...B2B and Services Marketing Communications

1. Integrated Marketing Communications
and services marketing process
10
Using communications for B2B

2. B2B…
…the business to business channel of marketing
There are some significant differences with B2C
the size of the markets are larger, but there are less customers
There is a higher average spend per customer, a wider geographic
spread…
…and buyer behaviour is more complex

3. B2B buying is made up of four main sub-sectors…
Buying for own consumption
Buying for incorporation and/or assembly
Resale to another organisation
Retail to be sold on

4. why use personal selling?
messages can be adapted on the spot to
meet the requirements of both parties
this flexibility allows objections to be overcome, information to be
provided and demonstration to be brought to the buyer
messages can be much more personal than any of the other
methods of communication
easier to induce a change in behaviour

5. prospecting – finding new customers
monitor competitor action – informing about competing products
maintaining relationships – critical relationships will have a single
sales person
project management - coordinating within the organisation,
representing the customers interests
tasks of personal selling

6. persuading – that the product offered is the best
solution to their problem
installing and demonstrating –e.g. get equipment installed
identifying and reporting issues/problems
informing – giving customers adequate, detailed and relevant
information
tasks of personal selling

7. Supporting tools…
There are many communications tools can be
used to support the personal selling effort
Trade promotions
Trade advertising
exhibitions
Technology, and especially the internet, offers new methods of
communications that are great for delivering communications content
Direct marketing
Public relations

8. networks and relationships…
There is significant strategic value in marketing channels,
partnership, alliances and networks
The structure of a network has one focal organisation (yours) and those
connected to it for various reasons… predominantly exchanges
…networks are maintained for the potential opportunities they offer
Those that are more profitable or beneficial can develop
through relationships, into partnerships…
…with a mutual desire to maintain that value

9. Trust, commitment and loyalty
Necessary for development of relationship marketing
Trust…
necessary in all relationships…
needs credibility
…the brand is a great tool to instill trust

10. trust, commitment and loyalty
commitment…
the desire for an enduring relationship
we achieve commitment through…
shared values
good communications
The potential for losses through termination are high

11. …evolution of Key Account Management
key accounts are customers in a business-to-business market identified
by selling companies as of strategic importance
…think about Pareto’s 80-20 rule
Millman, 1995
…relationships matter more than products

12. Company
CustomersEmployees
External marketing
communications…
Advertising
Sales Promotion
Public Relations
Direct Marketing
Internal marketing
communications…
Interactive marketing
communications…
Personal Selling
Service Encounters
Servicescapes
Communications and the services marketing triangle
Wilson, A. et.al, (2008) adapted from Kotler (1997)

13. services marketing…
A complex part of marketing and communications due to 5 key factors…
heterogenity
ownership
inseperability
intangibility
perishability

14. intangibility implications
Customers need more information to make a decision…
…there are higher levels of perceived risk
word of mouth… both face to face and online is very powerful
…informing and persuading are key tasks
it’s important to build a good reputation

15. …open days

17. inseparability implications
The service is not separate from the provider
High quality customer facing staff supported by high quality training
Employees (customer facing staff) are key here

18. Heterogeneity implications…
Variability of quality can affect the service
Standardisation of the service offered
Influence or control over customer perceptions of service
Consistency of quality control, customer service

20. Perishability implications…
Particular services are perishable…
… for example a show at a theatre
Meet customer demands when needed
Stimulate off-peak demand

22. Ownership implications…
No tangible product or good transferred to customer
Brochures, programmes, photos, giftware…
Offer symbolic tangible items

23. Service quality gaps model
Word-of-mouth
Communications Personal needs Past experience
Expected service
Perceived service
Service
delivery
Service quality
specifications
Management perceptions
of customer expectations
External
communications to
customers
Gap 5
Gap 4Gap 1
Gap 3
Gap 2
Zeithaml, Parasuraman & Berry, 1996

24. managing the gaps...
Gap 1 – Consumer expectations and management perceptions gap…
knowledge and research
Gap 2 – Management perceptions and service quality specification gap…
policy, standards and management of them
Gap 3 – Service quality specifications and service delivery gap…
quality of delivery
Gap 4 – Service delivery and external communications gap…
consider promises being made
Gap 5 – Expected service and perceived service gap…
customer expectations

25. Over-promise and under-deliver…

26. Over-promise and under-deliver…