The document provides an overview of the key concepts and principles discussed in Chapter 1 of the 3rd edition of the textbook "Business Market Management". It discusses 4 main guiding principles: 1) regarding value as the cornerstone of business market management, 2) focusing on business market processes, 3) stressing doing business across borders, and 4) accentuating working relationships and business networks. It also outlines 3 main sections that are covered in the chapter: 1) value as the cornerstone, 2) managing business market processes, and 3) doing business across borders.

1. Business Market Management 3 rd edition Guiding Principles Chapter 1

2. Section I: Introduction and Overview Business Market Management, 3 rd edition Chapter 1-

4. Business Market Management, 3 rd edition Chapter 1- Guiding Principles Crafting Market Strategy Understanding Firms as Customers Marketing Sensing Managing Market Offerings New Offering Realization Business Channel Management Gaining New Business Sustaining Reseller Partnerships Managing Customers Regard Value as the Cornerstone Accentuate Working Relationships & Business Networks Focus on Business Market Processes Stress Doing Business Across Borders Understanding Value Creating Value Delivering Value Business Market Processes

7. I. Value as the Cornerstone of Business Market Management Business Market Management, 3 rd edition Chapter 1-

9. Fundamental Value Equation Business Market Management, 3 rd edition Chapter 1- (Value f – Price f ) > (Value a – Price a ) Offerings f Offerings a

13. II. Managing Business Market Processes Business Market Management, 3 rd edition Chapter 1-

17. Shareholder Value Business Market Management, 3 rd edition Chapter 1- Translating customer value into shareholder value critically depends on business’s ability to claim an equitable return on the value it delivers to customers.

20. Market-Driven Processes Business Market Management, 3 rd edition Chapter 1- Business Processes Market-Driven Business Processes PDM PDM Design a technically superior product Create solution that enables customer to experience maximum value and benefit SCM SCM Best inputs at cheapest price Design, manage, and integrate firm’s supply chain with suppliers and customers CRM CRM Customer relationship is a means to sell, deliver, and service a product Customer relationship is an opportunity to learn about customers’ needs and wants and how best to create, satisfy, and sustain them

23. Business Market Processes Understanding Value Business Market Management, 3 rd edition Chapter 1- Marketing Sensing Generating knowledge about the marketplace that individuals in the firm use to inform and guide their decision making Understanding Firms as Customers Learning how companies rely on a network of suppliers to add value to their offering, integrate purchasing activities with those of other functional areas and outside firms, and make purchase decisions Crafting Market Strategy Studying how to exploit a firm’s resources to achieve short-term and long-term marketplace success, deciding upon a course of action, and flexibly updating it as learning occurs during implementation

24. Business Market Processes Creating Value Business Market Management, 3 rd edition Chapter 1- Managing Market Offerings Putting products services, programs, and systems together in ways that create great value for targeted market segments and customer firms New Offering Realization Developing new core products or services, augmenting them to construct market offerings, and bringing them to market. Realization is all the activities used to transform ideas into a market offering that it commercializes Business Channel Management Designing a set of marketing and distribution arrangements that create superior customer value for targeted market segments and customers, and executing those arrangements either directly through supplier firm sales forces and logistics system or indirectly through resellers and third-party service providers

25. Business Market Processes Delivering Value Business Market Management, 3 rd edition Chapter 1- Gaining New Business Differentiating business opportunities, prospecting for new business, assessing the fit with supplier offerings and priorities, gaining the initial order, and fulfilling it to the customer’s complete satisfaction Sustaining Reseller Partnerships A supplier and its reseller fulfilling commitments they have made to deliver value to customer firms, strengthening this delivered value, and working progressively together to continue to fulfill changing marketplace Managing Customers Differentiating transactional and collaborative customers, delivering offerings that fulfill the respective requirements, and preferences of a portfolio of customers in a superior way, and getting a fair return in exchange

26. Business Market Management, 3 rd edition Chapter 1- Business Marketing Understanding that advances in marketing work processes & marketing relationships are needed to realize & profit from understanding of value. Marketing “ The true meaning of Marketing [is] knowing what is value for the customer .” -- Peter Drucker (1980)

28. III. Doing Business Across Borders Business Market Management, 3 rd edition Chapter 1-

39. IV. Working Relationships and Business Networks Business Market Management, 3 rd edition Chapter 1-

42. Working Relationships Business Market Management, 3 rd edition Chapter 1- Transactional Relationships Customer and supplier focus upon the timely exchange of basic products for highly competitive prices, and/or one end Collaborative Relationships Achieved through partnering. Customer firm and supplier firm form strong and extensive social , economic , service, and technical ties . Mutual goals: lowering total costs and/or increasing value.

46. Connected Relations for Firms in a Dyadic Relationship Business Market Management, 3 rd edition Chapter 1- Customer Business Unit Other Supplier Units Other Units in Focal Customer Firm Supplier’s Supplier Other Ancillary Firms Third Parties in Common Other Ancillary Firms Supplementary Supplier Other Customers Competing Supplier Other Units in Focal Supplier Firm Other Units in Focal Supplier Firm Customer’s Customer Supplier Business Unit Focal Relationship

49. V. Summary Business Market Management, 3 rd edition Chapter 1-

51. Business Market Management, 3 rd edition Chapter 1- All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.