Samenvatting boek b2b marketing
B2B Marketing (EBM808B05)
Rijksuniversiteit Groningen
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H1 B2b marketing marketing activities of any kind of organization which has exchange relationships with other organizations or businesses. Much b2b marketing is carried out back stage, but these business markets are larger than consumer markets. So b2b have a greater impact on the lives of people than b2c. Supply chain series of relationships, set up to support the buying and selling of goods. Supply chain management a management philosophy that strives to integrate the dependent activities, actors, and resources into marketing channels between and the DCM demand chain management more closely aligned to b2b marketing, because it starts with specific customer needs and attempts to design the chain to serve those needs, instead of pushing the product. Porters value chain: Main activities: moving parts materials manufacturing moving finished products marketing sales providing services Supporting activities: purchasing research development personnel organizational infrastructure Combine these factors to reduce cost or to improve performance, so that customers gain more value. Several factors which are important to find out the organizational marketplace: Size of market International aspects b2b products are less diverse in terms of functionality and performance. Concentration of buyer power few customers can account for a large share of the spending. Nature of demand Buying processes and A focus on relationship management can give the company a sustainable competitive advantage in b2b markets. Try to manage the relationships that are the context for trading. Collaboration between firms over the development, supply and support is a core element of b2b marketing. There is a need to build and sustain relationships with their customers, and with a network of other key stakeholders, even competitors. Ethical issues: Cost of supply chain efficiency, Fairness in supply chain Unethical practices in negotiations exchanges H2 Organizational Buying Behaviour key element of the relationships that a firm develops, either as part of a series of exchanges or a closer, relational exchanges. 3 types of organizational customers: Commercial: Distributors intermediaries, they function in order to transfer products through the supply chain, adding value as they do so. Wholesalers can be distributors. Customers are business customers and original equipment manufacturers. For example: combining a variety of software and hardware products from different suppliers to design a customized system. Original equipment manufacturers firms which purchase materials or parts that they then make into products that are marketed, often with the brand name. Classic business customers. They are both customers (of their suppliers) and vendors (can be businesses and customers) Users organizations buy goods and services to support their production processes. Materials do not appear in the final product, but is consumed in its manufacture. Internal Nature of a business how it organizes its activities: Unit production: products are made to specific customer requirements, extremely technologically complex and large in scale. It draws heavily on its suppliers of materials and components for assistance in design and production supplies standardized products (consumer groceries), and is focused on good value and production efficiency. Suppliers must ensure they can provide a consistently high quality of goods via a smoothly running chain. centres on the processing of material for use in other supply chains rather than the assembling of finished products. They buy via commodity markets, and focus on price and availability. Structure of purchasing some organizations manage their purchasing from a centralized department, to get greater consistency and control. It can reduce costs, because they are able to combine all orders of every operating unit. On the other hand we have decentralized purchasing, which allow you to meet local needs more closely, in terms of product aspects and response rates. Purchasing policy it is important to know what the buying firm expects the purchasing function to contribute to that performance: which can be driven a desire for the best value from the chain, or just get the best deal. Purchasing ethics Purchasing systems how quickly can they deliver products to the marketplace. Suppliers who can help their clients to react fast to the changes than the competition, can differentiate themselves. Purchasing technology there is a growth in the number of transactions taking place within electronic marketplaces. Individual Perception of consequences the extent to which people take part in buying decisions is affected their perceptions of personal responsibility for that decision: the more that an individual believes they may be praised or blamed for a decision, the greater is likely to be their level of participation and their attempts to influence the direction followed their colleagues. Extent of personal influence how power is shared (or not) across the decisionmaking unit can have a significant impact on decisions. Some managers have great control of the flow of information and the resources available inside the firm, which gives them an advantage. Social relationships some managers may develop close personal relationships with suppliers. Internal social relationships can also come into play. These relationships can sometimes override relationships in processes, hopefully still making them run smoothly, but sometimes running the risk of distorting them if personal allegiances are allowed to obscure other more objective criteria. Relational refers to the relationships between the client organization and other stakeholders in the industrial network in which the organization is embedded. The nature of the exchange relationship and the style of communication between parties will influence buying decisions. Two approaches to relationships and buying behavior: Relational approaches based on a commitment and trusting, highly cooperative and constructive. Transactional approaches short term, exchanges are sometimes built on suspicion and are unsupportive, polite but distant, length. The nature of relationships between firms can be influenced the leadership style of managers doing the purchases. Transformational leaders (those who try to raise awareness of others and promote significant positive changes in individuals, departments, and organizations) will influence the performance of supply chains beyond their own firm most positively in turbulent environments. Transactional leaders (who attempt to meet current needs focusing on maintain standards within market exchanges) are not so well suited to managing within the trusting relationships demanded dynamic operating contexts. Formality and centralized are common, is better in a stable business. In a buying centre there can be managers included who are not directly involved with using the goods or materials purchased, but who have a strategic or financial perspective of the organization as a whole. Most of the times, the buying centre is an informal, fluctuating group of people. Different members are: Initiators who make the first request for the purchase Buyers who are the actual buyers with the formal authority to order products Influencers affect the process providing information and sometimes criteria for evaluating alternatives. Can be internal or external. Decision makers those with the authority to approve purchases. In routine situations the buyer is often the decider. Users who will ultimately use the product or service. Provides feedback on the performance. Gatekeepers can control the flow of information to other managers within the buying organization. Includes buyers who have the authority to prevent sales people from seeing users and deciders, as well as technical personnel or personal secretaries. 3 main types of buyclass situations: New task purchase: buy a product for the first time. So no experience of supplier capabilities of performance evaluation. For suppliers it is important to convince the organization more than the competition, which is ideally done at an early stage of the process. who already trade with the customer have an advantage over the competition. Examples: offices, bridges, installations, weapon systems. Transactional marketing Focus on single sales Focus on volume timescales Emphasis on product features and quality Little emphasis on customer service Moderate but discontinuous customer contact Relationship marketing Focus on customer retention Focus on customer value timescales Emphasis on relationship quality High emphasis on customer service High level of continuous customer contact RM process of identifying and creating new value with individual customers and then sharing the benefits of this over the lifetime of association RM identify and establish, maintain and enhance and, when necessary, terminate relationships with customers and other stakeholders, at a profit so that the objectives of all parties involved are met. Key elements of RM: perspective: to retain customers, thus improve their profitability Trust: a relationship atmosphere that results from cooperation, based on predictability, dependability and faith. People will not take unfair advantages. Commitment: exchange parent believing that an ongoing relationship with another is so important as to warrant maximum efforts at maintaining It motivates efforts to preserve an IOR and to resist alternative offers. Communication: through communication trust and commitment are developed. Customer service Mutual benefits: revenue, benefits from ownership of a product or service, emotional benefits. So a situation Different types of relationships: Partner: somebody in a mutual partnership with your organization Member: somebody with a great affinity to your organization, who is truly loyal Advocate: somebody who actively recommends your organization to others Supporter: somebody who is positive towards your organization, but only passively Client: somebody who has done repeat business with you, but may be neutral or even negative towards your organization Customer: somebody who has done business with you, but only once Prospect: somebody who may be persuaded to do business with your organization Transactional marketing relationship marketing Marketing is undertaken functional department marketing is based Focus on customer acquisition focus on customer retention on all stakeholders CRM approaches are certainly popularin helping them make sense of all the uncertainties inherent in IORs. Misconceptions CRM: just database marketing: but firms do build and exploit customer databases. purely a marketing process: but a perspective to planning needs to be held many different functional areas as well. just an IT issue: but not all CRM initiatives involve investing in computerized systems. Behavioral changes frontline staff may be far more important. all about building loyalty: but CRM is much more than giving customers for their spending. It can be implemented any organization: but the resources required to implement a databased automated approach to CRM may not be viable for all. Selling firm should strive for threefold value creation: actual value delivered to customers, value realized the organization and the lifetime value of particular customer segments. 5 stages in the development and implementation of a CRM strategy: 1. Customer portfolio analysis: to identify actual and potential customers. 2. Customer intimacy: to explore the profile, history, expectations, and preferences of these customers. 3. Network development: to manage relationships with the individuals and organizations that contribute to the value creation for the chosen customers. 4. Value proposition development: to identify sources of value for customers that meet their expectations and even exceed them. 5. Manage the customer life cycle: considering processes of customer acquisition, retention and development, and structural questions about how the firm is organized. Customer relationships can be broken down into four phases of development: Awareness stage: buying and selling organization consider each other as an exchange partner. Exploration stage: parties begin to probe and test each other. A couple of things can influence the relationship: attraction, negotiation, exercise of power and justice, development of norms and expectations. Expansion stage: IOR moves to a greater exchange of rewards Commitment stage: reached when both parties show a lasting desire to maintain a valued relationship. Dissolution: no relationship anymore. Relationship is dependent on a number of internal and external factors: nature of product, degree of technological sophistication, firms core competencies, environment, market, and competitive situation. Figure 3 p. 81 might be important Reasons why IORs may not work: Relative importance of social and economic exchange Distributors, take title of the goods being sold, agents do not. They are often used when a manufacturer has many geographically dispersed customers, or make goods that are bought in small quantities on a local basis. They are common in sectors as office stationery or building supplies. Agents, are popular amongst manufacturers who want to act more quickly than the time it takes to negotiate with a distributor, or who have the resources to maintain their own sales force. In international markets agents can search for potential overseas distributors and provide specialist support in exporting and promotion. resellers They serve manufacturers in a number of ways, upstream. And they are the key organizational customers of manufactures as they purchase and hold stock. They should be able to forecast market demand and provide information about potential new product needs better than manufacturers, because they are closer to the customers. They add value downstream in the channel giving assistance and rapid response to customers. They serve customers providing fast local delivery from their stocks, and give local credit, product information and buying advice. Issues designing a channel: Channel length: optimum number of levels to serve end user established vs new channel types Channel breadth: optimum intensity: intensive, selective and exclusive Multiple channels: and conflict, risk of cannibalization 2 key flows for achieving quick response: Smooth product flow and continuous) Accurate information flow (paperless) EDI electronic data interchange Due to internet, there is more communication with the supplier, which gives the end users a greater choice. But the risk is that stock availability and service levels can diminish for end users, as the number of intermediaries falls. Types of conflict: Goal conflict: where manufactures care more about the sale of products than the growth of the distributors through a responsible level of profitability. Means conflict: arises when channel member disagree over how things will be implemented, how customer complaints are handled, or who will service internet customers. Conflicting perceptions: especially when there are difficulties in monitoring other channel performance. Fear of being passed. Consequences not negative, if addressed positively, then constructive outcomes should be possible, with both organizations learning from the experience. How to respond to conflict: 1. Informal mechanisms: Exit: leaving the IOR, when there are irreconcilable differences. May also use as a threat, to give a signal to the other party. Voice: articulating dissatisfaction. Crucial process for uncovering the origins of a conflict. Loyalty: hope over the long term that the other party will eventually change their behavior, even when their current actions suggest a clash of roles. Aggression: one party acts with the intention of harming the other. (met wraakzuchtige such as delaying payments or shipments, or selling into another it is difficult to rescue an IOR from such behaviors. Neglect: leaving the conflict unresolved, perhaps allowing the IOR to fade in significance. Trading may still take place, but will often comprise only a small percentage of a overall sales. Differs from loyalty: here there is minimal interest in the conflict. 2. Formal mechanisms: Distributor council: enlisting representatives from several intermediaries which acts as a forum for all distributors to air complaints and flag up opportunities or potential threats to the channel. referee: to seek mediated solutions to conflicts. Joining each trade associations Exchanging personnel: manufacturers send production managers into the field with the sales reps to better gauge customer perceptions of their products. Good B2B relationships must be maintained upstream with mining and processing rims, and sensitive B2C relations downstream with the consumer who hast the ultimate buying discretion in the chain. Several levels of supply partnership in terms of closeness: Type 1: coordinate activities and planning on a limited basis, focus, only one functional area with each organization. Type 2: move beyond coordination to integration of activities, multiple divisions and functions within each firm. Type 3: share significant level of integration, each party viewing the other as an of their own firm, no set Most of the time relationships will be length and type 1 partnerships. Reason: due to the overriding operational focus in traditional SCM thinking on efficiency, such that the more customer objectives of DCM are not always as prominent in a supply chain mind as they might be. SCM goals: Waste reduction lower levels of duplicated and excess stock, this lowers costs of inventory and has a positive impact on the working capital of firms. Flexible response meet specific customer requirements through managing aspects of order processing, including size, timing and handling. moving goods from t heir typical final destination in order to recapture value ( recycling components or materials), or to dispose of them properly. Also defective goods. H5 The customer first always trying to solve problems within the IOR, with the existing supplier. But if he is not satisfied with the performance, or if new demands arise from the external environment, then they search outside of the IOR. IMP interaction model relationships between buying and selling organizations. Institutionalization the process where social activities become so regular and routine that they are perceived people as table, features. (bijv. De mutual recognition of a committed or status, designated to the relationship between two firms. (blz 125, goed nog naar kijken) IMP approach powerful way of conceptualizing exchanges since it views B2B marketing and purchasing in the following ways: Relationships in organizational markets are conducted over time and are built up through cumulative involving mutual exchange of purchases, remuneration, information, and socialization. Specific purchasing decisions can be thought of as in a continuing stream of interaction, and have a context of the relationship. Different from OBB models, purchasing decisions are atomistic events in terms of the situational issues prevailing at the time. and habitual relationships are important to the efficiency and effectiveness of purchasing. Participants in exchanges are both organizations and individuals, and a large number of variables will affect their behavior. Active role of the supplier in IORs is recognized, in a balanced perspective that also avoids implying that the buyer is somehow just a passive recipient of marketing inputs. Exchange takes place within an atmosphere, formed the experience of those involved, and the history of the relationship. The whole interaction process is surrounded the features that can affect the sector. Atmosphere can be described in terms of the relationship which exists between firms, the state of conflict or cooperation, and the overall closeness or distance of the relationship, as well the mutual expectations. It is a product of the relationship, and it mediates the influence of the groups of factores listed in the figure. Keypoint IMP distinction between marketing (suppliers) and purchasing (customers) is not a helpful way to describe what is essentially a seamless and iterative process. Purchasing can overlap with activities like product development and management and marketing planning. So it is a relationship, but there can be other people participating in the relationship. What happens in the main relationship can affect these social actors, and the other way around is possible to. Participants will enter and leave the network. Firms can occupy several roles within the network. B2B managers must adapt to different ways of interacting with each member. 3 main types of network: Supplier networks: For example Toyota: it is too hard to work with all the suppliers. So they work with a small number of who are responsible for the design and production of a certain part or system. Each system supplier deals with a limited number of suppliers that deliver key parts of the system concerned. This network structure allow the firm to be indirectly linked ot a large variety of suppliers, even though they only have direct contact with a few of them. Only when all the IORs linking nodes are working well simultaneously, it will have a significant value for the customer firm. Distribution networks: You need appropriate distributors to work with for each customer segment, and then manage a veriety of relationships downstream with these intermediaries. Actors connect actors and influence how actors perceive each other and form their identities in relation to each other. Resource connect various resource elements (technological, material, knowledge resources and other intangibles. Activity regard technical, administrative, commercial and other activities of a company that can be connected. Allows managers to get a sense of whether their firm is in a desirable position or whether it needs to change some of the IORs it is involved with. Positions are constanly being established and via the interactions that take place, like transactions, knowledge flows, resources created and used up. The overall patterns of behavior that emerge in the network shape its development and how it adapts to environmental events. H6 Firms with a strong market orientation tend to use information about the market to anticipate customer requirements ahead of the competition. They are also able to develop stronger relationships with their customers and their channels of distribution, often involving more direct lines of communication between key personnel on the buying and selling sides. SCM focus on efficiency, supply Marketing revenues arising from the demand side of the organization. The more demanding customers become, the more companies will need to be able to adjust their supply to meet demand. So you can achieve a sustainable competitive advantage, offer superior customer value and having a business system to support it. Integration has to be through the entire chain, in order to create a customercentered supply chain. It starts with the customer and works backwards up to the rawmaterial supplier. and strategic marketing management should be mutually beneficial functions that work together to help guide IORs such that customer needs are met. Issues when firms have relationships all over the world: You know what to do but: you do not speak the language. Shift production to country may mean there is a potential skills shortage. Offshore sourcing means lower costs, but transportation cost are rising. New set of customs and laws. Limited knowledge of supply chain processes in one part of the world which adds uncertainty to decisions. Marketing planning process: This process attempts to plot in advance the particular competitive that an organization intends to adopt in the business market. Benefits: Identification of expected developments Preparedness to cope with change Improved communication amongst managers Coordination over time of individual activities Minimization of conflict between individuals with potentially differing goals It is a series of logical steps through which organizations may be able to arrive at their optimum strategy. 1. Analysis corporate mission, current situation, through SWOT, external, environment and internal audit. 2. Objectives can be grow, maintain, 3. Strategies is key stage: how to compete, what to which markets, positioning of the firm. Generic competitive strategies, decisions, Segmenting, Targeting, Positioning, branding. 4. Tactics marketing mix programs, use 4 (product, pricing, promotion, place). 5. Implementation resources, responsibilities, timescales. 6. Control measurement, evaluation, feedback Generic competitive strategies: Cost leadership low cost, compete on price. Differentiation make products different, premium price. Focus one narrow segment in the decisions: Market penetration existing market, existing product. (marketing communications play a major role) Market development new market, existing product. (building relationships with members of new distribution channels) Product development existing market, new product. (can be product modifications) Diversification new market, new product. (high return, high risk) Tactics are more detailed version of strategies. also scanning the business environment, using PESTL (political, economic, social, technological, legal) Internal analysis collection of data on the financial performance customer, product line, etc., as well as market share data. Also coordinating marketing mix. SWOT strengths (internal skills and resources), weaknesses (internal shortcomings), opportunities ( external market possibilities) and threats (external forces against). MKIS marketing information system to get accurate and information on markets, customers and the competitive positioning. It is an integrated approach to generating, storing, and accessing information from all appropriate sources. Any data should be converted to information that is useful for the managers, and is stored in a that can be used for decision making. Comparing b2b with b2c: Universe market population is small compared to consumer markets. Size of sample smaller. Defining respondents can be difficult, particularly as the user and the buyer will rarely be the same person, and the former can sometimes have little influence on the purchase decision. Accessibility of respondents difficult, managers will be preoccupied with other priorities. Cooperation of respondents members can become which can lead to research fatigue. technical knowledge may be necessary, an skilled in approaching managers. Cost per respondent cost per interview is higher. Outcomes of MKIS are used to estimate the market potential for a product, in the form of a sales forecast. First: assessing the overall market, and searching for segments. Objective data is important, but subjective to! There is no substitute for the experience of longserving managers. And combine with bottom up (sales representatives can be a little overoptimistic in their predictions). Then market share that the firm could expect to gain in the segments that are attractive. Resulting sales potential can then be allocated accros the sales force. Segmentation large overall market is broken down in more manageable chunks. 2 characteristics: Market characteristics: Location focus efforts on a manageable territory. Geographical awareness will often also be useful in establishing the viability of providing support to some customers. Customer size this approach helps to determine which customers may have the greatest potential spending power. Or differences such as service levels. Market served customer identifying the nature of a customer business, helps narrow the possibilities for the supplying firm. Usage rates customers can be categorized on the rate of consumption of the products. Purchase situation is the situation faced customers a new task, a modified rebuy or a straight rebuy. Used when transactional relationships abound in a market. Buyer characteristics: Purchasing strategies helpful to know whether a customer is an optimizer or a satisficer. Optimizers tend to evaluate a large number of potential suppliers before coming to a careful selection, whereas satisficers prefer to deal with a limited range of familiar suppliers, and decide quick what meets their basic buying requirements. Purchasing policies like rules about who holds the authority, where the buying has been centralized, and is it value or simply the best deal? Importance of purchase this may enable the supplier to appreciate the impact of the decision, and the risk for the buyer. Attitude to risk there may be a general attitude to risk, that pervades the customer process to which should remain attuned. Personal characteristics of buyer like education, personality, loyalty, and lifestyle of key members of the buying center, this may help in the segmenting business markets. More used when collaborative relationships are the norm. Best way to segment: Start with the simplest, more macro variable (market characteristics), then probing more deeply into those micro variables (buyer characteristics) Important: The distinctiveness of the segment (do customers share high degree of similarity, but yet distinct from the rest of the market?) The future attractiveness of the segment (will it remain sufficiently large or grow? And level of competition within segment?) The resource demands of serving the segment (does supplier has necessary technologies, people and finances to target the segment?) The selling strategy (is the segment confluent with the overall corporate mission?) You should reexamine the bases for segmentation on a regular base, because there are often changes in economic cycles, levels of competition and technological advances, which could affect customer characteristics and attitudes towards relationships with suppliers.
Samenvatting boek b2b marketing
Vak: B2B Marketing (EBM808B05)
Universiteit: Rijksuniversiteit Groningen
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