Business ~Marketing

1. Business to Business Marketing –
week 8
Dr Nektarios Tzempelikos
Senior lecturer in marketing
IIMP research fellow
nektarios.tzempelikos@anglia.ac.uk
Lab: 322, LAIBS

2. Business-to-Business Marketing:
Relationships, Networks & Strategies
Nick Ellis
Chapter Eight
Business Products

3. Learning Objectives
• Recognise ways of classifying business products
• Appreciate how to manage business products,
including so-called commodities
• Understand some new product development (NPD)
issues in organizational markets
• Consider how a broader network perspective can be
brought to product management decisions

4. Raw Materials
Agricultural Products (e.g. Soya) Natural Products (e.g. copper ore)
Manufactured Materials & Parts
Component Materials (e.g. aluminium) Component or OEM Parts (e.g. disc drives)
Capital Equipment or Installations
Buildings & Land (e.g. factories) Fixed Equipment (e.g. machine tools)
Accessory Equipment
Light Factory Equipment (e.g. bar code scanners) Office Equipment (e.g. furniture)
Tangible Supplies
Operating Supplies (e.g. lubricants) Maintenance Items (e.g. fastenings)
Business Services
Maintenance/Repair Services (e.g. PC repairs) Advisory Services (e.g. consultancy)
Input Products
Foundation Products
Facilitating or MRO Supplies
Fig 8.1 – Classifying offerings in business markets
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5. Tangible
core
Tangible
augmented
Intangible
Fig 8.2 – Levels of product attributes
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6. Business
services
Custom-built
products
Custom-
designed
products
Catalogue
(proprietary)
products
Fig 8.3 – Categorising business product lines
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7. Revenue
Time
Development Introduction Growth Maturity Decline
Fig 8.4 – The product life cycle
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8. Idea generating
Screening
Business planning
Product developing
Test marketing
Product launching
Fig 8.5 – The traditional new product development process
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9. Going through
the motions
• In the
structuring of
NPD
activities
• In the
documenting
of NDP
activities
Insufficient
speed
• Unaware of
‘time to
market’
• Not enough
overlapping
stages
• Stages left to
single
departments
Lack of market
orientation
• Insufficient
customer
input to
process
• Irregular
customer
contact
during NPD
Insufficient
checks
• Making an
unclear
business
case
• Allowing
expenditures
to increase
before
uncertainties
have
decreased
Fig 8.6 – Some problem areas in B2B NPD
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10. NPD in
networks
‘Getting
into the
mud’
‘Getting
through
the mud’
Protecting
your
ideas
Appearing
to be
neutral
Fig 8.7 – Network considerations in NPD
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11. PNG coffee
Chapter Eight main case study
This focuses on a crucial raw material in the supply/demand chain by
exploring the global B2B marketing of agricultural products. The case
shows how relationships with a wide network of different stakeholders must
be considered by marketers upstream in the food chain.
Questions
1. As the marketing manager for Volcafé (www.volcafe.com), one of the
world’s foremost coffee traders and exporters, what are the key issues
affecting your firm as it seeks to increase the global market share of
smallholder coffee produced in PNG?
2. How would you go about building long-term relationships with upstream
smallholder farmers?
3. Would you consider implementing a quality assurance system for the
generic Y grade coffee? Think of the implications of such a product
positioning strategy for your firm’s downstream organizational customers,
including brand manufacturers (such as Nestlé) and retailers.
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