BABASAHEB GAWDE INSTITUTE OF MANAGEMENT STUDIES

MMS SEMESTER III (2007 Batch) SEMESTER END EXAMINATION B2B MARKETING & CRM Time : 3 hours 26/11/2008 Marks: 60

Note: 1. Question No. 1 is compulsory. 2. Attempt any four from the remaining questions. Q.1 Q1. CASE STUDY. ABC LTD was established in the early 80s in a joint venture with a leading American company to manufacture engineering and automotive components for the growing Indian markets. By the mid- 90s the company established two plants in western and southern India to cater to the growing demand. During this period, the company absorbed considerable technology from the JV partners and was able to commence exporting its products to the various markets in Africa, Middle East and SE Asia, under its own brand with direct competition with the partner. This event lead the partner to withdraw from the JV agreement. It was however agreed that the partner would be free to establish its own operations and market its products in India. Forseeing increased local competition, ABC LTD was now considering exporting its products to developed markets in Europe, Japan and the USA. Mr Dilip Panchal was recruited to head the International business and to work out a strategy to expand the exports business very rapidly. He identified a lack of expertise in design and certain manufacturing technologies as key constraints to the company for entering the highly competitive markets in Europe etc. The market situation was such that no prevailing competitor was willing to offer their designs or technology to avoid potential competition. On the marketing front, Mr Dilip recommended that ABC establish its own representative offices in these countries to have direct contact and to gradually build a local distribution system. Each markets has its own channels of distribution and to create confidence, it became necessary to have the company representative offices in these countries. He also recommended that the company focus on replacement market rather than on original Equipment (OE). Segment.. Traditionally the OE segment has large volumes, but at very low margins. The replacement markets in these countries were dominated by large chains of distributors with their own brands. These chains usually bought components from companies who were Tier 2 OE suppliers and often marketed the products under their own brand names.

Due to varying market conditions ABC Ltd had to price its product differently in different markets, leading to a situation where the same products could be bought from a distributor in one country and sold in another country in a profitable manner.. Besides, since ABC had established its brand , many copy cats products manufactured by some of the smaller non OE players with similar brand name and packaging, but of much lower quality and significantly lower prices, entered the markets. The dealers of ABC complained to the management about their eroding market share and margins by unauthorized players and threatened to quit if not resolved. Mr Dilip was asked to look into the problem and resolve it quickly. The company had a good collaborative relationship considerable expertise and term measure. In the long opined. R&D team. They advised the management to seeek a with leading Italian designs bureaus, which had were acknowledged leaders in the field, as a mediumterm, it was necessary to build in- house expertise, he

The management of ABC Ltd was concerned about the following : 1. What short term or long term strategy should they follow in order to achieve 30 % revenues from exports. 2. Whether it should agree to sell its products under the distributors brand and what impact this could have in the long run. 3. What channel of distribution should they use ? Should they be the same in all markets? 4. How it should tackle the menace of low priced competition from spurious manufacturers? DISCUSS AND OFFER YOUR SOLUTIONS TO THE MANAGEMENT WITH JUSTIFIABLE REASONS? Q.2 Write short Notes (Any three) a. CRM Technology vs Strategy. b. Macro Segmentation. c. Industrial Marketing Environment. d. Exchange in B2B and its types. e. Consumer vs Industrial pricing. Q.3 Explain in details the various phases of purchasing decision process? What should be the appropriate strategy for a marketer, given that the company ABC ltd wants to make a a. New purchase, and b. Modified rebuys. 10

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Q.4 a. What is B2B marketing? What are the objectives and elements of B2B communication? c. Explain in details the steps involved in pricing strategy, in context of an Industrial product? Q.5 a. List the various activities involved in Industrial selling? b. Write a short note on CRM? Q.6 Answer any three a. How to improve customer loyalty? b. Key Account Value Model? c. What are the different types of Negotiations? d. Types of buying situation? Q.7 Explain the steps involved in pricing strategy? Explain with relevant examples.?. ****************************

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