Business Marketing Market Research Growth Drivers Promotion Mix.

Business Marketing

Market ResearchGrowth DriversPromotion Mix

Market Research-New Product

What to Know before thinking about a New Product ?

QUESTION 1

What is the precise market / segment of the market in which the new product promises the greatest benefit to the users?

Special nuts & bolts, silk, ink, e-waste recycle unit etc……..

QUESTION 2

How much effort will be needed to generate an acceptable revenue and how much will it cost?

Break even analysis…

QUESTION 3 How much new investment must customer

make in order to use the new product? New desktops in the organizations New banking software Energy savers AUTO GAS Kits Water harvesting systems Solar panels

QUESTION 4 How much change must the customer make in

their present set up, techniques & routines to use the new product?

Training to use the product – Banking Software e.g. Finnone in Banks

Space Allocation for new machines—e.g…Hospitals Replacement of existing equipments – Office equipments

like Typewriters, Printers, Computers, Fans, Single Unit ACs etc…

Timings – Wireless Internet cards can help employees Work from Home in various Companies

Manpower - Use of Specialized Machines or Software OR manpower getting redundant due to Technology products like Diamond Cutting & Polishing Laser machines

QUESTION 5 How your customer will get the required technical &

application skills needed to use the product? Online training manual Tech support – IT Resources in Organizations User friendly procedures One time training-All white goods & electronics items Regular updates….software industry largely based on

regular updates, Use of Lubricants in industrial machines at regular intervals, Professional

Consultancy- Legal Procedures, Tax implications etc..

QUESTION 6

How many people in the customer’s firm must be convinced before a sale can take place and how hard are they to reach?

Buyer Roles……

QUESTION 7 How solid are the relations between a

typical customer and its regular supplier?

Types of buying situations………e.g. Hotel Industry Yearly Contracts / AMC contracts

Strong Gatekeepers in Industry Middlemen without whom the deals

can’t get thru

QUESTION 8 What buying motivation can we offer the

customers? Reduction in cost – Electricity Bills by switching to

different providers, Use of PPC Cement in Buildings Increased attractiveness of the end product- Fuel

Efficient car engines, Less noisy AC compressors Increased volume of end product - Possible increase in profit- Less Lubricants in servicing ,

Lesser Manpower Expense like Diamond Industry Possible increase in the price of end product for your

customer – Computers with latest technology equipments

QUESTION 9

What are the Risks associated with the product for the customer?

If fails to add value or a flop story?e.g….All types of Industrial Goods as

well as Industrial Services

QUESTION 10

How fast the information provided by us can flow inside a typical customer firm?

Technical terms, benefits & applications etc………..e.g. …new products in life insurance and home loans….the requisite knowledge needs to be percolated to the front line sales as soon as the promotion starts as customer expects fully equipped

Sales force for the new offerings. Pharmacy products knowledge for MRs & Sales Guys

QUESTION 11

Are there any built in road blocks to try/adopt a new product ?

e.g. IT Implementation in GE ( Ref Straight from the Guts by Jack Welch)………DYB.COM & GYB.COM

e.G Bombay Dyeing CASE – Very Late implementation of IT

Group TASK

Plan a New Product of your choice answering the required questions in detail.

A group will consist of 5 students

Growth Drivers of B2B

What's driving growth in B2B Marketing? First is the technological revolution. Technology is changing at an

unprecedented pace, and these changes are speeding up the pace of new product and service development.

e.g…..Medical Stream, Communication, work@home businesses, Global Businesses…….etc…..

What's driving growth in B2B Marketing?

Second is the entrepreneurial revolution.

To stay competitive, many companies have downsized and reinvented themselves which is a big boost to Entrepreneurship/SME segment. ..e.g. Outsourcing…………Growth of SME segment..Micro, Small & Medium…

What's driving growth in B2B Marketing? The cookie-cutter approach is

out & companies are customizing marketing programs to individual accounts.

Companies are looking beyond traditional assumptions and adopting new frameworks, theories, models and concepts.

B2B Promotion MIX

Promotion Mix –Message Appeals

Rational Appeals– More used Emotional Appeals– Less used

Advertising Advertising often takes a back seat in B2B promotion

mix….e.g. Cement, switchgears, Channel Partners…. Advertising serves the following purposes in B2B promotion

mix.1. 1. Establishing Recognitione.g.….a dealer of readymade garments brand can push his deals

to retailers 1. 2. Salesmen Support – e.g. Easy accessibility to clients like in case of MRs visiting

Doctors 3. Strengthening Attitudes 4. Leads to Action

Personal Selling Most important & effective tool of

B2B Promotion mix Important parameter is

Negotiations which depends Largely on the following factors-

1. Knowledge about Products-Self as well as competitors

2. Relationships with Customers.

Sales Promotion

Very effective and important tool Trade Shows Catalogs

Objectives of Trade shows Meeting potential customers- exporters Building Prospects list- MCHI exhibition Building goodwill Launching new products - Demonstrating non portable products – heavy

machines, Gym goods, Furniture, Tele Brands Attracting new dealers/partners- Nehru Centre

Franchise Expo Meeting & understanding competition

Objectives of Catalogs

Information about Specifications Produce Orders Develop Recognition Generate inquiries Stimulate Invitations for Bids

Media Choice-B2B Marketing Sample Budget Allocation Business Publications------------ 30-40% Catalogs –--------------------------15-20% Trade Shows & Exhibitions----- 10-15% Direct Mailers – ------------------- 5-10% Distributor & Dealer Material –- 5% General Magazines – ------------ 5% Public Relations Activities- ----- 3% Directories –------------------------2% Newspapers –--------------------- 2% TV/Radio- -------------------------- 1% Others –-----------------------------2%