During the two past decades there were many changes in the global scenario, high technologies were introduced, a higher competitive world made companies look for markets abroad, and ways of management had to adapt to this new way of making business.
Theses changes reached the purchasing activities that traditionally had an operational work, and nowadays are seen as strategic part of a company. With the new technology introduced in this actual scenario, the companies can communicate easier and faster with their suppliers, with this competitiveness world companies have to innovate, so purchases and suppliers have to become partners and have to communize objectives and strategies in order to reduce cost and to improve products qualities. One of the company's tools to promote this tight relationship with the suppliers, inducing them to look for a unique objective, is using promotional communication.
According to theories based on reverse marketing, this project presents the Promotion Communication towards Suppliers, illustrated by different examples that show the best practices used nowadays in promotional communication from company to suppliers.
First we will explain reverse marketing and its objective in order to situate the position of PCTS in this practice. Then we will define Promotional Communication towards Suppliers (PCTS), its objectives and actions. Then we will illustrate this actions matched with the objectives by updated examples. Finally we will present de PSA Peugeot Citroen strategy which will show the application of this tool.
[...] But when the purchaser has no choice because he cannot find a supplier who will completely fulfil his needs he must take action on a procurement problem, he is forced to re-examine the basic need and the various ways in which this needs can be met. This is how reverse marketing takes place. The purchaser reaches out to suppliers so that they can answer to his needs. This is illustrated as follows. In this case we can assume that the traditional market positions the force on the purchaser only when the supply is not existent. [...]
[...] In the case of La Poste Grenoble, they needed in 2007 to enlarge their supplier base in terms of transport in order to reduce their dependency to certain suppliers. To do so, they created an information letter sent to all the transporters that were not referenced on their data base. They did this by sending and information letter promoting the companies advantages and a simplified questionnaire that will allow the purchasing team to renew their data base. This operation should facilitate purchasing for the transport department. Affective objectives The most common use of Public relations in PCTS is the awarding system. [...]
[...] Bibliography Alstom e-Purchasing exchange place Barreyre P.Y et Tréhan N. (2000), Promotional Communication Towards Suppliers: Analysis of the formal means of communication used by procurement executives to support reverse marketing strategies. 9th International IPSERA Conference, London, Canada, p. 67-78. BARRIOL, Nathalie. Le marketing achats, conception et état des pratiques dans les entreprises en 1997, Colloque de l'AIMS, 27-28-29 mai 1998, Louvain-La-Neuve, Belgique Business to business at PSA Peugeot Citroen. SMMT The Motor Industry. Published in April 2005 retrieved in January 2008 from CRUCHET, Sandy. [...]
[...] This form of communication with the suppliers is quite recent and characterises itself by the fact that it is impersonal and formal. The idea is delivering the same message to a large number of suppliers, present or potential. objective is often to improve the goodwill of the firm vis à vis the upstream markets, to have a partnership or to develop a category of suppliers”1. Objectives As in the classical form of marketing, PCTS objectives correspond to the hierarchy of effects defined by the AIDA: attention, interest, desire and action. [...]
[...] The practices presented in this work group show some examples of the most used communication toward the suppliers. It is relevant that the communication must be made for a specific target, in a proper channel of communication and must have an ideal message according to its objectives: to inform, to be loved, or to lead for actions. In conclusion, the strategic role of the purchasing department will lead more and more to have a closer interaction towards the suppliers. As the actual aim of companies of having integrated objectives with suppliers and becoming their partners, companies will intend to develop their promotional communication tools. [...]
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