Reading summary
Xerox was once a well-performing company in the marketplace. The company went through a difficult financial time before the end of the 1990s. It plunged into bankruptcy. To begin with, the Securities and Exchange Commission investigated the accounting practices of the company (Grewal & Levy, 2012). Several cost-cutting measures were also adopted to lower the overall expenses incurred by the company. For instance, the number of working staff was reduced as part of the cost-cutting measure.
After the above initiatives, the company opted to develop a new line of products. Also, the cost of the new copiers was made consumer-friendly. Low-priced copiers were availed to the market. The management of the company also moved into a rigorous after-sale service so that it could capture the high end of the market. The Global Imaging Systems Inc. was acquired by Xerox in a bid to boot profitability. Hence, it became possible for the Xerox Company to offer information technology solutions and services. The targeted market after the new acquisition was small to medium-sized enterprises.
To produce other products, a different set of goods and services should be made available. The process is known as business to business marketing. Manufacturers such as Xerox and Ford companies often participate in this type of marketing to increase their competitive spectrum in the market. It is the same supply chain in the B2B sales that usually propels demand fo the r goods and services (Grewal & Levy, 2012). Both the B2B and B2C buying processes are similar in several ways. However, the two processes also portray marked differences. For instance, the B2B buying process should be recognized at the initial stage. Product specification and the RFP process should then follow. Finally, various metrics are used to assess performance. The analysis of the proposal, negotiating with a supplier, and making the final selection are some of the overlapping processes that are usually undertaken in either a B2B or B2C marketing process.
Reflection
From the above summary, it is vital to mention that marketing is an important business activity that cannot be ignored. In the case study of the Xerox Company, it has been observed that poor marketing and organizational skills led to the bankruptcy of the organization. This does not imply that the company never applied any rigorous and effective marketing plan. The main challenge must have been contributed by the high operation costs.
It is also pertinent to point out that B2B marketing cannot be fully relied on when a company desires to mark its solid presence in the market. Both the B2B and B2C marketing strategies should be blended well to produce the best results. From the case study, it is evident that most large and well-established companies are now turning to the low end of the market. As much as this strategy may appear misplaced to some extent, it is interesting to note that the economies of scale can be easily achieved in such markets due to a large number of buyers.
Besides, most business organizations often fail during the vendor negotiation process. Before a vendor is finally selected, the process should be streamlined and vetted to ensure that it aligns with the broad business goals and objectives. In other words, all the proposals should be evaluated thoroughly. Even the B2C marketing platform demands a comprehensive process so that all the participating parties do not run at a loss.
Reference
Grewal, D & Levy, M. (2012). M: Marketing. New York: McGraw Hill.