Business-to-Business Marketing Relationships, Networks & Strategies Nick Ellis OXFORD UNIVERSITY PRESS
Detailed Contents Guide to the book Guide to the Online Resource Centre xxiv xxvi Part One: The Organizational Marketing Context 1 1. The Significance of B2B Marketing 3 Introduction & Learning Objectives 3 1.1 The Significance of B2B Marketing 5 Defining B2B marketing 6 B2B marketing management 9 1.2 The Significance of Supply/Demand & Value Chains 11 Supply/demand chains 11 Value chains 13 1.3 Some Characteristics of Organizational Markets 15 The size of the market 15 International aspects 15 Concentration of buyer power 16 The nature of demand 16 Buying processes and decision-making 17 Implications for marketing management 18 1.4 The Significance of Relationships & Networks 19 Relationships in B2B marketing 19 The significance of social networks 19 1.5 Supply/Demand Chain Ethics 21 The cost of supply chain efficiency? 21 Fairness in supply/demand chains? 22 Summary a 24 Discussion questions 25 Case study 25 Case study questions 28 Further Reading 28 References 29 2. Organizational Buying Behaviour '' 32 Introduction & Learning Objectives 32 xvn
2.1 Types of Organizational Markets 33 Commercial customers 33 Institutional customers 35 Governmental organizations 36 2.2 Learning from Organizational & Consumer Buyer Behaviour 36 Similarities between B2B and B2C buying 36 Differences between B2B and B2C buying 37 2.3 Influences on Organizational Demand 40 External influences 41 Internal influences 42 Individual influences 45 Relationship influences 46 2.4 Organizational Decision-Making 47 The buying centre or decision-making unit 47 The decision-making process 49 2.5 Buying Decisions in Relationships 54 Summary 56 Discussion questions 56 Case Study 57 Case study questions 60 Further Reading 60 References 61 Part Two: Inter-Organizational Relationships & Networks 63 3. Inter-Organizational Relationships 65 Introduction & Learning Objectives 65 3.1 From Market Transactions to Relational Exchange 66 Some conceptual views of business relationships 67 Key elements of relationship marketing 69 3.2 Customer Relationship Management (CRM) 75 Relationship life cycles 78 3.3 Partnerships & Alliances 81 13 3.4 How IORs May 'Work' in Different Contexts 83 IORs under pressure 85 Summary 87 Discussion questions 87 Case study 88 Case study questions /Jf 90 Further Reading 91 References 92 xvin
4. Marketing Channels & Supply Chains 94 Introduction & Learning Objectives 94 4.1 Structure & Role of Marketing Channels 95 Channel management 95 Types of intermediary 97 Channel structure 98 4.2 Flows & Blockages in Channels 100 Channel flows ' 101 Blockages or conflict in marketing channels 102 4.3 From Channels to Chains 106 Managing IORs as part of SCM 107 Other key elements of SCM 109 4.4 Marketing Logistics 111 Inventory and just-in-time approaches 112 Logistics information flow 114 Reverse logistics 114 Summary 115 Discussion questions 115 Case study 116 Case study questions 119 Further Reading 119 References 120 5. Industrial Networks 123 Introduction & Learning Objectives 123 5.1 The Interaction Approach 124 The IMP Group's contribution' 125 Understanding IORs from an interaction perspective 125 5.2 From the Metaphor of Channels & Chains to Networks 127 Types of industrial networks 129 Network stakeholder relationships 131 Categorizing network relationships 133 5.3 Learning from the Industrial Network View 136 Network embeddedness 136 The ARA Model ' 3 138 Defining the network 140 Complexity in global networks 142 Summary 143 Discussion questions 143 Case study 144 Case study questions 147 Further Reading 147 References 148 xix
Part Three: Business Marketing Planning 151 6. B2B Marketing Planning & Analysis 153 Introduction & Learning Objectives 153 6.1 The Planning Process & Supply/Demand Chain Management (S/DCM) 155 Marketing management & supply chain management 155 Managing in global supply chains 157 6.2 The Marketing Planning Process 158 A formal, rational approach to marketing planning 159 Other approaches to marketing planning 164 Relationship portfolios in planning 166 6.3 Situation Analysis 167 The marketing audit 167 SWOT analysis 169 6.4 Information Sources & Assessing Market Potential 170 Maintaining an MKIS 170 B2B market research 171 Assessing market potential 172 6.5 B2B Market Segmentation 173 Bases for segmenting B2B markets 173 Making segmentation decisions 175 Summary 177 Discussion questions 177 Case study 177 Case study questions 180 Further Reading 181 References,. 181 7. B2B Marketing Strategies & Implementation 183 Introduction & Learning Objectives 183 7.1 Market Positioning 184 Positioning by value proposition 185 Repositioning 186 Positioning using marketing mix programmes, 187 Benchmarking 188 7.2 B2B Branding Strategy 188 Investing in B2B branding 191 7.3 Making B2B Strategy Decisions 192 Managing in business networks 192 Managing risk and tracking value 195 Strategies for SMEs 196 7.4 Issues of Implementation 198 The credibility of the marketing function 198 Planning and internal relationships 199 xx
Summary Discussion questions Case study Case study questions Further Reading References 203 203 204 206 207 208 Part Four: Business Marketing Programmes 8. Business Products Introduction & Learning Objectives 8.1 Classifying Business Products Business product classifications Product attributes Commodity products 8.2 Managing Business Products Categorizing product lines The product life cycle 8.3 New Product Development A phased approach to NPD The stage-gate approach to NPD Network considerations in NPD Summary Discussion questions Case study Case study questions Further Reading References 9. Business Services Introduction & Learning Objectives 9.1 Classifying Business Services Product-service combinations Business service classifications 9.2 Characteristics of Business Services Coping with the characteristics of professional business services 9.3 B2B Services Marketing Management Delivering service quality Internal marketing New service development // Summary Discussion questions 211 213 213 214 215 217 218 219 220 221 224 225 228 230 232 232 233 236 236 237 239 239 240,240 242 246 248 251 253 254 255 257 257 XXI
Case study 258 Case study questions 261 Further Reading 261 References 262 10. Value & Pricing in B2B Markets 265 Introduction & Learning Objectives 265 10.1 Notions of Value in Organizational Markets 266 Benefits and costs. 268 10.2 Making Pricing Decisions 271 Price-setting decisions 272 Inter-organizational relationships and price setting 275 Discounts 275 10.3 B2B Pricing Strategies 277 Outside-in orientated strategies. 277 Inside-out orientated strategies 278 Competitive bidding and electronic marketplaces 279 Leasing 281 Some further relational considerations in B2B price negotiations 282 The value of IORs 283 Summary 284 Discussion questions 284 Case study 285 Case study questions 288 Further Reading 288 References 289 11. B2B Marketing Communications 291 Introduction & Learning Objectives 291 11.1 Communication Strategies 293 General communication strategies 294 Linking communication strategies to channel conditions 296 Integrated marketing communication 298 11.2 Elements of the Communications Mix 300 Advertising 300 Sales promotion 301 Public relations 302 Direct marketing 303 Personal selling 303 Trade shows 304 11.3 Relative Effectiveness of B2B Media 304 B2B communication via the Internet 306 Summary 310 Discussion questions 310 XXII
Case study 311 Case study questions 314 Further Reading 314 References 315 12. Personal Selling & Sales Management 317 Introduction & Learning Objectives 317 12.1 Personal Selling in B2B Markets 318 Is a sales force necessary? 318 The role of the B2B sales person 319 Sales force effectiveness 321 12.2 Organizing the Sales Force 324 Managing a relational sales approach 324 Controlling the sales force 326 Setting up sales teams 327 Structuring the sales force. 329 Technology in organizational selling 330 12.3 Key Account Management (KAM) 331 Organizing for KAM 332 - Some assumptions about KAM approaches 332 The key account manager 333 Linking KAM levels to IOR life cycles 334 A network perspective on KAM 337 Summary 338 Discussion questions 338 Case study 338 Case study questions 341 Further Reading.'' 342 References 342 Index 345 xxni