CH-5 B2B Marketing – Marketing: The Core : Book Guide

Chapter 5 B2B Marketing QUESTIONS AND ANSWERS TO END OF CHAPTER MATERIAL Hands-on…apply your knowledge B2B Marketing Assignment In the opening vignette, Sharon Metz of Rovi Corporation reflects on some of the challenges of marketing to medium-to-large organization. In particular, for larger purchases and key partnerships, decisions need to be made by a committee as opposed to an individual. Review the opening vignette and identify other differences in the Organizational Buying Purchase Decision Process that need to be considered in B2B Marketing. Note: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers, but students should consider that B2B purchases are normally larger in magnitude and are driven by the objectives of the organization rather than the individual. Chapter Vignette…reminder Strategic partnerships are critical to the success of many businesses. This chapter’s opening vignette describes how B2B marketing helped build a partnership between Canadian company Cogeco Cable and U.S. company Rovi Corporation. At the end of the vignette, consider the question about the numerous individuals involved in a decision like this partnership. Relate this to the concept of the buying centre and the different roles of individuals outlined in this chapter. Note: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers, but students should consider all the different roles in a buying centre and try to relate to this situation. Video Clip…questions To celebrate its 50th anniversary, Tim Hortons “updated” its first store to a 1964 look. There are number of other businesses Tim Hortons works with to make this opportunity a reality. Watch the CONNECT video and answer the following questions: - Name some of the strategic partners that Tim Hortons worked with to make its anniversary event special? Answer: Strategic partners likely included local artisans for vintage store fixtures, historical consultants for authenticity, and marketing agencies for promotional content and event planning. - What process do you think Tim Hortons went through to select the different companies needed to produce the components of the 1964 store? Answer: Tim Hortons likely used a rigorous selection process, including vetting for historical accuracy, evaluating experience in similar projects, and assessing capability to deliver within the set timeframe. - How do you think the 1964 clothing was acquired? Answer: The 1964 clothing was probably acquired through vintage clothing suppliers or reproduction specialists who could recreate or source period-specific apparel to reflect the era accurately. Note: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers, but students should be able to identify Maple Leaf Sports and Entertainment and suggest potential other partners in this endeavor. Lead a discussion of how companies go through the process of choosing potential vendors and strategic partners. Infographic…data analysis Consider the B2B marketing tips regarding social media and doing business in foreign countries when reviewing the Infographic entitled “One Card Says So Much.” Reviewing recent articles and reflecting on your knowledge of Canada and other countries, add another fact to this Infographic. Note: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers, but students should brainstorm on ways to make themselves and their business cards stand out in the working world. QUESTIONS AND ANSWERS TO ON-LINE ACTIVITIES APPLYING MARKETING CONCEPTS AND PERSPECTIVES 1. Describe the major differences among industrial firms, resellers, and government units in Canada. Answer: Industrial firms account for the majority of all organizational buyers. These firms in some way reprocess a product or service they buy before reselling it. Resellers represent the second largest group of organizational buyers. These wholesalers and retailers buy physical products and resell them again without any reprocessing. Government units, the smallest of the three groups, are federal, state, and local agencies that buy goods and services for the constituents they serve. 2. Explain how the North American Industry Classification System (NAICS) might be helpful in understanding industrial, reseller, and government markets, and discuss the limitations inherent in this system. Answer: The NAICS groups economic activity to permit studies of market share, demand for goods and services, import competition in domestic markets, and similar questions. NAICS contains broad, two-digit categories that signify a sector of the economy. The third digit designates a subsector while the fourth digit represents an industry group. The fifth digit designates a specific industry and is the most detailed level at which data are available for the three countries. The sixth digit is for country-level industries. Such breakdowns allow one to identify firms within categories and to monitor growth or decline with industries. The NAICS has two important limitations: (1) large firms engaging in different activities or providing different products or services are given only one NAICS code and (2) five-digit national industry codes are not available for all three countries. 3. List and discuss the key characteristics of organizational buying that make it difference from consumer buying. Answer: Although the buying processes organizations go through when making a purchase also apply to consumer buying, there are some key differences. Organizations buy products and services to help them achieve organizational objectives, namely, to increase profits through reducing costs or increasing revenues. The buying criteria for organizational buyers generally focus on three critical factors: (1) ability to meet quality standards, (2) ability to deliver the product on time, and (3) performance on previous contracts. Furthermore, there are fewer organizational buyers than consumer buyers, and the size of organizational purchases tends to be much larger. Organizations often have formal positions and specific purchasing policies or procedures. Finally, several people typically get involved in an organizational purchase and the post-purchase evaluation is often more formalized. 4. What is a buying centre? Describe the roles assumed by people in a buying centre and what useful questions should be raised to guide any analysis of the structure and behaviour of a buying centre. Answer: A buying centre consists of those individuals who participate in the buying decision and share common goals, risks, and knowledge important to it. Individuals in a buying centre typically perform one or more of the following roles: • Users are people in the organization who actually use the product or service. • Influencers affect the buying decision, usually by helping define the specifications for what is bought. • Buyers have formal authority and responsibility to select the supplier and negotiate the terms of the contract. • Deciders have the formal or informal power to select or approve the supplier that receives the contract. • Gatekeepers control the flow of information in the buying centre. Four questions should be raised to guide any analysis of the structure and behaviour of a buying centre: a. Which individuals are in the buying centre for the product or service? b. What is the relative influence of each member of the group? c. What are the buying criteria of each member? d. How does each member of the group perceive our firm, or products and services, and our salespeople? 5. Assume you are a food manufacturer and you are trying to sell your line of imported jams and jellies to a major grocery store chain. Who in the chains buying centre would you expect to attend a meeting with you, and what would each members concerns be? Answer: A number of different roles would attend such a meeting and would have different concerns: • Users – A delegation or representative of individual store managers may attend and have concerns about selling your product at their particular location • Influencers – influencers might be the controller or the accounting representative of the company. Their concerns would be about terms of sales and credit policies • Buyers – For a grocery chain there would usually be a head purchaser or team of purchasing managers who would be concerned about delivery schedules and the ability of your company to service their needs. • Deciders – Deciders would also be present at the meeting in the form of a president or vice president of merchandising. There concerns would be on slightly larger scope; does your product fit in with the profile of the store and with the other offerings. • Gatekeepers – A manager or V.P of Supply Chain Management might fulfill this function. His concerns would be how your company fits into the entire supply chain profile that services all the stores. 6. Think about the materials and parts that go into the manufacturing of automobiles. How does derived demand play a role in this? Answer: Consumer demand drives the demand for finished cars from the automobile manufacturer. The result is derived demand to the parts manufacturer from the auto manufacturer for parts to make those cars. 7. List the ways to segment the business market. Answer: The process of segmenting business markets divides markets based on type of customer, size, buying situation, customer location, and benefits sought. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: DISCUSSION FORUM Suppose you and your classmates are a committee in charge of a new business school building on your campus. You have been assigned the challenge of taking the project from the idea stage to the completion of the building to the stage where it is ready for classes to be held in it, and you have been given a budget and a time frame. 1. You decide first to assemble a buying centre. What departments will you involve, and what do you expect each of the representatives of the various departments to contribute to your project? Answer: Departments to Involve: • Facilities Management: Oversee construction, ensure compliance with building codes. • Finance: Manage budget, track expenses, and approve payments. • IT: Plan and install technological infrastructure. • Design and Planning: Develop layout and aesthetic details. • Procurement: Source and purchase materials and equipment. 2. Draw a flowchart with the purchase process you will undertake, and identify what you will do at each stage of the process Answer: Purchase Process Flowchart: • Identify Needs → Research Suppliers → Request Quotes → Evaluate Proposals → Negotiate Terms → Place Orders → Receive and Inspect Goods → Payment and Record Keeping 3. Identify five items you will have to purchase, and determine the type of purchase that each represents. Make sure that you choose items from all of the buying situations. Answer: Five Items to Purchase: • Construction Materials (New Task): Strategic Purchase. • Classroom Furniture (Regular Task): Routine Purchase. • IT Equipment (Replacement): Modified Rebuy. • Cafeteria Appliances (New Task): New Task Purchase. • Security Systems (New Task): New Task Purchase. 4. How can you use e-procurement in your work? (Hint: You may have to do some research.) Answer: Using E-Procurement: Streamline the purchasing process, compare supplier bids, automate order processing, and manage inventory efficiently through online platforms. E-procurement facilitates quicker approvals, reduces paperwork, and enhances transparency. Note: These discussions are meant to generate class discussion and a lively debate of issues raised, as well as a general review of the opening case or concepts discussed within the chapter. There are no correct or incorrect answers. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: INTERNET EXERCISE The North American Industrial Classification System structures industrial sectors into their component industries. The NAICS can be accessed at http://stds.statcan.gc.ca/naics-scian/2007/ns-rn-eng.asp?go=1. You have been hired as a market analyst by a textile company that is looking for opportunities outside its normal business. The vice president of marketing has asked you to look into the upholstered wood furniture manufacturing industry to determine its size. She suggests that a good place to start is the NAICS. 1. What is the three-digit industry subsector code for “Furniture and Related Products Manufacturing”? Answer: Enter “Furniture and Related Products Manufacturing” in the search box. The answer 337 appears. The three-digit industry subsector code for “Furniture and Related Products Manufacturing” in the NAICS is 337. This subsector encompasses various industries involved in manufacturing furniture and related products, including upholstered wood furniture. 2. What is the six-digit Canadian code for “Upholstered Household Furniture Manufacturing”? Answer: Click on the number 337 and a new screen appears. Scroll down until you find the words “Upholstered Household Furniture Manufacturing”. The number 337121 appears next to the words. The six-digit Canadian code for “Upholstered Household Furniture Manufacturing” is 337121. This code is part of the NAICS system and specifically identifies businesses engaged in manufacturing upholstered household furniture. BRING IT TO LIFE: VIDEO SYNOPSIS & TEACHING SUGGESTIONS TIM HORTONS TRAVELS BACK TO 1964 Synopsis In 2014, Tim Hortons remodeled its Toronto Yonge and Dundas Square location into a 1964 store. Actors dressed up in vintage clothing. The store signage was changed and the cups had logos reminiscent of 1964. This special event was to mark Tim Hortons’ 50th anniversary. A number of celebrities were also part of the celebration which included free coffee and doughnuts. Teaching Suggestions Consider assigning students to propose which departments in Tim Hortons would be involved in brainstorming the concept of the 50th anniversary celebration. From there, determine what companies would be needed to provide the vintage signage, clothing and actors. Assume each of these companies would need to propose their component solution to Tim Hortons and determine what that buying centre meeting would be like. BRING IT TO LIFE: VIDEO CASE – PRINTOUT TIM HORTONS TRAVELS BACK TO 1964 Over 50 years ago, Tim Hortons opened its first restaurants in Hamilton, Ontario. Over the years, it became an integral part in the lives of many Canadians. In 2006, Tim Hortons went public and today, it is one of the largest publicly-traded restaurant chains in North America, and the largest restaurant chain in Canada. Most standard Tim Hortons locations are open 24 hours drawing clients with its fresh coffee. The coffee must be served within 20 minutes or it is not served at all. Donuts, muffins and croissants are available to clients as well. The company’s co-founder and namesake, Tim Hortons played for the Toronto Maple Leafs for 17 seasons and three partial seasons. He played on four Stanley Cup teams and was a six time All-Star player. He became partners with Ron Joyce, a former police officer and a franchisee of Tim Hortons first restaurant. The company has over 4,000 restaurants and is integrated in the lifestyles of many Canadians. Tim Hortons is a sponsor of a number of community initiatives including Timbits Minor Sports and Free Skating. To celebrate its 50th anniversary, Tim Hortons “updated” its first store to a 1964 look. There are number of other businesses Tim Hortons works with to make this opportunity a reality. And, the commemorative online video showcases some of the celebrities and companies that helped make this celebration a reality. Questions 1. Name some of the strategic partners that Tim Hortons worked with to make its anniversary event special? Answer: Tim Hortons collaborated with companies such as Dunkin' Donuts and Timberland to make the 1964 store renovation special, as well as celebrities who were featured in the commemorative online video. 2. What process do you think Tim Hortons went through to select the different companies needed to produce the components of the 1964 store? Answer: Tim Hortons likely followed a selection process involving research, evaluating potential partners based on their expertise and relevance, and negotiating terms to ensure the companies could recreate the 1964 store accurately. 3. How do you think the 1964 clothing was acquired? Answer: The 1964 clothing was probably acquired through vintage clothing suppliers or specialized costume designers who could source or recreate authentic apparel from that era. BRING IT TO LIFE: VIDEO CASE WORKSHEET TIM HORTONS TRAVELS BACK TO 1964 Name: Section: The video looks at Tim Hortons and its 50th birthday celebration. Please answer the following questions once you have watched the video and read the case: 1. Name some of the strategic partners that Tim Hortons worked with to make its anniversary event special? Answer: Tim Hortons partnered with Dunkin' Donuts for coffee and donuts, Timberland for retro-inspired clothing, and collaborated with local celebrities for promotional activities and the commemorative video. 2. What process do you think Tim Hortons went through to select the different companies needed to produce the components of the 1964 store? Answer: Tim Hortons likely used a vendor selection process involving criteria such as reputation, experience in retro-themed projects, and ability to meet specific needs for the 1964 store. They probably conducted market research, evaluated proposals, and collaborated with industry experts to ensure that the chosen companies could authentically recreate the 1960s atmosphere. 3. How do you think the 1964 clothing was acquired? Answer: The 1964 clothing was likely acquired through a combination of vintage sourcing and collaborations with historical clothing specialists. Tim Hortons probably engaged antique dealers or costume historians to locate authentic pieces or reproduce them to match the original styles. They might have also worked with historical societies or archives for accurate designs. BRING IT TO LIFE: VIDEO CASE – ANSWERS TO QUESTIONS TIM HORTONS TRAVELS BACK TO 1964 1. Name some of the strategic partners that Tim Hortons worked with to make its anniversary event special? Answer: Other than Maple Leaf Sports Entertainment, students will most likely answer with general terms like a marketing agency, actors and other suppliers. The important part of this question is for students to consider how these business partnerships get formed in the first place. How does the buying centre of one company go about selecting other companies to purchase services from or work with in the future. 2. What process do you think Tim Hortons went through to select the different companies needed to produce the components of the 1964 store? Answer: There are many different possibilities of how Tim Hortons could have selected the different companies. Most likely, it worked with a marketing agency to do most of the legwork to find the other businesses after the initial concept was agreed upon. The important part of this question is to have students consider how the decision to come up with the 50th anniversary celebration came about. What were the roles of the individuals in the Tim Hortons buying centre that would have been involved in the decision making process? 3. How do you think the 1964 clothing was acquired? Answer: If you consider the buying situation is under, this is a new buy. This probably the first time that Tim Hortons had considered purchasing actors with a 1964 wardrobe. The clothing could have been custom made or it could have been requisitioned from the entertainment industry. Regardless, work with students to brainstorm where the clothing came from, but also how the company that provided the clothing worked with its suppliers to produce them. BRING IT TO LIFE: NEWSFLASHES SYNOPSIS AND DISCUSSION QUESTIONS Three interesting NewsFlashes are included in this chapter. Discussing these NewsFlashes in class can bring the material to life for the students in an interesting, relevant, and timely fashion. They can be used as ice-breakers to launch into a relevant subject. Many of the topics are interesting to students and may be familiar. A. COPY THIS CONTENT MARKETING STRATEGY Businesses of all sizes are learning the importance of listening, rather than preaching, in order to acquire and retain their customers. Customers using social media are not interested in vague and impersonalized advertising and sales pitches. They are socially savvy and know how to connect with one another (more than half of active Twitter users follow at least one company, brand, or product) and possess little desire to maintain loyalty for a company that does not care for and accommodate their needs. In 2013, Xerox was recognized for its content marketing thought leadership as it expanded into the health care industry. The HealthBiz Decoded website was launched by Xerox and filled with articles from Xerox subject matter experts and other freelance journalists. The end result is a digital magazine that hosts videos and infographics to enhance the content. Questions 1. If you are a new, small B2B company with limited resources, how could content marketing (including social media) enable your business? Answer: For a new, small B2B company with limited resources, content marketing and social media can be highly effective by allowing the business to build brand authority and trust through valuable and relevant content. By sharing insights, case studies, and industry news, the company can engage with its target audience, establish thought leadership, and drive organic traffic without heavy advertising costs. 2. How has content marketing leveled the playing field between business marketers and their customers? Answer: Content marketing has leveled the playing field by enabling businesses of all sizes to reach and engage their audience on a more personal level. It allows companies to share valuable information and insights, directly connect with customers, and build relationships without relying solely on traditional, costly advertising methods. Note: These discussion questions are meant to generate lively in-class discussion and critical thinking on the chapter material. There are no correct or incorrect answers. The main discussion should be focused on how the ability to post content online and distribute to a mass audience is relatively inexpensive. With an effective strategy, small businesses can use their limited resources to compete for online consumer’s attention. B. THE VALUE OF INNOVATION AND EMOTIONS In 2010, RIM (Research in Motion), the maker of the BlackBerry, scored well in many aspects of the Reputation Institute’s study on corporate brands. The Reputation Institute measures both the emotional appeal of a brand along with a handful of so-called rational attributes, such as how consumers perceive the quality of products and services offered by a company. Canadian consumers ranked RIM as the most innovative company in the study, and rated it first in terms of its work environment, leadership qualities, and financial performance. As an example of RIM’s work environment, employees of RIM were loaded onto a bus for a very special evening. The Waterloo-based tech giant had rented out the Rogers Centre in Toronto and brought in U2 to play a private concert for its employees. RIM lagged in one key area relative to its high marks elsewhere: emotional appeal. Canadians know in their heads that RIM is a well-run company, but it does not set their hearts atwitter. Tim Hortons, on the other hand, came first as having the best corporate reputation in the country because of a high score received for its emotional appeal. Questions 1. Why do you think that RIM (now known as BlackBerry) scores lower on emotional appeal than Tim Hortons? Answer: RIM (BlackBerry) likely scores lower on emotional appeal than Tim Hortons because it focused more on rational attributes like innovation and financial performance, while Tim Hortons built a strong emotional connection with customers through its community involvement and consistent brand experience. RIM’s appeal was more functional, lacking the personal, everyday resonance that Tim Hortons fostered. 2. What other Canadian company do you think should score high in emotional appeal? Why? Answer: Lululemon Athletica might score high in emotional appeal. The company has built a strong emotional connection through its focus on community and personal well-being, and its engaging store environment and brand values resonate deeply with its customers, creating a loyal and passionate following. Note: These discussion questions are meant to generate lively in-class discussion and critical thinking on the chapter material. There are no correct or incorrect answers. Canadian companies with high emotional appeal could include Lululemon, Roots, and Canadian Tire. Blackberry may be considered to have lower emotional appeal as it is technology-based rather than tied to experiences with friends and community like Tim Hortons. C. MARKETING MISHAPS IN THE GLOBAL ECONOMY There is heightened sense of formality in Japanese interaction. When doing business in Japan, your suitability in respect to conducting business will be assessed during a first meeting, so always maintain a sense of professionalism. Some marketing mistakes that have happened in the past include Nike’s release of women’s leggings in New Zealand that had a pattern that resembled a Samoan tattoo. The international company did not realize that the tattoo was reserved for men. Question 1. Can you think of other customs that a businessperson should be aware of in doing business in other foreign countries? Answer: In India, it's crucial to understand the significance of right-hand gestures as the left hand is considered unclean. In China, giving a clock as a gift is associated with funerals and is avoided. In Brazil, punctuality is flexible; being a bit late is generally acceptable but should be avoided in formal settings. 2. What are some ways you can prepare for meetings or discussions with business people from other countries? Answer: To prepare for international meetings, research local customs and etiquette specific to the country. Consult with local experts or cultural advisors and learn basic phrases in the local language. Practice proper dress codes and schedule meetings considering time zone differences to show respect and professionalism. Note: This discussion question is meant to generate lively in-class discussion and critical thinking on the chapter material. There is no correct or incorrect answer. Generally, the focus should be on students doing meaningful research and preparation for future business meetings and marketing projects. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: COPY THIS CONTENT MARKETING STRATEGY Web communities have emerged as business enablers for B2B marketing. By creating interactive and collaborative environments, social media has become the go-to resource for B2B customers, both to share feedback about companies they are doing business with as well as to monitor discussions about products and services they are considering. The control of a B2B company’s brand is rapidly changing from corporate marketing departments to the customer-to-customer conversations taking place in social media networks. Just as shared positive experiences can drive new prospects to a business, unmanaged negative comments can spread like wildfire, incinerating the organization’s hard-earned reputation. Not surprisingly, customers recognize their growing influence and realize the impact of their praise or, more importantly, their criticism on a company. Businesses of all sizes are learning the importance of listening, rather than preaching, in order to acquire and retain their customers. Customers using social media are not interested in vague and impersonalized advertising and sales pitches. They are socially savvy and know how to connect with one another (more than half of active Twitter users follow at least one company, brand, or product) and possess little desire to maintain loyalty for a company that does not care for and accommodate their needs. This new environment creates big challenges but also incredible opportunities for B2B sales. Sales professionals can no longer completely rely on traditional e-mail and cold-calling campaigns. The good news is that social media is levelling the playing field for selling to customers. Sales professionals can now gain timely and relevant insights about their customers as well as engage at a very deep and personal level—two huge boons to the B2B sales process. Thanks to social media monitoring and conversation, individuals within the organization have the ability to champion the identity of their corporate brand. Social media is just one tactic in content marketing. In 2013, Xerox was recognized for its content marketing thought leadership as it expanded into the health care industry. The HealthBiz Decoded website was launched by Xerox and filled with articles from Xerox subject matter experts and other freelance journalists. The end result is a digital magazine that hosts videos and infographics to enhance the content. It is a subtle, but effective strategy for Xerox to show it is not just a copier company; it is a company that is an effective service provider. Questions 1. If you are a new, small B2B company with limited resources, how could content marketing (including social media) enable your business? Answer: As a new, small B2B company, content marketing and social media can build brand awareness cost-effectively by engaging directly with your target audience. Creating valuable, relevant content allows you to demonstrate expertise, attract potential customers, and foster relationships without large advertising budgets. 2. How has content marketing levelled the playing field between business marketers and their customers? Answer: Content marketing has levelled the playing field by empowering customers to seek out and engage with brands on their own terms. It provides equal opportunities for all businesses to showcase their expertise and connect with audiences, while also giving customers a platform to voice opinions and influence brand perception. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: THE VALUE OF INNOVATION AND EMOTIONS In 2010, RIM (Research in Motion), the maker of the BlackBerry, scored well in many aspects of the Reputation Institute’s study on corporate brands. The Reputation Institute measures both the emotional appeal of a brand along with a handful of so-called rational attributes, such as how consumers perceive the quality of products and services offered by a company. Canadian consumers ranked RIM as the most innovative company in the study, and rated it first in terms of its work environment, leadership qualities, and financial performance. As an example of RIM’s work environment, employees of RIM were loaded onto a bus for a very special evening. The Waterloo-based tech giant had rented out the Rogers Centre in Toronto and brought in U2 to play a private concert for its employees. RIM lagged in one key area relative to its high marks elsewhere: emotional appeal. Canadians know in their heads that RIM is a well-run company, but it does not set their hearts atwitter. Tim Hortons, on the other hand, came first as having the best corporate reputation in the country because of a high score received for its emotional appeal. Referring to RIM, Rob Jekielek, a principal consultant with the Reputation Institute, says, “You really get the feeling that if they were able to create the right emotional appeal in addition to all the things they do well rationally, they could improve their reputation even more. The attitude Canadians have toward RIM illustrates a fundamental truth about consumers in this country. Like others around the world, they are primarily emotional beings. That means a corporation will find it difficult to build a good reputation if it fails to connect on an emotional level.” This strategy for emotional appeal may be in play as RIM made a strategic decision in 2013. Faced with market challenges, RIM officially changed its name to BlackBerry, allowing the company to associate itself better with the product it produces. The BlackBerry name change was approved by shareholders, but its full impact among consumers and business customers remains to be seen. Its next step is to get back to basics, focus on fewer products, and cut costs, as well as continue to stay true to its signature keypad. Questions 3. Why do you think that RIM (now known as BlackBerry) scores lower on emotional appeal than Tim Hortons? Answer: RIM (BlackBerry) scores lower on emotional appeal than Tim Hortons because it focused heavily on rational attributes like innovation and work environment, but struggled to create a personal, emotional connection with consumers. Tim Hortons, on the other hand, excels in evoking strong positive emotions tied to comfort, community, and familiarity, which resonates deeply with Canadians. 4. What other Canadian company do you think should score high in emotional appeal? Why? Answer: Canadian company Lululemon should score high in emotional appeal due to its strong emphasis on lifestyle, community, and customer engagement. Lululemon connects with consumers on an emotional level through its focus on wellness, inclusive brand culture, and commitment to customer experiences that go beyond just selling products. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: MARKETING MISHAPS IN THE GLOBAL ECONOMY There is a heightened sense of formality in Japanese interaction. When doing business in Japan, your suitability with respect to conducting business will be assessed during a first meeting. It is important to maintain a sense of professionalism and be aware of the host country’s customs. Offending a professional from another country could affect your business relationship. In Japanese society, the bow is used when meeting, when getting attention, to show gratitude, to express sympathy, or as an apology. When doing business in Japan as a Westerner, you would not be expected to bow. You will most likely be greeted with a handshake combined with a slight nod of the head. Introduce yourself with your full name followed by your company name. It is important to use proper titles when addressing someone, so always establish the position of the other person. The exchanging of business cards when doing business in Japan involves a degree of ceremony. The card is seen to represent the individual, so it should be treated with respect. Before travelling to Japan, ensure you have ample cards and have one side translated into Japanese. Include your position within the company on it. Invest in a carry case to store cards and keep this in an easy-to-access location. When exchanging cards, offer your card with both hands with the Japanese side up. Ensure that there is no barrier between you and the recipient, such as a table, chair, or plant. When accepting a card, always use two hands as this shows deference. For Japanese people, as elsewhere in the Asia-Pacific region, exchanging cards is like shaking hands. If you are in a formal situation, it is proper to place the card face up on the table in front of you and refer to it when necessary. The Japanese like dealing with quiet, sincere, and compromising individuals. Extroverts are seen as brash and arrogant. Early on in negotiations, remain humble, indirect, and non-threatening. Silence is considered a virtue. If things go quiet when doing business in a meeting, don’t panic. Reflection is taking place. Silence may be also be accompanied by the closing of the eyes. Never interrupt or break the silence. Some marketing mistakes that have happened in the past include Nike’s release of women’s leggings in New Zealand that had a pattern that resembled a Samoan tattoo. The international company did not realize that the tattoo was reserved for men. Nike was made aware of its error and pulled the product. Questions 1. Can you think of other customs that a businessperson should be aware of in doing business in other countries? Answer: In Germany, punctuality is crucial, and arriving late can be seen as disrespectful. In Middle Eastern countries, personal relationships and hospitality play a significant role, and business discussions often begin with social pleasantries. 2. What are some ways you can prepare for meetings or discussions with business people from other countries? Answer: Research cultural norms and business etiquette specific to the country you’re visiting, such as dress codes and communication styles. Learn a few basic phrases in the local language and understand local customs around greetings and business card exchanges. BRING IT TO LIFE: IN-CLASS ACTIVITY BUYING CENTRE ROLE PLAY – INSTRUCTIONS Learning Objectives 1. To have students understand the cross-functional nature of the organizational buying process 2. Identify the key roles within the buying centre. Description of In-Class Activity Have several students conduct a role-play by assuming different characters to discuss an organizational purchase of Sprint’s FonPromotions program and then answer two questions. Organizational buying decisions can be more complex than those for consumers because of the number of individuals involved and their differing needs and perspectives within the buying centre. This complexity is particularly evident in a “new buy” situation, such as the one illustrated. Estimated class time: 20 minutes. Preparation before Class • Prepare name cards for each of the characters. • Set up a table and chairs in front of the classroom for the meeting. • Become familiar with the following terms which are referred to in this in-class activity: Buying Centre: The group of people in an organization who participates in the buying process and share common goals, risks, and knowledge important to a purchase decision. New Buy: The first-time purchase of a product or service, involving greater potential risk. Organizational Buying Behaviour: The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers. In-Class Instructions • Relevant Chapter Content – Prior to conducting this in-class activity, review the area in the chapter on “The Buying Centre: A Cross-Functional Group.” • • In-Class Instructions – Follow the steps below to conduct this activity. ○ Recruit students to play the seven characters in the role-play. Seat the characters at a table in front of the class and give each the corresponding “script.” ○ While the role-playing students are reviewing the scripts, give the following background and then introduce the characters: “You are about to see a glimpse inside FarNorth, Inc., a successful manufacturer of golf accessories (bags, apparel, gloves, etc.) for men and women that are sold to golf pro shops, golf superstores, and sporting goods stores in Canada. FarNorth’s management has asked Lisa Ludwig, the sales representative for Sprint FonPromotions, to present a proposal for a marketing program to stimulate sales and motivate the firm’s sales people. However, Sprint FonPromotions, which costs $100,000, is more than what was budgeted for advertising and sales promotion for the current fiscal year. Before we listen in to the conversation between Lisa and the co-workers that constitute FarNorth’s buying centre for marketing programs, let me introduce you to our cast:” ○ Introduce the cast and his/her job title and role in the FarNorth buying centre. ○ Have the students read the buying centre role-play script in front of the class. ○ When finished with the role-play, say: “So we now leave FarNorth’s marketing promotions buying centre. Let’s discuss what we’ve observed by answering some questions.” ○ Ask students the questions below to facilitate the buying centre discussion: Question 1: Who do you feel is the key buying influence for this decision? Why? Answer: Lynn Tan (VP – Marketing) and Thor Sandholm (Advertising Manager) are probably the key buying centre constituents for this decision. They raise the most questions that require answers before a decision can be made. Neil Vanathan (Sales Manager) is also a key player since he is directly responsible for implementing the program. The CEO, Carol Woods, appears to seek Lynn’s approval for going ahead with the program. Question 2: What are the marketing challenges that face Lisa Ludwig or any business-to-business sales person with a buying centre such as this? Answer: One of the biggest challenges for a business-to-business sales person is to determine the people who constitute the organization’s buying centre and what roles they play. Different roles are concerned about different issues. It is a challenge to attempt to address all of these different needs at the same time. Sales people need to prepare, research, and learn about a potential customer’s buying centre participants in order to effectively meet their needs and generate the sales they desire. • Handout – Distribute the handout and worksheet for students to complete. • Evaluation – Collect the worksheets from this activity for evaluation purposes BRING IT TO LIFE: IN-CLASS ACTIVITY BUYING CENTRE ROLE PLAY – HANDOUT Script: Buying Centre Role-Play Lisa: In summary, the Sprint FonPromotions program, with its Sprint Prepaid Business Card and Prepaid Phone Card, would accomplish the following marketing objectives for FarNorth: • First, to build brand awareness among customers and prospects, the Sprint Prepaid Business Card looks like your regular business card but offers 20-minutes of free domestic long-distance calls. On the front of the card is your sales person’s contact information. On the back are the telephone and ID numbers that allows your customers and prospects to make their free calls. The Sprint Prepaid Business Card encourages these customers and prospects to think of you and the free long distance minutes they receive every time they view your unique business card. • Second, to generate excitement and motivate sales people and other FarNorth employees, the Sprint Prepaid Phone Card can be used to create an interactive sweepstakes. Each would receive a free, 30-minute Sprint Prepaid Phone Card. On the card would be a toll-free number that employees would use to enter the contest. Participants then enter a six-digit number of their choice, and if it matched the winning numbers, they instantly win a prize ranging from a weekend get-a-way to a free Sprint Prepaid Phone Card. Sam: Thank you for your presentation, Lisa. I’m sure that there are a few questions. Lynn: Yes, Sam. Lisa, have those sales improvement figures been verified by an independent agency? I can’t believe that we would see those increases in our situation. Lisa: Yes, they have Lynn. That information is in Appendix II of the sales proposal, which you each have in front of you. However, according to a recent study from one of our clients that you may contact, sales increased by 10 percent over the six-month promotional period. Neil: What about procedures? Our sales people haven’t had any experience with this type of promotional program and we’re very busy at the moment. What level of support or training does Sprint provide? Lynn: We can’t afford time for training. This is the prime selling season for our golf accessories. Thor: We have already made our media buys for the season. We’re going to have to increase our budget to… Basil: Wait a minute! You want more money for advertising? Can’t you just reallocate from one budget category to another? Thor: Not really. We have signed contracts with our advertising agency so our budget is basically spent for this selling season. Increasing our budget for this Spring FonPromotions program could sufficiently increase sales to cover any increase we need if Lisa’s projections are on target. Basil: But that’s a lot of money. Can’t you defer some advertising until the next fiscal year? Lynn: That could be difficult given our marketing plan, Basil. Thor: Marketing has very ambitious goals for this year, Basil. Not spending the already allocated funds on advertising could have very serious implications on this year’s sales. Neil: Well, if we did implement Lisa’s program, it could increase sales from new and existing customers since they and our employees would be even more motivated. Sam: Excuse me, but are there more questions for Lisa concerning the specifics of the Sprint FonPromotions program? Lisa: I’d like to answer Neil’s question about procedures. I would work closely with Lynn, Neil, and Thor to customize the design of the program. We have 2 customer service reps (one for marketing that would train your sales people and one for data processing that would interface with your data processing people) that would help you implement the program. We would manage the reporting of all sales activity. You would receive daily sales updates by region, channel member, etc. via our link to FarNorth’s intranet. Basil: Do you have any “canned” or turnkey programs? Any programs that have already been developed for other clients that we could reuse with only minor modifications? Thor: [Thor gives Basil a dirty look.] Lisa: I think that you would be interested in the financial projections that I’ve prepared. At your current sales rates, the Sprint FonPromotions program would pay for itself in less than 9 months. Carol: I find these projections in Appendix II very compelling, Lisa. What do you think about the program, Lynn? Given our current sales figures, we could project the impact of the purchase. Sam, could you develop a cost-benefit analysis of the program based on Lisa’s projections? [End of the Role-Play] BRING IT TO LIFE: IN-CLASS ACTIVITY BUYING CENTRE ROLE PLAY – WORKSHEET Name: Section: 1. Who do you feel is the key buying influence for this decision? Why? Answer: The key buying influence is likely the decision-maker or financial officer, as they have the authority and budget control to approve the purchase. Their input is crucial because they ensure the purchase aligns with financial constraints and overall business strategy. 2. What are the marketing challenges that face Lisa Ludwig or any business-to-business sales person with a buying centre such as this? Answer: Marketing challenges include navigating complex decision-making processes with multiple stakeholders, each with differing priorities and concerns. Additionally, addressing diverse needs and building consensus among the buying centre members can be difficult, requiring tailored communication and negotiation strategies. BRING IT TO LIFE: METRICS ASSIGNMENT CALCULATING MARKET SHARES – HANDOUT Name: Section: A company’s market share shows how the company’s sales are doing relative to the industry that it is in. So, for example, a company’s sales can be increasing from year to year but not keeping up with the industry sales. The formula to calculate market share is to divide the company’s sales by the industry sales. The answer is expressed as a percentage. Year Company A sales in units Industry sales in units Market share of Company A 2012 100 1000 ? 2013 110 1400 ? 2014 115 1600 ? 2015 117 1670 ? 1. Calculate the market shares for Company A from years 2012 to 2015. 2. As you can see from the chart above, Company A’s sales increase from year to year. After you of calculated the market shares of Company A for years 2012 to 2015, can you make the same assertion that Company A is in a good position? BRING IT TO LIFE: METRICS ASSIGNMENT CALCULATING MARKET SHARES – ANSWERS Year Company A sales in units Industry sales in units Market share of Company A 2012 100 1000 10% 2013 110 1400 7.9% 2014 115 1600 7.2% 2015 117 1670 7% 1. Calculate the market shares for Company A from years 2012 to 2015. Answer: The answers to the market shares for Company A are listed in the above table. As you can see, Company A’s market share is decreasing every year from 2012 to 2015. If Company A only had available to it its own sales, it could come to the conclusion that it is doing well because its sales are increasing every year from 2012 to 2015. This conclusion is incorrect because it does not take in consideration how the industry is growing. Once we obtain the industry figures, we are in a position to calculate market shares. 2. As you can see from the chart above, Company A’s sales increase from year to year. After you of calculated the market shares of Company A for years 2012 to 2015, can you make the same assertion that company A is in a good position? Answer: Company A is not in a good position because its market share is decreasing from year to year. It is not keeping up with the market. Even though its sales are increasing from year to year, the industry sales are increasing at a greater rate. The decreases in market share show that company A’s sales are not keeping up with the industry sales. Solution Manual for Marketing: The Core Roger A. Kerin, Steven W. Hartley, William Rudelius, Christina Clements, Harvey Skolnick, Arsenio Bonifacio 9781259030703, 9781259269264, 9781259107108