828 markeLlng role scope

Sesslon 2
J do we need Lo undersLand Le scope of
b2b?
W 1o |n|t|ate the th|nk|ng process |n the m|nd of a b2b
manager
W 1here are severa| c|ass|f|cat|ons of products compet|t|on
and market comb|nat|ons that make up the bus|ness
env|ronment
W Such understand|ng can ass|st the marketer to understand
var|ous types of customers the|r percept|on of va|ue and
how compet|tors w||| try to create super|or va|ue
Classifying industrial
goods by the following
questions:
How does the good or
service enter the
production process?
How does it enter the cost
structure of the firm?
Classifying
Goods for
the
Business
Market
Source: Adapted from Philip Kotler,
Marketing Management: Analysis,
Planning, and Control,
th
ed.
(Englewood Cliffs, N.J.: Prentice-Hall,
1980), p. 172, with permission of
Prentice-Hall, Inc.
@pes of 828 cusLomers CLMs
W 1hey purchase goods to |ncorporate them |nto goods they
produce and se|| to the customers
W Lxamp|es Marut| Samsung n
W Industr|a| marketers (supp||ers to CLM ) spend the ma[or
part of the|r resources approach|ng |earn|ng about and
target|ng these customers
Supp||ers to CLM a|so do 82C market|ng through the|r
d|str|but|on channe|s for rep|acement markets
CLMs ] Lnd users are attempt|ng to p|ace some
respons|b|||ty of the qua||ty of the|r products w|th the|r
supp||ers now
nsLlLuLlonal CusLomers
W Crgan|zat|ons that buy product and serv|ces essent|a||y for the|r
|nterna| consumpt|on
W No convers|on |s done on the purchased product and |nterna|
customers' consume them
W 1here m|ght be comprom|ses |n va|ueformoney concepts
W Corporate off|ces note|s nosp|ta|s Lducat|on |nst|tutes etc
L|ke 'stap|es' |n consumer markets many |tems ||ke stat|onery
bank|ng computers cour|ers have become essent|a| for |nst|tut|ona|
customers
overnmenL unlLs
W M|n|str|es
W Centra| Government organ|zat|ons
W Defence sector
W SUs
W State Government organ|zat|ons
W DS
W Government cooperat|ves
Spec|a||zed ro|e of government and d|fferent mot|ves ||ke soc|a|
d|saster re||ef defence educat|on po||t|ca| make 82G d|fferent from
828 market|ng cons|derat|ons
CompeLlLlon buers
W Selllng of excess capaclL Lo compeLlLors
W Selllng of speclallzed Lecnolog / paLenLs Lo
compeLlLors
Lxample Moser 8aer parma companles
selllng paLenLed generlcs garmenL
manufacLurlng companles eLc
Crganlzed 8eLallers
W 8lg volumes
W CenLrallzed declslon maklng wlL deflned
procedures
W ulslnLermedlaLlon
W ke accounL Lleups
rlces and all oLer Suppl Caln parameLers
are crlLlcal for suc deallngs
CrosspromoLlon Lleups
W Compan|es buy|ng |ots of f|n|shed products for he|p|ng
the|r own promot|ons such as
W harma
W L|quor 1obacco
W Magaz|nes
W IMCG compan|es
W A|r||nes
Customer s|m||ar|ty strong brand ruboff custom|zat|on
and [o|nt promot|on are key to such dea|s
@pes of 828 seller organlzaLlons
W aw Mater|a| roducers
W 1he bas|c raw mater|a|s are commod|t|es
W Usua||y o||gopo||st|c markets
W Se|||ng d|rect|y to |arge end users
W Use of |ndustr|a| d|str|butors for sma||er customers
aw mater|a|s often |ose the|r |dent|ty when comb|ned
|nto the customer's products
ComponenL parLs and manufacLured maLerlals
producers
W @ese are generall used ln 'asls' condlLlon
usuall reLaln Lelr ldenLlL
W More easll dlfferenLlaLed from Le
compeLlLlon b valueaddlLlon Lo Le core
producL and Lelr own brand ldenLlL
Lxample nLel mlcroprocessor ln Compaq
compuLers
CaplLal goods manufacLurers
W CaplLal goods are normall used Lo produce ouLpuL
W 8lgLlckeL purcases wlL conslderable rlsk for Le cusLomer
W LengL process and soplsLlcaLed speclflcaLlons
W CllgopollsLlc markeLs
Lxample maclne Lools earLmovlng equlpmenL eLc
Suppller's LrusLworLlness and Lrack record are ke
lnlsed goods suppllers
W or lnsLlLuLlonal consumpLlon sLaLloner
compuLers dress maLerlal LransporL faclllL
provlders eLc
W Suppllers of packaglng maLerlals llke carLons
bags palleLs eLc
W or Le crosspromoLlon cusLomers
W As suppllers Lo organlzed reLallers
M8C suppllers
W MalnLenance
W 8epalrs
W CperaLlons
Ma[or lndusLr compuLers CA elecLrlcal
clvll plumblng securlL lubrlcanLs Loollng
ouse keeplng auLo lre auLo repalrs
malnLenance eLc
CLer auxlllar lnsLlLuLlonal servlces
W LoglsLlcs (3L 4L servlces)
W lnanclal servlces
W ConsulLancles
W MarkeL 8esearc analsls
W Courler
W Medlcare
W SofLware developmenL
W AdverLlslng 8@L agencles
W More ?
-ew lnLermedlarles
W edLx ouLsourced parLners redeflnlng Lelr
roles
Suppller of uell Lracklng monlLorlng procurlng
parLs
nLegraLor for uell
ulsLrlbuLor for -aLSeml dlsLrlbuLed producLs
Lroug edLx uC ln Slngapore
Assembler for Clsco Assemble parLs aL Clsco's
cusLomerslLe
@pes of organlzaLlonal cannels
W Industr|a| D|str|butors Compan|es use them to reach
customers whose purchase vo|umes do not [ust|fy d|rect
sa|es
W nence the|r ro|e |s s|gn|f|cant |n 2 cases
W 1 If the customer |s sma||
W 2 If the va|ue of |tem be|ng so|d |s |ow
1hey prov|de t|me p|ace assortment and possess|on
ut|||t|es to the customers
Ma[or |ndustry Stat|onery IMCG MC chem|ca|s
IalueAdded 8esellers
W IA draws on goods serv|ces from many manufacturers to create
custom|zed so|ut|ons often deve|op|ng un|que expert|se |n the
|ntegrat|on of many d|fferent products
W IA prov|des systems to an organ|zat|on ta||ored to a part|cu|ar
customer's needs
1hey |ead to creat|on of va|ue networks and supp||er partnersh|ps for
customers
Ma[or |ndustry computer software and hardware |ntegrators
commun|cat|on systems g|fts mementos
Application
Developers
Content
Providers
Infrastructure
Provider
Device
Manufacturers
End-User
Consumer
Network
Operators
Retail /VAR
Consumer service contract
VARs sell devices as
middleman
Users must be able to operate device
Device must gain network
access
Content must meet
customer needs
Network Operators
need applications
nfrastructure facilitates
network management
Content sites must
promote brand
VAR
intermediaries
nfrastructure
supports
applications
Air interface
compatibility
Applications provide
access to content
Information Information
Partnership Partnership
Cash Cash--flow flow
Exchange Exchange

.hanges Between Links .hanges Between Links

@elecommunlcaLlon suppl neLwork
ndusLrlal agenLs
W enerall used for lnLernaLlonal b2b
W Jen Le buslness ls blg LlckeL buL lnfrequenL
W Jen Le compan requlres speclallzed knowledge
or connecLlons aL Le cusLomer level
Lxamples arms ammunlLlon deals wlL
governmenL forces avlaLlon secLor power secLor
lnfrasLrucLural pro[ecLs
SpeclalL producL/markeL suppllers
CusLomlzed producLs servlces Lo
W uefence
W PoLels
W PosplLals
W Llbrarles
W 8esearc CrganlzaLlons
W LducaLlonal secLor
W 8allwas
uo organlzed reLallers do 828
buslness?
W ?es
W Casncarr formaL
W Lxamples from Le world?
W Lxamples from ndla?
use of ecommerce ln 828
W @e nLerneL can elp ln generaLlng leads
W uslng Le nLerneL Lo romoLe
roducLs/Servlces
W LxecuLlng nsLanL nformaLlon ulflllmenL on
Le -eL
W eneraLlng Crders
W CbLalnlng amenLs
W Lnanclng CusLomer 8elaLlonslps
A ma[or 828 poLenLlal area Lcommerce
lnLerface provlders
#At every stage ecommerce avo|ds the need to trans|ate
computer f||es |nto paper documents a process that
genera||y |nvo|ves errors de|ay and cost|y c|er|ca|
personne|" {Luckinqkei/ey ond 5pu/ber 2000)
CosL Lfflclencles
#1he potent|a| cost sav|ngs |n th|s area are substant|a|
rocess|ng a purchase order manua||y |nc|ud|ng paperwork
data entry phone ca||s faxes and approva| requests can be
qu|te expens|ve so on||ne transact|ons m|ght eas||y reduce
costs by a factor of f|ve or ten or more" Luckinqkei/ey ond
5pu/ber 2000
now are costs compressed?
828 ecommerce can save or make mone for a compan
Some was companles ave beneflLed from 828 e
commerce lnclude
W Manag|ng |nventory more eff|c|ent|y
W Ad[ust|ng more qu|ck|y to customer demand
W Gett|ng products to market faster
W Cutt|ng the cost of paperwork
W Cbta|n|ng |ower pr|ces on supp||es (eb|dd|ng)
CosL Lfflclencles
Lxamp|es
W 8r|t|sh 1e|ecom has reduced externa| procurement costs
from 5113 to 58 per transact|on
W Mastercard costs of process|ng purchase orders has fa||en
from 512S to 40 number of days from 4 to 12S days
W Lehman 8rothers f|nanc|a| transact|ons are 5127 for
te||er 527 for A1M 501 on||ne
5ootceut Moty wolflobotqet
rowL of 8elnLermedlaLlon
W @e process of uslng Le nLerneL Lo
reassemble sellers buers buslness parLners
ln new was
W Lmergence of new @based lnLermedlarles
beLween cusLomers and suppllers Lo provlde
lnfo based servlces llke source searc and
evaluaLlon prlce comparlsons eLc
W rowL of vlrLual markeLplaces
communlLles
Lfflclenc alns from
8elnLermedlaLlon
#Cn||ne markets have been estab||shed for a|rcraft parts
agr|cu|ture appare| automot|ve parts chem|ca|s
computers and e|ectron|cs energy f|nanc|a| |nstruments
food and beverages hea|th care |nte||ectua| property
free|ance serv|ces |aboratory supp||es |ndustr|a|
mach|nery advert|s|ng meta|s off|ce supp||es p|ast|cs
paper pr|nt|ng serv|ces te|ecommun|cat|ons sh|pp|ng
and trave| serv|ces" Luckinqkei/ey ond 5pu/ber 2000
ulrecL MarkeLlng and 828
W nLerneLbased dlrecL markeLlng can be used ln
comblnaLlon wlL posLal mall and Lelepone
W Slmllar Lo dlrecL mall on web we can comblne
graplcs and LexL
W MlcrosegmenLaLlon
llusLraLlon PewleLL ackard closes Le
amenL ap ln 828 LCommerce
W P pamenL soluLlonseamless elecLronlc 828
pamenL
@wo componenLs are prelnLegraLed and provlde endLoend
auLomaLlon
W Lmbedded opLlons LaL esLablls rules Lo faclllLaLe dlrecL
deblL pamenL opLlons
8uer accounLs
urcaslng llmlLs
CorporaLe dlscounLlng
W @e ssLem connecLs all Lese accounLs wlL Lelr onllne
flnanclal lnsLlLuLlons
PewleLL ackard Closes Le amenL ap
ln 828 LCommerce %coot)
W P pamenL soluLlon
@e lnLegraLed ssLem reduces cosL of
W Crder processlng
W ConLracL admlnlsLraLlon
W CusLomer servlce
CapLures and analzes lnformaLlon LaL allows
compan Lo offer unlque purcaslng experlence
W CusLomersbesL value onllne experlence
W arLnersandle complex LransacLlons qulckl and securel
W Lmploeesreduce cosL and Llme for processlng
Jeb PosLlng and CLer Servlces
W 8uslness osLlngosLlng ls popular for SMLs
large buslnesses need more advanced servlces
Ded|cated serverass|gned for spec|f|c purpose or
customer
Iree Web host|ng |s an attract|ve opt|on for sma||
startups
W rov|der company |nserts a banner ad on the|r s|te
W Start|ng po|nt for sma|| companym|n|m|ze startup costs
lnanclal 828 Servlces
W amenLs
L|ectron|c |etters of cred|t
W 8enef|ts to se||er
Cred|t r|sk reduced
ayment h|gh|y assured
o||t|ca|]country r|sk reduced
W 8enef|ts to the buyer
A||ows negot|at|on of |ower purchase pr|ce
Lxpans|on of supp|y sources
ayment rece|ved after document |nspected by |ssu|ng
bank
Crder ulflllmenL LoglsLlcs
and Suppl Caln Servlces
W Suppl caln managemenL
eeng|neer|ng manag|ng
comp|ex supp|y cha|ns
W Suppller
W ManufacLurer
W ulsLrlbuLor
W CusLomer
W @ransporLaLlon servlces
Manages comp|ex
de||ver|es
W @ransporLaLlon
neLworks
W uedlcaLed fleeLs
W Carrlers
W MulLlmodal
LransporLaLlon
IIIustration : UPS Logistics Group
Crder ulflllmenL LoglsLlcs
and Suppl Caln Servlces %coot)
W arLs dlsLrlbuLlon
Comprehens|ve return
andrepa|r
arts d|str|but|ons
operat|ons
W LoglsLlcs Lecnologles
Integrat|on of |og|st|cs
|nformat|on systems
Serv|ces to prov|de
supp|y cha|n v|s|b|||ty
W LC soluLlons
Log|st|cs serv|ces
Webbased bus|nesses
wor|dw|de
W lobal servlces
Log|st|cs fac|||t|es
Staff|ng
Lxpert|se about g|oba|
commerce
Crder ulflllmenL LoglsLlcs
and Suppl Caln Servlces %coot)
W Call cenLer servlces
Customer care
Commun|cat|ons (ca|| center
serv|ces to LC capab|||t|es)
W lnanclal servlcesfull range
of flnanclal servlces LaL
complemenL
Log|st|cs
1ransport|ng
Add|t|ona| bus|ness needs
W SoluLlons for LC lnlLlaLlves
1rack|ng systems
roduct return systems
Sh|pp|ng so|ut|ons
Ldocument exchange
Custom|zat|on
W LC sofLware/provlders
W Lservlces/parLners
MarkeLlng and AdverLlsemenL
W CommunlcaLlon meLods used b
offllne markeLers
SpeclalL Lrade sows
Ads ln lndusLr magazlnes
Salespeople call on
W LxlsLlng cusLomers
W oLenLlal buers
W ulglLal adverLlsers
Ad server neLwork provlder
LlecLronlc wolesalers
Cnllne uaLa Mlnlng Servlces
W CllcksLream daLadaLa collecLed b
monlLorlng waL people do onllne
W Analzed and mlned Lo produce useful
knowledge used Lo lmprove
Servlces
MarkeLlng efforLs
W lrms use Lese servlces Lo exLend Lelr
ablllL Lo execuLe a successful LC sLraLeg
-eL@racker
Jeb@rends
ulrecLor Servlces
Searc Lnglnes
W ulrecLor servlces
828us|nessnet
8281odaycom
Commun|tyb2bcom
A2zofb2bcom
Istorescouk
Websteron||necom
1homasreg|stercom
8oca|com
82byahoocom
W Searc englnes and news
aggregaLors (nfomedlar
buslness)
Moreovercom
Goog|ecom
Ientrycom
W L -ewsleLLers
CLer 828 Servlces
W 1rust serv|ces
W 1rust 1rademark and
doma|n names
W D|g|ta| photos
W G|oba| bus|ness
commun|t|es
W C||ent match|ng
W Lbus|ness rat|ng s|tes
W romot|on programs
W Lncrypt|on s|tes
W Web research serv|ces
W Coupongenerat|ng
s|tes