Cisco case study

Topics: Marketing, Business, Marketing research Pages: 3 (847 words) Published: October 28, 2013

Question 1:
How is building a brand in a business-to-business context different from doing so in the consumer market? The Cisco case study gives some examples of strategies that the company used as it transitioned into and gained market share in the consumer market, but to get some perspective of the two markets differences consider the following quote. “Consumer marketing presupposes powerful sellers and passive, inexpert buyers who can be influenced to purchase by a variety of advertising techniques. In contrast, industrial markets consist of very knowledgeable buyers (and often buyer teams) who analyze products and purchases in terms of user benefits often measured in dollars or as return on investment. In the case of capital equipment, the salespeople do not get to talk to the final decision-makers— the board of directors.” (Collins 2011) With this in mind after nearly two decades of marketing to knowledgeable buyers who are looking at cisco products in terms of cost and return on investment and getting these purchases approved by the company’s board of directors it is a dramatic shift in product and marketing to enter the consumer market. “Today, Cisco continues to acquire companies – including 40 between 2004 and 2009 – that help it expand into newer markets such as consumer electronics, business collaboration software and computer servers. These acquisitions align with Cisco’s goal of increasing overall internet traffic, which ultimately drives demand for its networking hardware products.” (Kotler and Keller 2012) Rather than reinventing the wheel Cisco made strategic acquisitions that allowed them to achieve immediate market penetration, “Cisco’s revenues increased 41 percent from 2006 to 2008, led by sales increases in both home and business use.” (Kotler and Keller 2012) In conclusion, to succeed when building a brand in the business to business environment it is important to emphasize the technical advantages of your product and then show how...
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