...B2B Marketing Module 1 A Perspective of B2B Marketing IIM Ranchi PGDM 2014-16 Introduction IIM Ranchi PGDM 2014-16 Facts • Proportion of pure B2B firms ~ 30% • Share of B2B transactions ~ 46% of GDP IIM Ranchi PGDM 2014-16 Nature • Customer is an organisation Organisational marketing? ▫ Enterprises Users OEMs Dealers & distributors ▫ Institutions ▫ Government IIM Ranchi PGDM 2014-16 The B2B-B2C dichotomy • Differences in ▫ Market structure ▫ Buying behaviour ▫ Marketing practices IIM Ranchi PGDM 2014-16 Market Structure • Demand ▫ Derived vs. direct • Volatility of demand ▫ Greater • Elasticity of demand ▫ Less elastic vs. more elastic – perverse (?) • Market size ▫ Larger • Geographic concentration ▫ Often clustered vs. usually dispersed IIM Ranchi PGDM 2014-16 The Accelerator Effect • Due to derived demand • Rate of change of secondary/tertiary demand > rate of change of primary demand IIM Ranchi PGDM 2014-16 Buying Behaviour • Buying influences ▫ Many vs. few • Purchase cycles ▫ Often long vs. usually short • Transaction value ▫ Higher • Process complexity ▫ More complex IIM Ranchi PGDM 2014-16 Buying Behaviour • Buyer-seller interdependence ▫ Often very close • Importance of relationships ▫ Mostly very high • Purchase professionalism ▫ High vs. low • Degree of interactivity ▫ High vs. low • Formal, written rules ▫ Common vs. uncommon Contd...
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...Break Even (Unit Sales Price-Variable Costs) Fixed Costs = Break Even (Unit Sales Price-Variable Costs) Fixed Costs = Principles of Marketing – MKTG 3010 – Fall 2014 Final Exam Study Guide –this guide is illustrative rather than exhaustive Topics from overall course themes (about 30-35% of the exam) * Brief definition of marketing: Managing profitable customer relationships * SWOT analysis * Break-even analysis Break Even | = | Fixed Costs | | | (Unit Sales Price-Variable Costs) | | | | * Consumer Behavior: describe the 5 steps, high vs. low involvement 1. Need Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase 5. Post-purchase behavior * Diffusion of innovation: describe each group on the adoption curve * Marketing Research: primary vs. secondary data, qualitative vs. quantitative methods Primary Data: Information that is collected for the first time; used for solving the particular problem under investigation. Secondary Data: Data previously collected for any purpose other than the one at hand. Qualitative Methods: * Depth Interviews * Focus Groups * Projective Tests * Observational Methods * Metaphor Elicitation Quantitative Methods: Experimental & control/comparison groups. Manipulate independent variable across groups. •Independent & dependent variables, control/comparison conditions •Not casual...
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...Marketing Strategy Notes for Cravens/Piercy Book Chapters 1-5 Chapter 1- Market Driven Strategy Know the what and why on all of these: Market driven Strategy = the market and the customers that form the market should be the starting point in business strategy formulation. See page 3. What does this mean for the auto business, a restaurant, a college or university, what would they do? Related topics foundational for a market driven strategy: Marketing Concept or Orientation – says that the key to success in business is to identify and satisfy needs and wants of the buyer. The customer is king. This contrast to the production orientation/concept which focuses on how to make the product at low cost, and the selling concept/orientation which focuses on promoting what you want to sell. In the production and selling orientations the company makes what it wants to make and tries to get the consumer to buy it. With the marketing orientation the company first figures out what people want to buy, then makes it, and then tells them about it. Market Oriented/ Market Orientation – see page 4. Means: Customer is focal point of company’s total operations Customer Focus Cross Functional Coordination Competitor Intelligence Result – superior performance Creating Value – must deliver benefits in excess of costs (value), the greater the excess the better. (Auto and college as examples) Note that we can’t do all things for all people: ...
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...Marketing Strategy Notes for Cravens/Piercy Book Chapters 1-5 Chapter 1- Market Driven Strategy Know the what and why on all of these: Market driven Strategy = the market and the customers that form the market should be the starting point in business strategy formulation. See page 3. What does this mean for the auto business, a restaurant, a college or university, what would they do? Related topics foundational for a market driven strategy: Marketing Concept or Orientation – says that the key to success in business is to identify and satisfy needs and wants of the buyer. The customer is king. This contrast to the production orientation/concept which focuses on how to make the product at low cost, and the selling concept/orientation which focuses on promoting what you want to sell. In the production and selling orientations the company makes what it wants to make and tries to get the consumer to buy it. With the marketing orientation the company first figures out what people want to buy, then makes it, and then tells them about it. Market Oriented/ Market Orientation – see page 4. Means: Customer is focal point of company’s total operations Customer Focus Cross Functional Coordination Competitor Intelligence Result – superior performance Creating Value – must deliver benefits in excess of costs (value), the greater the excess the better. (Auto and college as examples) Note that we can’t do all things for all people: ...
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...Marketing Strategy Marketing Analysis Customers Needs (Rational & Emotional), Problems, Benefits Decision Making Process (DMP) What makes Customer move from one stage to another? Selling Process matches Buying Process Decision Making Unit (DMU) Initiators, Gatekeepers, Influencers, Deciders, Controllers, Buyers, Users Company Goals, Core Competence, Resources, Organization, Weaknesses Revenue & Margin, Market Share & Growth, Cost of Learning New Skills Competitors What/Who will the consumers compare us to? What are the strengths/weaknesses of rival offerings? How will competitors react? Collaborators Who can help us? What can they do for us? Can they capture sufficient value? Are there conflicts? Context Trends: Economy, Industry, Culture, Technology Government Role & Regulations Creating Value Market Segmentation Geographic (nations, regions, cities) Demographic (age, family size, occupation, education, gender, income) Psychographic (lifestyle, personality, values) Behavioral (product knowledge, usage, loyalty, attitude, benefits) Target Market Selection Customer Attractiveness of Segment to the Company Size, Growth, Profitability Accessible, Identifiable, Actionable Addressable, Credible Sustainable Attractiveness of Company to Segment Interested in what we have to offer Product/Service match their needs/wants/goals Company Operation: Can deliver product/service reliably Marketing: Can carry out marketing plan credibly Competitors Not serving the segment adequately or not in...
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...Mary Kay Cosmetics: Asian Market Entry Case Study International Marketing 466 Curran Dandurand, the senior vice president of Mary Kay Cosmetics Inc.’s (MKC) global marketing group is considering how to expand the company’s international operation. She is debating which elements of MKC’s culture, philosophy, product line, and marketing programs might be transferable both in general and in particular in respect the China and Japan, two major Asian markets in which MKC does not have a presence. Dandurand must decide whether to enter either or both of these markets (or neither) and, if so, what marketing entry strategy to pursue. This case gives your global marketing team the opportunity to: 1) explore why two companies (Avon and MKC) in the same business (the direct selling of cosmetics) differ so greatly in the percentages of their sales that are international 2) examine the transferability of a corporate value system developed in the United States to foreign subsidiaries 3) identify the criteria that should determine which country markets a multinational should enter and to assess two countries against these criteria 4) contrast the implications for marketing strategy and tactics of being a late entrant in a mature market versus a relatively early entrant in an emerging market The objective of the case is to focus on the following issues and dilemmas: 1. Why has MKC not been as successful as Avon in penetrating international...
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... Potential Product; satıcı da alıcı da farkında değil, konuşarak farkediyorlar. Consumer goods classification BtoC market: Convenience product: Customer usually buys frequently with min. Of comparison and buying effort. Low price. Widespread distibution. Convinient locations. Mass promotion by the producer. Toothpaste magazine, laundry detergent. Shopping Product: Customer is in the process of selection; quality price, style. Higher price. Selective distribution in fewer outlets. Advertising and personal selling by producer and reseller. Television, furniture, clothing.Specialty Product: unique characteristics or brand identification, buyers make special buying effort. High price. Exclusive distribution in only one or a few outlets per market area. More careful targeted promotion. Luxury goods, Rolex etc. Unsought Product: Customer does not know or know about but does not normally think of buying. Price varies. Distrbution varies. Aggressive advertising. Personal Selling. Life insurance. Product Differentiation: Product form, feature, performance, style, design, delivery, installation, 4 Service Characteristics: Intangibilaty: Services cannot be seen tasted felt before purchase. Inseparability: Services cannot be separated from their providers. Doctor. Variability: Quality or services depends on who provides. Perishability: Services cannot be stored for later sale or use. You can not make lesson for 10 days and 10 days holiday. Service+ product:...
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...INTRODUCTION The idea or concept of Business to Business (B2B) marketing has existed for centuries but for a long time it had been ignored and remained in the shadows of the more traditional Business to Consumer (B2C) marketing (Pitt & Honeycutt, 2001). It is over the last two decades has more light been shone on this important phenomenon- where businesses trade with other businesses, governments and Institutions . It is essential to first and foremost understand that B2B marketing cannot exist in isolation, the existence of B2B and B2C markets are in many ways dependent on each other for its survival and growth, a single demand for a B2C product such as a car gives rise to millions of B2B market demands such as aluminum, leather, steering systems, engines, etc (derived demand). Furthermore a failure in one market will have significant detrimental impact on the other. This essay however aims to identify the differences that exist between the two markets and how multinationals such as Hewlett-Packard (HP) implement separate marketing strategies based on the distinctions that exist within the market and their consumers. PRODUCT DIFFERENCE (standardized vs. complex) Hewlett Packard (HP), famous for its laptops, desktops and printers and storage devices sells its products in both markets. The B2C market it operates is more standardized and less complex that its B2B counterpart. Large groups of individual customers exist whose specifications for the products are more or less...
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...Assignment 2: Promotion Mix/ Personal Selling & Global Markets MARKETING PLAN Cassius Matthis Principles of Marketing | MKT230 BLC | AN150326.0429.5W April 27, 2015 Russell Corpron The Waters Bottling Company 2015 Marketing Plan TABLE OF CONTENT Section 1 – The Environment * Introduction to Marketing * The Marketing Mix * The Marketing Environment * Marketing and its relationship with other functional areas of business * Strategic Marketing * Planning Process * Strategy * Organizational Levels * Goals and Objectives * Planning Gap * Ethics in Marketing Section 2 – Market Research & Targeting * Market Research * Research Methods & Data Mining * Market Research Process * Consumer Behavior * B2C vs. B2B * Consumer Decision Making Process * Factors Affecting B2C and B2B consumer behavior * Market Segmentation * Market Segmentation Concepts * Segmentation Process * Segmentation Strategies * Target Marketing Section 3 – Product & Price * The Product * Product Levels: Core, Actual, & Augmented (Packaging) ...
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...Combining Online Marketing with Traditional Marketing Marketing—the action or business of promoting and selling products or services, including market research and advertising—is a powerful tool for attracting customers and promoting a business. (Chapman/Businessballs) There are many types of marketing strategies and mediums through which different companies implement the practice of marketing. This paper will shed a light on traditional and online marketing, highlighting the very concepts along with the pros and cons of each type of marketing. The history of marketing is divided into two phases; the development of marketing theory, and the development of marketing practice. The history of marketing theory deals with the evolution of different...
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...diversified retailing lines under central ownership * major decisions retailers face * segmentation and targeting * store differentiation and positioning (part of retail strategy) * retail marketing mix * product * price * promotion * place * trends * shorter life cycle * wheel of retailing concept= start small and cheap and work your way up * non store retailing (online/phone) * retail convergence (everyone is selling same stuff at same price, more competition) * rise of mega retailers * rise in retail technology (RFID) * global expansion * retail as communities or hangouts * wholesaling * selling G+S for those who intent to resale * types? * merchant independently owned bush. takes tittle * broker does not take title of goods, brings buyers and sellers together * agent represents buyers or sellers on a permanent basis * manufactures’ sale whole selling by sellers or buyers themselves without independent whole seller Chapter 14 promo mix tools * advertising * sales promo * personal selling * public relations * direct marketing integrated marketing= carefully integrating the many communications channels to deliver clear and consistent message. Why? consumers are bombarded...
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...Loyalty – Victoria’s (VS) Secret has been described in one Business Insider article as, “the most popular apparel brand in the world”(Lutz, 2013). This may not be the case, but there certainly seems to be buzz surrounding the brand. Victoria’s Secrect, La Senza (Canada), and Pink are the three leading brands in the global lingerie market (Limited Brands Inc., 2013). VS managed to retain its customers and turn out an increased gross profit in spite of higher costs of production they faced last year, specifically for cotton, which may be a testament to the value of their brand (Euromonitor International, 2013). * Marketing through Social Media– While VS spends a lot on marketing, they increase their return on investment (ROI) by using such platforms as Facebook, Twitter, and Pinterest, to redirect traffic to their main website – one strategy to encourage online consumer behavior (Euromonitor International, 2013; Jane, 2012). Currently, VS ranks as the second most popular retail brand on Facebook, having over 24 million fans to date (Facebook Inc., 2014). As well, customers with the VS credit card can gain “social points” by connecting their Angel Cards with their social media accounts and sharing Victoria’s Secret news (Victoria’s Secret Inc., 2014). * Sales - Last fiscal year, VS generated US $1.5 billion through its online channel of distribution alone, amassing US $4.0 billion total from all of its distribution channels (Euromonitor International, 2013). VS accounted for the...
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...which is about 20 percent of the United States market. (Walgreen Vs. CVS) As for online business, it has almost 17 million visitors per month. Walgreens’s strategy has evolved throughout the century it has been in business. As CVS, it is the second largest pharmacy chain in the United States. It has more 7600 stores, and it is ranked the 13 largest company in the world by Fortune 500 in 2013. (Walgreen Vs. CVS) This paper would examine the positioning and differentiation strategies between Walgreens and CVS. * The creation of remedies for illnesses and ailments have been discovered by people since the beginning of existence. The first organized apothecary had been credited to the Babylon. Later followed by the Roman, who discovered a system of pathology and therapy which became the standards for medicine for more than a 1,000 years. While pharmacy was consider as a shadowy and sketchy business of a long time, practiced by witch doctors. As the renaissance era entered in, medicine and treatments became more structured with a scientific approach. “In 1240, German Emperor Frederick II issued a proclamation establishing the practice of pharmacy along three tenets: (1) separation of the pharmaceutical profession from the medical profession; (2) official supervision (regulation) of pharmacy; and (3) “obligation to prepare drugs reliably, according to skilled art, and in a uniform, suitable quality.””( Walgreen Vs. CVS) * * CVS is using a value driven market with its logon...
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...Distribution Objectives Objectives: A firm’s distribution objectives will ultimately be highly related—some will enhance each other while others will compete. For example, as we have discussed, more exclusive and higher service distribution will generally entail less intensity and lesser reach. Cost has to be traded off against speed of delivery and intensity (it is much more expensive to have a product available in convenience stores than in supermarkets, for example). Narrow vs. wide reach: The extent to which a firm should seek narrow (exclusive) vs. wide (intense) distribution depends on a number of factors. One issue is the consumer’s likelihood of switching and willingness to search. For example, most consumers will switch soft drink brands rather than walking from a vending machine to a convenience store several blocks away, so intensity of distribution is essential here. However, for sewing machines, consumers will expect to travel at least to a department or discount store, and premium brands may have more credibility if they are carried only in full service specialty stores. Retailers involved in a more exclusive distribution arrangement are likely to be more “loyal”—i.e., they will tend to * Recommend the product to the customer and thus sell large quantities; * Carry larger inventories and selections; * Provide more services Thus, for example, Compaq in its early history instituted a policy that all computers must be purchased through a dealer...
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...NORTH- HOLLAND Marketing Orientation and Company Performance Industrial vs. C o n s u m e r G o o d s C o m p a n i e s George J. Avlonitis Spiros P. Gounaris Marketing orientation, still an intriguing concept for man),, carries the pledge of superior company performance through the satisfaction of customer's needs. This article draws conclusions from an empirical investigation showing that this relationship does really exist and, in the case of industrial markets, building a marketing orientation it is indeed a significant contributor to the company's performance. © 1997 Elsevier Science Inc. INTRODUCTION Recent studies [1-3] have tried to collect empirical evidence to investigate whether the adoption of marketing Address correspondence to Dr. George J. Avlonitis, Athens University of Economics and Business, Department of Management Science and Marketing, 76 Patission Str., Athens 104 34. Greece. orientation leads to better performance in the market. However, the way that marketing orientation is conceptualized tends to differ. For instance, while Hooley, Lynch, and Shepherd [1] conceptualized marketing orientation as a set of specific beliefs that form a certain company attitude/culture, Narver and Slater [2], as well as Kohli and Jaworski [3], explained the concept as a certain behavior. Furthermore, most of the available empirical investigations of the association between marketing orientation and company performance tend to draw general conclusions about...
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