Special Topics in Marketing
SpecialTopics in Marketing
SpecialTopics in Marketing
Businessto business markets is significantly different from business toconsumer markets. In business to consumer markets, there are manycustomers distributed in a large geographical area, there are fewertransactions and thus small total dollar amounts, they have shorterdecision cycles, rely on mass marketing strategies and have lessrigid product standards. On the other hand, business to businessmarkets are characterized by few customers, larger dollar amount,complex decision making cycles, personal selling marketing strategiesand rigid product standards. There are several business to businessmarkets. However, due to the nature of consumer banking services,there are business to business markets at Wells Fargo are limited.For example, they can sell there services to producers or resellers.However, their business to business markets may include governmentsand institutions where they provide banking services to governmentagencies, government institutions and private institutions. The twobusiness to business markets have a huge influence on Wells Fargoperformance.
Accordingto Paul Hague, Nick Hague and Matthew Harrison, compared to businessto consumer markets, business to business market have limitedbehavior and need based segments. This is due to the relatively smallnumber of buyers in the market and the fact that the market is moreconsistent or less fickle. For example, the business market is notsubject of peer or family influence, but aims at getting the bestoffering that has the greatest value to their businesses. At WellsFargo, the business to business market most probably falls underservice focused segment. This is a segment I which the customer ismore concerned about the quality of services offered by the provider.Often, business organization and government institutions preferbanking services providers who provide high quality services and thedelivery is superior.
WellsFargo aims at continuously improving the services they offer to theircustomers. This is achieved by ensuring that the company meetsemerging financial needs of its customers. To achieve these, thecompany needs to obtain information from different sources. To makecritical marketing decisions, Wells Fargo can obtain information frominternally generated data and reports, market intelligence and marketresearch. Wells Fargo generates a lot of internal information oncustomer requests, customers complain and most preferred financialservices among others. This information can be used in makingmarketing decisions. Wells Fargo can also use market intelligencewhich analysis the internal and external business environments tomake marketing decisions. This includes SWOT analysis, whatcompetitors are up to, and likely changes in the businessenvironment. In addition to market intelligence, Wells Fargo canconduct a marketing research. Marketing research is aimed atanswering a specific question which can be used in decision making.
WellsFargo invests a lot of money in marketing activities. Marketingshould be able to account for these huge resources. The effectivenessof the marketing strategies adopted by a company can be evaluatedusing financial matrix as well as performance matrix. An essentialfinancial performance matrix that can used to measure theeffectiveness of the marketing strategy is return on investment. Thiscompared the capital investments in marketing and the returns thecompany has earned from this investment. There are also performancematrixes that can be used by Wells Fargo such as number of closings,sales by product line, sales by geography, number of leads generated,and sales per call representative among others.
Hall,J, R, et al. (2004). WellsFargo, strategic report,http://economics-files.pomona.edu/jlikens/SeniorSeminars/PAC2004/Drafts/wellsfargo.pdf
Principlesof Marketing (2015). Washington,D.C.: The Saylor Foundation