Case Study on Industrial Marketing
Industrial Marketing at Latin American country:-
Management at a large manufacturer located in the Mexican state of Nuevo León decided to improve productivity at one of its subsidiaries by investing several million dollars in state-of-the-art production equipment. As word circulated about the planned investment, vendors in Asia, Europe, and North America put together proposals. One such vendor was American company “Y”, which had a global reputation for quality products and service. Management at the American firm reviewed the size of the order and decided to bypass its regular Latin American representative and send its international sales manager instead.
The sales manager arrived and checked in to the leading hotel. He immediately had some difficulty pinning down just who was his business contact. After several days without results, he called the American Embassy where he found out that the commercial attaché had the necessary up-to-the-minute information. The commercial attaché realized the sales manager had already made a number of mistakes, but, figuring that the locals were used to American blundering, he reasoned that all was not lost. The attaché informed the sales manager that the Global Purchasing Manager was the key man and that whoever got the nod from him would get the contract.
He also briefed the sales manager on methods of conducting business in Latin America and offered some pointers about dealing with the purchasing manager.
The attaché advice ran somewhat as follows:
1. “You don’t do business here the way you do in the States; it is necessary to spend more time. You have to get to know your man and vice versa. Latin Americans like to do business with people they can trust. Many times it takes two or three lunch meetings before business is even discussed. And when the topic finally does come up, it is not uncommon for it to be discussed during the last few minutes of a two-hour lunch meeting.”
2. “You must meet with him
Management at a large manufacturer located in the Mexican state of Nuevo León decided to improve productivity at one of its subsidiaries by investing several million dollars in state-of-the-art production equipment. As word circulated about the planned investment, vendors in Asia, Europe, and North America put together proposals. One such vendor was American company “Y”, which had a global reputation for quality products and service. Management at the American firm reviewed the size of the order and decided to bypass its regular Latin American representative and send its international sales manager instead.
The sales manager arrived and checked in to the leading hotel. He immediately had some difficulty pinning down just who was his business contact. After several days without results, he called the American Embassy where he found out that the commercial attaché had the necessary up-to-the-minute information. The commercial attaché realized the sales manager had already made a number of mistakes, but, figuring that the locals were used to American blundering, he reasoned that all was not lost. The attaché informed the sales manager that the Global Purchasing Manager was the key man and that whoever got the nod from him would get the contract.
He also briefed the sales manager on methods of conducting business in Latin America and offered some pointers about dealing with the purchasing manager.
The attaché advice ran somewhat as follows:
1. “You don’t do business here the way you do in the States; it is necessary to spend more time. You have to get to know your man and vice versa. Latin Americans like to do business with people they can trust. Many times it takes two or three lunch meetings before business is even discussed. And when the topic finally does come up, it is not uncommon for it to be discussed during the last few minutes of a two-hour lunch meeting.”
2. “You must meet with him