strategic business marketing reflection

Lecture1_s18postgradstudent1slide.pdf

Home >Business & Finance homework help >Marketing homework help >strategic business marketing reflection

Welcome to Strategic Business Marke4ng 24707

Lecturer Profile v Nigel Bairstow v B.Bus Marketing. MA Asian Studies and PhD v Lecturer in International and B2B Marketing at U.T.S v Previous employees: 3M , Komatsu, Atlas Copco and Alcan v Contact no: 0412 827230 v Email: Nigel.Bairstow@uts.edu.au

Week 1

•  Introduction to the subject •  Discussion of Assessment •  Article Presentations •  Major Projects •  Lecture 1: The Significance of B2B

Marketing

• Purchasing Orienta4on and Nego4a4on • Chapter 3

3 • B2B Rela4onships and Networks • Handout

4 • Market Sensing / Price value • Chapter 2

• B2B Strategy and Planning • Chapter 4

6 • Managing B2B Products and Services • Chapter 5, 6

• Integrated B2B Marke4ng Communica4ons and Consulta4ve Selling • Handout

8 • Business Channel Management • Chapter 7

9 • Gaining and Managing Customers • Chapter 8, 10

10 • The Digital Evolu4on in B2B • Handout

11 • Exam Briefing and Poster presenta4on

Understanding Value

Crea0ng Value

Delivering Value

B2B Marke4ng Framework

1.   Regard Value as Cornerstone. 2.   Focus on Rela0onship Interac0on and

Networks. 3.   Focus on Business Market Processes. 4.   Stress doing Business Across Borders.

Guiding Principles

Subject Overview

•  Refer to course outline •  Objec4ves of course •  Method of Assessment •  Semester Schedule for Lectures and Workshops

Subject Overview

•  Refer to course outline •  Objec4ves of course •  Method of Assessment •  Semester Schedule for Lectures and Workshops

Reflec4on Paper (Individual)

•  20 % total assessment •  Students required to write up a reflec4ve essay on what you have learned from your strategic business marke4ng course including guest speakers during the spring session.

•  2- 3 pages (max) •  Due: Week 11

Journal Ar4cle Cri4que

•  5% total assessment •  Form group 4-6 (Same group as your project group)

•  Present and cri4que an ar4cle related to last weeks lecture.

•  20 minute •  One presenta4on per workshop •  Commence: Week 2

Group Project •  25% total assessment •  Form group 4-6 (Same group as your project group)

•  Choose a company for project •  Analyse a B2B issue related to content covered in course

•  Preliminary report Week 4 •  Final report due Week 9 •  Report returned Week 11

Final Exam

•  Assessment total 50%. •  Short answer essays and case study •  Draw on your understanding of all, material on course.

•  Selected discussion ques4ons from workshops over the semester will be in the final.

Text Book

•  No Text Book is required •  Reference text’s are in library on closed reserve

•  Lectures, tutorials and readings are the most important for the Quiz and final exam

Session 1: The Significance of B2B Marketing

Learning Objec4ves

•  Understand the significance of B2B marketing in the global economy

•  Explain the relevance of the supply/demand chain and value chain concepts for B2B

•  Recognise some key characteristics of business markets

•  Appreciate the importance of inter- organisational relationships and networks in B2B marketing

• Purchasing Orienta4on and Nego4a4on • Chapter 3

3 • B2B Rela4onships and Networks • Handout

4 • Market Sensing / Price value • Chapter 2

• B2B Strategy and Planning • Chapter 4

6 • Managing B2B Products and Services • Chapter 5, 6

• Integrated B2B Marke4ng Communica4ons and Consulta4ve Selling • Handout

8 • Business Channel Management • Chapter 7

9 • Gaining and Managing Customers • Chapter 8, 10

10 • The Digital Evolu4on in B2B • Handout

11 • Exam Briefing and Poster presenta4on

Understanding Value

Crea0ng Value

Delivering Value

B2B Marke4ng Framework

1.   Regard Value as Cornerstone. 2.   Focus on Rela0onship Interac0on and

Networks. 3.   Focus on Business Market Processes. 4.   Stress doing Business Across Borders.

Guiding Principles

Source: 13 Marketing Trends for 2017 that B2B marketers need to understand FORBES, JAN 20, 2017 - 09:00 AM

Na4ve Adver4sing

Why study B2B marketing? •  It is believed that between 50% and as

much as 80% of all jobs and associated economic ac4vity are in business markets in the US and, by extension, many industrialized na4ons

•  Moreover, the field of B2B can be viewed as fundamentally different, both conceptually and managerially, to B2C marke4ng

Source - Lichtenthal, JD & Mummalaneni, V (2009) Commentary: Rela4ve presence of business-to-business research in the marke4ng literature: review and future direc4ons, Journal of Business-to-Business Marke2ng, 16 (1-2): 40-54.

A Definition of Business Marketing

Business Marketing - is the task of selecting, developing and managing customer relationships for the advantage of both customer and supplier, with regard to their respective skills, resources, technologies, strategies and objectives. Business Market Management – is the process of understanding, creating and delivering value to target markets and customers. source: Narus and Anderson, Business Market Management, 1999 Prentice Hall , p xi

Industrial marke4ng

• 1960s

B2B marke4ng

• 1980s

Organiza4onal marke4ng

• 2000s

B2B marke4ng = the marke2ng ac2vi2es of any kind of organiza2on which has exchange rela2onships with other organiza2ons or businesses (Turnbull 1994)

Fig 1.1 – The development of the B2B marketing discipline

Guiding Principles of Business Market Management

q Regard Value as Cornerstone. q Focus on Rela4onship Interac4on and Networks.

q Focus on Business Market Processes. q Stress doing Business Across Borders.

Rolls Royce – Aviation

21 Reference: https://youtu.be/rjH-KGiTXzU

IBM Marketing Solutions

22 https://youtu.be/ru3cr01DbWo

BASF Pigments

23 Reference: https://youtu.be/obyQxyiRqHs

The characteristics of business markets

q The nature of demand q Buying processes q International aspects q Relationships

Decision Making Unit (DMU)

Types of B2B organisations

Types of business goods and services

Things that are different in Business Markets

ü Number of people involved. ü Links between buyer and seller. ü Technical complexity of products. ü Nature of demand. ü Length of purchase cycles. ü Focus on Distribution channels. ü Marketing management activities.

I. Value as the Cornerstone of Business Market Management

Value Creation – Business Model Canvas

30 Reference: https://youtu.be/HiWGHEc8j0Y

What is Value in Business Markets?

1.  Monetary

2.  Economic, technical, service, and social net benefit

3.  The exchange for price paid

Fundamental Value Equa4on

(Value f – Price

f ) > (Value

a – Price

a )

Offerings f

Offerings a

Value

q Value can only be es2mated. q Value changes when:

q Same func4onality or performance provided while its cost changes to customer

q Func4onality or performance changes while cost remains the same

q Customer Incen4ve to Purchase is the difference between value and price.

Assessing Value

q Supplier firms create and deliver value to targeted market segments and customer characteris4cs

q Business market management strives to both understand and capitalise on customer and market segment varia2ons

Value Analysis

•  Conducted by a cross-functional team with the customer firm

•  Team assesses market offering’s attributes in term of: – Functionality or performance – Total cost of specific performance or

functionality –  Identification of lower-cost alternatives

Factors that affect a customer’s perception of the value it receives:

•  The length of customer lead times. •  Variation from promised delivery dates. •  Condition of the product on arrival. •  Sales calls and order initiation requirements. •  Credit, billings and collection procedures. •  Effectiveness of after-sales support. •  Product performance, fit and function. •  Product documentation and instructions. •  Product downtime frequency and duration •  Maintenance cost and difficulty.

II. Focus on Relationship Interaction and

Networks

Organiza(on

Technology Structure Strategy

Individual Aims

Experience Skills

Interac(on Process

Environment Market structure Dynamism Interna4onalisa4on Channel posi4on Social system

Atmosphere Power/dependence Co-opera4on Closeness Expecta4ons

Organiza(on Technology Structure Strategy

Individual Aims Experience Skills

Long term rela4onships Ins4tu4onalisa4on, Adapta4ons

Short term exchange episodes Products/services Informa4on Financial Social

Source: Adapted with permission from Håkansson (1982, p24)

Interaction Model

IOR Marke4ng Supply/Demand Industrial Network Channel Chain

Upstream suppliers Direct suppliers Manu- facturers Distributors Customers

Supply network Distribu2on network

Fig 5.2 – From IOR to channel to chain to network

III. Managing Business Market Processes

Managing Business Market Processes

q Business Process: a collec4on of ac4vi4es

that take one or more kinds of input and

creates an output that is of value to the

customer

Business Market Processes defined

Management Processes

§ How the CEO runs the company § How management interacts with employees § How decisions get made § How communication takes place

Business Processes

§ Focus is on reengineering efforts § Large, crosscutting collections of activities (product design, order fulfillment, customer service)

Work Processes

§ Basic building blocks of business processes § How the work actually gets done

Business Market Management, 3rd edi4on Chapter 1-43

Business Market Processes Understanding Value

Organisational Buying

Behaviour

Learning how companies rely on a network of suppliers to add value to their offering, integrate purchasing activities with those of other functional areas and outside firms, and make purchase decisions.

B2B Relationships and Networks

Learning how companies interact and collaborate in complex B2B networks to increase speed to market for products and services

Marketing Sensing

Generating knowledge about the marketplace that individuals in the firm use to inform and guide their decision making.

B2B Strategy and Planning

Studying how to exploit a firm’s resources to achieve short- term and long-term marketplace success, deciding upon a course of action, and flexibly updating it as learning occurs during implementation.

Business Market Management, 3rd edi4on Chapter 1-44

Business Market Processes Creating Value

Managing B2B Products

Putting products services, programs, and systems together in ways that create great value for targeted market segments and customer firms

Managing B2B Services

Putting products services, programs, and systems together in ways that create great value for targeted market segments and customer firms

Integrated B2B

Marketing Communicati

ons

Emphasis on developing an Integrated IMC approach focusing on personal selling and lead generation. Ensuring focus is on brand building and developing long-term customer relationships.

B2B Marketing Channels

Designing a set of marketing and distribution arrangements that create superior customer value and executing those arrangements either directly through supplier firm sales forces and logistics system or indirectly through resellers and third- party service providers

Business Market Processes Delivering Value

Gaining and Retaining

Customers

Differentiating business opportunities, prospecting for new business and retaining customer’s for lifetime value.

Sustaining Distributor

Partnerships

A supplier and its distributor fulfilling commitments they have made to deliver value to customer firms, strengthening this delivered value, and working progressively together to continue to fulfill changing marketplace

III. Doing Business Across Borders

Doing Business Across Borders

•  Language and Culture

•  Cross-Border Negotiation

•  Outsourcing

•  Currency Exchange and

Payment Risk

HSBC Cultural Adaptability In Global Markets

48 https://www.youtube.com/watch?v=ALWwK7Vz4gY

Outsourcing Philippines

49 https://youtu.be/tVfuj2O34Z4

V. Summary

Summary

•  Overview of business market management

•  Four guiding principles of BMM: 1.  Value 2.  Business market processes 3.  Business across borders 4.  Working relationships and business

networks