Preview Extract
Chapter Six: Segmentation, Targeting, and Positioning Concept Review Generally, the concept questions are designed to achieve a single purpose – to encourage students to test their knowledge and understanding of the theoretical content of the chapter. These questions encourage recall and reflection, which will better prepare students to answer the marketing applications questions based on their understanding of the theory. 1. Explain how marketers may use NAICS Codes to segment B2B markets. List two other ways marketers may use to segment B2B markets. Support your answer with appropriate examples. The NAICS groups economic activity into different sectors and industries. Following the prescribed coding marketers can use the six digit codes to identify and analyse data about market share, demand, import competition and other measures. There are many other different ways to segment B2B markets though, and companies should use a method that makes sense for their reporting needs. Some companies may choose to segment based on end user, like Home Use, Small/Medium Business Use, and Corporate Use. Other companies may choose to segment based on geography, like North America, South America, Europe and Asia. 2. List and discuss the unique characteristics of B2B markets relative to B2C markets. B2B Markets Market Characteristics • Demand for business products is derived • Fewer customers, more geographically concentrated, and orders are larger • Demand is more inelastic, fluctuates more, and more frequently Product Characteristics • Products are technical in nature and purchased based on specifications • Mainly raw and semi-finished goods are purchased • Heavy emphasis is placed on delivery time, technical assistance, after sale service, and financing assistance Buying Process Characteristics • Buying decision is more complex • Buying may involve competitive bidding, negotiated pricing, and complex financial arrangements • Qualified, professional buyers who follow a more formalised buying process • Buying criteria and objective are specified as are procedures for evaluating and selecting vendors and products • Multiple people with varied interests participate in purchase decisions • Reciprocal arrangements exists and negotiations between buyers and sellers are common • Buyers and sellers usually work closely to build close long-term relationships • Online buying over the Internet is common Marketing Mix Characteristics • Direct selling is primary form of selling and physical distribution is often essential • Advertising are technical in nature and promotions emphasize personal selling • Price is often negotiated, inelastic, frequently affected by trade and quantity discounts. Price usually includes a service or maintenance component 3. What are the major differences between the consumer buying process discussed in Chapter 6 and the B2B buying process discussed in this chapter? Compared with the consumer buying process, the B2B buying process tends to be much more formalized, involves more people in the actual decision, evaluates alternatives more extensively and often over a longer time period, and rarely contains any impulse or habitual behaviour component. 4. Explain why all B2B purchases may not go through all the stages of the B2B buying decision process and why some may go through the process in a more systematic and rigorous manner. Give examples of buying situations to support your answer. In a corporate or business environment it may not always be efficient to revisit all the steps for each purchase, especially if care is taken the first time a purchase is made. For example, if stationery suppliers are compared and contrasted thoroughly the first time a supply order is made, then each subsequent purchase there need not be Request for Proposals, proposal and vendor analysis and selection, or even vendor analysis. Policies can be in place to periodically review these areas, but they need not be performed each time an order is placed. Conversely, any significant purchases will likely visit all the steps in order to justify the cash outlay. For example, buying new office furniture for the entire staff would be a major purchase decision as would replacing the company sales car fleet. 5. What are the key bases for distinguishing between new buy, modify buy, and straight rebuy? Support your answer with three clear examples. New buy: the purchase has never occurred before, or in a long period of time. This decision requires a high level of involvement. An example here is buying a new state-of-the-art printer for a print ad company. Modified buy: Similar purchases have been made before, but the circumstances or specifications have changed. The decision requires a moderate level of involvement, but previously selected vendors may have an advantage. An example of a modified buy here is choosing to source printers and server materials from your computer supplier. Straight rebuy: Purchases of this type are common, frequent or routine. Most purchase choices fall into this category. A low level of involvement is required since the order can simply be placed again. Reordering car manufacturing parts for an assembly line, or ordering fabric for a clothing manufacturer, is an example of a rebuy. 6. List five specific ways in which the Internet has enhanced B2B buying and decision-making. Specific ways the Internet has helped B2B buying and decision-making are: 1) Faster transmission of information thereby speeding decision-making, 2) electronic procurement systems between vendors and buyers eliminates paperwork, 3) Buyer/seller involvement in the design of new products helps to better meet needs, 4) the advent of the electronic auction has helped to drive down prices for some arenas, 5) ability to track more information for market research and statistical analysis, 6) increase the overall efficiency of the process, 7) saves time and money, and 8) encourage closer collaborative relationships among suppliers and manufacturers. 7. Explain the concept of the buying centre. What factors may influence the behaviour of the buying centre? What is the role of gatekeepers in buying centres and how do they influence the buying decision? The buying centre is simply the group of individuals responsible for purchase decisions in B2B markets, and may include one or more of the following roles: initiator, influencer, decider, buyer, user and gatekeeper. The size of the buying centre may vary depending on the nature of the buying decision, the size of the organisation, and the organisation buying processes and procedures. The factors that influence the buying centre behaviour includes organisational objectives, policies, structure, and systems, interpersonal relationships among buying centre members (e.g., person’s status, authority and persuasiveness), and individual characteristics (e.g., education level, experience, job position, and personality). The gatekeeper is the role that controls access to information, or access to the decision makers and influencers. The gatekeeper role should not be underestimated because their decision to allow the flow of information, like letting a new supplier contact the buyer, can have great influence on a purchase decision. 8. Explain how understanding the role, structure, and behaviour of a buying centre may help a marketer to sell to B2B buyers. Understanding the roles, structure and behaviour of a buying centre may help a marketer sell to a B2B buyer because they will better understand the functioning of the buying centre and could therefore target their marketing efforts to those individuals with the most influence. This improved understanding could help marketers develop better marketing communication strategies to reach and present important information to the influencers, gatekeepers, and deciders, to get samples or prototypes in the hands of the user so they can experience the benefits; and ensure to ensure an opportunity for a sale is not missed. 9. In the text, it is claimed that the 6-step B2B buying process is similar to the 5-step B2C buying process. How would you go about reclassifying the B2B process to fit the B2C process? In order to fit the 6-stages of the B2 B buying process into the 5-stage B2C buying process, it would be necessary to combine the Product specifications step with the Request for proposals. As consumers, we may indeed consider the Product specifications but not with the same zeal or detail required in the B2B world. 10. How does understanding the organisational culture and buying centre’s culture of a potential B2B customer help a salesperson trying who is targeting that organisation? Buying centre cultures can be divided into 4 types: autocratic, democratic, consultative, and consensus. Know which buying centre culture is prevalent in the organisation helps the salesperson decides how to approach that particular client, how and to whom to deliver pertinent information, and to who to make the sales presentations. In autocratic buying centre cultures, one person makes the decision. In democratic buying centre cultures, the majority rule. In consultative buying centre cultures one person makes the decision but solicits input from others before making it and in consensus buying centre cultures, all members of the team must reach a collective agreement that can support a particular purchase. Marketing Applications Provide an example of each of the four key types of B2B organizations. Examples of each of the four key types of B2B organizations: 1. Manufacturers: These are companies that produce tangible goods. An example would be a company like Boeing, which manufactures airplanes. 2. Distributors or Wholesalers: These are intermediary companies that buy products from manufacturers and sell them to retailers or other businesses. An example would be Sysco, which distributes food and related products to restaurants, healthcare facilities, and educational institutions. 3. Service Providers: These are companies that offer intangible services rather than physical products. An example would be Accenture, which provides consulting, technology, and outsourcing services to businesses. 4. Suppliers or Vendors: These are companies that supply goods or services to other businesses but may not manufacture the products themselves. An example would be Intel, which supplies microprocessors and other components to computer manufacturers like Dell and HP. Instructor’s Notes: In providing a representative example of each type, students demonstrate their understanding of B2B organizations. Example answers: Manufacturer/producer: Ford Motor Co. Reseller: Zellers. Institution: Dalhousie University Government: Canadian federal government, provincial governments, municipal governments. Mazda is trying to assess the performance of two manufacturers that could supply music systems for its vehicles. Using the following information, determine which manufacturer Mazda should use: Performance Evaluation of Brands Issues Importance Weights Manufacturer A Performance Manufacturer B Performance Sound 0.4 5 3 Cost 0.3 2 4 Delivery time 0.1 2 2 Brand cache 0.2 5 1 Total 1 o Notes: Performance is rated on a scale of 1–5, where 1 = poor and 5 = excellent. To determine which manufacturer Mazda should choose, let's calculate the weighted scores for each manufacturer based on the provided information. Manufacturer A: Sound: 5 Cost: 2 Delivery time: 2 Brand cache: 5 Manufacturer B: Sound: 3 Cost: 4 Delivery time: 2 Brand cache: 1 Now, let's calculate the weighted scores: Manufacturer A: Weighted score = (0.4 * 5) + (0.3 * 2) + (0.1 * 2) + (0.2 * 5) = (2) + (0.6) + (0.2) + (1) = 3.8 Manufacturer B: Weighted score = (0.4 * 3) + (0.3 * 4) + (0.1 * 2) + (0.2 * 1) = (1.2) + (1.2) + (0.2) + (0.2) = 2.8 Comparing the weighted scores, Manufacturer A has a higher score (3.8) compared to Manufacturer B (2.8). Therefore, based on the given criteria, Mazda should choose Manufacturer A to supply music systems for its vehicles. Instructor’s Notes: This exercise challenges students to complete a vendor analysis matrix and evaluate which vendor would be the better choice. To complete this task, they must multiply the importance weights and performance scores for each criterion for each vendor, and then add those scores to determine which vendor earns the highest overall score. Example answers: Based upon the overall (importance × performance) score for each manufacturer, Mazda should choose Manufacturer A. Issues Importance Weights Mfr A Performance Mfr A Imp × Perf Mfr B Performance Mfr B Imp × Perf Sound 0.4 5 2.0 3 1.2 Cost 0.3 2 0.6 4 1.2 Delivery Time 0.1 2 0.2 2 0.2 Brand Cache 0.2 5 1.0 1 0.2 Total 1 3.8 2.8 Assume you have written this textbook and are going to attempt to sell it to your school. Identify the six members of the buying center. What role would each play in the decision process? Rank them in terms of how much influence they would have on the decision, with 1 being most influential and 6 being least influential. Will this ranking differ in other situations? How the six members of the buying center might look when considering purchasing a textbook for a school: Principal/Administrator: The principal or administrator would likely have the most influence in the decision-making process. They have the authority to approve budgets and make final decisions regarding educational resources for the school. Curriculum Coordinator: This individual would be responsible for ensuring that the textbook aligns with the school's curriculum standards. Their input would be highly valued in the decision-making process, especially concerning the educational content and relevance of the textbook. Department Chair/Subject Teacher: Department chairs or subject teachers would have significant influence as they are the ones who will be using the textbook directly in their classes. They would provide insights into how well the textbook meets the needs of the students and the effectiveness of its teaching materials. Librarian: The librarian may not have as much direct influence as the principal or curriculum coordinator, but they could provide valuable input regarding the availability of similar resources in the library, potential alternatives, and the overall suitability of the textbook for the school's library collection. Finance Officer/Budget Controller: This individual would play a crucial role in assessing the financial implications of purchasing the textbook. While they may not have direct input on the educational content, their approval is necessary to ensure the purchase fits within the school's budget. IT Coordinator/Technology Manager: Depending on the digital aspect of the textbook (e.g., online resources, interactive components), the IT coordinator or technology manager may provide input on the technical compatibility and support required for integrating the textbook into the school's existing technology infrastructure. This ranking might vary depending on the specific circumstances of the school and the textbook being considered. For example, if the textbook is for a specialized subject where the department chair holds more expertise, their influence might be higher. Similarly, if the school is particularly budget-constrained, the finance officer's influence could increase. However, the principal or administrator is likely to remain the most influential member of the buying center due to their authority and overarching responsibility for the school's operations. Instructor’s Notes: In large organizations, several people typically are responsible for buying decisions. By taking the role of an author selling a book to an educational institution, students must think through the potentially involved parties to determine how best to approach the buying centre. Although the question asks students to rank the six members, they should understand that all members must agree to the purchase. Example answers: Decider: The marketing professor who decides to use this textbook for his or her classroom instruction. Initiator: The author or sales rep, who suggests the school purchase this textbook. Influencer: Other marketing professors who might be aware of the quality of previous work by the author. Buyer: The head of textbook procurement or the bookstore, who fills out the paperwork needed to make the textbook purchase. Gatekeeper: The school’s administrative assistant or course coordinators, who could prevent the author or sales rep from seeing or talking to the other members of the buying centre. User: Students in the marketing class who will actually read and use the textbook. Provide an example of the three types of buying situations that the bookstore at your school might face when buying textbooks. Examples of the three types of buying situations a bookstore at a school might face when purchasing textbooks: New Edition Release: Situation: A new edition of a popular textbook used in multiple courses across various departments is released. This edition promises updated content, revised exercises, and perhaps even supplementary online resources. Professors are likely to adopt the new edition to keep their course materials current. Approach: The bookstore needs to quickly secure copies of the new edition to meet the anticipated demand from students. They may negotiate bulk purchase deals with the publisher to ensure they have an adequate supply on hand for the upcoming semester. High Demand, Limited Availability: Situation: A highly anticipated book, recommended by several professors for their courses, is in high demand. However, the publisher has limited stock available due to unexpected printing delays or production issues. Approach: The bookstore may need to strategize to allocate the limited stock efficiently. They might implement a reservation system or limit the number of copies each student can purchase initially to ensure fair distribution. Additionally, they may explore alternative purchasing options, such as sourcing used copies from other bookstores or online vendors. Low Demand, High Inventory: Situation: A textbook for a niche course or elective has consistently low demand among students. The bookstore has a surplus of inventory from previous semesters, and new editions are not expected anytime soon. Approach: The bookstore may consider discounting the price of the textbook to encourage sales. They could also explore buyback programs where students can sell back their copies for store credit. Additionally, the bookstore might collaborate with instructors to promote the textbook or explore options for repurposing the content in other courses to stimulate demand. Instructor’s Notes: Instead of taking the role of the author selling a book, this exercise asks students to put themselves in the shoes of the school’s textbook procurement manager. Example answers: New buy: The bookstore purchases textbooks it has never purchased before or never purchased from a particular supplier. Modified rebuy: The bookstore buys textbooks it has ordered before but wants to change something about the order, such as the service quality, return policy, or price. Straight rebuy: The bookstore simply orders more copies of a textbook it has ordered before, with no change in anything but the quantity ordered. Describe the organisational culture at your school or job. How is it different than the last school you attended or the last job you had? At my current job, the organizational culture is collaborative, innovative, and results-oriented. There's a strong emphasis on teamwork and communication, with open channels for sharing ideas and feedback. Creativity is encouraged, and there's a willingness to experiment with new approaches to problem-solving. Additionally, there's a focus on achieving goals and driving measurable outcomes, with a sense of accountability among team members. Compared to my last job or school, this culture differs significantly. In my previous experience, there may have been more hierarchical structures in place, with less emphasis on collaboration and innovation. Decision-making might have been more top-down, and there might have been less flexibility for trying new ideas. Additionally, the level of autonomy and trust given to employees might have been lower, leading to a different dynamic in terms of teamwork and individual contributions. Overall, the culture at my current job fosters a more dynamic and engaging environment that encourages growth and creativity. Instructor’s Notes: A firm or school’s organisational culture often comprises a set of unspoken guidelines that employees or students share in various situations. By comparing two different cultures, students should gain an understanding of how different cultures can influence what people care about, how they act, when they act, and who they involve in important decisions. Example answers: The organizational culture of this school is fairly conservative and collaborative, with a strong sense of entrepreneurial spirit and tradition. The culture at my summer job, in contrast, was more liberal in attitude but more structured in its approach and processes. Nike manufactures shoes and sportswear. How has the Internet changed the way this company communicates with its suppliers and retail customers? The internet has revolutionized how Nike communicates with both its suppliers and retail customers, transforming the entire supply chain and customer experience. Here's how: Efficient Communication with Suppliers: Previously, communication between Nike and its suppliers might have been slower and more cumbersome, relying on phone calls, faxes, or even physical mail. With the internet, communication is instant, allowing for faster exchanges of information, orders, and updates. This speed helps in managing inventory, coordinating production schedules, and addressing any issues or changes promptly. Real-Time Collaboration: The internet enables real-time collaboration between Nike and its suppliers. Using online platforms, they can share design specifications, production plans, and quality control standards seamlessly. This facilitates smoother workflows and ensures that everyone involved is on the same page, reducing errors and delays. Supply Chain Visibility: Through online systems and platforms, Nike gains greater visibility into its supply chain. It can track the movement of raw materials, monitor production progress, and anticipate any potential disruptions. This transparency allows for proactive decision-making, such as reallocating resources or adjusting production schedules to meet demand fluctuations. Direct Communication with Retail Customers: Nike can now directly communicate with its retail customers through various online channels, including social media, email marketing, and its own website. This direct engagement allows Nike to build stronger relationships with customers, gather feedback, and tailor marketing messages more effectively. E-commerce: The internet has enabled Nike to expand its sales channels beyond traditional brick-and-mortar stores. With e-commerce platforms, customers can browse and purchase Nike products online, anytime and anywhere. This increases convenience for customers and opens up new revenue streams for the company. Personalized Marketing: Through data analytics and online tracking, Nike can personalize its marketing efforts to individual customers. By analyzing browsing behavior and purchase history, Nike can recommend products that are relevant to each customer's interests and preferences, enhancing the overall shopping experience. In summary, the internet has transformed how Nike communicates with both its suppliers and retail customers, making communication faster, more efficient, and more personalized. This has not only streamlined operations but also strengthened Nike's relationships with its partners and customers alike. Instructor’s Notes: Picking up on the themes of the last section of the chapter, “The Role of the Internet in Business-to-Business Marketing,” this question asks students to consider how the advent of the Internet has changed the way a major company like Nike communicates and does business. Example answers: The Internet has allowed Nike to open up more lines of communication with both its suppliers and its customers. Using e-mail, suppliers can verify the receipt of orders, notify Nike of changes in orders or products, and follow up quickly when problems occur; Nike can do the same for its retail customers. Nike’s website gives suppliers a way to manage their relationship with the company and provides retail customers with information about the latest products and promotions. It also provides a forum for suggestions, questions, compliments, or complaints. Overall, the Internet has allowed Nike to streamline its operations and cut costs while cementing stronger relationships with both suppliers and retail customers. You have just started to work in the purchasing office of a major oil processing firm. The purchasing manager has asked you to assist in writing an RFP for a major purchase. The manager gives you a sheet detailing the specifications for the RFP. While reading the specifications, you realize they have been written to be extremely favourable toward one bidder. How should you handle this situation? When faced with a situation where the specifications for an RFP (Request for Proposal) are skewed to favor one bidder, it's important to address this ethically and professionally. Here's how you could handle it: Raise Concerns Privately: Approach the purchasing manager in private to express your concerns about the biased specifications. Clearly outline the reasons why you believe the specifications are unfairly favorable to one bidder. Provide Evidence: Back up your concerns with evidence from the specifications themselves. Point out specific language or requirements that seem tailored to one bidder's capabilities or products. Propose Revisions: Suggest revisions to the specifications that would make them more neutral and fair to all potential bidders. Offer alternative wording or additional requirements that would create a level playing field. Emphasize Fairness and Transparency: Remind the purchasing manager of the importance of fairness and transparency in the procurement process. Emphasize the need to ensure that all bidders have an equal opportunity to compete for the contract. Seek Guidance: If necessary, seek guidance from higher-ups in the organization, such as ethics officers or legal counsel. They may be able to provide additional support or intervene if the situation warrants it. Document Everything: Keep thorough documentation of your concerns, discussions with the purchasing manager, and any proposed revisions to the specifications. This will help protect you in case of any future disputes or investigations. Consider Escalation: If the purchasing manager is unwilling to address your concerns or if you believe the situation is not being adequately resolved, consider escalating the issue to higher levels of management or to relevant regulatory authorities. Ultimately, your goal should be to ensure that the procurement process is fair, transparent, and unbiased, and that the best interests of the company are being served. Instructor’s Notes: This ethical scenario forces students to determine any violations of their own ethical standards of fairness and business transparency. Using the ethical decision-making framework from Chapter Three, students can evaluate the ethical implications of this work situation and determine an appropriate course of action. Example answers: According to the ethical decision-making framework: “Have you thought broadly of any ethical issues associated with the decision to be made?” I have concerns about how fair the overall bidding process will be if the RFP specifications are written to favour one particular bidder, which might cause the firm to enter a less-than-optimal agreement. I also have considered how the lack of transparency in the process could damage the reputations of both my company and the bidder, which would cause us to lose face and run the risk of possible lawsuits. “Have you involved as many possible people who might have a right to offer input into or have actual involvement in making this decision and action plan?” At this point, no one is aware of my concerns. I have not yet approached my boss or any members of the management team, nor have I approached the bidder to see if the specification came directly from that company. “Does this decision respect the rights and dignity of the stakeholders?” My company’s management might not be aware of the situation, other bidders will not get a fair judgment, and I would compromise my beliefs if I go along with this specification as it stands. “Does this decision produce the most good and the least harm to the relevant stakeholders?” No, because the company likely to get the contract might not deserve it, and then my company would not receive the quality of work it wants at the most reasonable and fair price. “Does this decision uphold relevant conventional moral rules?” It likely violates the community’s standard for fair bidding procedures. Most people will likely think this situation is rigged to favour the bidder as part of some larger scheme. “Can you live with this decision alternative?” If the decision alternative is to discuss my concerns about the fairness of the process with my management team, then yes, I can live with that. Therefore, I will approach the management team about my concerns and advocate that the RFP specification be written to avoid favouring one bidder over the others. 8. You have recently been hired by Cognos, Canada’s premier business intelligence solution provider, as a salesperson for its suite of business intelligence applications. Pick one prospective company you plan to sell to and explain how you would go about identifying the persons in the different roles in the buying centre for the chosen company. How would you try to target the needs of the different members in the buying centre? The prospective company I've chosen to sell to is a mid-sized manufacturing firm called "TechFab Solutions." Here's how I would go about identifying the key players in the buying center and targeting their needs: Identifying the Buying Center: Executive Sponsor: The CEO or CFO of TechFab Solutions would likely serve as the executive sponsor. They hold the ultimate decision-making power and are concerned with overall business strategy, ROI, and alignment with company goals. End Users: These are the individuals who will directly interact with the business intelligence applications on a day-to-day basis. They could include department heads, analysts, and data scientists at TechFab Solutions. IT Department: The IT team plays a crucial role in evaluating the technical feasibility and compatibility of the business intelligence solutions with existing systems and infrastructure. The CTO or IT manager would typically be involved. Procurement: The procurement or purchasing department handles the negotiation of contracts, pricing, and terms of the purchase. The procurement manager or a purchasing agent would be the key contact here. Influencers: These could be individuals or departments that may not have direct decision-making authority but have significant influence over the decision. This might include senior managers or even external consultants advising TechFab Solutions. Targeting the Needs of Different Members: Executive Sponsor: Emphasize the strategic benefits of Cognos' business intelligence suite, such as improved decision-making, increased operational efficiency, and competitive advantage. Highlight how the solution aligns with TechFab Solutions' long-term objectives and can drive growth and profitability. End Users: Understand their pain points and challenges in data analysis and reporting. Showcase how Cognos' user-friendly interface, advanced analytics capabilities, and customizable dashboards can empower them to extract actionable insights from their data more efficiently, enabling better decision-making and performance tracking. IT Department: Address concerns about integration with existing systems, data security, and scalability. Highlight Cognos' compatibility with various data sources, robust security features, and flexible deployment options (cloud-based or on-premises) to assure them of a seamless implementation process and minimal disruption to their IT infrastructure. Procurement: Focus on demonstrating the value proposition of Cognos' solutions in terms of cost-effectiveness, return on investment, and total cost of ownership. Offer flexible pricing models and negotiate favorable terms to ensure a mutually beneficial agreement. Influencers: Tailor the messaging to resonate with their specific interests and priorities. Provide case studies or testimonials from similar manufacturing firms that have successfully implemented Cognos' BI solutions to address similar challenges and achieve tangible business outcomes. By understanding the roles and needs of each member in the buying center at TechFab Solutions, I can tailor my sales approach and value proposition to effectively address their concerns and ultimately secure their buy-in for Cognos' business intelligence applications. Instructor’s Notes: This question is designed to get students to think about the different roles in the buying centre, the information needs of each member of the buying centre and how they can initiate contact with these members. Most students will find this challenging since many will not have experience in B2B selling. Example answers: Students can pick any company they are familiar with but a large company may be a better example to work with because they may more likely use and benefit from BI software and tools. Take a medium-sized clothing retailer that is independently-owned and sells merchandise both online and in physical store. The roles of the buying centre members are: decider, initiator, influencer, buyer, gatekeeper, and user. The decider will need information on how the BI tools will improve the operational efficiency, sales revenues, profitability, quality of customer service, and speed decision-making while keeping costs low. The decider will also need information on how the BI application would change current organisational procedures and processes as well the level of training required for employees and users – organisational impact. The initiator and the influencer would need information about the capabilities of the product, its performance, who is using it, and customer reviews, and after-sale service and technical assistance. They would also need information on the technical requirements of the BI application as well as the cost. The buyer would need information about the cost and the procedures for ordering, delivery, and installation of the product. The user would need information about the ease of using the new product, the usefulness of the new product, how it will change – improve or worsen their jobs i.e. make it simpler or increase the complexity and workload, and what support and training will be offered. The gatekeeper will need as much information as possible about the product and the company including new modules, updates, service contracts, re-ordering, competing products, contact information of technical and service reps, etc. 9. Cognos has developed a new business intelligence application that they would like to sell to some of their existing customers. You are part of the sales team. How would your approach to selling to an existing customer be different than selling to a brand new customer? When selling to an existing customer versus a brand new one, my approach would differ in several key ways: Understanding Existing Relationship: With an existing customer, I already have a relationship established. I would leverage this by understanding their past interactions, preferences, pain points, and successes with our products or services. This knowledge allows me to tailor my pitch more effectively, emphasizing how our new business intelligence application addresses their specific needs and builds on their previous positive experiences with our company. Leveraging Trust: Since there is already a level of trust built with existing customers, I can capitalize on this by highlighting the reliability, quality, and support they have received in the past. This reassures them that our new offering is worth considering and that we will continue to provide exceptional service. Deepening Understanding: While selling to a brand new customer requires a thorough understanding of their business, industry, and pain points, with existing customers, I can delve even deeper. I would aim to have conversations that go beyond surface-level discussions, diving into their evolving needs, long-term goals, and how our new solution can contribute to their growth and success over time. Showcasing Value Addition: Rather than starting from scratch to build credibility, I can immediately showcase how our new business intelligence application complements their existing setup, enhances their current workflows, and delivers additional value. This might involve demonstrating integration capabilities with their existing systems or highlighting new features that directly address feedback or requests they've previously shared. Providing Exclusive Offers: Recognizing the value of their ongoing partnership, I would offer exclusive deals, discounts, or early access opportunities to existing customers. This not only incentivizes them to consider the new offering but also reinforces the benefits of staying loyal to our brand. In essence, selling to an existing customer is about nurturing and deepening the relationship we've already established, while demonstrating how our new solution adds value and supports their continued success. It's about building on trust, understanding, and mutual benefit to ensure a seamless transition and ongoing satisfaction with our products and services. Instructor’s Notes: This question forces students to think about the approach to personal selling in two quite different B2B contexts – a new customer versus an existing customer. Here the focus is on knowledge of the buying decision process in an organization where they know the buying process (an existing customer) versus and organization where they do not know the buying process (the new business customer). Example answers: In the existing customer organisation, the salesperson would know more about the buying process such as the rules and procedures, buying centre members, the buying centre culture, the roles played by the different buying centre members, and the requirements to make a strong sales presentation. Essentially, who to target with what information and how that information is to be presented. Here the salesperson can emphasise their ongoing and beneficial relationships as well as being in a better position to negotiate with the buying centre. Thus, they can better target their information to the relevant buying centre members based on the buying centre cultures of the organisation. With the new customer organisation, the salesperson will first have to learn about the new customer’s buying process, rules and procedures, organisational and buying centre’s culture, buying centre members, their individual roles, negotiation strategies, etc before developing and targeting them with the most appropriate information. Since the salesperson is new to the customer organisation, it will likely take some time to learn their procedures, understand their culture and earn their trust. 10. You are the owner of a mid-sized company (about 450 employees) that has a call centre that specialises in providing 24 hours a day technical support for individual computer owners. On day a sales rep from either Dell, HP or Lenovo approaches you with a business proposal that goes something like this: If you buy all your computer supplies from us, we will make you our exclusive call centre operator for all of Ontario and Quebec. Assume that all the conditions of the offer made to you are favourable. Will you accept the offer? Do you think that accepting such and offer is ethical? Accepting the offer would certainly benefit my company in terms of becoming the exclusive call centre operator for two major provinces, Ontario and Quebec. This would potentially lead to increased revenue and business stability, given the guaranteed volume of calls from these regions. Additionally, sourcing all computer supplies from a single vendor like Dell, HP, or Lenovo could streamline procurement processes and possibly lead to cost savings through bulk purchasing or preferential pricing. However, there are several ethical considerations to weigh before making a decision: Impartiality and Fair Competition: By becoming exclusive to one vendor, we may be limiting choice and competition in the marketplace. This could potentially harm consumers by reducing options and possibly driving up prices. Vendor Lock-In: Relying solely on one vendor for computer supplies could lead to dependency and limited flexibility in adapting to changing technological needs or unforeseen issues with the vendor. Employee Morale and Well-being: Depending on the terms of the agreement, such a significant shift in business operations could affect employee morale, job security, and potentially lead to job losses if not managed carefully. Customer Trust: Customers may perceive the exclusivity deal as compromising the integrity of our technical support services, questioning whether recommendations and support provided are genuinely in their best interest or driven by vendor interests. Ultimately, the decision to accept the offer would depend on careful consideration of these ethical concerns alongside the potential business benefits. It may be possible to negotiate terms that mitigate some of these ethical dilemmas, such as ensuring transparency with customers about the exclusivity arrangement and maintaining a commitment to providing unbiased technical support. Additionally, exploring alternative ways to achieve business growth and stability while upholding ethical standards should also be considered. Instructor’s Notes: This scenario encourages students to think about a common issue in B2B markets – reciprocal buying and the extent to which reciprocity is an ethical business practice. Example answers: Reciprocal buying or reciprocity is as described in the question, a situation where two organisations agree to buy each other’s products as a condition of doing business. Depending on the student’s perspective, they may or may not see any ethical issue. Some may argue that it is purely a business decision while other may argue that such an arrangement excludes other suppliers and does not create a level paying field for other companies providing similar services. Also, in such cases, neither company can guarantee that they are getting the best value for their money over the long-term. Net Savvy 1. Browse Public Works and Government Services Canada website (http://www.pwgsc.gc.ca) to learn more about the how you may sell goods and services to the federal government. Using the information on the website, describe the buying process used by the federal government and explain how the electronic tendering system supports buying and selling between Canadian companies and the government of Canada. The buying process used by the federal government of Canada involves several steps, which are facilitated through the electronic tendering system provided by Public Works and Government Services Canada (PWGSC). Here's an overview of the process and how the electronic tendering system supports buying and selling between Canadian companies and the government of Canada: Identification of Requirements: Government departments and agencies identify their needs for goods and services. Procurement Planning: This involves determining the procurement strategy, including whether it will be a competitive process or a direct award. Solicitation: The government issues a request for proposals (RFP), tenders, or quotes through the electronic tendering system. This allows interested suppliers to review the requirements and submit their bids electronically. Evaluation and Award: Once the submission deadline has passed, the government evaluates the bids based on predefined criteria. The contract is then awarded to the successful bidder. Contract Administration: After the contract is awarded, the government monitors performance and ensures that the terms and conditions of the contract are met. The electronic tendering system, often referred to as "Buyandsell.gc.ca," plays a crucial role in facilitating this process: Accessibility and Transparency: The electronic tendering system provides a central platform where all government procurement opportunities are advertised. This ensures that Canadian companies, regardless of their size or location, have equal access to information about government procurement opportunities. Efficiency and Cost Savings: By digitizing the procurement process, the government streamlines administrative tasks, reduces paperwork, and minimizes processing times. This leads to cost savings for both the government and suppliers. Standardization and Compliance: The electronic tendering system enforces standard procedures and templates for soliciting and submitting bids, ensuring consistency and compliance with government procurement policies and regulations. Security and Integrity: The system incorporates security measures to protect sensitive procurement information and prevent unauthorized access or tampering. This enhances trust and confidence in the procurement process among both buyers and sellers. Overall, the electronic tendering system provided by PWGSC plays a vital role in facilitating buying and selling between Canadian companies and the government of Canada by improving accessibility, efficiency, transparency, and compliance in the procurement process. Instructor’s Notes: Students must go online to explore how the Government of Canada MERX system (electronic tendering system) works and how buyers and sellers may use it to transact business i.e. obtain information and bid on government contracts. Example answer: The Government Electronic Tendering Service (GETS) is an on-line system that advertises government contracting opportunities to potential bidders. GETS is operated by MERX. All federal departments must use MERX to advertise all competitive opportunities subject to Trade Agreements the Government of Canada has signed with other countries such as NAFTA. MERX is accessible from any location and suppliers free access to basic services that include viewing notices on the MERX site, ordering bid documents electronically, and creating a single profile for your company for the MERX Opportunity Matching Service. This profile will ensure you received electronic notification when opportunities that match your profile are posted. 2. Mark’s Work Wearhouse, a Canadian company that currently operates mainly in the B2C market, has hired you as their government-business relations officer with the primary task of helping the company move into the B2B marketplace selling its merchandise primarily to government departments. Explain how you would go about getting Mark’s Work Wearhouse ready to do business with the Canadian government. Hint: you will find tons of helpful information on the website of Public Works and Government Services Canada (http://www.pwgsc.gc.ca), Business Access Canada http://contractscanada.gc.ca), and Strategis Canada (http://strategis.ic.gc.ca/). To prepare Mark’s Work Wearhouse for entering the B2B marketplace and selling merchandise to government departments in Canada, here's a step-by-step approach: Research and Understand Government Procurement Procedures: Begin by thoroughly researching the procurement procedures and regulations governing government contracts in Canada. Key areas to focus on include procurement policies, tendering processes, and supplier requirements. Review Government Procurement Websites: Utilize resources such as Public Works and Government Services Canada (PWGSC), Business Access Canada, and Strategis Canada to gather information on government procurement opportunities, regulations, and guidelines. Compliance and Certification: Ensure that Mark’s Work Wearhouse meets all necessary compliance standards and certifications required by the government. This may include quality standards, safety regulations, and any specific industry certifications. Identify Target Government Departments: Identify the government departments and agencies that would be potential buyers for Mark’s Work Wearhouse products. This could include departments related to public safety, transportation, defense, etc. Tailor Products and Services: Tailor Mark’s Work Wearhouse products and services to meet the specific needs and requirements of government buyers. This may involve customizing products, offering bulk discounts, or providing specialized services such as customization or maintenance contracts. Develop Marketing Materials: Develop targeted marketing materials and presentations highlighting the benefits of Mark’s Work Wearhouse products and services for government clients. Emphasize factors such as quality, durability, compliance with regulations, and cost-effectiveness. Attend Government Procurement Events: Participate in government procurement events, trade shows, and networking opportunities to establish connections with key decision-makers within government departments. This provides an opportunity to showcase products, build relationships, and gain insights into procurement needs. Establish Relationships and Partnerships: Establish strategic partnerships or alliances with other businesses that have experience in government contracting or complementary products/services. This can enhance credibility and provide additional resources for navigating the procurement process. Register on Government Supplier Databases: Ensure that Mark’s Work Wearhouse is registered on relevant government supplier databases and portals, such as Buyandsell.gc.ca, to receive notifications about procurement opportunities and submit bids electronically. Training and Capacity Building: Provide training to key personnel within Mark’s Work Wearhouse on government procurement processes, compliance requirements, and best practices for dealing with government clients. This ensures that the company is well-prepared to navigate the complexities of B2B sales to government entities. By following these steps and leveraging available resources, Mark’s Work Wearhouse can effectively prepare to do business with the Canadian government, tapping into a lucrative market segment and expanding its B2B operations. Instructor’s Notes: This question would be very challenging for most students but they could learn quite a lot about how private companies do business with the largest single buyer in the country – the Government of Canada. Many will find this process to be much different from what they expect – a real eye opener. Example answer: First you must register Mark’s Work Wearhouse with the Supplier Registration Information (SRI), so that it becomes available as a supplier on various searchable database systems such as Vendor Information Management (VIM) system and SELECT system. You must also register Mark’s Work Wearhouse with MERX and constantly monitor Merx to view business opportunities. Registration alone does not automatically guarantee a contract. You must actively promote your company’s goods and services through key contacts in government departments – this could get your name as a potential supplier; identify your special selling features , qualities and uniqueness of your products/services from competing products/suppliers. Research government markets and focus your efforts on key people such as the material managers in the various government departments. End-of-Chapter Case The Globe and Mail Cruises to New Advertising Clients Questions: Based on the information presented in the case, what are some of the differences between B2B and B2C buying? In analyzing the case of The Globe and Mail Cruises attracting new advertising clients, we can identify several differences between business-to-business (B2B) and business-to-consumer (B2C) buying behaviors: Decision-Making Process: B2B: The decision-making process in B2B transactions typically involves multiple stakeholders and a longer, more complex process. There may be various decision-makers within the organization, each with different priorities and criteria. B2C: In contrast, B2C transactions often involve a single consumer or household making a relatively straightforward purchasing decision based on personal preferences, needs, and desires. Nature of the Relationship: B2B: Relationships between B2B buyers and sellers tend to be more long-term and based on trust, reliability, and the ability to provide value-added solutions. Building and maintaining these relationships are crucial for securing business. B2C: While relationships can still be important in B2C transactions, they are often more transactional and less reliant on ongoing communication and support. Decision Criteria: B2B: B2B buyers often prioritize factors such as cost-effectiveness, return on investment, quality, reliability, and compatibility with existing systems or processes. They may also consider factors like vendor reputation and customer service. B2C: B2C buyers are typically driven by factors such as price, convenience, brand reputation, product features, and emotional appeal. They may be influenced by advertising, peer recommendations, or trends. Volume and Frequency: B2B: B2B purchases usually involve larger order volumes and less frequent buying cycles. Businesses may make significant investments and commitments when selecting suppliers or partners. B2C: B2C purchases often involve smaller order sizes and more frequent transactions. Consumers may be more flexible and willing to switch brands or products based on immediate needs or preferences. Personalization and Customization: B2B: B2B transactions often require customized solutions tailored to the specific needs and challenges of each business. Sellers may need to provide personalized services, customization options, and ongoing support. B2C: While personalization is still important in B2C marketing, it may be more focused on targeting specific consumer segments or preferences rather than individual customization. Risk and Reward: B2B: B2B purchases typically involve higher stakes and greater risks for both the buyer and seller. Businesses may be making strategic investments that could impact their operations and bottom line. B2C: B2C purchases generally involve lower risk and lower financial stakes for individual consumers. While there may still be considerations of product quality and satisfaction, the consequences of a poor purchasing decision are usually less severe. Understanding these differences is essential for businesses like The Globe and Mail Cruises as they navigate the complexities of attracting and retaining both B2B and B2C advertising clients. Instructor’s Notes: Students must apply the differences outlined in the chapter to the B2B buying process described in this case. Example answers: Market characteristics – fewer customers (advertisers and Globe & Mail readers) Product characteristics – The cruises is a complex service requiring a lot of planning and coordination. The cruises involved working closely with advertisers to plan and coordinate their specific event. Buying Decision – It was a complex decision involving many high-level executives of the Globe & Mail; multiple people with varying interests participated in the decision (5 groups of executives), it involved the senior marketing executive team to make personalized sales pitches to advertisers – personal selling; and involved the President of Cruise Connection, a highly experienced Cruise vendor. Marketing Mix Characteristics; Involved direct selling – personalized sales pitches were made to potential advertisers; the product/service sold was very expensive and advertisers had to be convinced that there was a return for their businesses; prices were negotiated with each advertiser and there were lots of intense negotiations with foreign governments to get approvals for the various events. 2. To what extent does the buying process followed in this case reflective of the buying process described in the text? What factors account for any differences observed? However, I can outline some factors that might contribute to differences between a described buying process and one observed in a case: 1. Complexity of the product/service: If the product or service being bought in the case is more complex or unique compared to what is described in the text, the buying process may be different. For instance, buying a simple consumer product like a smartphone might follow a straightforward process outlined in the text, while purchasing specialized industrial machinery would involve a more elaborate process with multiple decision-makers and evaluation criteria. 2. Nature of the market: The market conditions, competition level, and industry norms can influence the buying process. For example, in a highly competitive market with rapidly changing technology, the buying process might be more dynamic and fast-paced compared to a relatively stable market described in the text. 3. Customer preferences and behavior: Customer preferences, needs, and decision-making criteria can vary widely based on factors like demographics, psychographics, and past experiences. These differences can result in variations in the buying process observed in the case compared to the one described in the text. 4. Supplier characteristics: The characteristics and behavior of suppliers can also impact the buying process. Factors such as supplier reputation, reliability, and flexibility can influence how buyers engage with suppliers and negotiate terms, potentially leading to differences in the observed buying process. 5. Technological advancements: Changes in technology, communication channels, and information availability can alter how buyers research, evaluate, and make purchasing decisions. If the case involves newer technologies or platforms not covered in the text, it could lead to differences in the buying process. 6. Regulatory environment: Regulatory requirements and compliance standards can shape the buying process, particularly in industries with strict regulations or government oversight. Changes in regulations or industry standards since the text was written could result in differences in the observed buying process. Analyzing these factors can help identify why the buying process observed in the case deviates from the one described in the text, providing insights into how contextual factors influence purchasing decisions. Instructor’s Notes: This question asks students to apply their knowledge of the buying process to the specific situation of this case – selling a service for the first time (a cruise to advertisers and consumers as opposed to advertising space in the Globe & Mail or the newspapers to readers) Example answers: The buying process followed in this case departs from the process outlined in the book in some ways because it was a unique service that does not fall within the regular business model of the Globe & Mail. Need Recognition – Globe & Mail marketing executives recognized the need for a promotion that will recruit advertisers to the new section of its newspaper, Globe Life. Product Specification – Once it was decided that a cruise was the promotion they were going to adopt, they enlisted the service of a professional cruise vendor to plan the itinerary and to specify in detail the various activities, events, and benefits of the cruise RFP Process – this stage was not followed in the strictest sense described in the text because the Globe & Mail decided very early to use one of its existing advertisers, Cruise Connection and its president, Sanjay Goel. Proposal Analysis & Supplier Selection – there were intense negotiations with multiple parties – advertisers to not only get to buy a cabin for the cruise but also to get them to plan and present an activity on board; Sanjay Goel of Cruise Connection to offer a good deal on the price for the cruise, several foreign governments to get their approvals for site visits and events. Order Specification (Purchases) – Once the senior management team approved the cruise, the marketing team was responsible for purchasing all the services, products, and other items needed for the cruise. Vendor Analysis – this stage was not followed in the strictest sense described in the text but the Globe & Mail did offer patrons, both advertisers and passengers, of the cruise to fill out a survey covering various aspects of their experiences on the cruise. The Globe & Mail also carried out its own in-house analysis of both cruises. 4. Who are the members of the buying centre and what role did each play in the buying decision? Without specific context, I can offer a general breakdown of the members typically found in a buying center and their roles in the buying decision: 1. Initiator: This member recognizes the need for a purchase or suggests the idea. They might be a user of the product/service or someone in a managerial position who identifies a need within the organization. 2. Influencers: These individuals provide information, opinions, and recommendations regarding the purchase. They may include technical experts, consultants, or department heads whose input influences the decision-making process. 3. Decider: This person or group has the authority to make the final decision. Depending on the organization, it could be a single individual, a committee, or a board of directors. 4. Buyer: This member is responsible for executing the purchase. They negotiate terms, finalize contracts, and handle financial transactions. 5. User: The user is the individual or group who will ultimately use the product or service. Their preferences and requirements are considered in the decision-making process. 6. Gatekeeper: This member controls the flow of information to the buying center. They may filter information, manage communication channels, and influence which vendors or options are considered. Each member plays a crucial role in the buying decision, with their involvement and influence varying depending on the organization's structure, culture, and specific needs. Instructor’s Notes: This question asks students to identify the buying centre members and to evaluate their different roles. Example answers: The Buying Centre was comprised of: Initiators – the Globe & Mail senior marketing executives recognized the need for a promotion that centered around the topics covered by Globe Life, the new section of the newspaper. Influencers – Sanjay Goel, President of Cruise Connection, suggested that a cruise can be a great way to attract both advertisers and consumers to this new feature section of the Globe & Mail. The Caribbean Cruise was suggested by an advertising client whereas the Mediterranean Cruise was suggested by passengers of the Caribbean Cruise. Decider – Five groups of executives representing different interests were involved in the decision making. These executives included the director of marketing, the vice-president of marketing and business development, the vice president of advertising sales, The Globe and Mail publisher, and the chief financial officer of CTV Globe Media. Buyer - the Globe & Mail senior marketing executives Gatekeeper – Sanjay Goel acted as the liaison between the Globe & Mail and foreign governments to secure their approvals for several events of the cruise. Users – The Globe & Mail customers and advertisers, both current and potential. Of the four organizational buying cultures described in the text – autocratic, democratic, consultative, and consensus – which one best described the way the decision was made to go ahead with the Mediterranean Odyssey cruise? Explain your rationale. Based on the information provided, the decision to go ahead with the Mediterranean Odyssey cruise likely aligns best with a consultative buying culture. In a consultative buying culture, decisions are made by consulting with various stakeholders and experts within the organization before reaching a conclusion. In the case of the Mediterranean Odyssey cruise decision, it's likely that input was sought from different departments or individuals within the organization. This could include discussions with finance teams to assess the budget, marketing teams to evaluate the potential customer interest, and operations teams to ensure logistical feasibility. Additionally, input may have been gathered from key decision-makers or executives to weigh in on the strategic implications and alignment with organizational goals. Ultimately, while the decision may have involved input from multiple sources, it may not have required full consensus from all stakeholders, as would be the case in a consensus buying culture. Instead, decision-makers likely sought insights from relevant parties to inform their final decision, which is characteristic of a consultative buying culture. Instructor’s Notes: The question simply asks students to apply their knowledge of what differentiates the four types of buying cultures. Example answers: The information in the case suggests that the decision was made on a consensus basis after each of the 5 groups of executives assessed how the cruise benefitted them and the company as a whole. The rationale is given in the last paragraph of the case (replicated below): Five groups of executives representing different interests were involved in the decision making. These executives included the director of marketing, the vice-president of marketing and business development, the vice president of advertising sales, The Globe and Mail publisher, and the chief financial officer of CTV Globe Media. Each executive scrutinized the business case from a different perspective. For example, the director of marketing looked at the business case to determine whether the company could sell all the cabins, that is, consumer uptake. The advertising sales executive evaluated how much revenue could be brought in through sponsorship and ad incentives. The CFO looked at the business case from the perspective of all the different forecasted numbers coming together as a whole and determining the risk factors (the big picture). After much discussion, all the executives agreed and decided to go ahead with the cruise. Video Activities Video: Dole: Buying from Vendors around the Globe Learning Objective: LO 2, LO 4 and LO 5 Page Number in Text: 186 and 197 Description: This video presents a detailed description of the B2B buying process in the context of a manufacturing company that buys products for either resale to ultimate consumers or further processing before selling it to ultimate consumers. The steps of the buying process and the importance of key factors at each stage are identified and described Key Words: B2B buying process; need recognition; product specification; RFP process; proposal analysis and supplier selection; order specification; vendor performance analysis. Activity: Ask students to view the video and then (1) compare the B2B buying process described to that of the consumer buying process studied in Chapter 6, particularly with respect to the buying process characteristics described in Exhibit 6.2 on p. 187, (2) pick any one of Dole's products and develop a list of specifications they think would be important, and (3) identify three potential vendors for the product they pick in the previous step and develop a vendor analysis using Exhibit 6.5 on page 193 as a guide. Students could also be asked to make a list of the factors that influence the buying process in Dole as this could be an interesting segue to discuss the factors affecting the buying process. 1. Comparison of B2B Buying Process and Consumer Buying Process: The B2B buying process, as described in the video, shares similarities with the consumer buying process studied in Chapter 6, but there are also notable differences. Both processes involve stages such as need recognition, information search, evaluation of alternatives, and purchase decision. However, in B2B buying, the process is typically more formalized and involves multiple decision-makers. For instance, in the B2B context, there is often a formal Request for Proposal (RFP) process, where vendors submit detailed proposals in response to the buyer's specifications. Additionally, the B2B buying process tends to be more relationship-oriented, with a focus on long-term partnerships and vendor performance analysis. 2. Specifications for a Dole Product: Let's consider Dole's pineapple juice as an example product. Some important specifications for this product might include: • Juice content percentage (e.g., 100% pure pineapple juice) • Packaging type and size (e.g., 1-liter tetra pack) • Shelf life and storage requirements (e.g., refrigeration needed or ambient storage) • Nutritional information (e.g., calories per serving, vitamin content) • Production process (e.g., pasteurization method) • Quality standards and certifications (e.g., FDA approved, organic certification) 3. Vendor Analysis for Dole's Pineapple Juice: Using Exhibit 6.5 on page 193 as a guide, here's a vendor analysis for Dole's pineapple juice: • Vendor 1: Pineapple Farms Inc. • Strengths: Established reputation for quality pineapple products, sustainable farming practices. • Weaknesses: Higher price point compared to competitors, limited production capacity. • Opportunities: Potential for partnership in sustainability initiatives. • Threats: Dependence on weather conditions affecting pineapple crops. • Vendor 2: Tropical Beverages Co. • Strengths: Large-scale production capacity, competitive pricing. • Weaknesses: Limited focus on sustainability, inconsistent product quality reported by some customers. • Opportunities: Ability to provide bulk orders at discounted rates. • Threats: Competition from other beverage companies offering similar products. • Vendor 3: Organic Pineapple Farms Ltd. • Strengths: Specialization in organic pineapple farming, commitment to sustainable practices. • Weaknesses: Smaller scale compared to other vendors, higher price due to organic certification. • Opportunities: Growing demand for organic products, potential for premium pricing. • Threats: Limited distribution network compared to larger competitors. 4. Factors Influencing the Buying Process in Dole: Factors influencing the buying process at Dole may include: • Quality and consistency of the product. • Price competitiveness. • Supplier reliability and reputation. • Sustainability and ethical sourcing practices. • Innovation and product development capabilities. • Compatibility with Dole's corporate values and objectives. • After-sales service and support. • Regulatory compliance and certification standards. • Supply chain resilience and risk management. Solution Manual for Marketing Dhruv Grewal, Michael Levy, Shirley Lichti, Ajax Persaud 9780071320382, 9780070984929
