Farm Electronics: The Business-to-Business Marketing Dilemma
(8 pages of text)
In January 2019, the sole proprietor and the general manager of Farm Electronics met to discuss critical options for the possible growth path of their company. Farm Electronics was a 42-year-old, small-scale electrical and electronic industrial equipment manufacturer based in Indore, India. The company’s product portfolio consisted of various transformers, relay coils, power supplies, and direct-current motors, which were designed according to its customers’ specifications. Farm Electronics’ customers consisted of small-, medium-, and large-scale businesses from both the organized and unorganized sectors. Significant aspects of the company’s value proposition included quality, timely delivery, and after-sales service. However, most of Farm Electronics’ revenue came from only a few big accounts. The proprietor and the general manager wanted to expand their company’s reach and were thus contemplating targeting a new set of customers.
This case is suitable for graduate- and postgraduate-level marketing courses on business-to-business buying, segmentation, and targeting at graduate and executive levels. The case presents the challenges faced by the manager of a small-scale enterprise in a business-to-business context. It develops an understanding of business markets and the organizational buying process. It also deals with segmentation and targeting issues in the business-to business sector.
After working through the case and assignment questions, students will be able to
- understand the challenges of designing value propositions in a small-scale industry;
- evaluate the business-to business buying process and the role of a decision-making unit;
- assess the procurement processes adopted by different types of industrial customers;
- compare different organizational buying situations;
- assess the segmentation variables used to identify segments in business-to-business markets;
- understand how the customer lifetime value calculation can be used to assess the value of potential target customer groups, as well as an existing customer base; and
- learn about the issues faced by firms in dealing with public sector businesses.
India, Small, 2019
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