Essay About Positive Customer Experience And Current Suppliersin-Supplier

B2b Marketing Notes
Business MarketingMarketing products/services to other companies, government bodies, institutions, and other organizationMagnitude: account for large economic activities in industrialized countriesMass marketing is not applicable in business marketing Characteristics of business marketBuyer-seller interdependenceChannel of distribution is shorter More direct: personal selling and negotiation (due to direct communication and complex buying procedures)Unique promotional strategiesvary from the department that salesperson is dealing with (e.g. low cost strategy for finance department)using trade shows and expositionsTypes of business customersCompanies that consume (Original equipment manufacturer & Users) Gov. AgenciesInstitutionsResellers (wholesalers, brokers, industrial distributors)Purchasing standards and processStrict performance standards (e.g. design specification, cost constraints, delivery window)Complex purchasing processes → deal with organizational controls of professional purchasers Nature of DemandDerived demandDemand for business goods is derived from demand of consumer goods (downstream demand)Inelastic Demand Not affected by price changes (e.g. price discount)More substitutes for some industrial products Elasticity also driven by derived demandFluctuating DemandDemand for business products and services tend to be more volatile → unexpected increase/decrease (e.g. accelerate effect)Joint demandTypical buying situation1. Straight rebuybuyer reorders supplies from current suppliersin-supplier never be complacent in order to compete with alternatives in market → maintains product/service quality to secure the repeat purchase decisionreinforce positive customer experience add value to customersout-supplier may offer something new to exploit dissatisfaction2. Modified rebuybuyer decides to change product specifications, prices, supplier service requirement in-supplier may lose part of the current supply, while out-supplier sees an opportunity to gain new businessout-supplier should understand customers’ needs and identify how the in-suppliers’ product helps them to add value → formulate unique proposition3. New Taskbuyer has no experience with the product/service and must become educated about the product/service in order to make a purchaseOrganizational Buyer BehaviorOrganizational buying: decision making process by which formal organizations establish the need for purchased products/services, and identify, evaluate, and choose among alternative brands and suppliers.Behavior choice theoryBuyers decide what type of situation they are in → self-orientation/company-orientationEvaluate person relevanceBuyer assesses action alternatives and requirementsSelection of strategy Offensive strategies: strategies designed to maximize gainDefensive strategies: strategies designed to minimize lossRolesSuggest people behave within a set of norms/expectations of others due to the role in which they have been placedAutonomous: person makes a purchase decision alone for an organizationBuying center/decision-making unit (DMU): group of participants that make purchase decision for an organization, and who share some common goals as well as risks arising from the decisionRoles in buying center/DMU[pic 1]initiator starts the purchasing process by recognizing the needs, deciders are the one who may vote on the final decisioncontroller sets budget influencers are those individual who can affect the decision maker’s final decision through recommendations of which vendors to include or which product are best suited to solve organization’s needsGatekeepers control info into/out of the buying group or between membersPurchasing stagesRecognition of need Definition of product/service needEstablishment of specificationsSearch for suppliersProposal acquisition and analysisSupplier evaluation and selection Selection of an order procedureImplementation and evaluation of performance Buying determinants theoryEnvironmental factorsEconomy, technology, political, social factorsMarket factorsNumbers and relative size of competitors/customersOrganizational factorsRewards systems, corporate cultures, policiesIndividual factorsExperiences, demographics, psychological Selective processes: selective exposure, selective attention, selective perception, and selective retentionBuyer-supplier relationship Depends on availability of alternatives, criticality of supply, complexity of supply and supply market dynamismManage B2B customer relationshipSupply chain management Early supplier involvement Purchasing alliances Care about customers’ stakeholders (e.g. customers’ customer)Build trust by:Provide info transparently Deliver quality expectationsHelp partners learn/growAlign incentives to meet customer needs Involve customer in product/service design Market segmentationProcess of grouping current and potential customers who have a similar set of needs and wants, and share the similar characteristic (traits, buying patterns, information needs, benefit sought, psychographic profiles, product experiences, industry participation etc.)Practical value → enable business to succeed in that market Formulate and address marketing strategies to them accordingly Promotional resources are more focus In depth understanding about customers (loyal/new/potential/previous/rejected)strengthen our relationship with current customersidentify market opportunities and competitive threats enable targeting to maximize return Prioritization to optimize returnCompete with a better positioning and tailored offeringStrategic Market Segmentation ProcessCompany business goalsMarket definition Re-define market segmentationCurrent customers/potential customers Segmentation bases → Consider segmentation variable:[pic 2]usually driven by nature of the business/dependent to the availability of primary dataAnalysis Evaluation, selection and prioritization Marketing implementation Challenges of market segmentation processData availabilityWorkload and timelinessTime available and analytical resourcesOrganization commitmentSegmentation criteriaMeasurable ImpactfulAccessibility DifferentiableActionableStrategic application of market segmentationMass marketingSegment marketingNiche marketing Individual marketing