BMR3154 BUSINESS TO BUSINESS MARKETING 16 APRIL 2 CASE QUESTIONS [100 Marks] Attempt ALL questions. Dizso Systems, Customers, and Intermediaries Dizso Systems, Inc. is an Asian multinational technology conglomerate headquartered in Tokyo, Japan which develops, manufactures and sells networking hardware, telecommunications equipment and other high-technology services and products. Dizso is Asia's largest leading supplier of products to power the internet. A small portion of Dizso's $10 billion annual revenues goes through direct channels. Dizso serves a variety set of customers in their direct channel and different perspectives and approaches are used by customers in making networking product purchases. This diversity across customer groups presents a host of challenges for Diszo: Customer Group A. They demands a wide variety of networking hardware, telecommunications equipment and highly customized high-technology services and products. These customers willing to pay a premium to obtain a complete solution (customized product and service) from Dizso. Customer Group B. This customer group wants high-quality networking products and willing to pay premium prices for it. However, these customers want only product offerings from Dizso and reluctant to commit to Dizso's augmented service offering. Over 85 percent of Dizso's revenue generated through 28,000 channel partners in over 10 Asian countries. Previously Dizso sold direct to end-user customers, but in the late 1990s shifted its major efforts to three types of intermediaries: Tier 1 partners. System integrators including global players like Accenture, Oracle, and SAP, but also well-established local partners. Tier 1 partners integrate Dizco's products with technology products from other firms to provide end-user customers with complete solutions. Tier 2 resellers. Intermediaries that sell to smaller end-user customers than Tier 1 partners. Reseller sales range from a few thousand to several million dollars: they secure Dizso products from distributors. Distributors hold inventory and provide logistics value to Dizso. Dizso may have thousands of resellers in a particular geography, but only a few distributors. Service provider partners. Mainly communications firms that supply Dizso equipment to their customers. These channel partners may also make customer- service agreements to relieve customers of the management burden of operating Dizso equipment. Dizso's sales force works hand-in-hand with channel partners to serve large end-user customers. Salespeople develop end-user customer relationships and make joint sales calls with channel-partner salespeople. Channel partners are responsible for local relationships, developing business solutions, consultancy assistance, product delivery. after-sales support, and financing customer purchases. Dizso develops and monitors joint business plans with channel partners; they provide significant value to Dizso. Continued... MAHA 13