B2B PROJECT

Summary of Five Books

SUBMITTED BY: Submitted to:

Manish Kumar Gupta Dr. Prashant Pareek

1-20-076
Table of Contents

Sr. No. Book Page No.

1 Business to Business Marketing Management 3-23
A global perspective

2 Driving Demand 24-30

3 Business Marketing Management 31-43

4 B2B Customer Experience 44-48

5 Business to Business Marketing Relationships, 49-58

systems and communications

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 Book 1: Business to Business Marketing- A Global Perspective

CHAPTERS TOPIC Page No.

1 Introduction to business to business marketing 1-16

2 How business organizations buy 17-35

3 Strategic planning for global business markets 36-61

4 Ethical considerations for business marketers 62-89

5 Market research 90-118

6 Segmentation, targeting, and positioning 119-141

7 Market entry tactics 142-169

8 Product strategy and product development 170-204

9 Services for business markets 205-229

10 Pricing 230-253

11 Supply chain management 254-273

12 Managing distribution channels 274-292

13 Business to business marketing communications 293-318

14 Customer relationships and key-account management 319-350

15 Sales promotion, exhibitions, and trade fairs 351-370

16 Corporate reputation management 371-398

17 Marketing planning, implementation, and control 399-423

18 Organizing for maximum effectiveness 424-446

19 The future of business marketing 447-466

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 Book 1: Business to Business Marketing Management
A global perspective
Author’s Profile
Dr. Alan R. Zimmerman
Dr. Alan R. Zimmerman started selling door-to-door in second grade, everything from
greeting cards to operating a small international import business by age 14. He worked his
way through college and graduate school as a retail salesperson, radio broadcaster, recreation
manager, and prison therapist. He is listed in “Who’s among Students in American Colleges
and Universities”. His Earned a Bachelor’s degree from U of WI in Speech and Political
Science.
Master’s degree from U of MN in Communication and Sociology. He did his Doctorate from
U of MN in Interpersonal Communication and Psychology and Graduated with Summa Cum
Laude honors each time. He has 15 years of experience as a university professor at the
University of Minnesota (Twin Cities and Mankato), Emporia State University, and the
University of St. Thomas. He got selected as an “Outstanding Faculty Member” by two
different universities.
Founded Zimmerman Communi•Care Network, Inc., a speaking, training, and consulting
company. Provides 90+ programs a year across the United States and around the world.
He spoke to more than a million people, in 48 states and 22 countries, maintaining a 92%
repeat and referral business. He is listed in “Outstanding Young Men of America,”
“International Directory of Distinguished Leadership,” “Men of Achievement,” and “Five
Thousand Personalities of the World.” He is awarded the CSP (Certified Speaking
Professional Designation of Achievement). Of the 4,000 members of the National Speakers
Association, only 5% have received this award. Given the “Distinguished Faculty Award” by
the Institute of Management Studies on two occasions, an award that has been given to fewer
than 10 of its 2000 speakers in its 30+ years of business across the world. He inducted into
the CPAE Speaker Hall of Fame, an honor reserved for only a small handful of people in the
last 30 years, including Ronald Reagan, Colin Powell, Ken Blanchard, and Zig Ziglar. He is
the publisher of the “Tuesday Tip,” a weekly internet newsletter that focuses on maximizing
human performance, increasing leadership effectiveness, and developing communicative
competence.
Author of audio and video programs as well as books and training manuals, that help people
and organizations develop skills for peak performance. Personal interests include active
church participation, refinishing antique furniture, biking, hiking, and international
adventures as diverse as tribal treks in Southeast Asia and hunting in the Arctic.

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 Chapter 1: Introduction to business to business marketing

Marketing has its roots in understanding consumers, and because we are all consumers it has
become altogether too easy to concentrate on using consumer-based examples and theories when
discussing marketing concepts. However, business markets are far larger: businesses buy and sell
more goods than do consumers, and the transactions that take place between organizations have a
greater impact on the economy and on the welfare of people than do the transactions between
businesses and consumers. Understanding the differences between marketing to consumers and
marketing to professional buyers in commercial organizations is the first step in developing a
successful business marketing program. Business-to-business marketing is considerably larger
and quite different from mainstream marketing. The business market includes all businesses,
institutions and governments that purchase virtually all products and services to help them in
turn provide products and services to other businesses and to consumers. Marketing to these
customers requires a different focus than that used in mainstream marketing.

The key points of this chapter are:

 The most effective B2B marketing programs focus on one of the three main strengths:
increasing sales, reducing costs, complying with government regulations.
 “Pitfalls” such as new technologies, planning approaches or management principles
cannot substitute for true customer focus - finding out what customers really need and
focusing the organization on delivering it to them.
 There are many more B2B transactions than there are consumer marketing transactions,
and the B2B market is much larger than the mainstream market.
 The Internet is changing the way customers buy, but the need for basic marketing
direction remains.
 There are 12 major differences between B2B and consumer marketing, including those
related to business, customers and the environment.
 Relationship building is essential for the business marketer because a deep understanding
of customer processes is the main ingredient in B2B processes.
 Business goods / services are classified as inputs - items that become part of the client
firm's product / service, foundation - usually large pieces of capital that are used to make
products and facilitate - that help the organization of the business. Client to achieve his
goals.

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 Chapter 2: How business organizations buy

Organizational buying is often supposed to be more rational and less emotional than consumer
purchasing behaviour. However, it would be wrong to assume that organizational buying is
always entirely rational: those responsible for making buying decisions within organizations are
still human beings, and do not leave their emotions at the door when they come to work, so it
seems unrealistic to suppose that they do not have some emotional or irrational input in their
decision-making. Buyers have a large number of influences on their decision-making. At the
very least, buyers have their own personal agendas within the companies they work for: in the
broader context, a wide range of political, environmental, and technological issues will affect
their decision-making.The end result is likely to be a combination of experience, careful
calculation, and gut feeling.
The key points from this chapter are as follows:
 Buyers are subject to many pressures other than the simple commercial ones: emotions,
organizational influence, politics, and internal structures are also important factors.
 The decision-making unit (DMU) or buying center is the group of people who will make
the buying decision. Roles and composition of DMUs vary widely.
 Business and commercial organizations are likely to be swayed most by past experience
With a vendor, product characteristics, and quality. Resellers are driven by their
customers.
 Government markets are large, and almost always use a tendering system.
 Institutional markets may need special techniques to help them afford to buy the
products.
 Markets can be divided into those buyers who buy products designed to make other
products or who will incorporate the purchase into their own products (original-
equipment manufacturers); those who consume the product in the course of running their
businesses (user markets); or those who serve the aftermarket.
 A purchase may be a straight re-buy, a modified re-buy, or a new task. These are given in
order of increasing complexity, and do not have discrete boundaries.
 A team approach to buying usually dictates a team approach to selling.

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 Chapter 3: Strategic planning for global business markets

Strategy is concerned with moving the organization from where it is now to where we would
like it to be. It is the business process concerned with planning the long range activities,
character, and underlying values of the organization. Strategy differs from tactics in that
strategic decisions are far more difficult to reverse, they usually involve the decision-makers
in rejecting other options, and they tend to dictate the long-term nature of the organization as
well as its activities. Strategy is the guiding force of any organization. It allows every
member of the organization to understand where the organization is heading, which means
that decision-making by junior managers and even grass-roots workers becomes much easier.
The framework created by an effective, and effectively-communicated, strategy is essential
for the smooth running of the organization. However, strategic planning is not a
straightforward matter. Competition, hyper competition, and the rapidly-changing
environment all affect the firm’s ability to plan ahead.

Key points from this chapter are:

 Mission statements, vision statements, and objectives are all ways of communicating
the overall strategy of the organization. Strategy revolves around environment,
resources, and vision: the more congruent the EVR, the more successful the strategy.
 Value chains are not sufficient to analyze global businesses: the value network,
containing all the partner organizations, also needs to be considered.
 Traditional strategic approaches are industry or resource-based. Formal and informal
Institutions need to be considered as well.
 Positions within the market are market leader, market challenger, market follower,
and market niche.
 Hyper competition is about disrupting markets in order to out-compete other
organizations.

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 Chapter 4: Ethical considerations for business marketers

Establishing the proper ethical conduct for employees and managers is an important yet
difficult task. Recently, both the business and general press have been filled with stories
exposing ethical lapses in corporations across the world. In this chapter, we will attempt to
clarify the most important issues in global ethics and provide tools to help you establish
ethical guidelines for the marketing department. Establishing an effective ethics program,
especially in a firm heavily involved in international business, is both a challenge and a
necessity. Firms violating societal norms suffer major negative effects to their corporate
reputation. Therefore, it is important that managers understand how to deal with ethical
problems in all markets throughout the world.

The key points from this chapter are:

 The marketing department is operating within many influences. Corporate culture is
an important part of the ethical tone of the firm.
 Today, relying solely on the market’s invisible hand or the hand of government leaves
the firm vulnerable.
 While philosophy gives us deontology (acting based on absolute principles) and
utilitarianism as well as virtue ethics, none of these approaches nor the simple rules
sometimes used in marketing departments give useful guidelines for managers.
 There are ethical issues in many aspects of marketing, including selling, product,
marketing communications, pricing, distribution, market research, and personnel.
 Local markets range from highly corrupt to completely honest and in some cases lead
Marketers to the thought that no established ethical principles can be applied
throughout the world – cultural relativism.
 A most useful theory proposes that fundamental ideas called hyper norms can be
accepted by all marketers. Once these are established, adapting to local cultures is less
difficult.
 Firms and associations have developed codes of conduct. But codes of conduct by
themselves do not ensure ethical behavior. A full corporate program must be
established to ensure ethical behavior by all stakeholders.

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 Chapter 5: Market research

Market research is at the heart of any effective marketing program especially when a manager
is planning to enter a foreign market. Research is the starting point for determining who the
best customers are, how they go about making buying decisions and what the potential sales
might be to each of them. Market research also helps a manager determine what competitors
are doing and what they might do. It is critically important to develop as much information as
possible before making financial commitments. While business decisions can never be made
with absolute certainty, developing as much information as possible reduces the uncertainty
to a manageable level. Market research is critical to developing an effective business
marketing program. When hiring an outside research vendor, specific proposals must be
obtained. A firm must qualify the vendor’s expertise in market, product and method. When
commissioning a research project, a firm must be careful not to underfund the project. To be
successful, a project must have the support of top management. Where management
understands the role of market research and the costs involved, the most successful projects
are completed. Benchmarking is the process of identifying best practices in organizations and
then attempting to emulate these to improve the way things are done within a firm. The
benchmarking process resembles the market research process in many ways and care must be
taken to select the proper candidates and to develop the correct research instruments. Once
best practices are identified, the firm must have an action plan to make sure these practices
are implemented. The most successful firms try to exceed these best practices to establish real
competitive advantage.

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 Chapter 6: Segmentation, targeting, and positioning

Choosing the most rewarding market segments is probably the most important strategic
decision a firm must make. It is also perhaps the most demanding of decisions. When a firm
chooses the market segment(s) it wishes to pursue, by necessity it is also eliminating a
number of potential market segments from its customer base. However, segmentation is often
carried out ineffectively by business marketers. The most important strategic decision a
business marketing firm must make is choosing the most rewarding market segments.
Segmentation is the first of the three step process, followed by choosing the most effective
segment, called targeting, and positioning the firm in the most attractive way toward that
market segment.

The key points from this chapter are as follows:

 Consumer marketers segment by geographic, demographic, psychographic, and
behavioral characteristics. Only some of these are applicable to business market
segmentation. It is dangerous to simply apply consumer marketing segmentation
techniques to business markets.
 A good segment is measurable, substantial, accessible, differentiable, and stable.
 Identifiers fall into demographic, operations, product, and purchasing situation
variables.
 Response profile variables include product attributes, customer application, and
buying center personal characteristics.
 Infrastructure barriers, process issues, and implementation barriers are the major
problems encountered by firms attempting to segment their markets effectively.
 Segmentation should be continually re-examined to be sure that market conditions
have not changed.
 Each group requires different capabilities from a firm.
 Future attractiveness of the segment, demands on the resources of the firm, and the fit
with the firm strategy are the three major tests to be applied.

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 Chapter 7: Market entry tactics

Entering new markets is both challenging and rewarding. A manager must weigh a number of
variables to get the decision right. This is especially true when a firm is thinking about
getting into international markets. Segmentation, which we discussed in the last chapter, is an
important prerequisite for determining the best new market to enter. Once the decision is
made, there are many choices for market entry. These are based on specific considerations
which will be described in this chapter. Perhaps the most perplexing decision a manager must
make is when and how to enter new markets. A manager must first clearly decide upon the
segments to be addressed and then, taking into account all the environmental factors and
his/her company resources, choose the most effective market entry strategy.

The key points from this chapter are as follows:

 A range of environmental factors, including economic, demographic, competitive,
political/ legal, technological, and social/cultural are all at work affecting the new
market entry decision.
 Firms can take their current products to current or new markets or develop new
products for their current or new markets. The latter is the riskiest strategy. Firms who
do not realize which alternative they are choosing can often experience severe
difficulties.
 Technology is often a key factor in driving firms to new markets and is also a critical
success factor.
 While traditionally first movers into markets have been seen as gaining major
benefits, they also experience major cost disadvantages when compared to followers.
A follower strategy can be successful as well. Many firms encounter blocked markets
and need to take a long-term approach to opening these markets.
 Strategic alliances offer a firm an opportunity to work with other firms who have
complementary strengths without the need for a formal relationship like a joint venture.
But careful selection of the partner and clear goals and communications are
prerequisites to success.

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 Chapter 8: Product strategy and product development

No market remains the same forever and marketing managers are always looking for new and
better ways of doing things to generate satisfaction for their customers and increase return to
their shareholders. Competitors lurk in every market, trying to think of more attractive
products and services. All of this means a firm must engage in a formal new product
development (NPD) process. The firm needs to develop an overall product strategy and then
manage a process which will keep its offering as attractive as possible to customers. It is
highly important that every firm has a new product development process. Managers must
decide what their core competencies are and develop programs to improve their products and
services for customers while carefully considering outsourcing non-essentials.

The key points from this chapter are:

 A product is an offering of the firm which satisfies the needs of customers. It is a
bundle of benefits including brand name, design, and country of origin, price,
packaging, and services.
 The product lifecycle is the underlying reason for the necessity of a product
development process since products are usually replaced by newer technologies over
some period of time. Packaging and labeling are especially important in international
business because of shipping requirements and the need to recycle packaging.
 Quality plays a key role in business purchasing decisions. ISO 9000 is a basic
requirement in many industries and the Six Sigma approach is becoming more
important to many buyers.
 Firms must decide whether to make or buy all the products and services they use.
Global outsourcing requires sophisticated analysis of all costs. Where vulnerability
from outsourcing is low and tight control of particular suppliers is not important,
outsourcing may be the best choice.

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 Chapter 9: Services for business markets

There are many similarities between the marketing of tangible products and the marketing of
intangible services. But there are a number of important differences as well. Nearly every
successful B2B firm offers a combination of products and services, and often the services are
more profitable than the products are. This chapter will help you understand the differences
and improve your skills in marketing services. While there appear to be many similarities
between the marketing of tangible products and the marketing of intangible services, there are
quite a number of differences. Managers must be aware of the unique characteristics of
services, which make their marketing quite different.

The key points from this chapter are:

 Services are intangible, consumed, and produced at the same time, perishable, and
variable in the quality provided at various times. In addition, users participate in the
production of the service. Successfully changing a firm from product-centered to
service-oriented requires leadership by management, especially in the area of
corporate culture.
 The assessment of service quality has been well-established, however measurement of
B2B e-service quality varies by industry.
 Firms often introduce “me-too” services with no value added. This usually results in a
failure of the services business.
 While some researchers claim services businesses must have establishment’s in-
country to market services internationally, there is some evidence to suggest that that
is not true. The Internet allows services to be marketed throughout the world with no
“bricks and mortar” investment.
 Governments attempting to protect local businesses have been very creative in
developing barriers, creating major problems for services marketers. Marketers must use
technology, take a long-term view, and approach various constituencies to get these
barriers lowered.

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 Chapter 10: Pricing

Price is the only activity marketers engage in that produces revenue for the firm. All other
marketing activities represent expenditures while pricing managed properly can make a major
difference in the firm’s revenue and income. Pricing for products and/or services must be
congruent with the rest of the marketing plan. Managing price properly also means
thoroughly understanding costs as well as customers. As we have seen, price is a critical
aspect of the overall marketing plan and must be totally congruent with the rest of the levers
of the marketing machine.

The most important points from this chapter are the following:
 Marketing managers should attempt to give the highest possible price along the
“stepped” demand curve to maximize the revenues for their firm.
 Exceptions to this occur only in high tech, fast developing markets, where the quick
race to the next price point is critical.
 The overall pricing process moves through eight steps, starting with setting the
pricing objective and ending with determining prices.
 Pricing objectives may be profit-oriented, sales oriented, or status quo-oriented.
 The pricing strategy must be developed considering firm, customer, competitor,
distribution, and environmental variables.
 Customers weigh functional, operational, financial, relational, and personal benefits
against acquisition and internal costs as well as potential risks in determining whether
a price is fair.
 Competitive bidding is a major factor in B2B markets. A wise firm employs
knowledgeable salespeople to influence the specifications on which bids will be
made.
 Firms should employ an evaluation procedure to decide whether or not to move ahead
with a particular bid.

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 Chapter 11: Supply chain management

Ensuring that the goods arrive at the customer’s premises at the right time, in the right
quantities, and at the right price is at the heart of marketing. In the past, simply ensuring that
the delivery truck was reliable and the driver knew where to go was sufficient, but in recent
years a much wider-ranging view has been taken of the process of taking raw materials and
converting them to customer satisfaction. Particularly in the global context, this process
involves many different companies, often in different countries, each with their own needs.
Managing this complex chain of supply efficiently is one of the ways firms can improve their
profit margins and competitive position. The physical distribution of products has marketing
implications. Managing the supply chain effectively enables all of its members to maximize
their efficiency, and hence their profits – or of course to pass on savings to customers and
therefore be more competitive.

The key points from this chapter are as follows:

 Logistics takes a holistic view: physical distribution refers to particular elements of
the process.
 The main trade-offs in logistics are cost and service level.
 Just-in-time purchasing may be counterproductive unless the supply chain is well-
run.
 Airfreight can be cheaper than other forms of transport when all costs are taken into
account.
 Documentation can be extremely complex for road transport across several
international borders.
 Relationships exist across several categories of partner, not just buyers and sellers.
 Balancing organizational and personal needs is crucial for establishing commitment
in business relationships.
 The crucial elements in welding together the supply chain are information systems,
packaging and handling, effective services, and pooling of shipments.
 Accurate sales estimates are the key to successful supply chain management.

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 Chapter 12: Managing distribution channels

Finding and managing distributors and dealers around the world can be a time consuming
task for a B2B marketing manager. On the other hand, the distribution network is a key
strategic resource which provides a strong competitive advantage. This chapter describes the
process of discovering and managing channel partners in a global setting. Distribution policy
is a major contributor to strategy in business to business marketing. The purpose of the
exercise is to ensure that goods arrive in the right condition, at the right time, and in the right
place: good distribution makes it easy for potential customers to buy.

The key points from this chapter are:

 Distributors provide a wide range of services to both customers and to suppliers.
These services have to be provided by somebody.
 Distribution can be a critical success factor in business to business markets.
 Distribution might be intensive, selective or exclusive: each has its advantages in
specific markets.
 Distributors should be treated as partners.
 Conflict within distribution networks is inevitable, since the firms involved all have
separate agendas.
 Channel management is carried out by cooperation and negotiation.
 Cutting out the middlemen is likely to increase costs and reduce the efficiency of the
network as a whole.

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 Chapter 13: Business to business marketing communications

This chapter is about ways of communicating in business to business markets. The major
difference between business to business and consumer marketing communications is the lack
of mass media for businesses. Consumer marketing communications are heavily dominated
by Internet, television, radio, and press advertising, but business to business advertising is
less likely to use these media due to the much smaller number of buyers involved.
Communication is rather more complex than it at first appears. The communication that the
company intends to send often bears little relationship to the communication which is
actually received: this is because communication takes place in a large number of ways, and
at many different levels. The medium often has as much effect as the message itself, and the
way the message is conveyed alters the meaning. Finally, the message combines with the
recipient’s existing knowledge and prejudices to create an entirely new (and possibly
unintended) message.

The key points from this chapter are as follows:

 Business buyers actively seek out information, whereas consumers are less likely to
do so.
 Messages are not a magic bullet: communication is a cooperative process, and
meaning is co-created.
 Sought communications are those which the buyer looks for: unsought
communications are those which the seller sends out.
 Attitude consists of conation, cognition, and affect. Attitude change begins by
changing one of these.
 Cognitive dissonance causes breakdowns in communication.
 Business buyers rarely buy as a result of advertising alone.
 Direct mail must be carefully targeted if it is not to end up in the bin.
 The main trade-off in international communications is the decision whether to
standardize or to tailor.

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 Chapter 14: Customer relationships and key-account management

Business is largely about personal relationships. Even though business people often aim to be
totally rational in their buying behaviour, the personalities of the people they see convey an
image about the personality of the supplying corporation: for the buyer, the sales
representative IS the corporation. Personal selling has a special place in business to business
transactions. Because of the higher order values and fewer number of buyers, suppliers feel
the need to offer a personal service, supplied by the salesforce. The salesforce is a major part
of business to business budgets. In many cases, salespeople spend relatively little time
actually selling, and a great deal of time filling in paperwork, travelling between
appointments, and so forth. This means that much sales management effort is directed toward
ensuring that the salespeople spend as little time on administration as possible, and are
effective when they are in front of a customer. Key-account managers take the relationship a
step further. They establish long-term relationships with customers at many levels, and often
never meet the actual decision-makers. Key-account managers play the long game, building
up from initial contacts: this is essential since they are dealing with very large order values,
or very important strategic decisions for the customer.

The key points from this chapter are:

 Relationships between firms operate at many levels.
 Conflict is not necessarily a bad thing: it often leads to creative solutions.
 Trust and person-to-person relationships are essential components of successful
business to business relationships. Selling is about solving problems for customers, it
is not about persuasion.
 Selling may not belong in the communications mix at all.
 Salespeople often identify with customers.
 After-sales activities are essential, but are often neglected.
 Techniques used in small-scale accounts are counterproductive in key-account
selling and vice versa.
 The same is true of management techniques.
 Commission is a way of ensuring fairness: it is probably not a strong motivator.

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 Chapter 15: Sales promotion, exhibitions, and trade fairs

Exhibitions and trade fairs are among the most widely-used business to business marketing
tools, and yet at the same time they are the least well-researched. Even experienced exhibitors
have very little idea of how, or even whether, exhibitions are effective. Sales promotions
allow free rein to the imagination of the manager. So many sales promotion activities are
used by clever managers yet this area has received only limited attention from academics. In
business to business marketing, sales promotions are often played down, yet they still have a
potentially important role to play. Although exhibitions and trade fairs are often considered a
form of sales promotion, they do in fact have totally separate features and advantages.
Exhibitions offer a wide range of communications possibilities between all levels of the
organizations which exhibit, and those which attend. Like an old-fashioned marketplace,
exhibitions allow all interested parties to meet if they so wish, but this opportunity is often
squandered by an over-emphasis on making immediate sales. Sales promotions occupy a
small but useful role in business to business marketing by smoothing and facilitating the
decision-making process.

The key points from this chapter are as follows:

 Buyers are very much in the minority at most, if not all, exhibitions.
 Most visitors are on an information search, not on a shopping trip.
 Most exhibitors are focused strongly on selling, whereas they should be focused on
making useful contacts.
 Exhibitions and trade fairs offer an unrivaled opportunity in key-account
management.
 The dissonance between exhibitors’ aims and visitors’ aims often results in
disappointment for both parties.
 Exhibitors should establish objectives for their activities, but rarely do so.
 Sales promotions can be useful as deal sweeteners or facilitators.
 Sales promotions can be used for the salesforce, for intermediaries, for customers, or
for the customers of customers.

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 Chapter 16: Corporate reputation management

Corporate reputation has been defined as the aggregate perceptions of outsiders about the
salient characteristics of firms. In other words, an organization’s reputation is composed of
the overall view that people have about the organization. Reputation is important for two
reasons: first, it has a direct effect on the bottom line because organizations with good
reputations are more likely to attract customers, and second a good reputation acts as a buffer
should a crisis occur. Corporate reputation goes beyond merely putting spin on the
corporation’s activities. It is a coordinated effort to influence communications to and from
stakeholders, and also between stakeholders, in order to improve the corporation’s position in
the minds of its publics. In this sense, corporate reputation has a strategic role, because it
involves positioning the corporation in the public consciousness: this has real pay-offs in
terms of share values, employee satisfaction and behaviour, and customer perceptions of the
firm.

The key points from this chapter are as follows:

 Corporate reputations are not built through spin-doctoring.
 Corporate reputation has a stock market valuation.
 Public relations has internal and external roles.
 Crises will happen: having a crisis team in place is prudent.
 Outside agencies are often cheaper and more effective than carrying out PR tasks in-
house.
 between two and three times the cost of sponsorship should be devoted to other
communications efforts in order to support the sponsorship expenditure

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 Chapter 17: Marketing planning, implementation, and control

Coordinating marketing activities has been a problem for marketers since the beginning of
marketing thinking. In any organization, individuals act according to ideas of their own:
media buyers operate with one set of rules, salespeople and advertising planners with another.
Since all employees go home, and almost all talk about their work and their company, the
possibilities for controlling all marketing communications are strictly limited. Having said
that, planning is essential if there is to be any common direction in the organization. Planning
and implementing marketing tactics is complex because so many activities impinge on each
other, and almost all the activities of the firm and its employee’s impact on customers in one
way or another. Controlling the process is far from simple, and planning in advance often
seems to be a Herculean task, when one considers the number of factors to be taken into
account. Of course, planning has to happen, and it has to be sufficiently flexible to allow for
change: it also needs to be flexible enough to allow individuals some leeway in what they do
for the organization.

The key points from this chapter are:

 The marketing audit is a snapshot, and is therefore out of date as soon as it is
completed.
 Wicked problems are common in marketing, and may not have a single, final
solution.
 For a firm to be successful it requires the right knowledge, capability, and attitude.
 Combining resources creates unique capabilities for competitive advantage: resources
may be tangible, intangible or relational.
 MPM and the marketing dashboard are new ways of measuring marketing
performance.
 Controls may be administrative, social or self-control.
 Activities divide into systematized processes, and unstructured processes. In the
twenty-first century, the latter are becoming more common.

20
 Chapter 18: Organizing for maximum effectiveness

Once the hard work of segmentation has been completed and a strategy has been chosen, the
basics of marketing must be put in place. Nothing is more basic than the organization
structure. The design and implementation of this structure can empower employees to make
the strategy work or place insurmountable obstacles in the way of this success. As Day
(1990) says, “above all, the structure must mirror the segmentation of the market so that
responsibilities for serving each major market segment are well defined.” Achieving the
optimum marketing organization is a difficult task. Many approaches have been tried and
each has its advantages and disadvantages. Understanding the capabilities of the individuals
in your firm will go a long way to improving the results, but designing the proper structure is
a key way that individuals can be empowered to do their best.

The most important points from this chapter are as follows:

 Organization ranges from the simple functional structure where all similar functions
such as market research, advertising or distribution are gathered together to the
complex matrix or organismic organization structure where lines of authority are
blurred.
 The trade-off in organization design is usually simplicity versus a proper level of
concentration on product or market segment.
 Many combinations of organization are possible and managers tend to develop their
organization in an incremental way to satisfy an overall idea of the most effective
organization form.
 The needs of the global firm add another layer of complexity to organization.
 The best organization structures probably have these characteristics: simplicity, easy
exchange of information, and putting the best people closest to the customers.
 The debate about product or market managers has evolved into the “customer-focused
organization” where market segment-oriented organizations take precedence over
product organizations.
 For fast-moving markets, major reorganizations have been replaced by “patching,”
where small changes are made quickly to meet the needs of a rapidly changing
market.
 It is often more effective to leave the structure the way it is and move individuals into
positions where they can succeed.

21
 Chapter 19: The future of business marketing

Predicting the future is easy – predicting it accurately is not. This chapter aims to examine
the trends in thinking about business to business marketing, and to consider some of the
possibilities implicit in current developments. Three major trends will be affecting business
to business marketing in the foreseeable future: globalization, rapidly changing technology,
and increased visibility. Each of these trends will have an impact on how marketing is
accomplished and each of the trends affects the others as well. The key points from this
chapter are:

 While described in many ways globalization essentially means improved, less-

difficult trade, and growing similarities of market segments.
 Four drivers of globalization are market, cost, environmental, and competitive factors.
 Technologies and improving communications will allow for higher quality products
which more closely meet customer needs.
 The website is a critical tool in marketing communications because good or bad
information can be passed around quickly.
 A firm must pay more attention to what is said about it on the web. Increased
visibility means a firm must think about the impression it is making. The old idea that
manufacturers dominate markets is being replaced by the domination of customers.
 The basics of marketing – segmenting, targeting, and positioning remain as important
today as at any time.
 The best-prepared marketing executive will have developed specific skills about
marketing but also “timeless skills” which he/she can use to learn about new
environments as they present themselves.
 The presence of social media probably represents the biggest shift in business to
business marketing in the last twenty year.

22
 Book 2: Driving Demand

CHAPTERS TOPIC
1 The issue with modern demand generation

2 Leading demand process transformation

3 Why transformation fails

4 Action does not equal change

5 Change the marketing and sales mind set

6 Align content to your buyer

7 Adapting the lead management process

8 Measuring for success

9 Optimizing data and technology

10 Creating an outcome accountable culture

11 Managing people through change

12 Change ahead

23
 Book 2: Driving Demand

Author’s Profile
Carlos Hidalgo

Carlos Hidalgo has been in business for 25 years. Hidalgo has held corporate positions,
launched his own businesses, and worked for non-profits throughout the last two decades.
Hidalgo co-founded his first firm in 2005, which went on to win two straight Inc. 5000
awards before he left to start his second company, VisumCx. Hidalgo, in addition to his
present work as CEO of VisumCx, is a managing partner in a health care platform start-up,
serves on the board of a software start-up, and frequently writes on the junction of business
and personal achievement. Carlos and his wife Susanne live in Colorado Springs, CO, with
their four grown children.

Summary:

Chapter1: The issue with modern demand generation

The following are my significant takeaways from his first chapter:

 Marketing generates low-quality leads commitment on quantity but not always on

quality.
 Inefficiency of campaign-driven strategy to demand generation (Tactical Approach),
versus strategic approach: A continual process that is both operationalized and
optimized to engage, nurture, and convert both prospects and customers along their
purchase journey.
 Don't make technology the centerpiece of your demand generating strategy.
According to ANNUITAS, only 21% of those who possess marketing automation
claim to have been effective in attaining their goals using this technical instrument.
 Know your buyers (interviews) and comprehend the market conditions in which your
buyers live on a daily basis (research) to better predict B2B buyers' purchasing
behaviors.
 The only way to activate constant, successful, and buyer-centered demand
development is to have a team devoted to all facets of demand generation. Simply
adding this to your corporate marketing team's to-do list content generation, buyer
persona development will not assist.

24
 Chapter 2: Leading demand process transformation
Carlos Hidalgo discusses the notion of Demand Process Transformation and shares an
existing user case to show how B2B organisations could adapt their demand generating
method to foster a sustainable and repeatable growth model.
It is now evident to me that the concept of Customer Lifetime Value (CLV), rather than
simply working your tail off to create a large number of qualified leads, is the most important
factor in any Demand Process Transformation. To summarise, you must put in place a sales
and marketing machine capable of detecting, nurturing, and converting B2B leads in a
"repeatable and programmatic fashion," complete with all structural adjustments necessary to
maintain a continuous connection with potential buyers. From the time they are recognised to
the time they sign their first contract, this will occur. I love the idea of conversion content: if
done correctly, conversion-friendly content can convert visitors into leads, leads into
customers, and customers into fans. Based on your lead maturity level, it is the concept of
giving personalised material to get your lead to take action. And it is to this end that Demand
Process Transformation should lead.

Chapter 3: Why transformation fails

I chose a few of the transition failures discussed in the book, mostly ones that caught my
attention:

 “There are no easy fixes when it comes to retooling the approach to demand
generation.” Carlos writes in Taking Shortcuts: Carlos Hidalgo gives a compelling (at
least to me...) example. Carlos recently assisted a company in the creation of a
strategic demand generation campaign for a complicated and multi-product offer
including numerous consumer personas. Carlos' suggestions entailed a significant
shift in the marketing machine, which would, of course, needed a budget. “Can you
condense this?” says the company's CEO. It sounds fantastic, but it's too complicated,
costly, and long-term for us. This isn't how it works. This project was a flop. The first
item to consider is whether or not your firm is prepared for this. If not, you'll most
likely need to speak with a couple more folks.
 Other phenomena associated with people "blocking the road" included pride of
ownership, a dangerous lack of vision, and conflictual political objectives, all of
which are related to the principles of being human and change management. How can
you persuade employees who are concerned that Demand Process Transformation
may jeopardize their job?

25
 Chapter 4: Action does not equal change
Carlos begins this chapter with a simple statement: when B2B marketers are asked, how
many of you believe you don't have enough time to complete your jobs? a large majority of
them raise their hands. According to all studies, the majority of B2B marketers will increase
their budget and publish more content this year than they did last year, but just a small
percentage of B2B companies claim to have achieved the tangible results they expected last
year. In other words, more time and money spent does not result in a higher return on
investment. That does sound rather depressing.
One of the most important points is that your company requires a Demand Process
framework that can be efficiently reproduced across the organisation. This framework's
design is essentially something you'll need assistance with, which is where businesses like
ANNUITAS come in. Other noteworthy points raised in the book include splitting content
marketing teams and dividing resources into Engagement content specialists and Nurture
content specialists, because content in the Engage and Nurture stages should be different.

Chapter 5: Change the marketing and sales mind set

This chapter's main assertion is that "The function of sales has evolved significantly
throughout time. Buyers are no longer reliant on a salesperson or a sales team to give product
knowledge; in reality, they oversee and execute much of the buying process themselves,
particularly in the early stages, with little or no assistance from vendors "This encapsulates
everything. Before a consumer even phones a supplier, 57 percent of the buying decision is
made. This holds true for both B2B and B2C transactions. So no, 20 years in sales does not
imply that you are an effective salesperson, even if you used to win all of the "sales of the
year" honours in the 2000s.
The failure to acknowledge the significance of marketing in the demand generation method is
also a key to success. Perhaps your company's strategy is mostly driven by traditional sales
managers hesitant to alter their methods for generating demand, but this is no excuse for not
attempting to inspire change in a strategic manner. It's your job to persuade salespeople to see
things your way when it comes to current B2B demand creation. Begin small. Defining
shared quantifiable targets for sales and marketing as the first phase will not work; it should
be done later in the process. Only 38% of B2B marketing departments have both lead and
revenue quota goals today, so let's have a look around first.

26
 Chapter 6: Align content to your buyer
Carlos Hidalgo outlines an intriguing phenomenon: with every two marketing articles I read
on LinkedIn Pulse, I come across so-called content marketing experts advising “align content
with the buyer.” But how can B2B marketers go about doing this. It's not easy to come up
with tangible solutions. It's probably a good idea to remind everyone what content marketing
is a strategic marketing approach centred on developing and delivering valuable, relevant,
and consistent content to attract and maintain a clearly defined audience, and ultimately to
drive profitable consumer action. Before ever beginning to generate content, any organisation
should evaluate the following three fundamental questions:
Is our material educating and speaking to the buyers' pain points and challenges?
Is our information prepared from the standpoint of a subject matter expert or from a vendor's
perspective?
Those questions are self-explanatory. In terms of which format you should focus on, certain
surveys reveal that 91 percent of B2B buyers prefer interactive, visual, and on-demand
material don't anticipate anything shocking here. Another significant SEO conundrum: the
best approach to rank well in Google result pages is to create long read articles with a lot of
plain written material. Thank you for the thought-provoking question “Google”.

Chapter 7: Adapting the lead management process

As the author argues, the concept of lead management may appear straightforward, but
despite the democratisation of marketing automation, this is an area where B2B organisations
have traditionally struggled. In an ideal world, your new leads should be retained in your
marketing automation system until they have reached a certain level of maturity and
qualification, with a correct progressive profile and lead score setting. Only after that should
they be allocated to sales in CRM (Salesforce in my case). This is not an easy task, especially
when a company has a very complicated and multi-product offering.
Also, don't be delusional about the two following points:

 Marketing automation will not solve your lead management problems. Technology
will be a waste of time and money if it is not defined in a firm that already has a
proper lead management strategy in place that works.
 Even though a large portion of the purchasing process is now done digitally, lead
qualification still requires human contacts to be efficient. This is where having an
internal sales team in charge of calling (even) high-scored leads before allocating
them to sales people can make a significant impact. Only 41.5 percent of B2B
organizations use this method, so aim to be one of the remaining 58.5 %. However,
don't make the mistake of having your inside sales phone a new contact too early in
the buying process, as this could be counterproductive. Remember that "the average

27
 B2B buyer consumes three to five pieces of information prior to engaging with a
salesperson."
Chapter 8: Measuring for success
Only “26% of B2B firms reported being able to measure and report on the contributions of
the programme to the business,” as frightening as that may sound. To cut it short, here are a
few key performance indicators (KPIs) that you should be able to track as a result of your
demand generation efforts:
The amount of quality leads generated by your marketing campaigns, their conversion rate,
and the financial impact of these conversions on your marketing pipeline are all factors to
consider. Setting up trackable KPIs and allocating more funds to analytics tools are critical
first steps, but your team must also be schooled in marketing performance and ROI tracking.
According to the Formalise Marketing Group, only 10% of B2B marketers have received
sufficient training. When the ROI of marketing and sales actions is crucial for CEOs, CFOs,
and others, this is an excellent statistic.

Chapter 9: Optimizing data and technology

You can have the best KPIs in the world, but the quality of your data will determine the
success of your demand creation campaigns. The relevance of dedicated resource
management and daily database clean-ups should be considered by all B2B firms. It's critical
to have proper data governance and centralization in a single e-CRM system. Only a few
people should have complete administrative access to your CRM, which should be the SSOT
(single source of truth). The book explains how to put in place certain "minimum governance
principles that your business should set to protect data integrity" in a clear and concise
manner. You can also enlist the services of Data.com to improve and automate customer data
and intelligence from within your CRM system. When I read everywhere on the internet that
"email marketing is dead," I was astonished to learn that 87 percent of B2B demand
generators mention email as their top channel for generating leads. Although maintaining
good B2B email deliverability rates has become a headache due to more and more efficient
network filters and corporate firewalls, well-segmented email marketing accompanied by
smart BI is still king when it comes to creating B2B demand.

Chapter 10: Creating an outcome accountable culture

The need for B2B marketers to show business outcomes and be accountable for these
outcomes is more urgent now than ever before. A CEO having to ask his CMO on a monthly
basis to provide figures to assess whether the marketing department deserves to live is
obviously counterproductive, highly demotivating and even humiliating. As a CMO, one of
your priorities is to inspire change in your company, in the way that your department moves
“from being viewed as a cost centre to being considered as a growth-driver”. Putting in place
undeniable success measuring metrics that you can share internally is one way to make this

28
happen. However, choose the right words: instead of selling your CEO on the fact that
marketing will contribute to at least 30% of corporate business generation, with a minimum
of X million new business pipeline, sell the fact that marketing will contribute to at least 30%
of corporate business generation, with a minimum of X million new business pipeline, for
example. You can also compute the number of qualified sales leads instead of the number of
new leads as a good KPI to present to management. Improve the management's trust in your
KPIs. If you achieve those goals, you'll have done one of the most important things you can
do to encourage the expected change culture.

Chapter 11: Managing people through change

The general secretary of a marketing organisation in which I am a member (The CMIT: Club
of French Marketing Directors and Managers from the IT Industry, I admire you guys)
contacted me yesterday and asked me to produce an essay on the topic of should marketers be
Thought Leaders?  This section of the book actually assisted me in discovering what the title
of this article is now: Marketers don't have to be Thought Leaders; they must be Attitude
Influencers as a result.
When working with our clients on demand generation transformation, one of the mental
stumbling blocks I notice most often is the dread of starting over, writes the author. Why?
Because most people put a lot of effort into creating the current system and believe that
starting over is a defeat, and therefore don't see change as a good thing, which I understand.
This is where B2B marketing may play a role as an Attitude Influencer: a transition rarely
necessitates starting from scratch. Assist people in accepting change by finding their "bright
spots," or areas where they are already working. You must be your company's "Mister Full
Glass," encouraging staff to always be optimistic about what has been accomplished in the
past, and to learn from their journey to change, even if it has not been ideal. This concept will
cause people's attitudes to shift.

Chapter 12: Change Ahead

The complexity of B2B demand generation will continue to rise as buyers' purchasing
strategies get more sophisticated” said by Carlos. At the end of the day, this book is
attempting to answer a single question: are all of the changes worthwhile? It is certainly not
simple to attain, but yes, it is worth it, Carlos says. According to Adam Needles, Chief
Strategy Officer of ANNUITAS, the more advanced your demand generating procedures are,
the higher your conversion rate will be.
To sum up, I believe this book will assist you in answering two questions:

 In terms of Demand Process maturity, where does my organization stand? (People –

processes – buyer insights and content – technology systems and data – key
performance indicators - KPIs)

29
  How can people, processes, content, and technology be changed to effectively
increase demand, maximize budgets, optimize technology and resources, have a
stronger influence on business, and better align with B2B buyers?

Book 3: Business Marketing Management

CHAPTERS TOPIC Page No.

1 A Business Marketing Perspective 1-32

2 Perspective on the Organizational Buyer 33-61

3 Organizational Buying Behaviour 62-90

4 CRM Strategies for Business Markets 91-122

5 Segmenting the Business Market 123-152

6 Business Market Planning 153-179

7 Business Marketing Strategies 180-207

8 Managing Products for Business Markets 208-231

9 Managing and New Industrial Product Development 232-256

10 Managing Services for Business Markets 257-280

11 Managing Business Marketing Channels 281-302

12 E-commerce Strategies For Business Markets 303-328

13 Supply Chain Management 329-357

14 Pricing Strategy for Business Markets 358-382

15 Business Marketing Communications 383-406

16 Managing the Personal Selling Function 407-434

17 Marketing Performance Measurement 435-461

30
 Book 3: Business Marketing Management
Author’s Profile
Michael D. Hutt
Michael D. Hutt (PhD, Michigan State University) is the Ford Motor Company
Distinguished Professor of Marketing at the W. P. Carey School of Business, Arizona State
University. He has also held faculty positions at Miami University (Ohio) and the University
of Vermont.
Dr. Hutt’s teaching and research interests are concentrated in the areas of business to-
business marketing and strategic marketing. His current research centres on the cross
functional role that marketing managers assume in the formation of strategy. Dr. Hutt’s
research has been published in the Journal of Marketing, Journal of Marketing Research, MIT
Sloan Management Review, Journal of Retailing, Journal of the Academy of Marketing
Science, and other scholarly journals. He is also the co-author of Macro Marketing (John
Wiley & Sons) and contributing author of Marketing: Best Practices (South-Western).
Assuming a variety of leadership roles for American Marketing Association programs, he co-
chaired the Faculty Consortium on Strategic Marketing Management. He is a member of the
editorial review boards of the Journal of Business-to-Business Marketing, Journal of Business
& Industrial Marketing, Industrial Marketing Management, Journal of the Academy of
Marketing Science, and Journal of Strategic Marketing. For his 2000 contribution to MIT
Sloan Management Review, he received the Richard Beck hard Prize. Dr. Hutt has consulted
on marketing strategy issues for fi rams such as IBM, Motorola, Honeywell, AT&T, Arvin
Industries, ADT, and Black-Clawson, and for the food industry’s Public Policy
Subcommittee on the Universal Product Code.

Thomas W. Speh
Thomas W. Speh, PhD, is Professor of Marketing Emeritus and Associate Director of MBA
Programs at the Farmer School of Business, Miami University (Ohio).Dr. Speh earned his
PhD from Michigan State University. Prior to his tenure at Miami, Dr. Speh taught at the
University of Alabama.
Dr. Speh has been a regular participant in professional marketing and logistics meetings and
has published articles in a number of academic and professional journals, including the
Journal of Marketing, Sloan Management Review, Harvard Business Review, Journal of the
Academy of Marketing Sciences, Journal of Business Logistics, Journal of Retailing, Journal
of Purchasing and Materials Management, and Industrial Marketing Management. He was the
recipient of the Beta Gamma Sigma Distinguished Faculty award for excellence in teaching
at Miami University’s School of Business and of the Miami University Alumni Association’s
Effective Educator award.

31
 Chapter-1: A Business Marketing Perspective

The business market offers significant opportunities and special challenges for the marketing
manager. Market-driven firms in the business market demonstrate superior skill for
understanding and satisfying customers. They also possess strong market-sensing and
customer-linking capabilities. To deliver strong financial performance, business to-business
firms must also demonstrate customer relationship management skills, which include all the
skills required to identify, initiate, develop, and monitor profitable customer relationships.
Best-practice marketing strategists base their value propositions on the points of difference
that matter the most to target customers, responding clearly and directly to the customer’s
business priorities. Although a common body of knowledge and theory spans all of
marketing, important differences exist between consumer and business marketing, among
them the nature of markets, demand patterns, buyer behaviour, and buyer-seller relationships.
The dramatic worldwide rise in competition requires a global perspective on markets. To
secure a competitive advantage in this challenging environment, business market customers
are developing closer, more collaborative ties with fewer suppliers than they have used in the
past. They are using the Internet to promote efficiency and real time communication across
the supply chain and demanding quality and speed from their suppliers to an unprecedented
degree. These important trends in procurement. Place a premium on the supply chain
management capabilities of the business marketer. Business marketing programs increasingly
involve a customized blend of tangible products, service support, and ongoing information
services both before and after the sale. Customer relationship management constitutes the
heart of business marketing.

Chapter-2: Perspective on the Organizational Buyer

In business-to-business marketing, the customers are organizations. The business market can
be divided into three major sectors: commercial enterprises, governments (federal, state, and
local), and institutions. Many business marketers—for example, Intel, Boeing, and IBM—
generate a significant proportion of their sales and profit by serving international customers.
Commercial enterprises include manufacturers, construction companies, service firms,
transportation companies, selected professional groups, and resellers. Of these, manufacturers
account for the largest dollar volume of purchases. Furthermore, although the majority of
manufacturing firms are small, buying power is concentrated in the hands of relatively few
manufacturers, which are also concentrated geographically. Commercial enterprises, such as
service establishments and transportation or utility companies, are more widely dispersed.

32
Diversity is the characteristic that typifies the institutional market. The characteristics,
orientations, and purchasing processes of institutional buyers are somewhere between
Commercial enterprises and government buyers. Cooperative purchasing—a unique Aspect
of this segment—necessitates a special strategic response by potential suppliers. Many
business marketers have found that a market-centred organization provides the specialization
required to meet the needs of each market sector.
Chapter 3: Organizational Buying Behaviour

Knowledge of the process that organizational buyers follow in making purchasing decisions
is fundamental to responsive marketing strategy. As a buying organization moves from the
problem-recognition phase, in which a procurement need is defined to later phases, in which
suppliers are screened and ultimately chosen, the marketer can play an active role. In fact, the
astute marketer often triggers initial awareness of the problem and helps the organization
effectively solve that problem. Incremental decisions made throughout the buying process
narrow the field of acceptable suppliers and dramatically influence the ultimate outcome.
The nature of the buying process depends on the organization’s level of experience with
similar procurement problems. It is thus crucial to know how the organization defines the
buying situation: as a new task, a modified rebuy, or a straight rebuy. Each buying situation
requires a unique problem-solving approach, involves unique buying Influential, and
demands a unique marketing response.
Unravelling the complex forces that encircle the organizational buying process is indeed
difficult. This chapter offers a framework that enables the marketing manager to begin this
task by asking the right questions. The answers provide the basis for effective and efficient.

Chapter 4: CRM Strategies for Business Markets

Relationships, rather than simple transactions, provide the central focus in business
marketing. By demonstrating superior skills in managing relationships with key customers as
well as with alliance partners, business marketing firms can create a collaborative advantage.
To develop profitable relationships with customers, business marketers must first understand
the different forms that exchange relationships can take. Transactional exchange centres on
the timely exchange of basic products and services for highly competitive market prices. By
contrast, collaborative exchange involves very close personal, informational, and operational
connections the parties develop to achieve long term mutual goals. Across the relationship
spectrum, different types of relationships feature different relationship connectors. For
example, collaborative relationships for important purchases emphasize operational linkages
that integrate the operations of the buying and selling organizations and involve high levels of
information exchange.
The driving force behind the formation of a strategic alliance is the desire of one firm to
leverage its core competencies by linking with another firm that has complementary
expertise, thereby creating joint value and new market opportunities. Firm’s adept at
managing strategic alliances create a dedicated alliance function, develop a shared strategy

33
map and a clear value proposition that the partners will provide to target customers, and
nurture the interpersonal relationships that are crucial to success. A well-integrated
communication and work-flow network is required within and across firms.
And senior executives’ Personal involvement galvanizes crucial support. A regular audit of
evolving relationship can be a valuable tool for gauging an alliance’s health.

34
 Chapter 5: Segmenting the Business Market

The business market contains a complex mix of customers with diverse needs and objectives.
The marketing strategist who analyses the aggregate market and identifies neglected or
inadequately served groups of buyers (segments) is ideally prepared for a market assault.
Specific marketing strategy adjustments can be made to fit the unique needs of each target
segment. Of course, such differentiated marketing strategies are feasible only when the target
segments are measurable, accessible, compatible, responsive, and large enough to justify
separate attention.
Procedurally, business market segmentation involves categorizing actual or potential buying
organizations into mutually exclusive clusters (segments), each of which exhibits a relatively
homogeneous response to marketing strategy variables. To accomplish this task, the business
marketer can draw upon two types of segmentation bases: macro level and micro level.
Macro dimensions are the key characteristics of buying organizations and of the purchasing
situation. The NAICS together with other secondary sources of information are valuable in
macro level segmentation. Micro level bases of segmentation centre on key characteristics of
the decision-making unit and require a higher level of market knowledge.
This chapter outlined a systematic approach for the business marketer to apply when
identifying and selecting target segments. Before a final decision is made, the marketer must
weigh the costs and benefits of a segmented marketing strategy. In developing a market
segmentation plan, the business marketing manager isolates the costs and revenues associated
with serving particular market segments. By directing its resources to its most profitable
customers and segments, the business marketer is less vulnerable to focused competitors that
may seek to “cherry-pick” the firm’s most valuable customers. Business marketing strategy.

Chapter 6: Business Market Planning

A business model or concept consists of four major components: (1) a core strategy, (2)
strategic resources, (3) the customer interface, and (4) the value network. The core strategy is
the essence of how the firm competes, whereas strategic resources capture what the firm
knows (core competencies), what the firm owns (strategic assets), and what employees
actually do (core processes). Specifying the benefits to customers is a critical decision when
designing a core strategy. The customer interface component refers to how customer
relationship management strategies are designed and managed, whereas the value network
component considers how partners and supply chain members can complement and
strengthen the resource base of the fi rm. To establish and maintain a distinctive strategic
positioning, a company should focus on profitability, rather than just revenue growth, deliver
a unique value proposition, and configure activities—like new product development or
customer relationship management—differently from rivals and in a manner that supports its
value proposition.
The approach involves identifying target customer segments, defining the differentiating
customer value proposition, aligning the critical internal processes that deliver value to
customers in these segments, and selecting the organizational capabilities necessary to

35
achieve customer and financial objectives. Business marketers primarily emphasize one of
the following value propositions or customer strategies: low total cost, product leadership, or
system lock-in. A strategy map provides a visual representation of a firm’s critical objectives
and the cause-and-effect relationships among them that drive superior organizational
performance.

Chapter 7: Business Marketing Strategies

A global strategy must begin with a unique competitive position that offers a clear
competitive advantage. Providing the best odds of global competitive success are businesses
and product lines where companies have the most unique advantages. The home base for a
business is the location where strategy is set, and the home base for some product lines may
be best positioned in other countries. Although core activities are located at the home base,
other activities can be dispersed to strengthen the company’s competitive position. Successful
global competitors demonstrate special capabilities in coordinating and integrating dispersed
activities. Coordination ensures
Clear positioning and a well-understood concept of global strategy among subsidiary
Managers across countries. Successful global marketers understand the key risks associated
with operating in the global environment, and they take steps to mitigate these risks through
their strategic approach to different global markets. To create Effective global strategies and
capture important market opportunities, business-to-business firms must develop a deep
understanding of local markets and the special competitive and environmental forces that will
drive performance.
Once a business marketing firm decides to sell its products in a particular country, it must
select an entry strategy. The range of options includes exporting, contractual entry modes (for
example, licensing), strategic alliances, and joint ventures. A more elaborate form of
participation is represented by multinational firms that use multi domestic strategies. The
most advanced level of participation in international markets is provided by firms that use a
global strategy. Such firms seek competitive advantage by pursuing strategies that are highly
interdependent across countries. Global competition tends to be more common in industries
in which primary activities, like R&D and manufacturing, are vital to competitive advantage.

36
 Chapter 8: Managing Products for Business Markets

Some of the most valuable and enduring global brands belong to business-to-business firms.
The power of a brand resides in the minds of customers through what they have experienced,
seen, and heard about the brand over time. The customer-based brand equity model consists
of four steps: establishing the right brand identity, defining the meaning of the brand through
unique brand associations, developing responsive marketing programs to elicit a positive
brand response from customers, and building brand relationships with customers, marked by
loyalty and active engagement.
Research vividly demonstrates that investments in building a strong brand yield a positive
payoff in the financial performance of the firm. Conceptualizing a product must go beyond
mere physical description to include all the benefits and services that provide value to
customers. The unifying goal for the business marketer: Provide superior market-perceived
quality and value versus competitors.
To a business customer, value involves a trade-off between benefits and sacrifices. Business
marketers can strengthen customer relationships by providing value-added services and
helping customers reduce operations costs. A carefully coordinated product strategy
recognizes the role of various functional areas in providing value to business customers.
Special attention should be given to synchronizing the activities among the product-
management, sales, and service units.
Rapidly changing high-technology markets present special opportunities and challenges for
the product strategist. The technology adoption life cycle includes five categories of
customers: technology enthusiasts, visionaries, pragmatists, conservatives, and sceptics. New
products gain acceptance from niches within the mainstream market, progress from segment
to segment like one bowling pin knocking over another, and, if successful, experience the
tornado of general, widespread adoption by pragmatists. Importantly, the technology
adoption life cycle calls for different marketing strategies at different stages.

37
 Chapter 9: Managing and New Industrial Product Development

Product innovation is a high-risk and potentially rewarding process. Sustained growth

depends on innovative products that respond to existing or emerging consumer needs.
Effective managers of innovation channel and control its main directions but have learned to
stay flexible and expect surprises. Within the firm, marketing managers pursue strategic
activity that falls into two broad categories: induced and autonomous strategic behaviour.
New-product-development efforts for existing businesses or market-development projects for
the firm’s present products are the outgrowth of induced strategic initiatives. In contrast,
autonomous strategic efforts take shape outside the firm’s current concept of strategy, depart
from the current course, and centre on new categories of business opportunity; middle
managers initiate the project, champion its development, and, if successful, see the project
integrated into the firm’s concept of strategy.
Effective new product development requires a thorough knowledge of customer needs and a
clear grasp of the technological possibilities. Lead user analysis and customer visits often
uncover valuable new product opportunities. Top-performing firms execute the new-product-
development process proficiently, provide adequate resource to support new product
objectives, and develop clear new product strategy. Both strategic factors and the firm’s
proficiency in executing the new-product-development process are critical to the success of
industrial products. Fast-paced product development can provide an important source of
competitive advantage. Speed comes from adapting the process to the new-product-
development task at hand.

38
 Chapter 10: Managing Services for Business Markets
Customer satisfaction represents the culmination of a set of customer experiences with the
business-to-business firm. A customer experience map provides a powerful platform for
defining the most critical customer–company interactions, uncovering customer expectations,
and spotting opportunities to create value and strengthen customer loyalty. Rather than
selling individual products and services, leading-edge business-to-business firms focus on
what customers really want—solutions. To design a solution, the business marketing manager
begins by analysing a customer problem and then identifies the products and services
required to solve that problem. Because solutions can be more readily customized for
individual customers, they provide more avenues for differentiation than products can offer.
Business services are distinguished by their intangibility, linked production and consumption,
lack of standardization, perishability, and use as opposed to ownership.
Together, these characteristics have profound effects on how services should be marketed.
Buyers of business services focus on five dimensions of service quality: reliability,
responsiveness, assurance, empathy, and tangibles. Because of intangibility and lack of
uniformity, service buyers have significant difficulty in comparing and selecting service
vendors. Service providers must address this issue in developing their marketing mix.
The marketing mix for business services centres on the traditional elements— service
package, pricing, promotion, and distribution—as well as on service personnel, service
delivery system, and physical evidence. The goal of the services marketing program is to
create satisfied customers. A key first step in creating strategies is to define the customer-
benefit concept and the related service concept and offer. Pricing concentrates on influencing
demand and capacity as well as on the bundling of service elements.

Chapter 11: Managing Business Marketing Channels

Channel strategy is an exciting and challenging aspect of business marketing. The challenge
derives from the number of alternatives available to the manufacturer in distributing business
products. The excitement results from the ever-changing nature of markets, user needs, and
competitors. Channel strategy involves two primary management tasks: designing the overall
structure and managing the operation of the channel. Channel design includes evaluating
distribution goals, activities, and potential intermediaries. Channel structure includes the
number, types, and levels of intermediaries to be used. A central challenge is determining
how to create a strategy that effectively blends e-commerce with traditional channels.
Business marketing firms use multiple sales channels to serve customers in a particular
market segment: company salespersons, channel partners, call centres, direct mail, and the
Internet. The goal of a multichannel strategy is to coordinate activities across those channels
to enhance the customer’s experience while advancing the firm’s performance.
The primary participants in business marketing channels are distributors and reps.
Distributors provide the full range of marketing services for their suppliers, although
customer contact and product availability are their most essential functions.

39
Manufacturers’ representatives specialize in selling, providing their suppliers with quality
representation and with extensive product and market knowledge.

The rep is not involved with physical distribution, leaving that burden to the manufacturers.
The central objective of channel management is to enhance the value delivered to customers
through the carefully orchestrated activities of channel partners. The channel design process
hinges on deep knowledge of customer needs, and the channel structure must be adjusted as
customer or competitor behaviour changes. Selection and motivation of channel partners are
two management tasks vital to channel success.

Chapter 12: E-commerce Strategies for Business Markets

Business marketers of all types, whether manufacturers, distributors, or service providers, are
integrating the Internet and electronic communications into the core of the business
marketing strategies. E-commerce is the broad term applied to communications, business
processes, and transactions that are carried out through electronic technology—mainly the
Internet. E-commerce can be applied to almost any aspect of business to make all processes
more efficient. Based on Internet technologies, an intranet is an internal network accessible
only to company employees and other authorized users. By contrast, an extranet is a private
network that uses Internet-based technology to link companies with suppliers, customers, and
other partners. Extranets allow the business marketer to customize information for a
particular customer and to seamlessly share information with that customer in a secure
environment.
For business marketers, the Internet has been effective as a powerful communication
medium, an alternative channel, a new venue for a host of services, a data gathering tool, and
a way to integrate the supply chain. To be successful, the Internet strategy must be carefully
woven into the fabric of the firm’s overall marketing strategy.
The Internet offers important benefits, including reduced transaction costs, reduced
Cycle time, supply chain integration, access to information, and closer customer
relationships.
Given the failure of many dot-com companies, the lesson for business marketers is that the
Internet is an enabling technology—a powerful set of tools that complements, rather than
replaces, traditional ways of competing. The e-commerce strategy must be carefully crafted,
beginning with a focus on objectives. Once a firm has established objectives, it can formulate
an Internet strategy.

40
 Chapter 13: Supply Chain Management

Logistics is the critical function in the firm’s supply chain because logistics directs the flow
and storage of products and information. Successful supply chains synchronize logistics with
other functions such as production, procurement, forecasting, order management, and
customer service. The systems perspective in logistical management cannot be stressed
enough—it is the only way to assure management that the logistical function meets
prescribed goals. Not only must each logistical variable be analysed in terms of its effect on
every other variable but the sum of the variables must be evaluated in light of the service
level provided to customers. Logistics elements throughout the supply chain must be
integrated to assure smooth product flow. Logistical service is critical in the buyer’s
evaluation of business marketing firms and generally ranks second only to product quality as
a desired supplier characteristic.
Logistics decisions must be based on cost trade-offs among the logistical variables and on
comparisons of the costs and revenues associated with alternative levels of service.
The optimal system produces the highest profitability relative to the capital investment
required. Three major variables—facilities, transportation, and inventory—form the basis of
logistical decisions B2B logistics managers face. The business marketer must monitor the
effect of logistics on all supply chain members and on overall supply chain performance.
Finally, the strategic role of logistics should be carefully evaluated: Logistics can often
provide a strong competitive advantage.

Chapter 14: Pricing Strategy for Business Markets

The business marketer must assign pricing its role in the firm’s overall marketing strategy.
Giving a particular industrial product or service, an “incorrect” price can trigger a chain of
events that undermines the firm’s market position, channel relationships, and product and
personal selling strategies. Customer value represents a business customer’s overall
assessment of the utility of a relationship with a supplier based on benefits received and
sacrifices made. Price is but one of the costs that buyers examine when considering the value
of competing offerings. Thus, the marketer can profit by adopting a strong end-user focus that
gives special attention to the way buyer’s trade off the costs and benefits of various products.
Responsive pricing strategies can be developed by understanding the economic value that a
product provides for a customer. Economic value represents the cost savings and/or revenue
gains that customers realize by purchasing the firm’s product instead of the next-best
alternative.
By understanding how customers in a market segment actually use a product or service and
realize value from its use, the business marketer is ideally equipped to set the price and
develop a responsive strategy. Price setting is a multidimensional decision. To establish a
price, the manager must identify the firm’s objectives and analyse the behaviour of demand,
costs, and competition. Hypercompetitive rivalries characterize the nature of competition in
many high-technology industry sectors. Although this task is clouded with uncertainty, the
industrial pricing decision must be approached actively rather than passively.

41
For example, many business marketing firms use target costing to capture a competitive
advantage. Likewise, by isolating demand, cost, or competitive patterns, the manager can
gain insights into market behaviour and neglected opportunities. Dealing effectively with an
aggressive competitor requires more than a willingness to fight—it requires a competitive
strategy and an understanding of when to ignore a price attack, when to accommodate it, and
when to retaliate.

Chapter 15: Business Marketing Communications

Business-to-business marketers are developing integrated marketing communications

strategies that align strategic business objectives with creative execution across a variety of
media to achieve desired results. Because of the nature of the business-to business buying
process, personal selling is the primary technique for creating sales; advertising supports and
supplements personal selling. Yet, advertising does perform some tasks that personal selling
simply cannot perform. Advertising is able to reach buying influential who are often
inaccessible to sales personnel.
Advertising supports personal selling by making the company and product known to potential
buyers. The result is greater overall selling success and firm performance. Effective
advertising makes the entire marketing strategy more efficient, often lowering total marketing
and selling costs. Finally, advertising can provide information and company or product
awareness more efficiently than can personal selling. More than just an advertising medium,
the Internet changes marketing communications from a one-way to a two-way process that
permits the marketer to more readily exchange information with customers.
Managing the advertising program begins by determining advertising objectives, which must
be clearly defined and directed to a specific audience. Once objectives are specified, funds
are allocated to advertising efforts. Rules of thumb, though common, are not the ideal
methods for specifying advertising budgets. The objective-task method is far more effective.
Advertising messages are created with the understanding that the potential buyer’s perceptual
process influences receptivity to the message. The most effective appeal is one that projects
product benefits or the solution sought by the targeted buying influential.

Chapter 16: Managing the Personal Selling Function

Personal selling is a significant demand-stimulating force in the business market. Given the
rapidly escalating cost of personal sales calls and the massive resources invested in personal
selling, the business marketer must carefully manage this function and take full advantage of
available technology to enhance sales force productivity. Relationship marketing (RM)
activities represent dedicated relationship marketing programs, developed and implemented
to build strong relational bonds with customers. These activities influence the three important
drivers of RM effectiveness—relationship quality, breadth, and composition. To strengthen
relational ties with customers, three

42
Types of RM programs are used: social, structural, and financial. Returns on RM investments
improve when business marketers are able to target customers on the basis of their
relationship orientation rather than size.
To manage the complex web of influences that intersect in buyer-seller relationships, an
account manager must initiate, develop, and sustain a network of relationships, within both
the firm and the customer organization. Compared with their colleagues, high-performing
account managers excel at building relationships and develop a richer base of customer and
competitor knowledge that they use to create superior solutions for the customer.
Managing the sales force is a multifaceted task. First, the marketer must clearly define the
role of personal selling in overall marketing strategy. Second, the sales organization must be
appropriately structured—by geography, product, market, or some combination of all three.
Regardless of the sales force organization, an increasing number of business-to-business
firms are also establishing a key account sales force so they can profitably serve large
customers with complex purchasing requirements.
Third, the ongoing process of sales force administration includes recruitment and selection,
training, supervision and motivation, and evaluation and control.

Chapter 17: Marketing Performance Measurement

Central to market strategy is the allocation of resources to each strategy element and the
application of marketing efforts to segments. The marketing control system is the process by
which the business marketing firm generates information to make these decisions. Moreover,
the marketing control system is the means by which current performance can be evaluated
and steps can be taken to correct deficiencies. Used in conjunction with the balanced
scorecard, the strategy map converts a strategy vision into concrete objectives and measures,
organized into four different perspectives: financial, customer, internal business process, and
learning and growth. The approach involves developing a customer strategy, identifying
target market segments, isolating the critical internal processes the firm must develop to
deliver value to customers in these segments, and selecting the organizational capabilities
needed to achieve customer and financial objectives. A strategy map provides a visual
representation of a firm’s critical objectives and the cause-and-effect relationships among
them that drive superior organizational performance.
An effective control system has four distinct components. Strategic control, which is
operationalized through the marketing audit, provides valuable information on the present
and future course of the firm’s basic product/market mission. Annual plan control compares
annual with planned results to provide input for future planning.
Efficiency and effectiveness control evaluates whether marketing strategy elements achieve
their goals in a cost-effective manner. Finally, profitability control seeks to evaluate
profitability by segment. Marketing dashboards are effective tools for helping managers to
isolate and monitor key performance metrics while providing top management with a
compact profile concerning the impact of marketing strategies on overall company
performance.

43
 Book 4: B2B Customer Experience

CHAPTERS TOPIC
1 B2b Ecommerce: State Of The Nation

2 The New B2b Customer Journey

3 Auditing And Benchmarking Your Technology

4 The Rise Of B2b Market Places

5 Make It Easy To Make Purchases

6 Keeping Current And Building A Future

44
 Book-4
B2B Customer Experience
Author’s Profile
Paul Hague is based in Manchester, UK and is the founder of B2B International Ltd. Their
clients include some of the largest corporations in Europe and the United States. Paul Hague
is the author of a dozen books on market research as well as books on customer experience
and business models that share over 35 years of practical experience in running a successful
market research agency. 
Nick Hague is also a founder of B2B International. After graduating in geology from
Manchester University, Nick joined when B2B International was formed. Over the last two
decades Nick has made his name as an expert in customer experience market research. He is
chairman of B2B International and has co-authored the bestselling book on market research.

CHAPTER 01: B2B ECOMMERCE: STATE OF THE NATION

Ecommerce is undergoing a significant transition. Relationships and transactions are flowing

into the digital sphere at unprecedented speeds across every business and area.
Over the previous decade, a slew of events has influenced this evolution. Upstart competitors
were forced to seize market voids as a result of new technology. Businesses were enticed to
develop their online presence by new customers in emerging economies. COVID-19, on the
other hand, compelled shoppers to seek out more digital-first buying possibilities. Businesses
jumped on board with their customers' new habits, excitedly investing in cutting-edge
ecommerce platforms and solutions.
This transformation has been especially disruptive to B2B businesses, which are behind the
digital curve in greater numbers. Some B2B businesses are still in the early stages of their
ecommerce transformation; others are struggling to keep up with the fast pace of business;
and many are suffering from whiplash as they try to execute hairpin turns in their ecommerce
strategy. They are all witnessing seismic shifts in B2B buyer behaviour and scrambling to
adapt. Each business has its own strengths and weaknesses. Even if a legacy company
depends on long-term relationships and strong brand equity, it can still be supplanted by a
young competitor who delivers a cleaner, easier, more seamless ecommerce experience. On
the other hand, an aspirant digital native may attract unexpected attention, but customers may
be unsure whether their attractive storefront is supported on a secure, reliable foundation.
It's critical to grasp the most recent trends in client behaviour, regardless of where you are on
the ecommerce skill curve.

45
 CHAPTER 02: THE NEW B2B CUSTOMER JOURNEY
Customers are familiar with the intuitive, improved, and intelligent shopping systems that
have grown prevalent in the consumer market. In many ways, this is leading to a B2B
customer journey that is beginning to resemble B2C in many aspects. B2B buyers are
conducting more research online, initiating fewer personal interactions, and anticipating a
quicker pace of business.
These patterns in B2B customer behaviour were accelerated by the pandemic, but they did
not begin with it. When the pandemic is over, the trends will continue. In fact, the reverse is
true. Because the majority of firms believe that these changes are here to stay, savvy
ecommerce investments focused on improving the customer experience will pay off for years
to come.
If your ecommerce stack is underperforming, you won't know what's causing it unless you
have a complete picture of the situation. It's likely that one minor differentiation, such as
faster load times or better product photos, is costing you consumers.

CHAPTER 03: AUDITING AND BENCHMARKING YOUR

TECHNOLOGY
Your ecommerce store's consumer experience is heavily reliant on a solid technical basis.
However, getting all of your technology to work together can be difficult, especially if you
don't know how many tools you're using, what they're all doing, and how well they're doing.
An ecommerce audit will help you discover your company's strengths and weaknesses,
allowing you to develop a strategy to improve performance and outcomes.
An assessment of your store's technology and platform features will determine whether or not
it satisfies your performance, scalability, and security requirements. Planned and unforeseen
downtime, traffic fluctuations, hosting alternatives, multi-factor authentication, roles-based
rights and privileges for access to business user tools, and customer data and payment
compliance are all areas to consider depending on your organization.
Your ecommerce platform's ability to introduce features and integrate new technologies that
improve the consumer experience will be assessed during an audit of your Integrations. The
key characteristics of an ecommerce platform can bring a number of benefits to an
ecommerce company, but the platform's native or out-of-the-box functionality may not be
enough to suit your present demands or allow you to scale. Stores must be able to introduce
new features and integrate new technologies on a frequent basis in order to fully improve
their ecommerce experience. Analytics, inventories, shipping, payment gateways, customer
support, marketing, personalization, and tax compliance are all important integrations to
consider. An integration audit will reveal any present gaps in your platform's integration
capabilities, as well as how well your integrations fit your needs and whether moving
platforms could help you improve.

46
 CHAPTER 04: THE RISE OF B2B MARKET PLACES
Omni channel strategies also mean that you should have your products in every relevant
channel where buyers may be looking for them.
In this regard, B2B marketplaces are becoming an essential resource for many buyers because
they can find all the products and services they need in one place. Many B2B companies are
opting to start their own marketplaces using platforms like Adobe Commerce or Amazon
Business. 26% of market place aggregated marketplaces also offer an additional layer of
third-party assurance for buyers. They provide greater selection and facilitate easier
comparison shopping. Some B2B marketplaces go beyond just curation of services; they
might pre-screen the vendors, offer tools for spending management, or enable dynamic
pricing that lets frugal buyers scoop up rare discounts.
Marketplaces can also help alleviate some of the buyers' operational burdens associated with
vetting and on boarding new vendors, shortening the time it takes for their investments to
start delivering value to the business.

CHAPTER 05: MAKE IT EASY TO MAKE PURCHASES

After you've arranged a savvy welcome to your site and supplied seamless product
information and up-to-date inventory, you'll reach the most important part of the customer
journey: the transaction. This is where small amounts of friction can have dramatic impacts
on conversions.
Once you're near the end of the funnel, be direct about what differentiates your products,
especially in a marketplace setting. Describe the benefits that your products provide as
explicitly as possible. Highlight the qualities that distinguish your brand. Make your
customers feel comfortable, confident, respected, and valued. It's also highly recommended to
integrate with a recognized payment solutions provider to make sure your checkout process is
as frictionless as possible. Offering digital payments is necessary and is a valuable way to
eliminate barriers. It assuages any questions of security, privacy, or trust and enables your
customers to use pre-filled info or accounts. And in the B2B world, it can even give you an
edge on your competitors.
 PAYMENT PROVIDERS & INTEGRATIONS
 CUSTOMER LOYALTY
 PERSONALIZATION
 FULFILLMENT

CHAPTER 06: KEEPING CURRENT AND BUILDING A FUTURE

47
What we've covered here isn't a one-time upgrade; it's an overview of modern ecommerce
strategy. It requires commitment and nurturing. But the efficiencies and advantages that it can
yield may ultimately require less manual maintenance than you're currently deploying.
If you've assembled your infrastructure piece by piece over the years, you've probably begun
to realize the importance of each operational component. One glitch in the chain can cause
cascading issues that can throw things into a tailspin. But you're not alone if the notion of
overhauling your entire ecommerce architecture and starting over in a new platform sends
you into a tailspin of your own. It's easy to get overwhelmed when researching such a big
task, but the truth is, you can make a lot of progress with a few straightforward steps.
And there may be a struggle to gain buy-in across your organization, and a learning curve to
get your workforce on board, but the results of digitization are evident and inarguable.
Constructing an integrated system will immediately relieve friction and cultivate long-lasting
benefits. The good news is that a many of the ecommerce solutions we've discussed in this
paper have demonstrated rapid, reliable, repeatable, and even remarkable ROI. And many of
these services are available as easy integrations with tiered, on-demand pricing. You can
address each hurdle at exactly the level needed to overcome it.

48
 Book 5: Business to Business Marketing (Relationships,
System, and Communication) by Chris Fill & Karen E. Fill
Chapters Topic Page no.

1 An Introduction to B2B Marketing 1-28

2 Introduction To Business Information Systems 29-46

3 B2B Market Segmentation And Positioning 49-75

4 Business Value – Products, Services, And Pricing 76-111

5 Organisational Buying Behaviour 112-141

6 Inter-organisational Relationships 142-176

7 Marketing Channels 177-205

8 Channel Organisation, Structures, And Networks 206-234

9 B2B Management Issues 235-266

10 B2B Marketing Communications Strategy 267-299

11 The Tools Of B2B Marketing Communications 300-323

12 Personal Selling And Key Account Management 333-362

49
 Book-5: Business to Business Marketing Relationships, systems and
communications
Author’s Profile
Chris Fill is currently Principal Lecturer in Marketing and Strategic Management at the
University of Portsmouth. Recently appointed a Fellow of Chartered Institute of Marketing,
he is also their Senior Examiner for the Marketing Communications module.

Karen Fill has worked in the commercial world as a systems analyst/consultant. She is

currently working at the University of Southampton as a researcher in the field of educational
technology and learning design.

Chapter 1: An Introduction to Business-to-Business Marketing

This chapter discusses the principal characteristics used to define business markets. It
establishes the key elements of business-to-business (B2B) marketing and makes
comparisons with the better-known business-to-consumer (B2C) sector. This leads to
consideration of appropriate definitions, parameters, and directions for the book. After setting
out the main types of organizations that operate in the B2B sector and categorizing the goods
and services that they buy or sell, the chapter introduces ideas about value, supply chains,
inter-organizational relationships, and relationship marketing. This opening chapter lays
down the vital foundations and key principles which are developed subsequently in the book.
This chapter aimed to introduce B2B marketing by first exploring some of the distinguishing
characteristics of business markets. There is a range of organizations that comprise the
business market and these were classified as commercial, government, and institutional.
These organizations buy products and services to make goods for resale to their customers
but they also consume items that are required to keep their offices and manufacturing units
functioning. The items sold through business markets were categorized as input, equipment,
and supply goods. The methods used by organizations in the B2B sector to purchase goods
and services reflect the level of risk inherent in their trading activities and the importance of
the specific items being purchased. Apart from group purchasing activities one of the other
ways in which organizations manage this aspect of their operations is to develop closer, long-
term relationships with suppliers. B2B marketing is concerned with the identification and
satisfaction of business customers' needs. The anticipation and satisfaction of these needs
require that all stakeholders benefit from the business relationship and associated
transactions. Customers derive satisfaction by purchasing goods and services that are
perceived to provide them and/or their organizations with a particular value. B2B marketing
managers must understand these needs and develop marketing programs that include a set of
goods and services that provide unique solutions, and hence value, for customers. Many
suppliers have recognized the benefit of developing long-term relationships with buyers,
acting collaboratively and in partnership to deliver enhanced value.

50
This book will revisit many of these topics in the chapters that follow. However, at the heart
of B2B marketing are the inter-organizational relationships that businesses develop either
implicitly or deliberately. These form the basic platform for examining B2B marketing.

Chapter 2: Introduction to business information systems

This chapter introduces basic information systems concepts and terminology. The history of
business use of computer and communications technology is briefly described. Current
technology and business information systems are then described, with particular attention to
specific B2B applications. Finally, possible future directions in information systems and
technology are considered, together with their implications for B2B marketing.
The evolution of information systems and technology since the 1950s has been astonishing in
its speed and creativity. In the sphere of business information systems, as in so many others,
IST applications have mainly been used to good effect, especially when care has been taken
to analyse and understand user requirements and match them with good design and training.
Innovations continue at a pace. This chapter represents a snapshot at the beginning of the
twenty-first century. Rather than learn by rote the current acronyms and underlying
technologies, readers are encouraged to think creatively about how IST does, and will,
support commercial enterprise, including B2B applications.
Therefore; the objectives of this chapter are to:
 Introduce basic systems concepts.
 Outline the history of information systems and technology in business.
 Provide an overview of modern BIS.
 Consider current technology and directions.
 Give specific examples of B2B applications.

So, this chapter aimed to give a broad introduction to Business Information Systems (BIS),
defining common terms and the context within which specific B2B marketing applications
will be explored throughout the book. Innovative use of BIS underpins some interesting
approaches to B2B marketing and the reader will benefit from understanding the background
to these.

Chapter 3: B2B Market Segmentation and Positioning

In addition to describing the elements associated with market segmentation, this chapter
focuses on the traditional approaches to segmenting B2B markets and supplements them with
ideas and processes concerning the relationship needs of business customers. Segmentation is
presented as a less than perfect form of marketing management, and the chapter deals with
inherent problems associated with choosing between segments and implementing the whole
process successfully. In particular, the barriers to segmentation are examined and systems
solutions to some of these problems are explored. The chapter concludes with an examination
of positioning and how businesses should determine particular positioning strategies. Just as
optimal target markets should be derived in the light of customer needs and seller resources
51
and strategies, so positioning needs to take into account the requirements of all parties to a
marketing relationship.
The principle associated with the use of segmentation techniques in B2B markets is
undoubtedly sound. However, the established use of the breakdown method, whereby a mass
market is divided into groups that share particular characteristics as a basis for developing
target segment marketing programs, is now being questioned. The questions arise from the
apparent incompatibility with the emerging relationship marketing paradigm, the recognition,
and acceptance that several major barriers prevent the full implementation of B2B market
segmentation. The response has been the emergence of approaches to segmentation that
reflect the preferences of customers and their relationship needs. The build-up method
recognizes buyers’ needs and should result in the determination of market segments that suit
both buyer and seller. Whether this approach satisfies the relationship dimensions is still open
to question. Theoretical approaches to business segmentation have developed but the
practical application of these various strategies is reported to be less than satisfactory. More
research is required on the barriers to the successful implementation of segmentation
activities. Organizations need to position themselves so that they are perceived by customers
to differ from the competition and provide the potential for added value. Traditionally, the
focus of positioning approaches has been on key attributes and features that seemingly add
value. Increasingly, as corporate branding becomes a more central part of the marketing
communications strategy, more emotional approaches to positioning are emerging.

Chapter 4: Business value – products, services, and pricing

This chapter begins by considering the various benefits a business product or service might
confer and then describes how products might be classified according to the degree of
standardization and customization that the organization decides to offer. It is important to
establish this background information before considering how organizations might develop
strategies to manage their products, both established and new. Particular attention is given to
portfolio management frameworks and the product life cycle before examining issues
concerning the new product development process. This section concludes with a
consideration of the technology adoption life cycle, appropriate in high technology markets.
The final part of the chapter is devoted to considering pricing issues and the value that the
customers perceive in an organization’s product portfolio and its product and service policies.
The value that organizations perceive within their relationships with suppliers, whether they
be collaborative partners or price-orientated opportunists, is partly based on the business
products and services transacted. Through the development of a consistent stream of new
products, by developing appropriate core competencies, and by recognizing the significance
of both tangible and intangible attributes to particular customers, business organizations can
develop market advantages based on the concept of superior value. If the superior value is
competitively significant, organizations should ensure that they have a suitable product and
management strategies and processes. Although no one approach can be highlighted, best
performances seem to emerge from the use of a wide range of techniques, some of which
have been presented and reviewed in this chapter. Realizing product potential and managing
an array of products through lines, mixes, portfolios, and life cycles requires flexibility and a
realistic understanding of market requirements some of which, especially in high-technology

52
markets, are sub-subject to sudden and rapid change. Pricing is also a significant factor in the
perception of superior value. As market value is determined by customers, supplying
organizations must understand the total contribution their offering provides their customers.
This should be considered in terms of the lifetime value to the customer and the associated
total costs that a customer experiences. However, it should be recognized that in the majority
of business-to-business markets and customer relationships, price alone does not create
customer value.

Chapter 5: Organisational Buying Behaviour

This chapter introduces traditional views about organizational buying behaviour, before
progressing to consider the importance of relationships and the contribution that systems and
technology have made to this aspect of business marketing. The chapter starts with a
comparison of the main characteristics associated with both cons- summer and organizational
purchasing behaviour. Then, following an examination of the decision-making unit and the
decision-making processes generally assumed to be adopted by organizations, the focus
moves to reflect upon the different influences that can impact an organization’s purchasing
activities. The last section of the chapter looks at the nature of risk and uncertainty and how
organizations attempt to reduce perceived risk. The final part examines how relationships
between buyers and sellers can evolve and affect the purchasing behaviour of organizations.
Organizational buying has several characteristics that reflect the importance and significance
of this task. Organized and structured formally, groups of people coordinate their activities to
make purchases for the organization. Some of these purchases will be strategically critical
and others will represent low-value consumables bought on a routine basis. Varying degrees
of uncertainty are inherent, so organizations adopt processes and procedures to reduce risk as
much as possible. New technology has had a significant impact on organizational purchasing
activities. It has introduced organizations to new suppliers, often based in different countries.
It can reduce transaction costs and speed the process of negotiation and purchase. However,
organizations need to ensure that their strategically important supplier relationships are
protected and that technology is used to supplement, not destroy established, long-term,
valued relationships. The notion that the relationship between suppliers and buyers develops
from a purely transactional exchange to one that is fully interconnected is intuitively
interesting and is expanded in later chapters.

Chapter 6: Inter-organisational Relationships

This chapter concludes Part B by introducing and examining relatively recent ideas
associated with marketing management. The relationship marketing approach is offered as a
counter to the prevailing wisdom of the 4Ps approach to marketing before issues concerning
relationships with a wider array of stakeholders, especially others upstream in the supply
chain, are introduced. The deliberate development of collaborative and mutually rewarding
relationships between suppliers and customers is considered to be fundamentally more
appealing and an intuitively correct interpretation of business-to-business marketing. This
view also sees the development of partnerships and alliances with other organizations as
more appropriate than former adversarial ideas based on competition and where the sole

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focus is on customers. Organizations are shown to have a portfolio of relationships with a
range of stakeholders, most notably suppliers, employees, customers, and shareholders.
Primarily, this chapter considers the nature, development, and characteristics of inter-
organizational relationships and, in addition, examines the potential of information systems
for enhancing relationships with those customers and suppliers who choose to reciprocate and
develop trust and commitment
One of the primary characteristics of B2B marketing is the importance of the various
relationships that organizations develop to achieve their business and marketing objectives.
The development of inter-organizational relationships as the central tenant of marketing
strategy has emerged from the original concepts concerning the 4Ps and the marketing mix.
The initial focus on the product as the unit of exchange shifted to one which centred on the
buyer-seller relationship, where the customer was dominant. Customer relationship marketing
has developed in many ways but now both parties are seen to be in a relationship. A further
extension is that these buyer-seller relationships are a part of a wider array of relationships,
namely a network of interacting organizations, and the actions and behaviour of organizations
need to be seen in this broader context. However, it would be mistaken to expect an
organization to embrace deep meaningful relationships with every other organization with
which it enters into an exchange. Some exchanges need to be brief and based on products and
low prices. Others require deeper collaboration and partnerships to create exchanges that are
symmetrical and represent competitive advantage and added value. If inter-organizational
relationships are to be the foundation of contemporary B2B marketing practice then the
supply chain and associated networks become a central aspect of marketing, and exchange
value is vested within the chain. Finally, new technology has revolutionized B2B marketing
and has enabled organizations to undertake exchanges faster, more efficiently, and has
drastically reduced the cost base for many supply chains. Above all else, technology has
allowed organizations to reassess the value of their interactions with customers and suppliers
and to forge a portfolio of inter-organizational relationships.

Chapter 7: Marketing Channels

This chapter is the first of three that examine issues concerning marketing channels and the
intermediaries that populate them. In this chapter, attention is focused on understanding the
principles and core concepts associated with marketing channels. In particular, there is an
examination of their purpose, the basic structure, and key intermediaries – their
characteristics and contribution to how channels work. This chapter provides foundation
material to explore some of the more advanced ideas about channel structure, design,
interaction, and networks.
Marketing channels are a necessary structural format so that organizations can provide end-
user customers with the products and services they require. Through cooperation and
collaboration, organizations can develop and deliver products and services that represent
value to each other and end-user customers in the most convenient and timely manner
possible. Marketing channels help reduce the level of uncertainty that organizations
experience. Within marketing channels, it is possible to determine a variety of flows between

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organizations. These flows, for example, the product, order processing, and communication
flows are essential for channel members to coordinate their activities. Through such
coordination and optimization, appropriate levels of service output become possible. Service
outputs reflect the different utilities that customers expect when engaging with marketing
channels and buying products and services. The most common types of organizations that
make up a marketing channel are manufacturers, wholesalers and distributors, retailers, and
value-added resellers. They all have different core competencies and skills which the other
organizations in the channel do not have. This complementary approach enables marketing
channels both to function and to differentiate one channel from another. The nature and
complexity of market channels have increased due to many environmental developments,
most notably the rapid advances in technology. New electronic trading formats have driven
the emergence of new types of intermediaries and the demise of others.

Chapter 8: Channel Organisation, Structures, and Networks

This chapter opens with a consideration of supply chains and logistics before examining
some of the ways organizations choose to organize and structure their channels, including
channel design and the use of supporting software and systems. The chapter deals with the
nature and structure of inter-organizational relationships and explores the variety of structural
configurations used by organizations. Attention is given to conventional marketing channel
structures, vertical marketing systems, and network approaches to inter-organizational
channel structures. The chapter concludes with an exploration of the electronic channel
structures and new trading formats.

The essence of this chapter has been to consider the structural configurations used by
organizations to manage their marketing channels. Care has been taken to segregate supply
chain management from marketing channels. SCM is commonly referred to as logistics
management and is concerned with the physical movement of goods through the channel to
present the end-user customer with products and services at times and places that afford end-
users maximum utility and convenience. A variety of software systems have been developed
to improve efficiency as well as effectiveness. Indeed, the emphasis on discrete or market
exchanges is often placed on the marketing mix where the price is an important differentiator.
However, where collaborative relationships are in position, price is less important and the
maintenance of the relationship predominates. Therefore, the efficiency aspect may be
superseded by the need to be more effective. Conventional channels, vertical marketing
systems, and, more recently, value networks and business ecologies all reflect varying
degrees of cooperation, interdependence, independence, and autonomy. The development of
electronic channels has presented new opportunities for organizations to interact in new and
different ways with channel partners. New trading formats and a partial disintegration and
reconfiguration of the established marketing channels and the arrival of new infomediaries
have been responsible for the use of multi-channel approaches to markets.

Chapter 9: B2B Management Issues

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To conclude this part of the book this chapter focuses on some of the managerial issues,
processes, and systems associated with the management of inter-organizational relationships.
First, the nature, dispersion, and use of power in relationships is examined, then time is spent
looking at channel conflict and ways in which it can be minimized, even though some
conflict can be constructive. The chapter concludes with a consideration of two important
concepts, trust, and commitment. These form the foundation of successful B2B relationships
and are now considered by many to supersede power as the means of managing inter-
organizational relationships.
The management of inter-organizational and marketing channel relationships is critical for
the achievement of B2B marketing goals. Conflict is to be expected when organizations seek
to cooperate, but the use of relative power positions based on access to and control of
resources is no longer regarded as the preferred and pervasive marketing management tool.
With the focus turning to the development and maintenance of buyer-seller relationships,
trust and commitment have emerged as significant contemporary managerial concepts. The
development of electronic trading formats has threatened established channel relationships
but these new facilities should be regarded as supplementary tools. By understanding the
various types of purchases an organization makes, particularly their strategic significance,
electronic purchase instruments can be deployed to improve the overall efficiency of an
organization as well as to also preserve and enhance marketing channel relationships.
Conflict can be generated by a member of the marketing channel introducing an ill-conceived
strategic ecommerce model. Alternatively, conflict can emerge at an operational level
through both social and technically induced disputes. Whatever the source, solutions need to
be determined quickly if only to re-establish trust and prevent a reoccurrence of the problem
and hence the conflict.

Chapter 10: B2B marketing communications strategy

This chapter introduces Part D of the book. Here the emphasis is on an examination of the
nature, content, and role of marketing communication activities as part of B2B marketing.
This particular chapter commences with a consideration of some of the strategic promotional
issues and explores strategy from an audience perspective. Issues concerning the nature of
strategy and planning are also considered before presenting a framework for the development
of marketing communication plans. Part of this chapter is devoted to marketing channel-
based communications. This specialist area is often overlooked but if marketing channels are
to operate successfully and inter firm relationships are to be developed for the benefit of all in
the channel, then sound trade channel communications are crucial. The chapter concludes
with an examination of relationship-based marketing communication, and in particular, the
nature, role, and dynamics associated with client/agency-based relationships.
Marketing communications play an important strategic role within B2B marketing. All the
tools of the promotional mix have a role to play, depending upon the context of the
communications. Essentially, marketing communications should be used to differentiate,

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reinforce, inform or persuade target audiences to think or behave in a particular way about an
organization or its products, or issues that are pertinent to both parties.
The development of push, pull and profile strategies reflect an audience perspective for
marketing communications. This is important if meaningful relationships are to be developed
and sustained with various stakeholder audiences. At the heart of effective B2B, promotional
activities is a sound understanding of organizational buyer behaviour and the various types of
people who can be involved in the buying process. This information is necessary not only for
segmentation processes but also in terms of developing product offerings that represent
significant values and in terms of the most effective way of reaching them through effective
communications.
Understanding some of the ideas about marketing channel-based communications is critical
to B2B marketing. Not only is this a specialized, sometimes neglected, area, channel-based
communications concern a central aspect of inter-organizational strategy, namely the
management of significant relationships. From a network per- perspective, these relationships
and the associated dialogues, in terms of what, when, and how something is said, can
determine the length of inter-organizational associations. Co-branding represents a short-term
approach to joint communications, whereas strategic alliances signify a more permanent
relationship. Whatever the dimension or form of relationship, the success of B2B marketing
communications is to a very large extent underpinned by the willingness of all parties to
share information.

Chapter 11: The tools of B2B Marketing Communications

The Internet and related technologies have had a profound impact on how organizations
communicate with each other. However, this is not to suggest that the influence of the
traditional offline communication tools has waned, indeed it can be argued that marketing
communications have been augmented by the application of new technologies. In this
chapter, a distinction is made between the promotional tools and the media used to convey
messages. Consideration is given to the key characteristics and effectiveness of each of the
primary tools used in B2B marketing communications. It also considers both offline and
online tools and examines the application of new media from a communication perspective.
In addition, an overview of the main media used in the sector is also provided. However,
readers are advised that a deeper review of these subjects can be found in specialized
marketing communication texts.
The prime marketing communication tool used in B2B markets is personal selling supported
by direct marketing and public relations. Sales (or trade) promotions are significant in
channel partner relationships and advertising is of least significance. Communications in B2B
marketing are very personal, often requiring face-to-face interaction and this interactivity
lends itself to tailored messages and rapid feedback. The Internet and related digital
technologies have had a very significant impact, changing the way business is conducted and
the speed at which transactions can be undertaken, and costs reduced. The Internet is of

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course both a new distribution channel and a communication medium. As a form of
communication, it can be deemed impersonal and more disposed to information search and
retrieval than to delivering heavily branded and emotionally driven messages. In an effort to
increase the productivity of the sales force and to use their expensive skills more effectively,
direct marketing has evolved such that it can enable organizations to improve their inter-
organizational relationships and levels of corporate and product performance.

Ch. 12 – Personal Selling and key Account Management

The importance of personal selling in the B2B promotional mix should not be
underestimated. Although all of the tools can play a significant part in an organisation’s
overall marketing communications activities, personal selling, delivered through a sales force
is the most potent. A key theme throughout this book has been the development of
relationships, principally between customers and suppliers. Meaningful collaborative
relationships can only be established and nurtured through personal contact and selling. In
this final chapter consideration is given to the role and characteristics of personal selling and
to when it should play a lead role in the promotional mix. However, the main thrust is centred
on the impact of selling on inter organisational relationships and how the other promotional
tools can be blended to provide cost and communication effectiveness. In addition, issues
concerning the management and organisation of the sales force are explored before
examining the role of technology in selling and in particular sales force automation. The
chapter concludes with an examination of key account management. The role of personal
selling is changing. As organisations move to more relational exchanges, so the sales force
has to adapt and work with the other tools of the promotional mix and adopt a more
complementary role. This role necessitates the execution of tasks such as managing
customers, developing long-term customer relationships and managing the activities of
marketing channels. The sales force should be deployed in a way which optimises the
resources of the organisation and realises the greatest possible percentage of the available
sales and profit potential that exists in the defined area of operation. This will result in a
continuance of the growth of key accounts. The use of the field sales force as the only means
of personal selling is unlikely to remain. Technological advances and the need for increasing
levels of promotional effectiveness and accountability, together with tighter cost constraints,
indicate that the more progressive organisations will employ multiple sales channels. This
may mean the use of the Internet, telemarketing and direct mail to free the sales force from
non-selling activities, which will allow management to focus the time of the sales force on
getting in front of customers and prospects, with a view to using their particular selling skills.
Finally, the use of key account management programmes signals the identification of, and
intention to provide, specific and customised sales support for particular, strategically
important customers. Key accounts, which can be built largely upon interpersonal or inter
organisational relationships, evolve through various stages and suitable management action
needs to be undertaken to realise the potential inherent in each key account.

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Q1- Scope of B2B marketing are:
Demand Generation
As always in marketing, generating demand takes centre stage. Many of the new software
applications on the market focus on this most critical precursor to sales. Appropriately, the
2018 Demand Gen Benchmarks Report found that 70 percent of marketers say their demand-
generation budgets are growing, and a third of them said they will grow by more than 20
percent. Demand generation has traditionally focused on looking beyond existing accounts
and finding new prospects. Much of the recent discussion has centred around the notion of
harvesting the additional potential in your existing client base, broadly known as account-
based marketing (ABM). The Demand Gen Benchmark report found
Content Marketing
So many companies are racing to generate content that the marketing landscape is starting to
look like a content arms race. Increasingly, that race is ending in content overload. Many of
the experts we spoke to address the importance of tailoring content and its messaging to
specific audiences at particular moments in the purchasing cycle. Sometimes content needs
only to inform and educate; at other points in the sales funnel, content can shed light on
specific product benefits and attributes. As Steven Wastie, chief marketing and revenue
officer of Origami Logic, observed, “The biggest challenge and opportunity for us around
content is understanding the context within which the content is consumed. It’s one thing to
deliver a long-form asset when somebody’s not ready for it and quite another to deliver a
short-form asset when they’re totally ready for it and you get the call-to-action response you
expect.”
Customer Experience
One marketing area that has seen remarkable change during the last several years is the
expanded focus on customer experience. That emphasis is only continuing to grow; according
to a study by Walker, the consulting firm, customer experience will overtake price and
product as the key brand differentiator by the year 2020. Marketing is typically tasked with
overseeing the entire digital experience. Increasingly, according to many of the experts we
spoke with, marketing now permeates every dimension of the customer experience — from
initial awareness to the sales transaction process and extending through the post-purchase
experience. In other words, marketing is coming to own more and more of the customer
lifecycle.
Artificial Intelligence
There is a great deal of excitement about the potential of machine learning and artificial
intelligence to enhance the marketing function. Our panel offered a variety of perspectives
and insights about AI, and participants seemed to be in various stages of adoption of these
new applications, including chatbots, automation of lead scoring, and customer data analysis.
In 2017, according to the Lead Nurturing & Acceleration Survey Report, about one in five
marketers (19 percent) said they were using AI-powered applications, but more than a third
(36 percent) said they planned to deploy AI tools as part of their martech stack within the
next 12 months.

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Question 2: journey of B2B marketing
Answer 2: Understanding your buyer’s journey (alternatively known as buying cycle) is
essential if you are trying to market and sell effectively. A lack of understanding means your
marketing efforts and budget will be wasted. Here we show you what you need to know in
order to market efficiently, and sell more, in order to achieve your business growth goals.
Depending on what source you read, the Buying Cycle is broken into 3, 5 or even 7 stages.
We have chosen the 5-stage version, as it is the most illustrative and effective introduction.
The 5 stages are as follows:
Awareness
Information Search
Evaluation of alternatives
Purchase Decision
Post-Purchase Behavior

Finally, throughout the buyer’s cycle it is important to distinguish between the individual’s
journey and the average journey. In general, we conceive of each buyer linearly progressing
through the buyer’s cycle, but individually buyers show a lot of deviation from this standard
path. It is not odd to see a buyer regress to an earlier stage or leave their journey completely
and come back at a later date. You need to remember that each buyer has unique problems
and a unique personality. Thus a large part of your role is balancing your general campaign
with a customized user experience. For this exact reason, there are automated lead scoring
platforms to keep track of where your buyer is in their journey, and serve the relevant
information to guide them through their journey and increase the efficiency of your
marketing funnel and therefore the return on investment of your marketing budget. 

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Question 3: how STP different in B2B and B2C?
Answer: The STP Model stands for:
Segmentation,
Targeting,
Positioning.
It can be applied by following the steps mentioned below:
The first step in this marketing model is to segment your market. You need to understand that
no matter how efficient your product is; it can’t be the choice of everybody. After realizing
this, you perform market segmentation on your customers to divide into different groups.
The formation of groups is performed on the basis of common characteristics and needs. This
way, you can alter your approaches to cater to each group’s demands efficiently.
The formation of groups is performed on the basis of common characteristics and needs. This
way, you can alter your approaches to cater to each group’s demands efficiently.
The most common approaches of segmenting your customers are:
Behavioural: Segment them by analysing their usage patterns of the product, and gauging
their loyalty with the brand.
Demographic: Segment them on the basis of personal attributes such as age, education,
ethnicity, gender, marital status, etc.
Geographic: Customers can be grouped on the basis of their country of origin.
Targeting your Best Customers
After performing the process of segmentation successfully, the customers are accurately
divided into particular groups. This provides ease in finding the most attractive groups to
target which can provide benefits to the company.
Since this process holds great significance regarding the company’s growth, there are some
factors to keep in mind.

Positioning your offering

Now, in the final steps of this marketing model, you need to plan how to position your
product to your target market. Keeping in mind, now you know your most valuable customer
groups.
Base your positioning on the fact that why would these customers purchase your product
rather than your counterpart’s. You can be a step ahead by providing different kinds of
incentives in the forms of packages or discounts.

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Thank YOU!

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