MARKETING MANAGEMENT

General Electric Case Analysis

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Question & Answers

Question-1:
Discuss the importance of B2B marketing and a strong B2B Brand. How does it differ from consumer marketing?

Answer-1: B2B marketing is important because B2B market is huge and growing rapidly. Business organizations not only sell, they also buy vast quantities. A 2003 study sponsored by the Business Marketing Association estimated that business-to-business marketers in the United States spend about $85 billion a year to promote their goods and services. Many well-known brands belong to business markets such as GE, Siemens, ABB. Buying process is a long decision making process and there are many participants in that process. B2B markets motivate companies to achieve technical innovations and industrial improvement. As a result, B2B markets provide large scale of revenue for companies. B2B markets are different from B2C markets,; Multiple buying influences Such as buying committees, which can be comprised of technical experts and senior management. Direct purchasing Often large volume customers purchase directly from manufacturer, rather than intermediaries There are fewer but larger professional buyers, requires multiple calls and personal relationship.

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Demand in Business markets depends demands on consumer markets but %10 increase in consumer market can cause %200 increase in business market.

Business market demands are inelastic, not affected by price increased.

Buyers are more rational Products are often more complex Limited number of buying units in b2b markets B2B markets have fewer behavioural and needs-based segments Personal relationships are more important in b2b markets B2B buyers are longer-term buyers B2B markets drive innovation less than consumer markets Consumer markets rely far more on packaging Sub-brands are less effective in b2b markets B2B buyers are more demanding

Importance of B2B Brand.

Differentiate

Secure Future Business

Create Brand Loyalty

Brand Risk Reduction

Increase Sales

Information Efficiency Value Added

Differentiate Marketing

Command Price Premium

Create Brand Image

Create Preferences

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Question-2:
Did Jeff Immelt and Beth Comstock do the right things by dropping we bring good things to life for imagination at work? Why or why not?

Answer-2: Yes they did the right thing by dropping we bring good things to life because after twenty three years, a new advertisement campaign and motto is needed to show the progress in GE; a company where a new management is appointed, should renew themself and new advertisement campaign with a new motto is the only way to give progress message to customers. Another thing, new CEO and top management would be able to give clear message about new vision. New motto should reflect the new approach of top management. Imagination at work` was successful in that sense because it gives the message of focus on innovation and high technology in industry market. Innovation and high technology focus is the new vision so chosen motto was proper. Jeff Immelt focused on moving away from consumer markets to business markets and global expansion goals. Investors wouldnt respect GE for consumer goods as they would for innovation mindset. New ad was for shareholders who would buy GE stocks, not for customers buying electric bulbs. R&D budget is increased to $2.7 Billion to support the goal of being innovative and high tech company and company reorganized to focus on industry business. Surveys showed that custom reaction was positive; customer attitudes changed towards GE, perception of GE as an innovative company increased 35 percent, offering high tech solutions increased 40 percent and being dynamic increased by 50 percent. As seen from the result, new advertisement campaign was successful, they did the right thing by dropping dropping we bring good things to life.

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Question-3:
Has Imagination at work, Ecomagination, and Healthcare Re-Imagination changed GEs brand? If so, how? Is it a good change or not? Answer-3: Yes Imagination at work and following advertisement campaigns changed GE perception at customer eyes in a positive manner. GE successfully changed and implement marketing strategy. New advertisement campaign was a clean message to customers; GE would focus on innovation and high technology instead of expanding by acquiring other companies so that GE would be able to strength its position in business market as the number one innovative and high tech company. This was very important for shareholders and investors. Impacts on each actors in business ecosystem is given below; Impact on Employees1 Reinforced to GE employees that the companys new primary focus would be innovation and technological advances. Impact on Consumers How GE products made their life better. Message about the diversity of products and services, previously only thought of GE in terms of lighting & appliances. Perceptions of GE being seen as innovative, offering high tech solutions and dynamic increased. GE was concerned about healthcare; and made products that detected, cured, and prevented diseases.

Impact on Shareholders

Internet, strategic brand management in GE

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Innovation would be central to the future growth and profitability. Helped GE return to its roots as an innovative company, focused on shareholder value.

Innovation and high technology motivation in GE showed its self in following years. Dream session with customers showed that customer demands clean technologies. GE recognized the opportunity here and focused on green technologies. They launched Ecomagination campaign in 2005, it was GEs commitment for green technologies. Ecomagination project is for producing eco friendly products and in short time, revenue crossed $17 Billion in 2008. This project also increased GE prestige as a green company. Healthcare Re-Imagined project was launched in 2006 winter Olympics, focused on GE healthcare products that detected, cure and prevented diseases. Commercials show high tech healthcare products of GE. This advertisement showed how GE touched life of each people in a positive way and how HE was serious and successful in high tech way about healthcare technologies. Both Ecomagination and Healthcare Re-imagined campaigns was positive and GE earned big money and prestige, respect from customers. Brand positioning; value proposition was effectively communicated to the consumers

Ecomagination
Revived focus on innovation & technology Cleaner, better technology for the environment. A new way of looking at healthcare.

Imagination at work

Healthcare Reimagined

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Question-4:
Can Immelt transform GEs approach of innovation (risky, unknown areas like fuel cells, solar energy, hydrogen storage, and nanotechnology) versus past strategies of improvement of current technologies? Answer-4: Yes he could and he managed to transform GEs approach of innovation. Re-organization in 2005 helped GE to achieve the goal of being innovative and high tech company by focusing on industrial business. R&D budget is increased and three new house of magic, global research centers are launched, 5.000 engineers are added in three years. Being a high tech innovation company not only welcomed by industry but also by investor and shareholders. This new approach led GE to create new business such ecomagination and industrial internet which was not possible before Immelt. Before Immelt, GE was growing by large acquisitions and focusing on existing business. But this prevented GE to be as innovative and high tech as before. Even though GE was growing, ln long term, there was risk for GE to outdated in technology and innovation. Ecomagination project is for producing eco friendly products and in short time, revenue crossed $17 Billion in 2008. In 2011, GE announced industrial internet project; power of %1 saving is the motto for industrial internet and aims %1 cost cut in each industry by using intelligent machines, minds and machines. This is totally a new business and has the grand potential in industry business, being pioneer will provide a great advantage for GE and keep them one number for many years.
A computer network using the same set of communications protocols to benefit industry2
2

Analyze industrial big data for actionable information Run operations from anywhere, on any device Engage and collaborate in cloud communities to solve business problems together

http://www.ge-ip.com/zh/industrial-internet

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Increase speed and accuracy of intelligence Capture and transfer knowledge easily between your people, systems, and sites

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Question-5:
What should Henson do next for GEs brand strategy? Answer-5: Dan Henson is not chief marketing officer of GE anymore, he was appointed to be President and CEO GE Capital, Americas. Beth Comstock is current chief marketing officer. What she should focus on imagination at work approach and continue to give industry and inve stors that GE will continue to be innovative high tech company. Imperative to communicate the importance of innovation to all employees. And make Environment friendly design a part of all products and communicate the value proposition. Coordination of company websites worldwide to present a consistent face to stakeholders is the best way to get control of marketing communications that may have become too decentralized. Efforts need to be continued to be focused on a single, global corporate brand.

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