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Chap001 business markets & business marketing

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Chap001 business markets & business marketing

  1. 1. McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Part OneBusiness Markets and Business Marketing
  3. 3. About the lecturerDr. Vu The Dung • MBA in International Business (AIT, Thailand) • PhD in International Marketing (ODU, USA) • Marketing Lecturer School of Industrial Management, HCM University of Technology • Vice Dean • Director EMBA – MCI Program
  4. 4. What do you expect from this course? 4
  5. 5. What can we get from this course?• Scientific approach to B2B Marketing issues and problems • Systematic thinking in Marketing • Methods of data collection • Formulation of Marketing strategy and plan from strategic to implementation perspective
  6. 6. What can we get from this course?• Contemporary B2B Marketing knowledge • Core Marketing concept: market, target market, customer need, customer behavior, market segmentation, marketing research • Marketing strategy, STP strategy, Competitive strategy, Customer Satisfaction, Relationship Marketing, CRM • Marketing Plan, Marketing Mix: Product, Price, Place, Promotion, IMC
  7. 7. What can we get from this course?• Improve your soft skills: • Reading • Participating in class and group discussion • Presenting • Writing and Presenting: - Project Proposal - Project Report (Marketing Plan) • Team work • Data collection and analysis
  8. 8. This course will NOT• Turn you into a Marketing Professional• Answer all the Marketing related questions you might have• Go into details of all marketing techniques
  9. 9. Course Activities• Book readings• Video Clips• Open discussion• Case study• Individual assignments• Group Project• Presentation
  10. 10. Critical thinking• Open minded• Multicultural• Flexible• Trial and error• Challenge existing assumptions• No discrimination 10/28/12
  11. 11. Grading• Final Exam: 45%• Mid Term: 25%• Group Project: 30%
  12. 12. Course Structure B2B Marketing overview Business Group Buyer Project Behavior B2B B2B StrategyMix 4Ps Customer CRM Retention 12
  13. 13. Discussion• What you have in your mind when you hear the term “Business Marketing”?• List several Marketing Techniques that you consider important.• Is Marketing good or bad?• Where to apply Marketing? 13
  14. 14. Case study• Nắng Sài Gòn is a new, luxurious restaurant located in District 1. The Director asks his staff to go out to the streets to distribute brochure and leaflets.• Discuss the director’s marketing solution?• If you owned a restaurant, what kind of restaurant you want your restaurant be? (B2B perspective)
  15. 15. Part OneBusiness Markets and Business Marketing• Chapter 1 • Introduction to Business Marketing• Chapter 2 • The Character of Business Marketing• Chapter 3 • The Purchasing Function• Chapter 4 • Organizational Buyer Behavior
  16. 16. Chapter 1 Business Markets andBusiness Marketing
  17. 17. BASF EXAMPLEA TYPICAL BUSINESS-TO-BUSINESSCOMPANY THAT: • Creates value for its customers • Builds brand recognition • Communicates a unified message • Targets decisions makers • Supports salespeople with variety of communication tools 1-17
  18. 18. MARKETING SALTBusiness marketing Business Marketing Consumer Marketing McDonalds Salt is added to fries YouSalt mine Morton’s Salt Kroger Salt is sold in shakersSalt is mined Salt is processed into food-grade or industrial grade salt General Foods Salt is added to frozen dinners Exhibit 1-1 1-18
  19. 19. BUSINESS MARKETING• THE MARKETING OF GOODS AND SERVICES TO: • Companies that consume • Government Agencies • Resellers (i.e. wholesalers) • Institutions (i.e. hospitals) • Non-Profit Organizations (i.e. American Red Cross)FOR USE IN PRODUCING THEIR PRODUCTSAND/OR TO FACILITATE OPERATIONS 1-19
  20. 20. BUSINESS MARKETING IS UNIQUE• VARYING INVOLVEMENT LEVELS IN BUYER- SELLER RELATIONSHIPS• SHORTER DISTRIBUTION CHANNELS• EMPHASIZES PERSONAL SELLING AND NEGOTIATION• GREATER WEB INTEGRATION IN COMMUNICATION• UNIQUE PROMOTIONAL STRATEGIES• CONSUMPTION• KNOWLEDGE OF CUSTOMER’S CUSTOMER• MARKETING RESEARCH 1-20
  21. 21. MARKET DRIVEN MEANS:• ALL EMPLOYEES FOCUS ON CUSTOMER SATISFACTION• CONSTANTLY SEEKING OPERATIONAL EFFICIENCY• BUILDING EFFECTIVE EMPLOYEE TERMS• CONSTANTLY IMPROVING SERVICE/SUPPORT TO CUSTOMERS• BEING INNOVATIVE• DEVELOPING APPROACHES TO OPEN NEW MARKETS 1-21
  22. 22. TYPICAL BUSINESS TO BUSINESSGOODS AND SERVICES INCLUDE: • RAW MATERIALS • MANUFACTURED MATERIALS (Transformed from raw materials) • COMPONENT OR OEM PARTS (Part of a completed product) • ACCESSORY EQUIPMENT (Tools) • CAPITAL EQUIPMENT (Machinery) • MRO ITEMS (Maintenance, repair and 1-22 operation products)
  23. 23. BUSINESS TO BUSINESS:IT IS ALL ABOUT RELATIONSHIPS BUSINESS TO BUSINESS DEPENDS ON: • Close Business and Personal Relationships Because of . . . . • Shorter Distribution Channels Leads to . . . . • Emphasis on Personal Selling Through . . . . • Dependence on WEB Integration and • Unique Promotional Strategies 1-23
  24. 24. BUSINESS TO BUSINESS CHALLENGES• The size and location of customers – bigger, fewer, and concentrated• Strict performance standards for products by customers• Complicated purchasing decisions – Involvement and time 1-24
  25. 25. BUSINESS TO BUSINESS: IT IS ALL ABOUT DEMAND• DERIVED DEMAND • The demand for a company’s products comes from (derived) the demand for their customer’s products. • Most demand originates with consumers.• JOINT DEMAND • Two products are used together and demanded together • Both products are consumed at the same time 1-25
  26. 26. BUSINESS TO BUSINESS DERIVED DEMAND SIMPLIFIED YOU MAKE HEADLAMP ASSEMBLIES FOR GMConsumers Automobilewant more You sell manufacturerscars more of your produce more cars company’s headlamp Consumers assemblies Automobile stop buying manufacturers You sell fewer cars stop making headlamp cars assemblies 1-26
  27. 27. THE FLOW OF GOODS AND SERVICES Transported via facilitating servicesRaw Manufactured Sub- Assembly ComponentMaterials materials assembly parts Finished car Purchase order printed facilitating product Amount and type of car determined by research facilitating service Exhibit 1-6 1-27
  28. 28. CREATING VALUE VALUE IS THE PERCEPTION OF A PRODUCT’S BENEFIT BEYOND ITS PRICE VALUE HAS THREE PARTS:1. VALUE RECEIVED FROM THE PRODUCT2. VALUE RECEIVED FROM SELLER’S SERVICES3. VALUE RECEIVED FROM RELATIONSHIP WITH SELLER 1-28
  29. 29. BUSINESS TO BUSINESS: THREECRITICAL QUESTIONS FOR A SUCCESSFUL BUSINESS-TO-BUSINESS PROGRAMA BUSINESS MUST DETERMINE: 1. WHO ARE ITS CUSTOMERS? 2. WHAT DO ITS CUSTOMERS WANT? 3. HOW DO ITS BUYERS MAKE THEIR BUYING DECISIONS? 1-29
  30. 30. Marketing – basic model Target Need Customers Physical EmotionalCapability Product Price Place Value Competition QualityPromotion Price Company Competitors 30
  31. 31. Trends in Marketing thinking and practice• From make-and-sell marketing to sense-and- respond marketing.• From focusing on customer attraction to focusing on customer retention• From pursuing market share to pursuing customer share• From marketing monologue to customer dialogue.
  32. 32. Trends in Marketing thinking and practice• From mass marketing to customized marketing• From owning assets to owning brands.• From operating in the marketplace to operating in cyberspace.• From single-channel marketing to multichannel marketing.• From product-centric marketing to customer-centric marketing.

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