Business Marketing Management: B2B

Transcription

1 Business Marketing Management: B2B lie MICHAEL D. HUTT Arizona State University THOMAS W. SPEH Miami University * rf SOUTH-WESTERN t% CENGAGE Learning- Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States

2 CONTENTS Preface VII PARTI i Chapter 1 A Business Marketing Perspective 3 Business Marketing 4 Business Market Customers 5 Commercial Enterprises as Customers 6 A Concentration of Customers 6 Government Units as Customers 7 Institutions as Customers 7 Business Marketing Management 8 B2B TOP PERFORMERS: Jim Ryan, Chairman, President and Chief Executive Officer, W. W. Grainger, Inc. 9 Business Markets versus Consumer-Goods Markets 10 What Makes a Marketing Leader? 11 Creating the Customer Value Proposition 12 Characteristics of Business Markets 14 Business and Consumer Marketing: A Contrast 15 Smucker: A Consumer and Business Marketer 16 Distinguishing Characteristics 17 A Relationship Emphasis 17 The Supply Chain 18 Supply Chain Management 19 Managing Relationships in the Supply Chain 20 Commercial Enterprises as Consumers 20 Classifying Goods for the Business Market 22 Entering Goods i 22 Foundation Goods 22 Facilitating Goods 24 Business Marketing Strategy 25 Illustration: Manufactured Materials and Parts 25 Illustration: Installations 26 Illustration: Supplies 26 A Look Ahead 27

3 Summary 28 Discussion Questions 29 Internet Exercises *! 30 Case: The Middleby Corporation 31 Discussion Questions 32 Chapter 2 Organizational Buying Behavior 35 The Organizational Buying Process 36 The Search Process 37 New Task 38 Straight Rebuy 39 Modified Rebuy 41 Environmental Forces 42 Economic Influences 43 Technological Influences 43 Organizational Forces 44 Growing Influence of Purchasing 44 Strategic Priorities in Procurement 44 Procurement Manager's Toolkit 46 Total Cost of Ownership (TCO) 46 INSIDE BUSINESS MARKETING: Use TCO to Inform Next Car Purchase 46 ; Strategy Response: Develop Value-Based Sales Tools 47 Segmenting Purchase Categories 47 E-Procurement 49 Reverse Auctions 49 Organizational Positioning of Purchasing 50 Strategy Response: Key Account Management, 50 ETHICAL BUSINESS MARKETING: Gift Giving: "Buy Me These Boots and You'll Get My Business" 51 Group Forces ' 52 The Buying Center 52_ INSIDE BUSINESS MARKETING: Innovate and Win with BMW 54 Buying Center Influence 54 Individual Forces 56 Differing Evaluative Criteria 57 Information Processing 57 Risk-Reduction Strategies 58

4 xix Summary 59 Discussion Questions 60 Internet Exercises \ 61 Case: Sealed Air Corporation: Delivering Packaging Solutions 62 Discussion Questions 63 Chapter 3 Customer Relationship Management Strategies for Business Markets 64 Relationship Marketing 65 Types of Relationships 66 Value-Adding Exchanges 67 Nature of Relationships 67 Strategic Choices 67 Managing Buyer-Seller Relationships 68 Transactional Exchange 68 Collaborative Exchange 68 Switching Costs 69 Strategy Guidelines 69 Measuring Customer Profitability 71 Activity-Based Costing 71 Unlocking Customer Profitability 71 The Profitable Few 72 Managing High- and Low-Cost-to-Serve Customers 73 INSIDE BUSINESS MARKETING: Loyalty and Customer Profitability 75 Managing Unprofitable Customers 75 Firing Customers 75 Customer Relationship Management 76 Acquiring the Right Customers 78 Crafting the Right Value Proposition 79 Instituting the Best Processes 81 Motivating Employees 82 Learning to Retain Customers 1 83 Relationship Marketing Success 84 Drivers of Relationship Marketing Effectiveness 84 Relationship Marketing (RM) Programs 86 Financial Impact of RM Programs 87 Targeting RM Programs 87

5 Summary 88 Discussion Questions 89 Internet Exercises 90 Case: IBM Challenge: How to Serve a Diverse Mix of Demanding Customers 91 Chapter 4 Segmenting the Business Market and Estimating Segment Demand 95 Business Market Segmentation Requirements and Benefits 96 Requirements 97 Benefits 97 INSIDE BUSINESS MARKETING: How to See What's Next 98 Bases for Segmenting Business Markets 99 INSIDE BUSINESS MARKETING: Balancing Risk and Return in a Customer Portfolio 100 Macrolevel Bases 100 Microlevel Bases 103 Illustration: Microsegmentation 106 The Segmentation Process 107 Choosing Market Segments 107 Isolating Market Segment Profitability 108 Implementing a Segmentation Strategy 109 Estimating Segment Demand 109 The Role of the Demand Estimation 109 Methods of Forecasting Demand 111 Qualitative Techniques 111 Quantitative Techniques 113 CPFR: A New Collaborative Approach to Estimating Demand 115 Combining Several Forecasting Techniques 115 Summary ' 116 Discussion Questions 116 Internet Exercises. 117 Case: Federated Insurance: Targeting Small Businesses 118 Cultivating Business Relationships 118 Discussion Questions 119

6 xxi Chapter 5 Business Marketing Planning: Strategic Perspectives 123 Marketing's Strategic Role 124 The Hierarchy of Strategies 124 Strategy Formulation and the Hierarchy 126 Functionally Integrated Planning: The Marketing Strategy Center 128 B2B TOP PERFORMERS: Cross-Functional Relationships: Effective Managers Deliver on Promises 129 The Components of a Business Model 130 Customer Interface 131 Core Strategy 131 B2B TOP PERFORMERS: Winning with a New Business Model at Dow Corning 132 Strategic Resources 133 The Value Network 133 Strategic Positioning 134 Strategic Positioning Illustrated 135 Building the Strategy Plan 136 The Balanced Scorecard 137 Financial Perspective 137 Customer Perspective 139 Internal Business Process Perspective 140 Strategy Map 142 Summary 144 Discussion Questions 145 Internet Exercises 146 Case: Intuit's Solutions for Small and Medium-Sized Businesses 147 Discussion Questions 147 Chapter 6 Business Marketing Strategies for Global Markets 148 Capturing Global Advantage 149 Market Access 151 Resource Access 152 INSIDE BUSINESS MARKETING: How Offshore Outsourcing Affects Customer Satisfaction and a Company's Stock Price! 154

7 xxii Contents Local Adaptation 154 Network Coordination 155 INSIDE BUSINESS MARKETING: Made in America Again 156 Global Market Entry Options 156 Exporting 156 Contracting 158 Strategic Global Alliances (SGA) 159 Joint Ventures 160 Choosing a Mode of Entry ; ' 161 Multi-domestic versus Global Strategies 162 Source of Advantage: Multi-domestic versus Global 162 Types of International Strategy 163 A Strategic Framework 165 Global Strategy 166 Build on a Unique Competitive Position 166 Emphasize a Consistent Positioning Strategy 166 Establish a Clear Home Base for Each Distinct Business 166 Leverage Product-Line Home Bases at Different Locations 167 Disperse Activities to Extend Home-Base Advantages 167 Coordinate and Integrate Dispersed Activities ' 168 Summary 168 Discussion Questions 169 Internet Exercise 170, Case: Schwinn: Could the Story Have Been Different? 171 Alternative Reality One: Aim High 171 Alternative Reality Two: If You Can't Beat Them, Join Them 171 Discussion Questions 172 Chapter 7 Managing Products for Business Markets 173 Building a Strong B2B Brand J 174 Brand-Building Steps 175 Brand Strategy Guidelines 177 Profiling a Strong Brand: IBM 178 Product Quality and Customer Value 179 Meaning of Quality, 180