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INTERNATIONA

L
MARKETING
PROJECT
BY

HIMANSHU BALANI = 61

MILAN BHATT = 62

SUPRIYA PATEL = 70

AVINASH RAO = 79

SWATI SAVLA = 87

DEEPAK SHETTY = 99
SYBMS DIV B
SIES
COLLEGE OFCOMMERCE
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SION (E)

GOMATHI THEVAR = 117


INTERNATIONAL
BUSINESS
MACHINES (IBM)

INTRODUCTION:
International Business Machines Corporation,
abbreviated IBM is a multinational computer
technology and consulting corporation
headquartered in Armonk, New York, United
States. The company is one of the few information
technology companies with a continuous history
dating back to the 19th century. IBM has been
known through most of its recent history as the
world's largest computer company. With over
388,000 employees worldwide, IBM is the largest
and most profitable information technology
employer in the world. As a chip maker, IBM has
been among the Worldwide Top 20 Semiconductor
Sales Leaders in past years, and in 2007 IBM
ranked second in the list of largest software
companies in the world.

BRANDS AND THEIR CORE


PRODUCT:
IBM’s Core Product:
 Computer software

a) Operating systems

b) Utilities and languages

c) Middleware and applications

BRANDS OF IBM computer


softwares:
1) DB2 and Information on demand:
Information on demand is the ability to deliver the
right information to the right people or processes
at the right time to take the proper action.

2) Lotus: Communication, collaboration, and


productivity

The Lotus software brand dynamically connects


people with business, extending the value of
existing investments and providing a new, flexible
way to build applications

3) Rational: Business-driven development

The Rational brand is known for its leadership in


driving process innovations for software
development.

4) Tivoli: IT service management


Tivoli software has long been a leader in providing
intelligent infrastructure management solutions to
understand and manage the business value of
your IT systems.

5) Web Sphere: Business process management

Web Sphere software provides businesses with an


IT infrastructure that enables people, process, and
information integration.

DIVERSIFICATION OF IBM
 Diversity on a Global Scale: In the era of
globalization, the watchword for any industry to
survive is to diversify. For a company with
355,000 employees serving more than 170
countries, diversity comes with the territory.
What makes IBM unique is they aren’t trying to
build a culture of inclusion and diversity. That is
inherently a part of their culture. They are truly
a global enterprise is what they say. At IBM, the
notion of being ‘global’ isn’t just a tag phrase –
it’s the ability to engage people at every level
to work effectively together across different
countries, time zones, languages and cultures.
Enabling employees to work together across
those lines of difference not only fundamentally
enables IBM to operate as a truly global
enterprise but to operate with efficiency and
innovation. Their job is to fundamentally
enhance the ability of the people in the
organization to understand those differences, to
work with and across them respectfully, and to
actually use them to the greatest extent
possible to leverage innovation and
effectiveness in terms of the work they do and
their ability to respond to our clients.
IBM Launches $1B Diversification Strategy

With an eye toward generating $1 billion (US$) in


hardware, software and services revenue over the
next three years, IBM announced that it has
formed new alliances in the Internet banking,
retail and insurance sectors. The pacts were
formed as part of a diversification strategy that
also brought deals in recent months with Siebel
Systems, Inc., Ariba, Inc. and i2 Technologies, Inc.

4 Ps Used By IBM:
The 4ps or marketing mix is the combination of
marketing decisions including price, place,
product and promotion.
 Product strategy used by IBM
IBM is committed to the goals of achieving total
customer satisfaction; delivering superior
products, solutions and services; and exceeding
customer requirements. IBM follows chain
distribution system for improving their product
visibility. They reduce their costs to increase their
sales. Radio frequency identification (RFID)
solutions help retail, consumer product,
distribution and transportation companies track
the location of finished goods across the supply
chain and within stores. By integrating this new
data with their business processes IBM try to
achieve true visibility. IBM’s continuous
innovation across their business helps them to
increase on-shelf availability, reduce shrink,
improve asset utilization and enhance customer
satisfaction.

 Place strategy used by IBM


For nearly 50 years, Plant Location International
(PLI) - a specialized service within IBM Global
Business Services for Global Location Strategies -
has established itself as a market leader in
providing advice to companies on their location
decisions, covering all sectors and types of
business functions. Tools of PLI that have become
industry standards are for example:
IBM- PLI Location Benchmarking Tool
This tool helps corporate clients quickly identify
the best locations for their operations based on
project specific location requirements. The tool
helps analyze the cost and quality trade-off of
locations, relative strengths and weaknesses of
various locations, as well evaluating the impact of
possible changes in business environments over
time. EDOs/IPAs also use IBM-PLI'S Location
Benchmarking Tool to assess their location's
competitiveness for selected target sectors and
functions. By this way IBM use their place
strategy.

 Pricing strategy used by IBM

They set targets and plan campaigns and tactics


based on their targets for the goals and metrics in
Pricing. They monitor their success by looking at
how they measure up against their targets.
Further, they dive into their results to find out
more about these elements underpinning
performance management.

• Discounts ($): Are we offering discounts more


in a specific region or in the presence of a
specific competitor?
• Price elasticity (#): What products or markets
show the least price elasticity? As we
increase price, do we hold our sales volumes,
pointing to unexplored revenue
opportunities?
• Price segment sales and value (#): Rather
than looking at product, how is the company
doing with a particular price point of products
against its competitors?

 Promotion strategy used by IBM

This includes advertising, sales promotion,


publicity, and personal selling, branding and
other various methods adopted by the IBM
company for promoting the product. IBM offers an
integrated performance management model for
effectively managing trade promotion. Promotion
modeling is done by them on multiple brands,
categories and products across multiple retail
customers. They conduct Mix planning across all
types of promotions, such as slotting, market
development, coupons, rebates or circular
placements. Sales volume, discounts and
promotions are taken into account to drive
revenue and demand volume plans. ROI is
calculated for promotion activities, allowing
manufacturers to optimize their trade
performance management. These are the various
promotional strategies followed by IBM.

MARKETING STRATIGIES
ADOPTED BY IBM
IBM believes that understanding behaviors and
trends demystifies the art of keeping their
customers satisfied and loyal. Using cutting-edge
marketing and customer intelligence techniques,
they feel their experts can uncover customer
motivations and measure campaign success.
Marketing and sales transformation services focus
the use of customer data to provide differentiated
responses to an organization's existing or
proposed customer base. Following points are
considered by IBM in marketing their products:

 Optimize selling resources to drive sales growth


and reduce cost of sales
 Provide more accurate forecasting and pipeline
 Drive improved ROI and provide a measurable
payback on marketing programs
 Adopt new processes & technologies to reduce
campaign cycle times and costs
 Improve customer satisfaction and loyalty
 Increased understanding and tracking of
customer profitability and customer behaviors

REASONS FOR IBM’s SUCCESS


In today’s ever-changing times, innovation in
business models is a success differentiator for
CEOs, is what they learned from the IBM 2006
Global CEO Study. Based on their experience, an
extensive literature review and an analysis of 35
best practice cases, they first developed a
framework for understanding business model
innovation. Here, they identified three main types
of business model innovations: those in industry
models, revenue models and enterprise models.
They then compared these three types of
business model innovation across the 35 best
practice cases and found that each type of
business model innovation, used either alone or in
combination and with the right strategy and
strong execution, can generate success. Among
the three types, enterprise model innovation
emphasizing external collaboration and
partnerships is the most common. In other words,
they realized that for IBM to become a great
company it would have to act like a great
company long before it ever became one. Every
day at IBM was a day devoted to business
development, not doing business. According to
them, they didn’t do business at IBM, they built
one.

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