sites come second and the rest follow. Why do you think Alibaba.com, a site born in China that caters to the world needs is so massively successful while their counterparts remain to be content with a smaller share? The reasons lie in the economic development of the respective nations. China, a post communist regime turned democrat is the home to alibaba. The world...
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...Case: FreeMarkets OnLine, Inc. I. Statement of the Problem/Key Strategic Issue Glen Meakem founded FreeMarkets OnLine in Pittsburgh, Pennsylvania in 1995. FreeMarkets OnLine, Inc. is an electronic market company which delivers interactive bidding among competing suppliers generated price savings. It created fair and open exchange software which is necessary for Competitive Bidding Event (CBE). The company was successful at developing reasonable expertise and market knowledge, to lead the art and science of making markets for custom products, where each buyer in the market has his own set of objectives and issues. FreeMarkets assists industrial buyers in posting requests for proposal (RFPs) and holding Internet based reverse auctions for their products. By automating the flow of information, a large number of suppliers can be effectively included in the RFP process, resulting in more competition and lower costs for the buyer. FreeMarkets Online lead in creating B2B online markets and providing E-commerce technology and services for the procurement of industrial parts, raw materials, commodities and services. FreeMarkets combines its proprietary technology platform with information on the procurement, or “sourcing” of direct materials, commodity-specific domain knowledge and services to deliver measurable savings to customers. FreeMarkets Online is faced with developing a strategy that will increase revenues from $1.8 in 1997 to $6 million in 1998. To achieve...
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...malls, and retail outlets. Compare the tools and techniques for a successful e-commerce presence. This assignment tests your analytical and critical thinking skills and your ability to synthesize concepts around topics. The paper should be in APA format, 2-3 pages (not including reference page), with at least two references. Electronic Marketplaces: An electronic marketplace is a virtual online market where organizations register as buyers or sellers to conduct business-to-business e-commerce over the internet. * Markets play a central role in the economy facilitating the exchange of information, goods, services and payments. * Markets create economic value for buyers, sellers, market intermediaries and society at large Functions of Electronic Market:- 1. Matching buyers and sellers. 2. Facilitating the exchange of information, goods, services, and payments associated with market transactions. 3. Providing an institutional infrastructure, such as a legal and regulatory framework, that enables the efficient functioning of the market. Types of Electronic Markets:- * Electronic storefront: A single or company Web site where products and services are sold. * Mechanisms necessary for conducting the sale: * electronic catalogs * search engine * e-auction facilities * payment gateway * shipment court * customer services * E-mall (online mall): An online shopping center where many stores are located * some are merely directories ...
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...SEGMENTING BUSINESS MARKETS Segmentation of markets remains important even though the number of buyers in a business market may be relatively fewer compared to a consumer market. The basic grouping of a business market is by customer location, customer type and transaction conditions. 1. Customer Location On most occasions, business markets are segmented on a geographical basis. Some industries are geographically concentrated. An example is a business that process natural resources locate themselves close to the source in order to minimize shipping costs. 2. Customer Type This sub-divided into four different categories: - a) Size b) Industry c) Organizational Structure d) Purchase Criteria a) Size: Business customer size can be estimated using factors such as sales volume, number of employees, number of production facilities and number of sales offices. Most sellers divide their potential market into large and small accounts, using separate distribution channels to reach each segment. The sellers force may contact large volume accounts directly, but to reach the smaller accounts, the sellers may use a middleman or rely on the internet or telemarketing. b) Industry: Firms that sell their products to other business may want to segment its market on the basis of industry. However, if a firm like the afore-mentioned one were to segment its potential customers by type of customer and then specializing in order to meet the needs of organizations then they would be...
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...Gender & Age | Woman | Men | Children | Gender and Age are two main vital segments of the market and are the most important to Centre Parcs. As a business new products are being developed to suit the needs of different markets to attract different customers. | Within Centre Parcs they hold a wide range of family activities however when the children are playing or occupied with other activities, woman always enjoy a few hours away so Centre Parcs provide a Spa. This service provides a wide range of treatments which keeps customers happy in a short period of time. There is also the opportunity to play net sports such as; badminton, tennis. This is relevant to consumers who come as a couple and want some leisure time. | Centre Parcs also hold the facility to visits the gym to do some exercise/fitness e.g. weights. This isn’t offered to a younger market as this can be dangerous. However same applies when woman go to the gym, time away from children whilst they are occupied a few hours in the gym can do no one any harm. | | Centre Parcs has a selection of activities to suit different parts of the market we call this market segmentation; part of a market that contains a group of buyers with similar buying habits. The way a business segments its market depends on the product being sold and also the customers. Examples of which Centre Parcs segmentates their markets are to follow. B2B (Business to business) | Teenagers | |...
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...Management Market and Nonmarket Environments Any Issues or Changes That Happen in One of These Environments Can Directly Cause Change to the Other. Since Both of These Are so Closely Related and to a Great Importance for a Firm In: Business and Management Market and Nonmarket Environments Any Issues or Changes That Happen in One of These Environments Can Directly Cause Change to the Other. Since Both of These Are so Closely Related and to a Great Importance for a Firm Canadian Business Environment Market and Nonmarket Environments Any issues or changes that happen in one of these environments can directly cause change to the other. Since both of these are so closely related and to a great importance for a firm to run successfully, they have put more focus on managing both aspects of the company. The interrelationship between the market and nonmarket environment is heavily based on the role of management. Since a firm will operate in both the market and nonmarket environments, managers are there to measure the impact one has on the other. The issues found in the nonmarket environment are directly related to the market environment of the firm. The nonmarket environment is a little more difficult to control than the market environment, but each firm is aware of the importance of running sufficiently in both aspects in order to be successful. As shown in figure 1-1 (Baron p. 3), the relationship that the nonmarket and market environment has. Market environment...
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...Developing a Rural Market e-hub The case study of e-Choupal experience of ITC B. Bowonder, Vinay Gupta and Amit Singh Abstract ICT has potential to make significant inroads in a traditional agrarian economy like India. Indian agro-sector has been exploiting the benefits to ICT. Innovative ICT application platforms are being created by private sector players in conjunction with local farmers. One such private initiative has been by ITC Ltd in the state of Madhya Pradesh. It has helped the farmers in many ways, such as developing of local leadership, shared ownership of the assets created in this initiative, access to the latest knowledge for the agro-sector, sustainable income levels and skill development for productivity improvement. This initiative from ITC[1] has become a benchmark today in the ICT initiatives in agro-sector. Several best practices can be learned from this initiative, namely: § ease of replicability and scalability § customization to meet the specific local needs and § organizational commitment. The success of e-choupal has heralded a new era in the Indian agro-sector. The work needs to be carried forward and replicated in the other untapped areas. Creating business channels that can create a win-win situation both business and farming community has enormous economies of scope. Once a channel is created it could be used for many products and services as shown in this case study. The main reasons for the success of the platform have been the involvement of...
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...Developing a Rural Market e-hub The case study of e-Choupal experience of ITC B. Bowonder, Vinay Gupta and Amit Singh Abstract ICT has potential to make significant inroads in a traditional agrarian economy like India. Indian agro-sector has been exploiting the benefits to ICT. Innovative ICT application platforms are being created by private sector players in conjunction with local farmers. One such private initiative has been by ITC Ltd in the state of Madhya Pradesh. It has helped the farmers in many ways, such as developing of local leadership, shared ownership of the assets created in this initiative, access to the latest knowledge for the agro-sector, sustainable income levels and skill development for productivity improvement. This initiative from ITC[1] has become a benchmark today in the ICT initiatives in agro-sector. Several best practices can be learned from this initiative, namely: § ease of replicability and scalability § customization to meet the specific local needs and § organizational commitment. The success of e-choupal has heralded a new era in the Indian agro-sector. The work needs to be carried forward and replicated in the other untapped areas. Creating business channels that can create a win-win situation both business and farming community has enormous economies of scope. Once a channel is created it could be used for many products and services as shown in this case study. The main reasons for the success of the platform have been the involvement of...
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...CASE STUDY VIII Employment Law For Human Resource Practice ALTHEA E. McFADDEN Professor: 2 October 2014 TO: Pepsi Cola Distribution Company – Mr. Joseph Snuffy CEO FROM: Mrs. Althea E. McFadden – Human Resource Manager Date: August 26, 2014 Re: Mr. David Doe – Discrimination Due to Military Obligation A four tour veteran of Afghanistan and Iraq Mr. Snuffy is claiming he was stripped from his position because of his military service. A complaint is being filed by Mr. Snuffy. The complaint seeks monetary and punitive damages for violating both state and federal laws that protect those serving in the military, including the Uniformed Services Employment and Reemployment Rights Act that says a person cannot be denied employment or reemployment based on their obligation to perform military service(1). In June 2014, after spending about three weeks training with the U.S. Army Reserves in Upstate New York, Mr. Snuffy returned to work as a training Coordinator and was told his position had been eliminated due to a staffing change. His office was moved to a 6-foot by 9-foot janitor closet with no electricity, phone line, or computer outlets, while his old office sat vacant for more than one year. He was also stripped of supervisory duties and his state issued cellphone. In early part of July 2014, Mr. Snuffy was offered a position in Texas, where the company said there was a greater need and would...
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...In a seller’s market, buyers must adopt new tools and strategies to compete effectively on a new playing field. Consolidating supplier markets, rising energy prices and the growing demand for raw materials in emerging markets have fundamentally changed the purchasing framework. Suppliers are more powerful than ever, which means buyers must adjust quickly to a new playing field. A.T. Kearney developed The Purchasing Chessboard—a compilation of insights and experience from thousands of purchasing projects performed worldwide—to help procurement professionals master the tools of their trade. The Purchasing ChessboardTM Buying in a seller’s market Since the 1980s, most procurement professionals have operated in a buyer’s market. Using relatively simple tools—RFIs and RFPs, bundled products and services, and multi-year contracts—companies could negotiate from 1 to 3 percent annual price reductions from suppliers. But this “golden age” of purchasing appears to be over. The ongoing consolidation of the supplier market, rising energy prices and the increasing demand for raw materials from emerging markets means more companies are in a seller’s market. And buyers must adopt new tools and strategies to compete effectively on a new playing field (see sidebar: A New Playing Field on the next page). New Strategies in a Seller’s Market In a seller’s market, old purchasing strategies such as pitting suppliers against one another, or simply requesting...
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... in recent years it is evident that the strategy of these two companies has tilted in favor of the Greenfield investments. There are various factors responsible for both Aldi & Lidl in choosing Greenfield investment as a primary market entry strategy. Some of these factors are as mentioned below: Degree of freedom: Greenfield investment involves setting up business in the manner as perceived by the investors. They are free to choose their own suppliers, channel of distribution and so this freedom allowed the two companies to change required strategy whenever required in order to adapt to different market conditions in different countries. This strategy involves few rules, regulations, licensing issues that allowed the company to cash in on the brand name, which means ability to attract new customers with relatively low costs. Resource & efficiency: Since Germany had already been exploited, the companies¶ seeked for ways of acquiring resources at much lower rates. So by choosing this stategy , , would help them to compete in the markets with major supermarkets and hypermarkets as they could drive down the costs of products that would lead to attracting more cunsumers loyalty . This could enable them to maximize their market share. Other Factors: Political developments: the end of communism 1990¶s allowed for privatization and expanding their business in international fields had become much easier as a result,. Technological aspects: Developments...
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...which individuals and groups obtain what they need and want by creating and exchanging items of value. 2. [pic]A distributive system: Marketing is viewed as a process whereby in a democratic society, operating within a free market or mixed economy, there evolves a system of distribution that facilitates transactions resulting in exchange and consumption. 3. [pic]A functional area of management: Marketing is seen as a functional area of management, usually based in a particular location within the organisation, which uses a collection of techniques, for example, advertising, public relations, sales promotion and packaging to achieve specific objectives. 4. [pic]An overall business philosophy: Many firms see marketing as the keystone of their business. Marketing is viewed not as a separate function, but rather as a profit-orientated approach to business that permeates not just the marketing department but the entire business. The central mission of the organisation is seen as the satisfaction of customer requirements at a profit (or, in not-for-profit sectors, at a maximum level of efficiency or minimum level of cost). This is achieved by focusing the attention of the entire organisation on the importance of the customer and the needs of the market-place. 5. [pic]A targeting or allocation system: Marketing is perceived as the way any organisation or...
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