Question 1

Greenfield Seeds is a leading agricultural company that operates in the B2B market, what this
means is that they cater their products and services to other businesses, government bodies, and
institutions rather than the ordinary consumers.

The distinct difference between B2B markets and B2C markets falls under three aspects,
including factors internal to the company, customer/marketing, and uncontrollable factors & the
environment.

In a B2B context, there is greater interdependence across departments, and the need for managers
to co-operate with other departments is higher, resulting in marketing strategies that are the same
as corporate strategies because the overall objective is all about the company’s scope and their
resource allocation. In terms of customers and marketing, it is likely that there are fewer
consumers, yet the order from each customer is of greater value. Customers carefully review
their purchases in a rational way with a greater purchase professionalism considering their large
spendings. This is especially important in the B2B marketing context as it points out the
importance of relationship marketing and the need for different segmentation strategies. Finally,
as for uncontrollable factors & the environment, the demand in B2B markets is volatile because
demand is purely based on consumer needs, and that it fluctuates depending on different factors
such as economic factors, or stocking and de-stocking effects.

Utilising the purchasing tasks and markets’ actions framework, Greenfield Seeds should
approach the two appointments differently to effectively attract and satisfy the two businesses
with completely different relationships.

Considering the first appointment, which is with a long-standing buying organisation that
Greenfield Seeds has been serving for the past five years, they are considered as in-suppliers
because a relationship has already been established and they are likely to re-purchase with
confidence. Following the framework, the strategy that should be used here to maximize sales
opportunities and strengthen the relationship starts off by assigning new tasks that compromises
monitoring the changing needs and offer consultation in specifying supply needs to address any
potential concerns that might be in the customer’s head. A customer selects your products for a
reason, and if the changing or underlying needs have not been met it is likely that they will turn
to your competitors, and thus this is a crucial part within the strategy that should be carefully
built. Considering the buying situations, it is likely that the first appointment is a straight rebuy,
and therefore what the company needs to address is reinforcing their relationship and conduct
regular & frequent communication to receive feedback. The benefit of this approach focuses on
cultivating a deeper and meaningful relationship with the customer that ensures long-term
satisfaction and brand loyalty which leads to repeat purchases.
As for the second appointment, Greenfield Seeds is considered as an out-supplier because they
have never served or dealt with the customer in the past and is therefore considered as risky.
Their strategy starts off by tracking search and communication to understand the needs of the
customer. This helps the company to identify any specifications which contribute to tailoring a
solution to address the specific needs and secure the purchase. The situation is that the second
business customer is unsatisfied with their current supplier, thus it is considered as a modified
rebuy where the customer is looking for differentiated product offerings. To address this need,
the company should develop customer insights and create communication messages to match the
demand of the customer. This is significant because it reflects a differentiated product offering
that Greenfield Seeds can offer and their competitors cannot. It is considered as a game changing
approach and helps to establish a relationship with the new customer.
Question 2
Consistent delivery is critically important in reducing the inventory levels of business customers
because from Greenfield Seeds perspective, it helps them to plan their demand, reduce cost and
efficiently manage their supply chain to increase customer satisfaction.

The just-in-time (JIT) system is the process where suppliers coordinate deliveries with the
manufacturer's production schedule to efficiently ensure that the production process can be made
on time. This system is fundamental because it minimizes inventory holding costs by only
delivering products when they are needed, reducing the requirement for large warehouses to
stockpile inventories. With reliable transportation, Greenfield Seeds can rely on a consistent flow
of goods, which enables them to keep inventory levels optimized resulting in reduced cost and
increased revenue. For example, consider a scenario in the electronic goods industry, where
manufactures rely on their suppliers to provide raw materials so that production can be made in
progress. If suppliers are constantly providing a manufacturer with raw materials, then the end
products made will be stockpiled up in inventories when the demand from customers is low. This
results in additional cost which becomes a liability for the manufacturer to protect their products.

Although JIT is a great system that optimises inventory capacity for manufacturers, yet there are
potential drawbacks that impact on the logistics practices of suppliers. The first consideration is
the volatile extent to which suppliers are impacted by disruptions. JIT systems are extremely
sensitive, because disruptions in the supply chain can quickly impact production schedules,
leading to unsatisfied consumers. For example, think about adverse climatic conditions during
the transportation of raw materials, it is likely that the materials won’t end up in the warehouse
on time and there will need to be some rescheduling arranged. Additionally, the JIT system
increases the transportation costs of suppliers because frequent delivery to meet the immediate
production needs are required, and as the quantity ordered each time decreases, the number of
shipments increases. What this may mean for suppliers is that they need to consider the logistics
trade-offs and consider the delivery method in a way that maximizes the firm’s ability to achieve
its strategic objectives, and at the same time satisfy the delivery demand of manufacturers.
Finally, the emphasis on delivery frequency, performance and precision puts great pressure on
the suppliers, as they must consistently meet their schedules to ensure that manufacturers can
continue with their productions. This not only emphasizes on the level of trust and collaboration
that is required by both parties, but it also limits the number of mistakes that can be made by a
supplier as the whole supply chain greatly relies on them. This significantly pressures the
supplier, and they should be incentivized in a number of ways to ensure their consistent
performance.

Question 4
In a B2B context, Maximus Manufacturing needs to address the nature of demand, geographical
concentration, and the complexity of buying behaviour to effectively navigate themselves and
successfully adapt to new marketing strategies.

The nature of demand in a B2B market is uncontrollable, it greatly relies on consumer’s demand
and therefore it fluctuates more due to stocking and de-stocking effects. For example,
considering the luxurious automobile industry, it is highly unlikely that manufacturers will
produce a large quantity of products when it is a low season for sales. The necessary action plan
for Maximus Manufacturing is to effectively forecast and predict the changes in both the
environment and consumer behaviour so that they have a deeper understanding of the market as
to when it is appropriate to produce more products to satisfy demand. Although this is risky, yet
it is an approach that aims for long-term performance where the company is able to satisfy
customer demand whenever it is needed. Moreover, Maximus Manufacturing should establish
relationship marketing with a focus on product customization to effectively collaborate with
customers. The objective of this approach is mutual satisfaction, where consumers are happy
because they are able to customize their products to address specific needs, and the manufacturer
is happy because they are able to secure orders and meet demands. Communication and
engagement are a key to this approach, not only as it contributes to greater customer loyalty, but
it also helps the company to effectively optimize their resource allocation strategies specifically
directed at production planning and inventory management.

On the other hand, geographical concentration specifically refers to the region that the company
should operate in to better satisfy the customers. Referring to Caterpillar as an example, this
construction and mining equipment company has specific business offices and sites near most of
the construction sites in Australia. Through this approach, they can satisfy inquiries, demand,
and the need for services when consumers want them. With similarities in the business model,
this strategy can be imitated by Maximus Manufacturing where they can slowly build business
offices in popular areas to test the market. If it is effective, they can expand elsewhere in their
operating country.

Lastly, to deal with the complexity of buying behaviour in the heavy machinery and equipment
industry, the company should produce thorough market research and segmentation strategies to
divide up their target customer base. The most appropriate segmentation method is based on the
industry where the customers operate in, company size, and other relevant geographic factors.
Furthermore, the value proposition of Maximus Manufacturing should be unique. By developing
an attractive value proposition that aligns with the specific needs of customers will effectively
communicate the benefits to the end users, creating a competitive advantage that contributes to a
sustainable and healthy growth of the company.

Overall, the following proposed approaches address the uncertainties in the market by addressing
the nature of demand, geographical concentration, and the complexity of buying behaviours. The
overall focus is to implement relationship marketing with a customer centric approach to cater
the increasing change of customer behaviour in the long term.

Reference
https://www.monash.edu/business/marketing/marketing-dictionary/i/in-suppliers