BUSINESS TO BUSINESS MARKETING

Business-to-Business Marketing



Business-to-Business Marketing

1) Marketing Mix

Product

TCL offers a very broad range of services, including media planning, market research, graphic design, media buying and public relations services. TCL also offer clients direct mail marketing and web page design. Additionally, agencies offer services across a variety of media. During the five years to 2012, internet advertising has increased and newspaper advertising has declined. Many of the players within this industry are one-stop shop agencies, which offer access to a broad array of advertising services. Most clients use advertising agencies to perform all tasks of a campaign (from idea conception to media buying). Integrated advertising services accounts for the largest share of industry revenue because it incorporates all steps involved in the placement of an advertisement, such as graphic design and media planning. Clients seeking integrated advertising services accounts for 69.5% of total industry revenue.

Not all clients demand full service; many need only a particular function completed. For example, a business operating within a defined industry might only have a handful of media outlets in which to advertise. Companies operating within the industry are less likely to need integrated services or media planning because they will know each of the publications. However, they are likely to need creative work to develop an advertisement, which accounts for 9.0% of industry revenue. Creative work is the conception of ideas for an advertising campaign and represents the second largest source of industry revenue.

With the rise of the global advertising agency, offering a large number of services has become critical to success. While many niche operators do not have the capacity to do everything, the industry is dominated by global one-stop shop advertising agencies. On the other hand, many small agencies have carved a place for themselves by specializing in particular types of advertising. For example, an agency might specialize in health-care employment advertising or a particular demographic such as the Hispanic market. As markets continue to fragment, IBISWorld anticipates that such establishments will become more numerous; however, global firms will acquire many of them as the industry consolidates.

Price

TCL does not have any fixed price for its customers. The price of TCL depends on the demand of the services and its urgency. Factors that influence price include: timeframe, type of media, frequency and design. The new pricing strategy which the company will be implementing is based on the realtionship and the priority of the customers. There are various price benchmarks set by the company. For example, for the services of advertising the company charges between 10-20% of the whole deal as their commision. This can vary between companies. If a new product is being launched and the company is at its initial phase, TCL has a policy of price relaxation which would be implemented there. Similarly, there is also cost leadership strategy which the company would be implementing depending upon the market price offered by other competitiors.

Costs are an important determinant of prices charged by ...