LECTURE 8:

INNOVATION IN
BUSINESS NETWORKS
B2B Marketing (BUSI4508)
Dr. Dilip S. Mutum
TODAY’S OBJECTIVES

To explore the issues of customisation and

personalization.
To take a network perspective on innovation
processes and how this raises issues of
confidentiality and neutrality in new product and
service development in networks.
To examine the importance of business services
available to client organisations, and the
challenges of managing marketing in professional
service organisations.
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CUSTOMISATION AND PERSONALISATION
Mass Customisation: producing goods and services catering to
individual customer’s selections with near mass production volume and
cost efficiency.
 Mass Customisation strategies have passive and limited customer
participation
Personalisation: developing products and services with the aim to
satisfy each customer as an individual with implicit needs.
 is enabled through a high degree of product change, user
experience and co-creation, so that
 the final product as well as the basic design and product structure
are changeable, adaptable, connfigurable and consequently less
predictable.

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CUSTOMISATION AND PERSONALISATION
(MOURTZIS & DOUKAS, 2014).

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CATEGORISING BUSINESS PRODUCT LINES
(SHAPIRO, 1977)

Catalogue Business
(proprietary) services
products

Custom- Custom-built
designed products
products

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 THE PRODUCT LIFE CYCLE
(BARKSDALE AND HARRIS, 1982)
Revenue

Development Introduction Growth Maturity Decline

Time

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THE TRADITIONAL NEW PRODUCT DEVELOPMENT PROCESS

Idea generating

Screening

Business planning

Product developing

Test marketing

Product launching

Product launching

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NETWORK CONSIDERATIONS IN NPD
(HÅKANSSON, 1997)

‘Getting Protecting
through your ideas
the mud’

‘Getting Appearing
into the to be
mud’ NPD in neutral
networks

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STAGES OF SERVICISATION
(VAN LOOY ET AL, 1998)

1. Possessing capability to
manufacture or distribute
goods

2. Offering services that

complement product
portfolio

3. Marketing different
product/service combinations

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CLASSIFYING SERVICES IN B2B MARKETS (MAJEWSKI AND SRINIVAS, 2003 )

Product- Marketing Professional Information Financial

related Services Services Services Services
Financing
Delivery
for product
services Market Consulting Inventory
purchases
research services management
Installation services
Managing
& Accountancy Supply chain
billing
maintenance Advertising services management
processes
agencies
After-sales Legal Data
Credit
training Export advice aggregation
evaluation
advice
Warranty
Banking &
services
insurance

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ISSUES IN THE MARKETING OF
PROFESSIONAL SERVICES
Buyer’s prior Different levels of Understanding
experience client customer’s needs
sophistication

Interactive Personal
Non-standardised relationship relationship
offerings management between client
and professional

Informing client of Outcomes of Reputation &

progress service delivery WOM referrals

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THANK YOU
Any Questions?

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