Cummins Vis-a-Vis P&G

Had a great time teaching PGDM marketing students today -  how marketing practice of a B2B company like Cummins defers from an FMCG company like P&G. The STP or Marketing Mix concepts are not of much use here. What is useful is to use the 5 fundamental marketing processes - and it immediately becomes clear what the differences are because each company runs its processes very differently:

1. MARKET INTELLIGENCE PROCESS : Cummins has few customers and they do not really need a separate market research function to get to know what the customer wants : its customers are quite vocal and upfront about their needs. Many people from Cummins are in touch with their customers every day. On the other hand, almost everybody in P&G is far removed from the actual customers and they need a significant market research function to bring "Customer Voice" inside the organization and also to seek feedback from their customers on their various plans.
   
2. STRATEGY FORMULATION PROCESS : This process consists of using the market intelligence to decide whom to serve, with what, and how to do it sustainably. This process for Cummins is relatively straightforward because its customers will convey and commit - what they want and how they want it - in an unambiguous and clear manner. For P&G it is much more tricky - its millions of customers will neither be forthright about the specifications of what they want (lay customers cannot write out specifications) nor will they commit to buying anything.
   
3. CUSTOMER FULFILLMENT PROCESS : In P&G this is an expensive process consisting of developing the products, manufacturing the stock, distributing it to various towns and advertising to create an awareness. And after all this, it may be entirely possible that the products turns out to be wrong, inventory requirement forecasts may be wrong, the stock may be extra in some towns and short in some other towns. This is unlikely in Cummins since the customer gives in writing what products he wants, in what quantities and when.
   
4. GO TO MARKET PROCESS : This consists of  REACHING (locating, prospecting, accessing and  contacting the potential customers), COMMUNICATING (presenting, objection handling), SELLING (Negotiating, Closing, Transacting, collecting), SERVICING ( installing, training and handholding)  and  AFTERMARKET ( preventive and breakdown maintenance, reconditioning, up-gradation, disposal). Since P&G has millions of customers, they are forced to standardize the products and aim for mass market and hence price their products low. Cummins has only a few customers and hence they can even explain and sell complex products.
   
5. CUSTOMER SATISFACTION PROCESS : Under this comes the process of  handling complaints and the process of regular monitoring. In P&G this is handled by the market research department but for Cummins this is handled by the sales and service function.