Business Market Management: Understanding, Creating, and Delivering Value / Edition 2

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Overview

Significant developments in the second edition of Business Market Management: Detailed discussion of customer value management as a progressive, practical approach to deliver superior value to targeted market segments and customer firms and get an equitable return on the value delivered; Customer value management relies on building customer value models to gain an understanding of customer requirements and preferences, and what it is worth in monetary terms to fulfill them; Leading suppliers leverage the knowledge they gain from customer value models to create value-based sales tools that enable them to persuasively demonstrate and document the superior value their market offerings deliver; Extended consideration of brands in business markets, supported throughout with best-practice company examples; New sections focus on brands as resources, building brands and brand equity in business markets, positioning in business markets and crafting persuasive value propositions, branding market offerings, and global branding.
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Product Details

  • ISBN-13: 9780130451873
  • Publisher: Prentice Hall
  • Publication date: 11/14/2003
  • Edition description: Second
  • Edition number: 2
  • Pages: 460
  • Product dimensions: 7.24 (w) x 9.34 (h) x 0.94 (d)

Meet the Author

James C. Anderson is the William L. Ford Distinguished Professor of Marketing and Wholesale Distribution, and Professor of Behavioral Science in Management at the Kellogg School of Management, Northwestern University. Professor Anderson joined the faculty of the Kellogg School in 1984 as an assistant professor of marketing. In 1987 he was named the first to hold the Kellogg School's newly-endowed William L. Ford Distinguished Chair in Marketing and Wholesale Distribution.

Professor Anderson teaches graduate-level courses in business marketing. He is a faculty member of the Executive Master's Program and teaches in a number of executive development programs at the James L. Allen Center. He is the program director of the Business Marketing Strategy executive program. He has consulted and provided seminars for a number of companies in North America and Europe, such as ARCADIS, AT&T, bioMerieux, Dow Chemical, FEMSA Empaque, G.E. Capital Services, International Paper, Johnson & Johnson, 3M, PPG Industries, Pharmacia, and Solutia.

Professor Anderson's research interests are in constructing persuasive value propositions in business markets, measurement approaches for demonstrating and documenting the value of market offerings, and working relationships between firms in business markets. He has written more than 30 journal articles, including several published in Harvard Business Review. He is a member of the editorial boards of the International Journal of Research in Marketing, Journal of Business-to-Business Marketing, and Journal of Strategic Marketing, and has served on the editorial boards of the Journal of Applied Psychology and Journal of Marketing Research. He is aFellow of the American Psychological Association.

Professor Anderson is the Irwin Gross Distinguished ISBM Research Fellow at the Institute for the Study of Business Markets and a member of its advisory board. He also is a visiting research professor at the School of Technology and Management, University of Twente, The Netherlands. He has been a visiting research professor at Eindhoven University of Technology, the Netherlands, and at Uppsala University and Stockholm School of Economics, Sweden. He also has been vice president of the business marketing division of the American Marketing Association (AMA) and a member of the board of directors of the AMA.

Professor Anderson came to Kellogg after three years as a member of the marketing faculty of the University of Texas at Austin. Prior to that, from 1978 to 1981, he worked as a senior research psychologist in the corporate marketing research division of E.I. duPont de Nemours and Company, Inc. He earned his doctorate in psychology from Michigan State University in 1978.

James A. Narus is Professor of Business Marketing at the Babcock Graduate School of Management, Wake Forest University in Charlotte, North Carolina. He joined the faculty in 1988. Professor Narus's teaching, research, and consulting interests include value-based marketing, the management of market offerings, distribution channel design and management, and partnerships and networks within business markets.

Professor Narus routinely teaches courses on business-to-business marketing and marketing management in the Babcock School's full-time, evening, executive, and Charlotte MBA programs. His teaching portfolio includes such courses as marketing channel management, strategic account management, sales management, marketing strategy and policy, brand management, and advertising management. Over the years, Professor Narus has taught in executive development programs at Northwestern University, Pennsylvania State University, the University of Texas at Austin, and Texas A&M University, as well as in international management seminars at the Universidad Torcuato Di Tella (Argentina), Copenhagen Business School (Denmark), Bordeaux School of Management (France), University College Dublin (Ireland), and Twente University (The Netherlands).

Professor Narus has written numerous articles and research papers on business market management topics. These articles have appeared in the Harvard Business Review, Sloan Management Review, California Management Review, and the Journal of Marketing, among other journals.

Professor Narus is a member of the editorial review boards of the Journal of Business-to-Business Marketing and the Journal of Marketing Channels, as well as an ad hoc reviewer for several other publications. He is a longstanding member of the American Marketing Association. For seven years, he served as the coordinator of its Business-to-Business Marketing Special Interest Group. Professor Narus belongs to the NAPM-Carolinas and Virginia, an affiliate of the Institute for Supply Management, and is a member of the Charlotte North Rotary Club.

Professor Narus has provided management consulting expertise or executive training seminars for numerous corporations including the Allen-Bradley Company, DuPont, Eastman Chemicals, Gardner-Denver Corporation, General Motors, S. C. Johnson, McKinsey & Company, Merck, Pacific Technologies, Parker-Hannifin Corporation, Rockwell Automation, and the Toronto Dominion Bank. Prior to his academic career, Professor Narus worked as a market research analyst and fellow in the corporate marketing research division of E.I. duPont de Nemours and Company, Inc. There, he conducted studies on a variety of issues related to distribution channel management. He earned his doctorate in marketing management from Syracuse University in 1981.

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Read an Excerpt

The state-of-knowledge and state-of-best-practice in business markets have advanced considerably since the publication of our first edition. The second edition of Business Market Management interprets and integrates these advances within the framework that our first edition established. It also strongly reflects the changes in our views of business markets and what firms need to do to prosper. Two significant developments in the second edition are especially noteworthy.

We now provide detailed discussion of customer value management as a progressive, practical approach to delivering superior value to targeted market segments and customer firms, and getting an equitable return on the value delivered. Customer value management relies on building customer value models to gain an understanding of customer requirements and preferences, and what it is worth in monetary terms to fulfill them. Leading suppliers leverage the knowledge they gain from customer value models to create value-based sales tools that enable them to persuasively demonstrate and document the superior value their marketing offerings deliver. In our second edition, we relate the best practices of these leading suppliers. Complementing this discussion, we describe in detail an approach to customer value management and building customer value models that we have developed and refined while working with numerous firms in diverse industries over the past several years.

Brands and brand building are concepts that are of growing interest in business markets. Establishing and building their brands are goals that managers in business markets increasingly seek to accomplish. They believe that by adaptingthe concepts and practices of their counterparts in consumer markets to the business-to-business setting, they can build brand equity and benefit from it. In our second edition, we provide extended consideration of brands in business markets. New sections are devoted to brands as resources, building brands and brand equity in business markets, positioning in business markets and crafting persuasive value propositions, branding market offerings, and global branding. Each of these sections is reinforced and enlivened with best practice company examples.

Our second edition retains the framework for understanding, creating, and delivering value established in our first edition. Chapters are devoted to each of the business market processes in this framework, such as Crafting Market Strategy, Managing Market Offerings, and Sustaining Customer Relationships. The same four guiding principles of business market management still recur throughout the second edition:

  • Regard Value as the Cornerstone
  • Focus on Business Market Processes
  • Stress Doing Business Across Borders
  • Accentuate Working Relationships and Business Networks

Our second edition continues with our first edition title of Business Market Management instead of Business Marketing. Although our book is about business marketing, our choice of title reflects our recognition that marketing work processes, such as segmentation, targeting and positioning, increasingly take place within business market processes such as crafting market strategy and managing market offerings. Business market processes cut across functional areas and depend upon seamless cross-functional cooperation for marketplace success. Thus, business market management requires significant participation from many functional areas, not just marketing, to decide what market segments and customer firms are of primary interest (i.e., targeting) and how to deliver superior value to them (i.e., positioning). We think that business market management better conveys this broader responsibility for the market, and this perspective makes our book not only of greater interest to those in a marketing functional area, but also to those in related functional areas and general management.

To formulate, test, and refine our thinking, as well as to gather best practice illustrations throughout our book, we continue to conduct extensive management practice research with leading European and North American companies. We also have studied and provide examples from the best practices of some leading Asian companies operating in Europe and the Americas. These leading-edge firms serve a variety of business markets, providing offerings as diverse as bearings, air cargo service, enterprise software, and commercial banking services. Our primary research enables us to generate illustrations and examples that offer greater texture and richness than do examples that come from secondary sources. Because this research is conducted with firms that excel at value-based market management, the illustrations and examples that come from them provide insight into how the models, frameworks, and concepts we present can be put into practice. Reflecting this continuing commitment, our second edition contains 24 new breakout boxes, most of which resulted from primary management practice research. Of course, we also continue to supplement the illustrations generated from our management practice research with numerous examples from secondary sources.

The intent of our second edition is to provide the most progressive managerial approach to business marketing and business markets. Whether readers are students with limited experience or seasoned managers, they will find the second edition a valuable resource, containing concepts, frameworks, and best practices that will stir up and advance their thinking. We think that our second edition delivers superior value in return for the time readers invest in it, and we believe that after reading it, you will agree.

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Table of Contents

Preface
Acknowledgments
About the Authors
Sect. I Introduction and Overview 1
Ch. 1 Business Market Management: Guiding Principles 3
Sect. II Understanding Value 39
Ch. 2 Market Sensing: Generating and Using Knowledge About the Market 41
Ch. 3 Understanding Firms as Customers 90
Ch. 4 Crafting Market Strategy 131
Sect. III Creating Value 173
Ch. 5 Managing Market Offerings 175
Ch. 6 New Offering Realization 222
Ch. 7 Business Channel Management 271
Sect. IV Delivering Value 315
Ch. 8 Gaining Customers 317
Ch. 9 Sustaining Reseller Partnerships 361
Ch. 10 Sustaining Customer Relationships 394
Index 441
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