2 b2b value
TRANSCRIPT
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B2B Marketing Sensing
Defining the market Monitoring competition Assessing customer value Gaining customer feedback
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B2B Marketing Sensing
Defining the market Market segmentation
Positioning into grouping of firms having similar requirements and preference
Market segments of interest & importance
Segment size Growth Sales & profit potential for the organisation
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B2B Marketing Sensing
Monitoring competition (Porter’s framework) Future goals
Strategic & financial Assumptions
Perceptions about future changes in economy, investment climate etc as expressed by competitors
Current strategy Competitors positioning & other marketing strategies
Capabilities Gauging relative strengths & weaknesses of
competitors
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B2B Marketing Sensing
Monitoring competition Competitor Intelligence Pyramid
Data collection: Annual reports, press info, trade shows, customer network, buyer’s guides etc
Data analysis: Ratio analysis, benchmarking, cost analysis etc
Identify opportunities and threat areas
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B2B Marketing Sensing Customer value assessment:
Understanding the critical role the product or service plays in customers’ usage system
Cost & benefit analysis as viewed by customer
Through survey questions to customer representatives
Focus group value assessment: customer+consultant+academic etc
Conjoint analysis Importance rating Benchmarking
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B2B Marketing Sensing
Gaining Customer feedback Customer satisfaction measurement Customer satisfaction to customer
delight to customer loyalty Market perceived quality profile
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Customer Value Analysis -As perceived by customer
Your company superiorCompetitor superior
Product quality
Sales rep
Customer service
e-Business
Company image
Technology
Product delivery
Billing
Price
Quality factors
Commercial factors
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Customer’s Buying Orientation
Obtain best deal from suppliers in terms of price, quality & availability
Maximize power over suppliers Commoditization (equalise values of different
suppliers) Multi-sourcing
Avoid risk wherever possible Follow established procedure Rely on proven vendors
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Customer’s Buying Orientation
Developments in buying: Target pricing Global sourcing e-sourcing Co-operative pricing
Procurement orientation: Improving quality by correct specification Reducing total cost of ownership – total life
time cost Co-operating with suppliers – co-design
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Customer’s Buying Orientation
Supply Management Orientation: Focusing on delivering value to end-users Build a strategy to leverage firm’s
competencies & resources Establish supply networks to complement
business process Could be legally separate, but operationally
synchronised Make-to-stock model Build-to-order model Replenishment model Design-to-build model
Sustain collaborative relationship with select suppliers & sub-suppliers
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Customer’s Requirements & Preferences
Joint development projects
Usability testingTrials
On-site trainingOn-line servicesTraining manuals
Usage improvementsActivity based costing
Customer’s understandingof its own requirements
Known Unknown
Company’sunderstandingof customerrequirements
Known
Unknown
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Customer’s Buying Orientation Customer valuation of Total Cost
Offering (TCO) Extended purchase price (net landed cost
after considering discounts, tax rebates etc) Add cost of non-performance due to:
Delivery (including short-supplies) Quality (repeat inspection cost on rejected
materials) Documentation errors
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Customer’s Buying Orientation SPI (Supplier Performance Index)=
Customers create SPIs for different purchases from each competing suppliers. These SPIs are used to evaluate vendors
Extended purchase price + nonperformance costs Extended purchase price
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Building Marketing Strategy Resources based view:
Building resources Technical know-how Equipment Personnel Capital
Core competencies & capabilities: Provides a potential access to a wide market
segment Should make a significant contribution to
customer benefit of the end product Should be difficult for competitors to imitate
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Building Marketing Strategy Brands as resources:
Ex: Teflon, Kevlar Linking with the resources of
partner’s in the value chain Creating value based strategies:
Product leadership Customer intimacy Operational excellence
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Webster and Wind Model of Organisational Buying Behaviour
Environmental Variables
Organisational Variables
Buying Centre Variables
Individual Variables
Organisational BuyingDecisions
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Webster and Wind Model of Organisational Buying Behaviour Environmental Variables
Technological Economic Political and Legal Labour Unions Cultural Customer demands Competitive practices and pressures Supplier information
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Webster and Wind Model of Organisational Buying Behaviour Organisational Variables:
Objectives/goals Organisation structures Purchasing policies and procedures Evaluation and reward systems Degree of decentralisation in purchasing
Individual Variables Personal goals Education, experience and expertise Job position Values and lifestyle Income
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Webster and Wind Model of Organisational Buying Behaviour Buying Centre Variables:
Authority Size Key influencers Interpersonal relationship Communication
Organisational Buying Decisions Choice of suppliers Delay decisions and search for more information Make or lease or buy Do not buy
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Webster and Wind Model of Organisational Buying Behaviour This model is comprehensive and identifiies
key variables Model is weak in explaining specific
influence of the key variables
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The Sheth Model of Organisational Buying Behaviour Emphasises the joint decision making
process in an organisation Recognises psychological aspects of the
decision making individuals in organisational buying behaviour
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The Sheth Model of Organisational Buying Behaviour
Component 1 Component 2 Component 3
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The Sheth Model of Organisational Buying Behaviour
Component 1 Component 2 Component 3
Differences amongindividual buyerscaused by factors:
• Background of individuals• Their information sources• Active search• Perceptual distortion• Satisfaction with past purchases
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The Sheth Model of Organisational Buying Behaviour
Component 1 Component 2 Component 3
Differences amongindividual buyerscaused by factors:
• Background of individuals• Their information sources• Active search• Perceptual distortion• Satisfaction with past purchases
Variables thatdetermine if thebuying decision isautonomous orjoint:(A) Product specificfactors, including:• Time pressure• Perceived risk• Type of purchase(B) Company specificfactors, including:• Company size•Company orientations• Degree of centralisation
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The Sheth Model of Organisational Buying Behaviour
Component 1 Component 2 Component 3
Differences amongindividual buyerscaused by factors:
• Background of individuals• Their information sources• Active search• Perceptual distortion• Satisfaction with past purchases
Variables thatdetermine if thebuying decision isautonomous orjoint:(A) Product specificfactors, including:• Time pressure• Perceived risk• Type of purchase(B) Company specificfactors, including:• Company size•Company orientations• Degree of centralisation
Methods used forconflict resolutionin joint decisionmaking process:
• Problem solving• Persuation• Bargaining• Politicking
Situational Factor
Supplier orbrand choice