The role of channel marketing in the B2B global marketing challenge - Research Paper Example

The Value of Channel Marketing: The Case of Luminultra The Value of Channel Marketing: The Case of Luminultra Marketing, advertisement and sales are some instances of the operations that are being increasingly outsourced in the oil and gas industry. The major reason of this trend is the need of outsourcer to minimize its costs (Vargo & Lusch, 2011). The oil and gas industry is global in nature and therefore, it will become quite hectic and expensive for producers to reach each and every customer around the world on their own.

The main oil and gas related operations are currently being functioned in Middle-East and Gulf (Hickenbottom, et al., 2013). These operations however, are managed and run by European firms. The technological advancement in Europe is believed to be the core reason for massive outsourcing in oil and gas sector of the world. Nevertheless, the outsourcers and channel marketers have more brand value than the mere producers of crude oil. The importance of channel marketers are significantly growing because consumers on the street know the companies that deal in oil and gas products locally.

The actual producers of oil and gas do not have sufficient resources that are needed to purify, market and distribute products at an international level. The channel marketers therefore, come into the play. But, in the era of the 21st century, the role of channel marketers is not limited to promotion. They have to purify the crude oil and gas in order to make them consumable (Silvestrea & Dalcol, 2009). Additionally, channel marketers rely on companies like Lumin-Ultra to acquire technologies that are necessary for purification of crude oil based products (Valentini, Montagut, Neslin, & Frey, 2011).

Recently, the company has developed a method of on the spot measurement of microorganisms in crude oil and after measurement, the company assists in devising the treatment that will neutralize the impurities and thus more pure crude products can be obtained in this fashion. The featured technology made it easy for producers to find biological agents and get rid of them more effectively and efficiently. The abovementioned process helped the operators in minimizing the time needed to purify the products.

The Lumin-Ultra’s major operations are sponsored by channel marketers that are responsible for commercializing the final oil products in the international market. The channel marketers are also found to have more brand reach and recognition in the global consumer market. The actual producers of crude oil do not have necessary technological and financial power required to reach and establish a brand name in global market (Brennan, Canning, & McDowell, 2010). The limitations stated previously, contribute significantly towards causing interdependencies among producers, channel marketers and even technological firms.

The LU on the other hand, is surviving in the majorly fluxed industry of oil and gas because of its ability to come up with frequent innovations. Additionally, channel marketers are also acknowledging the contributions of LU in research and development process and because of this reason, the company has recently managed to develop global recognition and value in oil and gas related technology industry. Finally, it can be established that producers, channel marketers and technology companies are effective in creating win-win model in oil and gas industry.

References Brennan, R., Canning, L., & McDowell, L. (2010). Business-to-Business Marketing Second Ed. books.google.com.Hickenbottom, K., Hancock, N., Hutchings, N., Appleton, E., Beaudry, E., Xu, P., et al. (2013). Forward osmosis treatment of drilling mud and fracturing wastewater from oil and gas operations. Desalination Vol 132 (1) , pp.60–66.Silvestrea, B., & Dalcol, P. (2009). Geographical proximity and innovation: Evidences from the Campos Basin oil & gas industrial agglomeration—Brazil.

Technovation Vol 29 (8) , 546–561.Valentini, S., Montagut, E., Neslin, S., & Frey, A. (2011). Decision Process Evolution in Customer Channel Choice. Journal of Marketing Vol 75 (6) , pp. 72-86.Vargo, S., & Lusch, R. (2011). Its all B2B…and beyond: Toward a systems perspective of the market. Industrial Marketing Management Vol 40 (2) , pp.181–187.