The Intention to Employ a Sales Force in Promoting the Services to the Manchester Region - Essay Example

Case Study Table of Contents Table of Contents 2 0Introduction 3 2.0 Sales Force 3 3 2 5 5 2.2. 5 3.0Relationship Variables and Business Networks 6 6 3.1 9 4.0 B2B and B2C 10 10 4.1. 10 4.2 12 5. Conclusion 16 Bibliography 20 To: Peter and Harvey Blair, SPSL Ltd From: John Smith, XYZ Consulting Ltd Re: Business-to-Business Marketing Report 1.0 Introduction As per presented request, kindly find herewith the Business-to-Business Marketing report which addresses the varied concerns presented by you. 2.0 Sales Force Saxon Plumbing Services London Ltd. (SPSL) is a company that specialises in commercial plumbing services and is located in South London. The organisation i.e. SPSL focuses on word-of-mouth communication for developing its marketing strategy in relation to creating awareness of the business of the organisation as well as for making promotion of products. It also marginally uses a website for rendering the background of the company, its service offerings and most significantly as a shop window. It can also be stated that SPSL for maintaining success in the operations of the business focuses on attending trade fairs as well as advertising on the newspaper on the occasional basis. In relation to sales force, it can be stated that sales force helps in building trust with the customers in the modern day context for marketing the products. The incorporation of sales force for the purpose of promotion can be considered as a way of generating enhanced revenues and income. It is the primary role of sales force to ensure that the organisation’s earnings are augmented. The competent sales force possesses the sales representatives who are involved with customers for maintaining relationship at all the stages of marketing (Leadley & Forsyth, 2004). In this process, it is possible for new customers to interact and moreover they are provided opportunities of learning about the branded goods offered by the company. Therefore, it can be stated that sales force assists in increasing awareness of brand and driving the dimensions of sales forward. Sales force further aids in re-involving customers with companies’ offerings through providing discounts, initiating promotions as well as communication by means of representatives. The benefits of sales force can be identified as enhancement of brand awareness, improvement in the loyalty of the organisation amid the consumers along with increasing the revenues of the organisation. It can also be stated that sales force helps in building trust of the customers by providing quality products to them and maintaining customer satisfaction (Mullin & Cummins, 2008). In this context, it can also be highlighted that after the establishment of sales force, it would facilitate in creating enthusiasm of the products and services offered to the customers in the global market context (Blythe, 2006). Furthermore, with the usage of social media, it would facilitate the organisation in connecting with the potential customers as well as promoting sales and providing information. Through the employment of sales force, SPSL can constantly evaluate the activities performed in the business. It is considered as the on-going responsibility (Continuum, Publishers Association, 2009). Sales force dimension helps in planning as well as strategic marketing. It also assists in attaining organisational goals through pursuing marketing effectively. Sales force can be considered as a dimension of handling of customers by providing service delivery of particular products on time as well as building relationship with customers and suppliers. Most of the organisations leverage the benefits derived from sales force through sales conferences and meetings which help in maintaining the performance of the organisation for fulfilling the objectives by a considerable level. Maintenance of effective sales force can be ascertained by providing rewards to them according to their performance which can result in building morale of the sales force employees for performing greater tasks in the future aspects (Yeshin, 2006). 2.1 Moreover, with reference to the case study, it can be stated that SPSL is looking for establishing its position in the area of Manchester, with the strategies such as word-of-mouth process, which would help it to generate more revenue by providing effective plumbing services at a broader range. With the application of the sales force dimension in Manchester based operations, it can considerably focus on creating awareness of the brand and enhancing its market share. Besides, by providing effective training to the sales force employees for rendering quality services relating to plumbing, greater consumer trust can be gained, which can be far more superior as compared other promotional tools like word-of-mouth. Building trust based relationship with the consumers in especially Manchester region can be greatly attained by ensuring a long-term relationship with ‘ABC Plumbing Supplies’ which could be beneficial for SPSL to sustain its position in the market of Manchester. Furthermore, negotiation of the prices of the products supplied in the market would help SPSL in terms of facilitating effective services in the promotional activities (Blake, 2012). 2.2. According to the above observation, it can be stated that the sales force option of customer-based approach would be effective and most appropriate for SPSL. This is because the major clients of the company are small and medium sized retailers, distributors, manufacturers along with insurance companies among others, thus a customer-based approach of sales force which aims at getting in touch with this set of consumers on a regular basis and accordingly addressing their needs would be imperative. This would enable the company to meet the product and service needs of the consumers more promptly and accurately. 3.0 Relationship Variables and Business Networks Business network and relationship management has become a key component for every organisation in the present business context. A company is generally a part of business network which is loosely coupled. The dimension of collaborative advantage can be derived from business network which can be vital for SPSL (Ritter & et. al., 2004). Business-to-Business relationship (B2B) facilitates in maintaining successful orientation of business activity for SPSL. As recognised in the case study, it can be stated that business-to-business relationship ensures the establishment of social bonding with the suppliers and the clients helping in maintaining the activities of business on an effective manner. SPSL has established a good and effective relation with suppliers such as ‘ABC Plumbing Supplies’, which would help it to maintain its growth and sales in the market of Manchester and to sustain its position. The essence of B2B relationship is focused on issues related to openness, trust and honesty (Edwards, 2012). Source: (Dainty, 2013) It can also be stated that developing relation is important in business network. Relationship constitutes the main aspects that enable to link various facets related to the resources and activities in business networking. It can be observed that business networks constitute different layers that can be apparently found in the conduction of activities of business for SPSL. The proposed layers of business network consist of production network, resource network layer along with social network layer. These networking layers facilitate in building effective relationship in the context of the organisation i.e. SPSL, from the aspect of production with the availability of resources as well as social bonding through B2B business (Ellis, 2011). Business network can be stated as group of actors who perform different business activities through interacting with one another in the business. Effective networking and relationship among employees and management working together and providing effective performance for SPSL in areas of Manchester can ensure long-term stability of the company. Relationship is considered to a process of exchange and continuous interaction among two firms or organisations, which reveals the fact that SPSL is having stronger relationship with ABC Plumbing Supplies. It can be stated that effective relationship is found between interaction and approaches to networking which can be related to business marketing. Effective networking and relationship would help the organisation i.e. SPSL to generate awareness about the offered brands amid the customers in the new market of Manchester (Holmlund & Törnroos, 1997). In this regard, it is determined that business networking focuses on the layer of social network. It would enable the organisation in Manchester to create social bonding with the marketers. This would result in facilitating in terms of maintaining effective process of production as well as delivering quality services to the customers resulting in customer satisfaction and loyalty. Furthermore, effective networking and relationship would assist in relationship formation from the structural viewpoint which includes resource tie-ups, connection and bonding. The dimensions of relationship and business network would help in making adjustments in the financial aspects as well as ascertaining fruitful partnership investments which would help in maintaining the operations of business in an effective manner in the areas of Manchester. Investments are linked with creation of value and can be considered in terms of commitment and trust which is very essential in B2B business activity. The social aspect of relationship in business networking also relates to the interaction of the employees in different organisations for effective conduction of business activity in the long run. This also reflects on the perception and the behaviour of various employees in organisations along with facilitating to maintain effective relationship between one another for attaining the objectives of organisation by a considerable level by delivering quality services. Therefore, it can be apparently said that relationship and business network leads to the effective conduction of business-to-business relations through performing activities with the assistance of partnership for organisations such as SPSL. Through the development of an atmosphere of trust and social bonding, SPSL can ensure greater mobility and sustainability of the business (Holmlund & Törnroos, 1997). 3.1 The transaction with B2B helps in lowering the prices of the products for marketing and selling. In the context of developing customer loyalty, relationship plays a significant role in business transaction in the global market context. Effective marketing adopted by the organisation helps in trust building as well as relationship development. It can be identified that the objective of marketing is to establish and maintain effective communication with the customers for building relationship. Effective relationship and networking would help organisations such as SPSL to recognise and build their brands on an effective manner. Moreover, it is the responsibility of the organisation to focus on the production of quality goods which would help SPSL in developing loyalty of customers. SPSL should be emphasising on sensitiveness as well as maintaining the priorities of the customers through providing effective services to them for abiding by their preferences. This requires SPSL to be innovative in their approach and resourceful according to intervention of time limit. Moreover, with the development of interpersonal skills by SPSL through employees and management, greater customer loyalty programs can be handled. Furthermore, it can also be stated that with integrity building through augmented level of trust, it would result in building relationship with one another i.e. suppliers as well as customers. Therefore, it can be stated that effective networking as well as business relationship would assist in maintaining preferences of customers through quality products and services at reasonable prices offered to them by SPSL. This altogether would help in building customer loyalty in the market of Manchester. 4.0 B2B and B2C In reference to the context of the case scenario, it can be stated that that SPSL conducts its business activity on the basis of B2B dimensions. However, the organisation might also aim to focus on B2C (Business-to-Consumer) method in the long run. In this context, there are various differences between B2B and B2C business markets. B2B signifies the transaction of business between two parties where both sellers and buyers are considered as the business owners. The buyers purchase the goods or products in abundant quantity for satisfying the demands of the customers in the domestic market. Therefore, in the environment of B2B, the products are not vended in the hands of the end users. On the other hand, B2C refers to the transaction between end users and business (Ameen, 2013). 4.1. The difference between B2B and B2C can be depicted in terms varied factors such as online marketing portal. Online B2B assists exporters, suppliers and manufacturers globally to interlink with importers as well as buyers. Moreover, the B2B portals facilitate traders for creating an account and finding new partners in the trading of business, dealings, and for meeting the requirement of buying aspects among others (Ameen, 2013). On the other hand, online B2C portal facilitates business for selling products to end users as compared to other businesses (Ameen, 2013). The difference between B2B and B2C can be identified from the requirement of customers. It can be stated B2B focuses on the transaction of customers on an individual basis, whereas B2C emphasises on customers which are related as other businesses. Another difference between B2B and B2C is the order type. For instance, most of the organisations focus on ordering the same products for a repeated number of times or at regular intervals. This usually depicts B2B requirement of business activity. On the other hand, process of ordering is not similar in B2C (Ameen, 2013). The other vital difference that can be identified between B2B and B2C is the payment types in relation to the process of transaction. For instance, when an organisation goes for purchasing any goods or products, it rarely makes use of credit cards for payments. The process of payments can be considered as open order as well as in line of credits in organisations. This usually occurs in B2B business. In contrast, such issues of payments are not comprehended in B2C (Ameen, 2013). In terms of the other crucial difference, it can be identified that connection type between B2B and B2C is distinct. B2B applications are usually used for purchasing purposes as well as trading with partners. Virtual private network technology might be used in order to access applications which are selected (McNeil, 2005). 4.2 Moreover, B2B business has different other characteristics that include difference in purchasing and authorisation for B2B as compared to B2C. The contracts, conditions and terms are different for various customers in business for B2B as compared to B2C. Participation in the supply chain is different for B2B from B2C (McNeil, 2005). In terms of marketing as well, there are varied differences between B2B and B2C. This can be identified as the purchasing decisions of B2B engage various multiple steps including research of products, analysis of competitors and demonstrations among others. It can be stated that B2B marketers focus on nurturing the aspect of business on multiple decisions. While, B2C marketers focus on decisions provided on individual basis and decisions are taken on an instant basis (Blythe & Zimmerman, 2005). In building decision making, it can be stated that B2B marketers emphasise on developing relationship with various individuals in the organisations such as technical managers and end users among others. On the contrary, in the world of B2C, there exists a single decision maker which is the consumer. Moreover, B2C marketers also focus on particular persona for various products and for campaigning accordingly (Blythe & Zimmerman, 2005). One of the differences between B2B and B2C can be observed regarding generation of permission. It has been stated that B2C companies depend on implied and explicit permission, on the other hand, B2B focuses on prospects of secondary permission or no permission (Access Intelligence, LLC, 2013). B2C is based on aiming at boarder audiences, on the other hand, in case of B2B lead generation is generally a proactive and personalised task as the audiences are more specific in this context (Access Intelligence, LLC. 2013). It can be stated that with the assistance of B2B business dimensions, it would be possible for SPSL to maintain its effective operations of business through social relationship. As determined earlier, SPSL focuses on social relationship which helps in building trust among employees in the organisation. It can be stated that the organisations that are emphasising on B2B business are observed to be distributing products and goods on the basis of intermediaries. In this context, it can be observed that from channel distribution to sales force, the intermediaries are performing essential business functions such as bringing products from the market place and increasing awareness of the firms regarding services and products. Another advantage of B2B business can be identified as B2B business can preserve money for expenses in relation to marketing and advertisement. In the similar context, it can be stated that SPSL by adopting B2B relationship is required to reach limited number of decision makers as well as representatives through direct contact. This also helps in educating customers through functioning in the process of warehousing and logistics. This can be considered as the advantages of B2B that can be adopted by SPSL in maintaining efficiency in the organisation. However, there are various disadvantages or challenges in the context of B2B business operation which include the aspect that more often the relationship and effective networking process creates certain problems for motivating, coordinating and controlling agents while marketing the products in order to maintain effective B2B business in the organisations. This could create problems for SPSL in maintaining efficiency in the operation of the business in the marketing aspects. Another disadvantage of B2B business can be stated as increased dependence on larger orders for its prevalent suppliers. It creates problems for organisations in terms of finding other suppliers and organisers in the global market context. The advantages of B2C can be identified as differentiation through individuality, which depicts tailoring of products according to the needs of the customers, thus creating differences from competitors. Through registration of the needs of the customers, new opportunities can evolve. With the application of mass customisation in the conventional production process, it can ensure profitability through meeting the needs and wants of the customers. Another advantage can be identified as greater level of customer loyalty in the operations of business through information gained in the process of configuration. One of the advantages of B2C is that it helps in developing relationship between organisation and customers. Another advantage of B2C can be identified as integration of customers in the process of designing, which helps in judging their viewpoints. It also affects the online retailing aspects for acquiring a particular product. Lowering of costs of products or services through proper interaction with the customers via internet medium is another crucial advantage to gain nee target audience (Li, 2007). The disadvantages of B2C can be identified as at times it can damage the relationship between a supplier and a buyer with the process of B2C. In this context, it can be stated while focusing on the prices; it becomes tougher for the suppliers to maintain a healthy relation with buyers from the marketing perspectives (Johnson, 2004). From the perspective of e-commerce, it can be stated that there can be deficiencies from the part of the retailers that they might be insufficient in providing technical assistance. This results in the requirement of order fulfilling. Another disadvantage can be identified as problems in legal aspects due to interaction between suppliers and retailers located in different locations. This could result in conflict among these two parties regarding taxation and laws (Dennis & et. al., 2004). Other disadvantage can be identified as there is a requirement for high marketing and advertising expenses for B2C. There is limited space for market in the context of B2C. Another vital disadvantage can be identified as the requirement of middle men, which is apparently not present in B2C along with inefficiency in the administration of business (Godson, 2009). From the above descriptions, it can be stated that these problems of B2C could provide difficulties for SPSL to maintain its operations of business in Manchester. For maintaining efficiency, these problems are to be mitigated along with upholding collaboration among suppliers and customers for effective business transaction and marketing. 5. Conclusion From the above observation, it can be comprehended that sales force is considered as one of the significant aspects related to marketing and conduction of business activity in the global market context. Here, it can be stated that it helps in building trust and focuses on social relationship for both parties while conducting the business. Thus, sales force can be effectively employed by SPSL while conducting its operation in Manchester. Moreover, for focusing on B2C market SPSL must provide due importance to customers and facilitate them with quality services for maintaining sustainability in the global market context. References Ameen, S., 2013. Difference Between B2B and B2C Explained Thoroughly. Home. [Online] Available at: http://community.tradekey.com/article-34/Difference_Between_B2B_and_B2C_Explained_Thoroughly.html [Accessed April 27, 2013]. Access Intelligence, LLC., 2013. B2B vs. B2C Lead Generation: The Key Differences Marketers Should Know. Home. [Online] Available at: http://www.dmconfidential.com/b2b-vs-b2c-lead-generation-the-key-differences/ [Accessed April 27, 2013]. Blythe, J. & Zimmerman, A.S., 2005. Business-to-business Marketing Management: A Global Perspective. Cengage Learning EMEA. Blake, C., 2012. From Pitch to Publication. Pan Macmillan. Blythe, J., 2006. Principles and Practice of Marketing. Cengage Learning EMEA. Continuum, Publishers Association, 2009. Directory of Publishing 2010: United Kingdom and the Republic of Ireland. Continuum International Publishing Group. Dennis, C. E. & et. al., 2004. E-retailing. Routledge. Dainty, I., 2013. Lead Generation/New Client Acquisition Program. Coaching Programs. Edwards, S., 2012. How to build effective relationships with B2B customers. Home. [Online] Available at: http://www.businesszone.co.uk/topic/marketing-pr/how-build-effective-relationships-b2b-customers/28556 [Accessed April 27, 2013]. Ellis, N., 2011. Business-to-Business Marketing: Relationships, Networks & Strategies. Oxford University Press. Godson, M., 2009. Relationship Marketing. OUP Oxford. Holmlund, M. & Törnroos, J. A., 1997. What are relationships in business networks? MCB University Press, Vol. 35, No. 4, pp. 304-309. Johnson, C., 2004. What are the relevant advantages and disadvantages of on line Reverse e-Auctioning within the UK Higher Education Sector? Damages the Relationship Between Buyer and Supplier, pp. 1-91. Li, F., 2007. Social Implications and Challenges of E-business. Information Science Reference. Leadley, P.J. & Forsyth, P., 2004. Marketing: Essential Principles, New Realities. Kogan Page Publishers. McNeil, R., 2005. Business to Business Market Research: Understanding and Measuring Business Markets. Kogan Page Publishers. Mullin, R. & Cummins, J., 2008. Sales Promotion: How to Create, Implement and Integrate Campaigns that Really Work. Kogan Page Publishers. Ritter, T. & et. al., 2004. Managing In Complex Business Networks. Industrial Marketing Management, Vol. 33, pp. 175-183. Yeshin, T., 2006. Sales Promotion. Cengage Learning EMEA. Bibliography Fill, C. & Fill, K., 2004. Business Marketing Relationships, Systems and Communications. FT Prentice Hall. Read More