Question 1
The recession presents a situation in which firms have to re-strategize their marketing mix to ensure that they remain competitive in the ever dynamic market segments. In the case of SPSL its marketing mix has focused primarily on the product and the price. The Blair brothers have concentrated onensuring that the products they provide are of high quality and secondly that the prices of their services are towards the premium price in the market. Resultantly, the company SPSL has given itself a competitive edge over other plumbing companies in the South London region. With effect, the company owes much of its success to word of mouth which has won it publicity among clients and ultimately expanded its consumer base. Notwithstanding, it is imprudent for the company to rely purely on the price and product in the marketing mix to ensure that the firm steers to success and maintains its competitiveness in the industry. Further, it is important that the company SPSL shift its focus from just the price and product in the marketing min and include customer engagement. This is because success in the plumbing business takes more than simply delivering the product or service to the client; it also entails improving their performance to help the customers thrive. The outcome of a successful thriving customer base ensures the sustainability of partnership or a relationship between the customers and the company.
Hence, in this spirit the company SPSL must prioritize customer relations to ensure sustainability in the success of the company both in the short and in the long term.Similar sentiments furthered by RauyruenMiller&Barrett propose that relationship building between the company and the customer serves as the main driver of customer; loyalty, commitment, satisfaction and goodwill. They add that relationship quality at the customer level influences aspects of customer loyalty on various angles that include; attitudinal loyalty and behavioral loyalty. With effect customers who experience quality relationships when dealing with the organization can attest to having positive attitude towards the company that translates into appraisal through word of mouth which in turn serves to build the image of the company among clientele. Similarly, behavioral loyalty stems from the customer’s commitment to purchase the product or service of the firm. Furthermore, customer behavioral loyalty can be seen in his or her commitment in making repeat purchases from the company over a period of time.
The company should as well consider changing its marketing mix approach which is primarily focused on the 4 P’s of the marketing mix. Consequently, the $ P’s marketing mix is traditionally associated with the goods industry or companies that provide goods as their main product. In recent times especially due to the financial crises experienced worldwide companies especially in the service industry find that it is increasingly becoming necessary to adopt the 7 P’s marketing mix approach as it is friendlier to service oriented businesses. Therefore, it is necessary that SPSL moves away from its $ P’s marketing mix approach to the 7 P’s marketing mix to ensure the sustainability of its profit margins in the service industry which is primarily its main source of business.
The recession also presents a variety of logistical challenges that if not put in check may render the company incapable of maintaining its network of contacts and business partners. To effectively counter the challenges brought about by this the company can make strategic investments in building communication networks between itself and stakeholders. These communication networks play an important role in relaying information from one end to the other ensuring that the company SPSL is upbeat with the current trends in the industry that may affects its normal business operations. Moreover, the firm stands to gain information that may lead to collaboration between itself and other industry players. Such relationships promise various benefits to the firm that entailmarket intelligence, feedback on performance, idea generation and methods of improving service delivery among others. Such information will provide the company SPSL with the tools to ensure that it steers to success in its business undertakings.
Question 2
An analysis of the challenges that SPSL faces with regard to its B2B approach to building relationships with other business firms as a strategy to steer it to success in comparison to the Business to Customer approach employed by other firms reveals that the company SPSL is favored and disfavored by various aspects that In turn influences its business operations.
First, the analysis reveals that the company SPSL B2B approach to relationship building is advantageous due to the fact that the company is capable of creating quality relationships between itself and other partners especially suppliers. With effect the company has won customer loyalty from its suppliers that has ensured that the service delivery to customers is not compromised. As a result the firm is capable of satisfying its customers and hence enjoy publicity created from word of mouth in appraisal of the companies services.
On the other hand, the company loses out on the benefits that accrue from B2C approach since elements of customer satisfaction are not put into consideration. Moreover, the company has invested very little in ensuring that the business customer relationship is sustained an element that is proven to win customer loyalty for the firm and ensure that the returns of the business are maintained and continue to grow. In addition, by concentrating more on business to business relations and less on business to customer relations the company loses out on a very central aspect that is the driver to success i.e. customer loyalty. As a result, the firm may win customers in the short term but may fail to maintain them in the long run since they may move on to other competitor firms.
Therefore, the central challenge that SPSL faces with regard to its B2B approach is that of winning consumer trust. It follows that without consumer trust, the company cannot develop consumer loyalty and with effect diminishes its chances of making repeat sales to customers who remain loyal to the products and services of SPSL. Further, in a competitive market such as is the plumbing industry it is crucial for the company to ensure that it maintains or sustains its customer base to as current economics indicate that repeat purchases are earning companies more profits that new customers especially after the financial crisis that hit the world’s major financial markets.
Another notable challenge for the SPSL firm through its B2B approach is that it is benched on the traditional 4 P’s marketing mix that has been proven to favor the goods industry as compared to the service industry which is the main business of the SPSL firm. Moreover, the & P’s marketing mix that is a recent development in marketing places emphasis on the conditions of the service industry and considers various aspects of the service industry that are particular to such industries. Hence, the 4 P’s marketing mix pauses a challenge to the Blair brothers’ company as it does not dully put into consideration the needs of a service providing company such as SPSL. Notably, the B2B approach adopted by the SPSL Company is founded on the 4 P’s marketing protocols whereas the B2C approach is more 7 P’s oriented which the company should adopt since it is by and large a service industry company.
Question 3
The essence that the Blair brothers have placed on business to business relationships can be clearly drawn from the emphasis that the two have placed on B2B noting that it is the way through which success can be achieved in the firm. Moreover, the focus on B2B relationships in this regard is to build an understanding between the firm and its business partners that will serve to ensure that the firm enjoys benefits that may accrue in such an arrangement. The main function of B2B is to provide products and services to other companies and in this is done at the lowest cost possible to ensure that the company is able to provide its goods and services at competitive prices. The ultimate aim here being such that the company can enjoyattractive profits realized from the provision of goods and services to its customer base at competitive prices.
Secondly, relationship networks are of importance to SPSL because it is a predictor of B2B customer loyalty. According to , quality relationships between the company and employees of the suppliers as well as quality relationships between the firm and the suppliers themselves can be a driver of building trust. The company by ensuring that it enjoys quality relationships with stakeholders in the supply chain are able to ascertain that their interests are safeguarded by their suppliers. Moreover, this serves to build loyalty where the company enjoys quality relations between itself and its suppliers. Resultantly, the firm can ensure that its service delivery to customers is of the highest achievable standard and thereby sustaining its level of performance in the industry if not improving it.
Thirdly, building trust among stakeholders in B2B undertakings serves a wholesome purpose of ensuring that the customer is satisfied and hence can trust that the company has his or her interests at heart. The services and products of the company regardless of the prices offered in the market may play a very limited role in retaining the customer. Hence, to win customer loyalty, the focus on B2B relationship should be focused on winning the trust of stakeholders he they suppliers or customers. The focus of marketing strategies of the day are such that emphasis is placed more on winning new customers whereas this parallels the needs to maintain the current customer base. This conventional focus on the products feature and the price is no longer sufficient in sealing the deal in an increasingly competitive and dynamic segmented market place. Therefore, it is central that a company such as SPSL strategies a marketing mix mechanism that puts into consideration customer retention initiatives to ensure sustainability of the business in the competitive market.
Similarly, B2B undertakings play an important role in ensuring that the flow of information between the business and its partners is smooth sailing so to speak. Fundamentally, a working relationship between the firm and other stakeholders allows communication to flow between parties. Moreover, the parties share information that may include market intelligence, feedback on performance, idea generation and methods of improving service delivery among others. All these work hand in hand to ensure that the business clinches a competitive edge that is termed as strategic value. Hence, a B2B relationship yield a communication network that ensures information flow though the network in favor of the company’s interests in the industry.
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