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Custom Marketing Strategy and Practice essay paper sample

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The total market size for the industry in the year 2005 was $308.7 billion. The growth rate was 7% (CBIZ, 2011). It was projected that this would increase further because of the ongoing transformation of the economies from manufacturing to service oriented companies.  According to CBIZ (2011), the consultants will highly be required for guidance and advice by various companies which need to counter the effect of recession. The favored service providing firms will therefore be those which shall have diversified their areas of specialization. The trend in the service industry is majorly being transformed by the increasing level of the incorporation of technology. It is quickly streamlining operations and replacing need for staff.


  • Compass Group PLC,
  • Experian PLC,                                                                        
  • Aggreko plc,                                                                                                               
  • Capita Group (The) PLC,                                                                                         
  • Intertek Group PLC.                                                                                                   
  • TeamStaff, Inc.
  • Jackson Hewitt Tax Service Inc and
  • Paychex, Inc.



CBIZ Company has segmented its services to cover four areas. These include: financial Services, Medical Management Professionals, Employee Services and National Practices. Through its financial service segments, the company offers variety of services including accounting, tax, financial, valuation, litigation support, internal audit, family office services, fraud detection and real estate advisory. Its second category of services include: group health, property and casualty, retirement planning, life insurance, compensation, consulting and other services. These are offered by its segment dealing with the employee related services.

The third category of services include: coding and billing, accountants receivable management, and full practice management services. The services are offered by its Medical management Professionals segment. The last segment, the national practices, provides management in networking and various hardware services. The segment also provides consulting and the merger and acquisition services (CBIZ, 2011).


The company revenue earning is from accounting, tax and advisory services, the benefits and insurance, and the National Practices. Other sources of revenues include Acquired businesses and the divested operations. On the other hand the major operating expenses incurred by the company are personnel cost and occupancy expense. For example, in the year ended 2005, the two represented 80% of the total operating expenses and 69.5% of the revenue (CBIZ, 2011).

Other sources of income for the company include: gain on sale of operations, interest on funds held for clients at its payroll business and assets held because of the deferred compensation plan, gains and losses on sales of assets. There are also miscellaneous incomes such as contingent royalties from previous divestitures. The other charges incurred by the company include: consolidation and integration services, company’s incentive compensation plan, the corporate general and administrative expenses, depreciation and amortization expenses and finally the interest expenses. CBIZ’s common stock is also quoted on the Nasdaq National Market as well as the New York Stock Exchange Market under the trading symbol “CBIZ” (CBIZ, 2011).

Placement/ Distribution

Location: CBIZ enjoys a global coverage through its more than 1400 offices spread all over US and more than 5,000 associates in major metropolitan areas and suburban cities throughout the U.S the company operates more than 150 offices in about 35 states within the U.S. and also does business in Canada.

The firm has also sought an association with Mayer Hoffman McCann P.C (MHM) which is a national CPA firm. Through this association, the firm has been able to offer audit and attest services. The two firms together are ranked as one of the 10 best accounting providers in the US. This has made the company very attractive to clients.

Selection: CBIZ has widely diversified its services enabling it to serve various market segments ranging from small and medium sized business, government agencies, individuals and non-profit organizations.

Acquisition and Divestitures: The Company has since its stability sought to strengthen its operations and customer service capabilities. It does this by selectively acquiring businesses that would help in building its service offerings in the target markets.

Advertising: CBIZ has greatly been transforming its advertising strategy to enable it focus on all its service areas. The company has also worked to develop a revised web presence while also introducing new collateral materials and a number of new direct marketing and e-marketing vehicles. The company has also developed a unique database (CNECT) to enable it benefit from the client’s unique areas of needs and their decision making authority.

Localization: CBIZ has also given authority to its officers on the ground allowing them to develop and utilize their own local marketing plans that best suites their areas of operation. This has enabled the local officers to utilize tools like brochures and stationary. Other tools include special CBIZ-branded merchandise for trade shows and radios.

Public Relations: CBIZ is committed to maintaining its status as a responsible contractor by providing quality work. While doing this, the company seeks to adhere to the laws and regulations of governments where it operates.

Sales promotion: The Company is sometimes forced to offer its services at very low prices especially in areas where it is newly introduced.

Branding: the company has a branding strategy which has been focusing on providing CBIZ with a consistent image and value proposition within each of its primary geographical and industry markets.


Host Country Analysis:

The host country is Canada. The country has a well stable and large economy. A part from being among the wealthiest nations of the world, the country shares memberships of many business related organizations with the U.S. Of importance is the Organization for Economic Cooperation and Development through which the two countries to declare their commitment to market economy. The two countries have since the formation of this organization in 1989 become trading partners as many of the barriers to trade had been eliminated. It was therefore easy for CBIZ to enter into the country (CBIZ, 2011).

Apart from the cordial trade relationship, the Canadian economy was also service dominated. This meant that there was hope for the industry’s future.  Being the largest city, the company’s operations in Toronto was also strategic. In addition Canada generally has lower operating costs. Finally, Canada already had highly regarded corporations like the AT&T Canada, the Dell Canada, and Sony Corporations which were potential customers (CBIZ, 2011).

Mode of entry:

 The best mode of entry for CBIZ to enter Canada was its target acquisitions strategy. The company selectively acquired businesses that helped in the expansion of its market in the country. It chose the already established businesses like Bratch Innovation which had strong links to customers and a high capacity to utilize its strategies (CBIZ, 2011).

The company acquired a web site builder and e-commerce consulting firm among other firms. This enabled it to very fast emerge as an outsourcing business service company and one of the leading accounting companies in the country. It acquired Bratch Innovation which has since then been operating as its branch. This action was basically a response by the company to the increasing demand by its clients for the web and e-commerce services relevant to business processes. The action has since benefited the small and medium businesses enabling them to cut down on their operation costs through digital nervous systems (CBIZ, 2011). 

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