Marketing Management – Management – Assignment Assignment # 2 Mahmoud Nassef Ebrahim Mohamed – Mohamed – Student Student # 18, MBA Intake # 53A – 53A – Campus: Campus: Mohandeseen. 1. How is building a brand in a B2B context different form doing so in the consumer market?
In B2B market, there are deciders, influencers, users and buyers - all making or playing a part in the decision making process to buy or not to buy a product and/or service. While in B2C market, these four roles may be allocated or assumed by one or two people.
It seems that B2B marketing consists of a more direct approach through very specific channels of distribution. B2B success is centered on more relationships between companies; Cisco was demonstrated by its B2B relationships it developed with Matsushita, U.S. West, and Sony.
In 90's, Cisco was extremely successful at working the B2B model and focused on technology companies and specific corporations to sale their internet based technolo gies too.
Cisco began making acquisitions in the 21st century, such as Linksys which began their efforts toward consumer marketing, away from B2B marketing. Cisco has continued to change its messaging, focus advertising on customers, and worked hard to make its brand image known throughout the world.
The difference bet. B2B and B2C marketing comes down to the buyers’ emotional perspective about the purchase. Consumers make buying decisions based on status, security, comfort & quality. “Business buyers make buying decisions based on increasing profitability, reducing costs costs & enhancing productivity.
2. Is Cisco’s plan to reach out to consumers a viable one? Why or Why not?
Based on its success in B2B, Cisco’s plan to reach out to consumer is a viable one.
B2C market is product driven but B2B depends on relationships. With the acquisition of Linksys in
2003, Cisco entered into the consumer market. They started offering home entertainment solutions including wireless capabilities for music, printing & video.
Cisco proves that its marketing & business strategies have done it, includin g the following plans: 1) Partnerships with Sony, Matsushita, and US West to co -brand its modems. 2) The company launched its first television ads entitled as “Are You Ready?” 3) Cisco reorganized 11 new technology groups and marketing organization. 4) Introduced new marketing campaign “The Human Network” These plans helped the company to build brand awareness, name recognition and brand value as well.
Therefore, penetrating the B2C market was a smart strategic move. Sources: Kotler, P., & Keller, K. L. (2012), 14th edition, marketing management. Doctoral dissertation by Galina Biedenbach (2012), Umea University, Sweden. www.masterful-marketing.com
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