Business Market Management: Understanding, Creating, and Delivering Value / Edition 3

Business Market Management: Understanding, Creating, and Delivering Value / Edition 3

by James C. Anderson, James A. Narus, Das Narayandas
     
 

ISBN-10: 0136000886

ISBN-13: 9780136000884

Pub. Date: 06/19/2008

Publisher: Prentice Hall

Anderson builds the book around a framework of understanding, creating, and delivering value.
Viewed from an international perspective—rather than a purely American one—Business Market Management draws upon best business practices, allowing readers to understand cultural and regional differences. Topics include: market sensing,…  See more details below

Overview

Anderson builds the book around a framework of understanding, creating, and delivering value.
Viewed from an international perspective—rather than a purely American one—Business Market Management draws upon best business practices, allowing readers to understand cultural and regional differences. Topics include: market sensing, understanding firms as customers, crafting market strategy, managing market offerings, business channel management, gaining customers, and sustaining reseller and customer relationships.
For marketing directors, marketing managers, employees in marketing departments, customer service representatives, and owners/managers of firms, international or American.

Product Details

ISBN-13:
9780136000884
Publisher:
Prentice Hall
Publication date:
06/19/2008
Series:
Pearson Custom Business Resources Series
Edition description:
New Edition
Pages:
496
Sales rank:
517,364
Product dimensions:
7.10(w) x 9.30(h) x 0.90(d)

Table of Contents

Preface

Acknowledgements

About the Authors

SECTION I: INTRODUCTION AND OVERVIEW

CHAPTER 1: BUSINESS MARKET MANAGEMENT: GUIDING PRINCIPLES

OVERVIEW
VALUE AS THE CORNERSTONE OF BUSINESS MARKET MANAGEMENT
What is Value in Business Markets?
Assessing Value in Practice
MANAGING BUSINESS MARKET PROCESSES
Shareholder Value, Business Processes, and Marketing
Core Business Processes
Contributions of Marketing
Business Market Management and Business Marketing
Business market processes
Business marketing
DOING BUSINESS ACROSS BORDERS
Language and Culture
Cross-Border Negotiation and Dispute Resolution
Cross-border negotiations
Cross-border dispute resolution
Currency Exchange and Payment Risk
WORKING RELATIONSHIPS AND BUSINESS NETWORKS
Work Teams
Working Relationships
Collaborative relationship agreements
Collaborative relationship development
Business Networks
Business network characteristics
Analyzing business networks
SUMMARY

SECTION II: UNDERSTANDING VALUE

CHAPTER 2: MARKET SENSING: GENERATING AND USING KNOWLEDGE ABOUT THE MARKET

OVERVIEW
DEFINING THE MARKET
Market Segmentation
Conventional bases of segmentation
Progressive bases of segmentation
Determining Market Segments of Interest
Market segment size and growth
Sales and profit potential.
MONITORING COMPETITION
A Framework for Competitor Analysis
Future goals
Assumptions
Current strategy
Capabilities
Improving Monitoring Performance
Competitor intelligence systems
Seek disconfirming as well as confirming evidence
ASSESSING VALUE
Value Assessment Methods
Internal engineering assessment
Field value-in-use assessment
Indirect survey questions
Focus group value assessment
Direct survey questions
Conjoint analysis
Benchmarks
Compositional approach
Importance ratings
Customer Value Management
Translating business issues into projects
Customer value workshop
Customer value research
Constructing a business case for change
Value realization

GAINING CUSTOMER FEEDBACK
Customer Satisfaction Measurement
American Customer Satisfaction Index (ACSI)
What customer satisfaction results mean
Customer Value Analysis
Net Promoter Score
SUMMARY

CHAPTER 3: UNDERSTANDING FIRMS AS CUSTOMERS

OVERVIEW
UNDERSTANDING PURCHASING ORIENTATION
The Buying Orientation
Obtaining the best deal
Maximizing power over suppliers
Avoiding risk
Developments in buying
The Procurement Orientation
Improving quality
Reducing total cost of ownership
Cooperating with suppliers
The Supply Management Orientation
Focus on end-users
Craft a sourcing strategy
Build a supply network
Sustain highly collaborative relationships with select suppliers
Apply purchasing portfolio management
Putting Knowledge of Purchasing Orientation to Use
UNDERSTANDING HOW PURCHASING WORKS WITH OTHER FUNCTIONS AND FIRMS
Value Management as a Cooperative Framework
Adding Value to the Purchasing Process through Buying Teams
Team member roles
Buying situations
Buying team tasks
Working with Suppliers and Across Functions
Developing supply resources
Improving existing offerings
Contributing to new offering realization
UNDERSTANDING THE PURCHASE DECISION PROCESS
Understanding Customer Requirements and Preferences
Converge on customer requirements
Map customer activity and value cycles
Learning the Customer’s Purchase Process
Evaluating Supplier Performance
Reviewing price, quality, and availability
Scrutinizing total costs
Tracking supplier value
SUMMARY

CHAPTER 4: CRAFTING MARKET STRATEGY

OVERVIEW
BUSINESS STRATEGY AS THE CONTEXT FOR MARKET STRATEGY
A Resource-Based View of the Firm
Core competencies
Capabilities
Brands as resources
Reliance on outside partners for resources
Fundamental Value-Based Strategies
Product leadership
Customer intimacy
Operational excellence
Strategy Making
Who makes strategy?
Defining purpose
Strategy as orderly advances punctuated by radical change
PLANNING MARKET STRATEGY IN BUSINESS MARKETS
What Do We Know?
Review recent performance
Gather essential market information
Construct scenarios
What Do We Want to Accomplish?
Targeting
Setting goals and objectives
Positioning in business markets
Customer value propositions
Building brands in business markets
How Will We Do It?
Develop an action plan
Marketing and sales programs
Take stock of implementation skills
Learning and adapting
SUMMARY

SECTION III: CREATING VALUE

CHAPTER 5: MANAGING MARKET OFFERINGS

OVERVIEW
SOME CONVENTIONAL THINKING ABOUT MARKET OFFERINGS
The Tunnel Vision of Commodity Markets
Understanding the true extent of commoditization
Rebuilding differentiation
Services as Core Products in Market Offerings
CONSTRUCTING FLEXIBLE MARKET OFFERINGS
The Concept of Flexible Market Offerings
Articulate the Present Market Offering for Each Market Segment
The true breadth of the market offering
The arbitrary nature of charges
Lack of variation across segments
Assess Customer Value and Supplier Cost
Measuring customer value
Coming to grips with service costs
The payoff from value and cost assessments
Formulate Flexible Market Offerings by Market Segment
Reevaluating existing standard services
Reexamining optional services
Building flexibility with new services
Pricing Implications
Prepare to Implement Flexible Market Offerings
Option menu versus tailored-value package
Branding market offerings
Anticipating implementation problems with customers
Breaking away from the pack
VALUE-BASED PRICING
Traditional Pricing Approaches
Cost-plus pricing
Competition-based pricing
An Approach to Value-Based Pricing
MANAGING MARKET OFFERINGS ACROSS BORDERS
Adapting Market Offerings Across Borders
International market development
Providing transnational market offerings
Global branding
Pricing Across Borders
Pricing in local markets
Harmonizing pricing across borders
SUMMARY

CHAPTER 6: NEW OFFERING REALIZATION

OVERVIEW
REALIZATION STRATEGY
Development Goals and Objectives
Overall development goals
Project objectives
The Aggregate Project Plan
Mapping the kinds of development projects
Making capacity decisions
Gaining critical skills and capabilities
Concurrent Engineering in Realization Strategy
Point-based versus set-based approaches to concurrent engineering
Set-based concurrent engineering and flexible market offerings
Outside Development Relationships and Networks in Realization Strategy
Alternate development structures
Aims of development relationships and networks
Decision considerations
REALIZATION PROCESS MODELS
A Variety of Realization Process Models
Smallfry Industrial Design
AKZO NOBEL Coatings
Kleinwort Benson Investment Management
ABB Asea Brown Boveri large system projects
ABN-AMRO Bank Global Transaction Services
A General Realization Process Model
Augmenting services in realization process models
“Next generation” realization process models
MARKET-ORIENTED REALIZATION
Market-Oriented Research
Create focused research centers
Connecting research with the market
Market-Oriented Development
Positioning statements as a market-focusing mechanism
Researching market requirements and translate them into design specifications
Guiding realization efforts with customer value assessment
Tailoring market introductions of new offerings
SUMMARY

CHAPTER 7: BUSINESS CHANNEL MANAGEMENT

OVERVIEW
DESIGNING SUPERIOR VALUE-ADDING MARKETING CHANNELS
Specify Marketing Channels Goals and Objectives
Assess the Customer Value of Potential TCE Elements
Envision a Value Proposition for Each Targeted Market Segment
Reformulate the Intended TCE for Each Targeted Market Segment
Configure the Channel Network
Maximize market access by balancing exposure and coverage
Optimize value-added through postponement or speculation
Minimize cost-to-serve via functional acquisition and functional spin-off
Build a channel network model
Finalize Marketing and Distribution Arrangements
Devise profit models
Carefully select channel partners
Consider e-business and wireless technologies
Build international marketing channels
Formalize partnership agreements
CREATING VALUE THROUGH DIRECT CHANNELS
Creating a Sales Force of Value Merchants
Internally promote a value-based marketing philosophy and culture
Train value merchants
Compensate value merchants based on profitability of accounts
Deploying Value Merchants
Establish necessary sales units
Determine the number of value merchants needed
Designate areas of responsibility
Assign value merchants to areas of responsibility
Designing a Logistics System that Creates Value
Segment the market into logistically distinct businesses
Establish differential service standards for each market segment
Tailor unique logistics systems to deliver differential services
Exploit economies of scale among the different logistics systems
STRENGTHENING RESELLER PERFORMANCE
Building Marketplace Equity
Decompose marketplace equity
Cultivate brand and reseller equity
Determine Reseller Performance Expectations
Assess the Reseller Value of Channel Offering Elements
Construct a channel positioning matrix.
Craft a Reseller Value Proposition and Channel Offering
Devise and pretest the channel offering.
Improve reseller target-marketing efforts via tailored channel offerings.
Communicate the Reseller Value Proposition
SUMMARY

SECTION IV: DELIVERING VALUE

CHAPTER 8: GAINING NEW BUSINESS

OVERVIEW
DIFFERENTIATING POTENTIAL BUSINESS
Managing Single Transactions
Managing Long-term Customer Relationships
Impact of Selection Decisions on Suppliers
PROSPECTING FOR NEW BUSINESS
Generate Leads from Business Market Databases
Prompting and Gathering Inquiries via Integrated Marketing Communications
Use integrated marketing communications to reach the target market
Encourage and process inquiries
Foster strong brands
Qualifying Leads and Inquiries
Getting the Sales Force to Follow-Up with Prospects
Provide knowledge to create an informed sales force
Motivate sales representatives to follow-up
Give sales representatives experience dealing with prospects
Furnish abundant sales support
ASSESSING FIT
Understanding and Communicating Value
Communicate the Four Types of Customer Benefits
The value stack
ORGANIZING THE SELLING EFFORT
Scheduling the First Meeting
Getting started for orders
Initiating dialogue for new customer opportunities
Learning Prospect Requirements and Preferences and Communicating Value
Plan the call
Open the call
Investigate requirements and preferences
GAINING THE INITIAL TRANSACTION
Transaction versus Consultative Selling
Demonstrating and Documenting Value
Propose solutions
Gain the initial transaction
Negotiating the First Sale
Pricing the initial offering
Negotiation approaches
Understanding BATNA
INITIAL ORDER FULFILLMENT
Coordinating Supplier Functions
Completing the Transaction
Manage revenue
Follow up with prospects after the sale
VALIDATING THE INITIAL DESIGNATION OF ORDER VERSUS CUSTOMER
SUMMARY

CHAPTER 9: SUSTAINING RESELLER PARTNERSHIPS

OVERVIEW
ALIGNING MUTUAL SELF INTERESTS AND COMPLEMENTARY RESOURCES
Insuring Alignment
STRENGTHENING PARTNERSHIPS IN A STABLE MARKET
Fulfilling Supplier Commitments to Deliver Value
Train and coach partner firms
Provide responsive sales and marketing programs
Back-up resellers with pricing support
Furnish operational and technical support
Fulfilling Reseller Commitments to Deliver Value
Provide consistently superior service to customer firms
Innovate in the local marketplace
Enhance the supplier’s brand equity
Strengthening Interfirm Coordination
Participate in joint annual planning
Clarify roles and responsibilities through written agreements
Improve communications through bridging
Synchronize efforts with a partner relationship management system
Ensuring that Value is Delivered
Conduct market research
Getting an equitable return on delivered value
RESPONDING ADAPTIVELY TO INCREMENTAL MARKET CHANGES
Adjusting Commitments
Establish a reseller advisory council
Reformulate channel partners’ gives & gets
Make responsive adjustments to the joint annual plan
Seek influence among channel partner firms
Establish a process and procedures for conflict resolution
Creating Adaptive Channels
Provide support in extraordinary situations
Responsively broaden the market offering
Share capabilities with other channel members
TRANSFORMING CHANNELS IN THE FACE OF DISRUPTIVE FORCES
Creating integrated multi-channels
Skillfully Handling Relationship Transfers
Delineate relationship transfer criteria
Establish equitable compensation for relationship transfers
Terminating Partnerships
SUMMARY

CHAPTER 10: MANAGING CUSTOMERS

OVERVIEW
DIFFERENTIATING TRANSACTIONAL AND COLLABORATIVE CUSTOMERS
Thinking strategically about relationships
Consider industry bandwidths
Partnering as a focused market strategy
PURSUING CONTINUITY AND GROWTH
Pursuing Growth in a Customer Account
Estimate and target share of customer’s business
Two generic approaches to building share over time
Pursuing Continuity
Promote honest and open communication
Build trust and commitment
Implement coordination mechanisms
Anticipate and resolve conflicts
DELIVERING SUPERIOR VALUE WITH RELATIONSHIP-SPECIFIC OFFERINGS
Construct Relationship-Specific Market Offerings
Price Relationship-Specific Offerings
Organize to Deliver Relationship-Specific Offerings
Focused Share Building
Pursue single sourcing and multiple-single-sourcing
Building new organizational capabilities
Adopt new profit models
Document the profitability of greater share
MANAGING A PORTFOLIO OF CUSTOMERS
Measuring Cost-to-Serve Customers and Customer Loyalty
Using the Loyalty Ladder to Manage Customer Relationships
Executing Migration Strategies
Emerging CRM Applications
Allocating resources for customer acquisition, retention, and growth
Synchronizing marketing efforts
Updating customer value
SUSTAINING CUSTOMER RELATIONSHIPS THROUGH CONNECTED RELATIONSHIPS
Managing within a Business Network Context
Adding Value through Business Networks
LOOKING AHEAD – A FINAL THOUGHT ON MANAGING CUSTOMERS
SUMMARY

Index

Read More

Customer Reviews

Average Review:

Write a Review

and post it to your social network

     

Most Helpful Customer Reviews

See all customer reviews >