Fluent Essays

·  Read Chapter One and Two in the textbook. ·  Respond to this assignment with a single-spaced, typed document. Most well-thought out responses require at least one full page. ·  Submit your response to the professor through Canvas via File Upload. Assignments submitted in any other way will NOT BE ACCEPTED. Late assignments will also NOT BE accepted.  You are welcome to work ahead in this class, but please know that we must strictly enforce the late policy. There will be no exceptions to this policy. Chapter One Assignment:  Describe the key elements of a customer value proposition. Next, explain points of parity as well as points of difference in value propositions. Pick a B-2-B company, do a little homework on the company and then take a shot writing out a value-proposition statement for this company. Finally, evaluate this statement...Marketing must begin to think about value propositions that go beyond the value of using the product or service being sold; marketers must begin to think about their value-propositions in upstream stages of organizational buying that illustrates how the company can help buyers long before they actually buy the product/service?  Agree or disagree?  Can you think of any companies that do a good job helping customers long before they actually buy the product (thinking of a B-2-C example is fine here). 0 Chapter 2 Organizational Buying Behavior © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 12e The decision journey organizational buyers follow in making purchase decisions and the resulting strategy implications for the business marketer The types of buying situations that business customers confront and the appropriate strategy response for each The individual, group, organizational, and environmental variables that influence organizational buying decisions 2 Chapter Outline 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 2 A model of organizational buying behavior that integrates these important influences How a knowledge of organizational buying characteristics enables the marketer to make more informed decisions about product design, pricing, and promotion strategies 3 Chapter Outline (continued) 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 3 Marketers need to recognize how digital media channels have altered the customer decision process Marketers need to focus on driving advocacy rather than on media spending Customer Decision Journey © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Problem recognition General description of need Product specification Supplier search Acquisition and analysis of proposals Supplier selection Selection of order routine Performance review Organizational Buying Process © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Includes: Websites, user communities, and Internet search engines New forms of communication Mobile and wireless devices Expanded and enhanced electronic word-of-mouth methodologies, including new technologies LinkedIn, salesforce.com, Facebook, Twitter, industry-specific blogs Customer-Driven Pull System © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Types of Buying Situations 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. New task Modified rebuy Straight rebuy Problem or need is different from previous experiences Require extensive information to explore alternative ways of solving the problem Extensive problem solving: Stage of decision-making that buyers operate in because they lack: Well-defined criteria for comparing alternative products and suppliers Strong predispositions toward a particular solution New Task Buying Situation 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Judgmental new-task situations Greatest level of uncertainty exists as there is little information or experience to support a decision Decision-makers conduct information search to analyze key aspects of the buying decision Strategic new-task decisions Involve long-range planning, larger investments, and increased risk if they are wrong Buying Decision Approaches © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Problem or need that is recurring or a continuing requirement Requires little or no new information Routine problem solving: Organizational buyers apply well-developed choice criteria to the purchase decision Straight Rebuy 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Casual purchases Involve no information search or analysis Product or service is of minor importance Routine low priority approach Decisions are more important Involve a moderate amount of analysis Buying Decision Approaches (continued) 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Marketing task appropriate depends on whether the marketer is an in supplier or an out supplier In supplier must: Reinforce the buyer-seller relationship Meet the buying organization’s expectations Be responsive to the changing needs of the organization In and Out Supplier 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Out supplier must: Convince the organization that it can derive significant benefits from breaking the routine Have an understanding of the basic buying needs of the organization Persuade decision makers to reexamine alternative solutions Revise the preferred list to include the new supplier In and Out Supplier (continued) 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Decision makers feel significant benefits can be derived by reevaluating alternatives Factors that affect reevaluation Internal forces - Search for quality improvement and cost reductions External force - Cost, quality, or service improvements offered by the marketer Occurs when the firm is displeased with the performance of present suppliers Modified Rebuy 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Simple modified rebuy Involves a narrow set of choice alternatives and a moderate amount of both information search and analysis Complex modified rebuy Involves a large set of choice alternatives and poses little uncertainty Buying-Decision Approaches 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Figure 2.2 - Organizational Buying Behavior © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Economic influences Marketer must be sensitive to the strength of demand in the ultimate consumer market Best cost approach - Evaluates trade barriers and the inherent risks of longer supply chains Technological influences Fast pace of change implies that distinct benefits are associated with search effort and the acquired information is time sensitive Environmental Forces 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Growing influence of purchasing Companies outsource many activities and, as a result, procurement remains a strong influence Ensuing in a shift to more professional procurement positions Chief procurement officer’s (CPO) role Delivering cost savings, improving asset utilization, preserving supplier viability, and procuring materials in a socially and environmentally responsible way Organizational Forces 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Strategic priorities in purchasing Corporate goals and priorities grow as the purchasing profession grows Procurement managers give increased emphasis to suppliers’ capabilities Explore new areas where a strategic supplier can add value to the firm’s product or service offerings Organizational Forces (continued 1) 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Figure 2.3 - Strategic Priorities © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Procurement manager’s toolkit Calculating the total cost of ownership of an acquired good or service Deploying e-procurement processes Conducting reverse auctions Organizational Forces (continued 2) © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Considers the full range of costs associated with the purchase and use of a product or service over its complete life cycle Acquisition costs: Selling price and transportation costs, administrative costs of evaluating suppliers, expediting orders, and correcting errors in shipments Possession costs: Financing, storage, inspection, taxes, insurance, and other internal handling costs Total Cost of Ownership (TCO) © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Usage costs: Associated with ongoing use of the purchased product Installation, employee training, user labor, field repair, and product replacement and disposal costs Total Cost of Ownership (TCO) (continued) © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Provide customers with a lower cost-in-use solution Seek to move the selling proposition From one that centers on current prices and individual transactions to a longer-term relationship built on value and lower total cost-in-use 24 Value-based Sales Tools © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 24 E-procurement Purchasing managers use the Internet to find new suppliers, communicate with current suppliers, or place an order Reverse auctions Involves one buyer who invites bids from several prequalified suppliers who face off in a dynamic, real-time, competitive bidding process Best suited for commodity-type items 25 E-Procurement and Reverse Auctions © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 25 Preempt the auction Convince the buyer not to go forward with the auction as the firm has a unique value proposition and is not inclined to participate Manage the process Influence bid specifications and vendor qualification criteria Walk away Simply refuse to participate 26 Strategic Approach to Reverse Auctions © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 26 Separate organizational unit that has authority for purchases at a regional, divisional, or headquarters level Marketer who is sensitive to organizational influences can: Accurately map the decision-making process Isolate buying influentials Identify salient buying criteria Target marketing strategy for centralized buyers Centralized Purchasing 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Enterprise-wide initiative to develop strategic relationships with a limited number of customers To achieve long-term, sustained, significant, and measurable business value for both the customer and the provider Global account management program Treats a customer’s worldwide operations as one integrated account Key Account Management 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Buying center Consists of individuals who participate in the purchasing decision and share the goals and risks arising from the decision Plays a vital bridging role in the firm by: Connecting key personnel across departments who have a stake in a particular buying decision Facilitating the flow of information and knowledge across units Group Forces © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Steps involved Defining the buying situation Determining whether the firm is in the early or later stages of the procurement decision-making process Composition may vary and is not prescribed by the organizational chart Can be predicted by projecting the effect of the industrial product on various functional areas in the organization Group Forces (continued) © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. User Personnel who use the product in question and can be inconsequential or major players in the process Gatekeepers Control information to be reviewed by members of the buying group Influencers Affect the purchasing decision by providing information for the evaluation of alternatives or by setting buying specifications Deciders Make the buying decision, whether or not they have formal authority to do so Buyer Has formal authority to select a supplier and implement all procedures connected with securing the product Buying Center Roles 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Identifying Powerful Buying Center Members © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Isolate the personal stakeholders Follow the information flow Identify the experts Trace the connections to the top Understand purchasing’s role Differing evaluative criteria Evaluative criteria: Specifications that organizational buyers use to compare alternative industrial products and services Responsive marketing strategy Prepared by marketer who is sensitive to differences in product perceptions and evaluative criteria of individual buying center members Individual Forces © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Selective process Selective exposure - Accept communication messages consistent with existing attitudes and beliefs Selective attention - Filter or screen incoming stimuli to admit only certain ones to cognition Selective perception - Interpret stimuli in terms of existing attitudes and beliefs Selective retention - To recall information pertinent to own needs and dispositions Individual Forces (continued 1) 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Risk-reduction strategies Perceived risk components Uncertainty about decision outcomes Magnitude of consequences associated with making a wrong selection Individual decision making occurs in organizational buying for straight rebuys and for modified rebuys when the perceived risk is low Individual Forces (continued 2) 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Confronting risk Buying center becomes larger and comprises members with high levels of organizational status and authority Information search is active and a wide variety of information sources are consulted Buying center members invest greater effort and deliberate more carefully throughout the purchase process Sellers who have a proven track record are favored Individual Forces (continued 3) 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 0 Chapter 1 A Business Marketing Perspective © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 12e The dynamic nature of the business marketing environment and the basic similarities and differences between consumer-goods and business marketing The types of customers in this important market The underlying factors that influence the demand for industrial goods Chapter Outline 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. The nature of buyer-seller relationships in a product’s supply chain A method for classifying products and services for the business market Chapter Outline (continued) 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Markets for products and services bought by businesses, government bodies, and institutions for: Incorporation Consumption Use Resale Business Markets 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Business marketers serve the largest market of all Dollar volume of the business market greatly exceeds the consumer market Single customer can account for an enormous level of purchasing activity Known as industrial marketing Business Marketing 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Factors that distinguish business marketing from consumer marketing Nature of the customer Utility of the product for the customer Key to successful marketing strategy To identify unique dimensions of each major business market and formulate programs that respond to specific characteristics of each business market sector Business Marketing (continued) © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Commercial Enterprises © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Manufacturers Construction companies Service firms Transportation companies Selected professional groups Resellers Business marketers serve fewer but larger customers than consumer-products marketers Customers can be manufacturers of products who in turn target millions of potential buyers Geographical concentration indicates that a large potential volume exists in a given area Large metropolitan areas are lucrative business markets Concentration of Customers © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Generate the greatest volume of purchases of any customer category in the U.S. E-government initiatives generate a large market opportunity Government Units © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Formal advertising - Government solicits bids from appropriate suppliers Followed when the product is standardized and the specifications are straightforward Negotiated contract - Employed when: Purchased goods and services cannot be differentiated on the basis of price alone Few potential suppliers exist Government Purchasing Strategies © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Similar to governments Institutional purchasing process is constrained by political considerations and dictated by law Some institutions are administered by government units while some are privately operated and managed Institutional Customers © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Institutions may employ a purchasing agent or a purchasing department Group buying - Institutions may join cooperative purchasing associations to secure purchasing efficiencies Allows institutions to enjoy lower prices, improved quality, reduced administrative costs, and greater competition Institutional Buying © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Benefit by employing a market orientation Requires proficiency in understanding and satisfying customers Are market-driven Business Markets and Consumer-Goods Markets 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Set of values and beliefs that places customers’ interests first Ability to generate, disseminate, and productively use superior information about customers and competitors Coordinated use of interfunctional resources Aspects of Market-Driven Firms 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Distinctive Capabilities © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Market sensing capability Ability to continuously sense change and to anticipate customer responses Customer linking Capability to develop and manage close customer relationships Marketing expenditures that were considered expenses are considered investments now Marketers need to: Demonstrate return on investment from marketing spending Deliver strong financial performance Be more accountable to shareholders Impact on Business Performance © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Includes the skills required to identify, initiate, develop, and maintain profitable customer relationships Helps to meet performance standards Customer Relationship Management (CRM) © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Customers can determine how, when, and where they want to acquire information Customers can access information from Websites, YouTube, and peers in the business network Customer Decision Journey © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Through: Close working partnership An intimate knowledge of the customer’s operations Unique value contribution to the customer’s business Market-driven firms place high priority on customer-linking capabilities and closely align product decisions with the customer’s operations Customer Engagement © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Firms must: Clearly communicate the strategy Select the right customer prospects and match them with the optimal products and services Make the strategy relevant by operationalizing the distinctive features of the value proposition Aligning Strategy and Sales © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Roles of Marketing Managers © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Instigator Capitalizes on the close connection to customers, thinks strategically, and challenges the status quo Innovator Takes an active role in shaping the company’s innovation agenda Integrator Links multiple functions to unite organizational members on a clear strategy path Implementer Mobilizes diverse organizational members across the firm Customers compare value elements of a firm’s offering with those offered by the next best alternative Captures set of benefits that a supplier offers to advance the performance of the customer organization Customer Value Proposition © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Building Blocks of a Successful Value Proposition © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Points of parity Value elements with the same performance characteristics as the next best alternative Points of difference Value elements that render the supplier’s offering either superior or inferior to the next best alternative Nature of markets Market demand Buyer behavior Buyer-seller relationships Environmental influences Market strategy Differences in Consumer and Business Marketing © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Derived demand Demand for industrial products is derived from the ultimate demand for consumer products Fluctuating demand Business marketers carefully monitor fluctuating trends and patterns in consumer markets Downturn in the economy creates the opposite result Characteristics of Business Markets © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Stimulating demand Business marketers must monitor final consumer markets and develop a plan that reaches the ultimate consumer directly Price sensitivity Responsiveness of the quantity demanded to a change in price Called demand elasticity Characteristics of Business Markets (continued) © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Marketers must look beyond the borders of the United States Growing demand for industrial products in Germany, Japan, Korea, Brazil, China, and India Global Market Perspective 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Intended use determines whether or not a product is a consumer product or a business product Business marketing emphasizes personal selling rather than advertising to reach potential buyers Business product includes an important service component Business and Consumer Marketing 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. 28 All marketing activities directed toward establishing, developing, and maintaining successful exchanges with customers Building one-to-one relationships with customers is the core of business marketing Relationship Marketing 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Figure 1.1 - Key Characteristics of Business Market Customers © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Figure 1.2 - Supply Chain For Automobile Creation © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Technique of linking a manufacturer’s operation with suppliers, key intermediaries, and customers to enhance efficiencies and effectiveness Aims to improve the speed, precision, and efficiency of manufacturing through strong supplier relationships Achieved through information sharing, joint planning, shared technology, and shared benefits Supply Chain Management © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Long-term relationships are built on trust and demonstrated performance Strategic partnerships require open lines of communication between multiple layers of the buying and selling organizations Managing Relationships in the Supply Chain 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Users Buy industrial products or services to produce other goods or services that are, in turn, sold in the business or consumer markets Original Equipment Manufacturers (OEMs) Purchase industrial goods to incorporate into other products it sells in the business or ultimate consumer market Categories of Commercial Customers 0 © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Dealers and distributors Purchase industrial goods for resale to users and OEMs Distributor accumulates, stores, and sells a large assortment of goods to industrial users, assuming title to the goods it purchases Categories of Commercial Customers (continued) © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use. Figure 1.3 - Categories of Industrial Goods © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.