INTERNET EXERCISES

Chapter 9: Business-to-Business Marketing

Exercise 1 – Business-to-Business Marketing
Exercise 2 – A Small B2B Business with Big Plans

Exercise 1 – Business-to-Business Marketing

Vignette: Intrinsyc Software of Vancouver sells embedded computer systems that can be built into anything from handheld computers to industrial air-conditioning systems and can link to any operating system. It has strong upside growth potential if it can get large business customers to recognize what it has to offer.

Featured URL: www.intrinsyc.com

Business-to-Business Marketers Take Advantage of Growth Opportunities
Intrinsyc Software of Vancouver builds embedded computer devices and the software that lets them communicate over the Internet. These devices allow the owners of equipment like vending machines to track sales and inventories over the Internet. Intrinsyc is a relatively small player in its market with sales of just $10.9 million. However, it has two significant competitive advantages: (1) unlike most of its rivals, it sells a total package of hardware, software, and engineering services, and (2) while other firms are wed to a single operating system, Intrinsyc’s devices can link to a variety of operating systems. To get the message out to large business customers about the value they add, the company needs to grow. It has therefore acquired NMI Electronics, a U.K. developer of wireless technology, to help it access Europe and tap the growing demand for PDAs. It is also investing heavily in sales and R&D.

Activity

1. Tour the featured Web site for Intrinsyc. In particular, go into the “About Us” section and read about its success stories and its customers. To which type of business market(s) does Intrinsyc sell: producers, trade industries, or governments?
   

2. Intrinsyc says that “our unique software, hardware, and systems integration solutions enable companies to create, network and manage specialized, intelligent embedded devices and applications. We help customers increase ROI, lower risk, decrease costs and accelerate time-to-market.” Which type of market demand does this represent: derived demand, joint demand, inventory adjustments, or demand variability?
   

3. Are the products that Intrinsyc produces capital items or expense items to their customers?
   

4. Which type(s) of business purchasing situations does Intrinsyc generally face in dealing with its customers given the nature of its products and the fact that it is currently a relatively new company with a relatively small share of the embedded systems market: straight rebuy, modified rebuy, or new task buying?

Resources

Other embedded systems competitors and information:

BSquare Corporation: this site includes a list of BSquare’s customers
Embedded.com: embedded.com is an on-line resource for embedded systems developers
Embedded Systems Internet Resources: a very comprehensive list of links to Internet resources available on the embedded systems market, including newsletters, educational resources, free software, companies in the industry, and news groups

Companies that specialize in helping business-to-business marketers:

Leopard™: a U.S. B2B agency – this site includes case studies of the work it has done for clients such as IBM and WeatherData
Business-to-Business Marketing – Keneum Business Group™: a U.S. B2B agency that specializes in helping corporations thrive in a global economy; it has multilingual experts and a global network of business partners

Online Exchanges for B2B Businesses:

TechExchange.com: provides links to all the B2B electronic exchanges/marketplaces serving the apparel, textile, and home furnishings industries
WorldBid.com: this company serves numerous industries and claims to be the “largest source of international trade leads, rfq and tender opportunities from companies and government organizations around the world”

Exercise 2 – A Small B2B Business with Big Plans

Featured URL: www.shred-tech.com

Becoming Big Through Franchising

Shred-Tech designs and manufactures reduction systems and shredding machinery to help businesses deal cost-efficiently with their waste and recycling problems. Its principal fields of specialization include shredder systems for municipal solid waste shredding, plastics reprocessing, metals reduction, medical and hazardous waste disposal, and document destruction. The company’s world headquarters are in Cambridge, Ontario, a small but growing city in Southwestern Ontario, but it has global ambitions. It plans to set up a worldwide distribution network of offices and distributors “to ensure quality service and product availability around the globe.” How can a small company do that? Shred-Tech plans to do it through franchising. At the time of this writing, Shred-Tech had attracted four franchisees – in South Korea, China, South Africa, and the U.K.

Activity

1. Tour the featured Web site for Shred-Tech. Update your understanding of its current status and number of franchisees. What type(s) of market demand is Shred-Tech’s business based on: derived demand, joint demand, inventory adjustments, or demand variability?
   

2. What type(s) of business purchasing situations does this company face in dealing with its direct customers: straight rebuy, modified rebuy, or new task buying? What type(s) of purchasing situations is it engaging in when it deals with potential franchisees?
   
   

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