Module 5 B2B Marketing FINAL.pdf

7/27/2019 Module 5 B2B Marketing FINAL.pdf

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MM555Module 5: Business to Business Markets & Buying Behaviour


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Session Outline

Guest Speaker Peter Gibson

Break

PVT Case Analysis

Digging Deeper

Module 5: Brief Overview - Business to Business Markets

and Buying Behaviour

Next Steps

Applied Project Group Work Time


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Case analysis: PVT Technologies

1. Analyse the situation analysis in this case. What is the keyissue here and how appropriate are each of the four

alternatives presented? Consider the issues such as

profitability as well as other product management

considerations.2. How should PVT promote itself in the First Quarter 2012

and position the launch of the new 1.25MW central inverter

thats been rescheduled for introduction in January?

3. What conclusions can be drawn about the evaluation and

impending changes in technology, pricing and buying

criteria in this business?


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Review of Module 4

4

1. Develop an understanding of how Consumers useproducts to help them define their identities in

different settings.

2. Define Consumer Behaviour and identify the key elements related to CB

3. Understand why Marketers need to understand the wants and needs of different

consumer segments.

4. Describe the consumer decision process

5. Gain an insight to the ways the Internet is changing consumer behavior.


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DIGGING DEEPER

In the News; Out of Academia; Around the Grounds

In each Module we encourage

you to hunt out the latest news;

explore the research and scansocial media for whats new,

whats important and what has

piqued your interest on the topic

of marketing


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..What Caught Your Eye This Week?Source: http://thisweekin.com


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This Weeks Reading.

..Which Ideas Will You Hold Onto?

Muylle, S. Dawar,N. & Rangarajan, D. 2012 B2B Brand

Architecture. California Management Review; Vol. 54 Issue 2,

p58-71, 14p

Geiger,S. & Finch,J.2011Buyer-Seller interactions in mature

industrial markets: blurring the relational-transactional selling

dichotomy. Journal of Personal Selling & Sales Management;

Summer 2011, Vol. 31 Issue 3, p255-268, 14p,

Bayyr,J,andWeinstein,A.2009 Business psychographics revisited:

from segmentation theory to successful marketing practice,

Journal of Marketing Management;Apr2009, Vol. 25 Issue 3/4,

p315-340, 26p.

What were your top 3

concepts from the

readings? Share these

in class or online


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MODULE 5: BUSINESS TOBUSINESS MARKETS AND

BUYING BEHAVIOUR

Identifying opportunities in the marketplace


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Marketing Management Framework

The MM555 Marketing Management Framework draws

on a number of sources including Iacobucci (2013),

Armstrong et al (2012) and Gibbs (2009) and includesthe key factors which need to be taken into account

when developing a comprehensive marketing strategy.

Create Value

Product / Service

People

Processes

Physical Evidence

Capture Value

Price

CommunicateValue

Integrated MarketingCommunications

(includingPromotion)

Deliver Value

Placement Logistics

CustomerConsider factors such

as decision making,

values, needs &

wants

CompanyOr organisation. What

is our Strategic

Purpose? Capabilities?

Weaknesses?

ContextWhats going on in

the macro

environment?

CollaboratorsWho do we work with?

Who are our partners?

CompetitorsWho are our current

and potential

competitors? Where

are they placed in the

market?

SegmentationBased on geographic,

demographic,

psychographic and/or

behavioural factors

TargetingConsider strategic fit;

potential and defensibility

against competition

Analysis &

Strategy

Planning &

Implementation

PositioningYour place in the market space

Core benefit proposition

Unique selling proposition

Positioning Statement

DifferentiationDifferentiating the market

offering to create superior

customer value

Implementation, Monitoring &Measuring Outcomes

Marketing is

about creating

customer value

and profitable

customer

relationships

Marketing Objectives

Focus for

Module 5

Also

relevant


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Module 5: Learning Objectives

1. Be able to distinguish among the various types of business markets

2. Identify the major characteristics of business customers and transactions

3. Understand several attributes of the demand for business products

4. Become familiar with the major components of a buying centre5. Understand the stages of the business buying decision process and the

factors that affect the process


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Business

Markets

Producer

Markets

Reseller

Markets

Government

Markets

Institutional

Markets

Occurs when an individual or group purchases a

specific kind of product for resale, direct use inproducing other products, or use in general operations

Business to Business Markets (B2B)


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Types of B2B Customers

Individuals orbusiness

organisations thatpurchase products tomake profits by usingthem to produceother products orusing them in theiroperations

Includes buyers ofraw materials, as well

as purchasers ofsemi-finished andfinished items usedto produce otherproducts

Manufacturers tendto be geographicallyconcentrated and

can be served moreefficiently

ProducerMarkets

Resellers -Intermediaries who

buy finished goodsand resell them for aprofit

Factors resellersconsider include:* Level of demand* Space requiredrelative to potentialprofit

* Ease of placingorders* Availability oftechnical assistance* Training programsfrom producers

Resellers

Federal, state,county or local

governments thatbuy goods andservices to supporttheir internaloperations andprovide products totheir constituencies

GovernmentMarkets

Organisations withcharitable,

educational,community or othernon-business goals

InstitutionalMarkets


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Source: Pride,W., Ferrrell,O., Lukas,B.A., Schembri, S. and Nininen, O. 2012 Marketing Principles Asia Pacific Edition

Cengage Learning Chapter 6. Data here drawn from the American Customer Satisfaction Index, http://www.theacsi.org

Dimensions of Marketing to Business

Customers


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Characteristics of B2B transactions

Large Orders Expensive Items

Frequent replenishments

Long-term contractual agreements

Considerable marketing efforts

Purchasing committees

Reciprocity

An arrangement unique to business marketing in which

two organisations agree to buy from each other


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Business Buying Decision Process and

Factors that May Influence It

Source: Pride,W., Ferrrell,O., Lukas,B.A., Schembri, S. and Nininen, O. 2012 Marketing Principles Asia Pacific Edition

Cengage Learning Chapter 6.


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Procurement Center ModelRoles in the purchase decision-making in the corporate sector

Gatekeeper

Secretary

Decision maker

Manager

Buyer

Employee

User

Employee

Influencer

Management consultant

Gatekeeper

Informationcollection

comparison of offers

decision-makingpreparation

Decision maker Buyer User Influencer

purchase decision

vendor selection

Purchase

Price negotiations,discounts, andquantities

delivery conditions

suggestions forpurchase

assessment after thepurchase

(qualitatively)

criteriaformulationfor selection andevaluation ofoffers

Consider

Who are the major decision participants?

What decisions do they influence?

What is their level of influence?What evaluation criteria do the use?


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Textbook Resource: Kotler, Keller, Burton: Marketing Management 2009 Pearson Education Australia

Comparison of Business and Consumer Buying Decisions


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Module 5: Learning Objectives

Checking In..

1. Be able to distinguish among the various types of business markets

2. Identify the major characteristics of business customers and

transactions

3. Understand several attributes of the demand for business products

4. Become familiar with the major components of a buying centre

5. Understand the stages of the business buying decision process and the

factors that affect the process


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Next Steps

Review Module 6 Materials

Complete the required readings

Applied Project Optional: Situation Analysis Draft Due Mon

25 Feb

Working on Assignment 2 Clocky Case Study

Watch for Announcements

Dont forget to Dig Deeper!

Documents

Module 5 B2B Marketing FINAL.pdf