B2B Marketing Strategy

Development Development Overview

Overview

• Developing Market Strategy – is the

process of studying how to exploit a

firm’s resources to achieve short-term

and long-term marketplace success, and long-term marketplace success,

deciding on what course of action to

pursue, and flexibility updating it as

learning occurs during implementation.

Developing Market Strategy

Resources: Fundamental

Value Based Strategies

# Core competencies # Product leadership

# Capabilities # Customer intimacy

Business StrategyUpdate Business Strategy

Orderly

advance

Radical

advance

# Partners resource # Operational excellence

Market Strategy

What do we

know?

What do we

want to

accomplish?

How will we

do it?

Orderly

advance

Radical

advance

Update Market Strategy

Knowledge

•Deliberate

•Emergent

Anderson, James, James Narus and Das Narayandas (2009),

Business Market Management: Understanding, Creating, and

Delivering Value, Third Edition, Prentice Hall.

Business Strategy is the foundation for

developing Market Strategy

• Strategy is written more than any other

topic in management practice

• What is strategy? Porter contends that

firms fail to distinguish between

Operational effectiveness – “means Operational effectiveness – “means

performing similar activities better than

rivals perform them”

• Porter says Strategy “is the creation of a

unique and valuable position, involving a

different set of activities.

Business Strategy as the foundation for

developing Market Strategy

A Resource Based View of the Firm

• The resourced based view “sees companies as

very different collections of physical and intangible

assets and capabilities”.

• No two companies are alike.• No two companies are alike.

• Resources are the building blocks for strategy.

Business Strategy as the foundation for

developing Market Strategy

• Core Competencies– A core competence is “ a complex

harmonisation of individual technologies and production skills”

– As an example 3M Company has core – As an example 3M Company has core competencies in substrates, coatings, and adhesives that it has brought together in distinct ways to create a number of successful businesses.

Business Strategy as the foundation for

developing Market Strategy

• Capabilities

– A capability is “a set of business processes

strategically understood”

– i.e. Walmart - is an example of a capability,

which closely coordinates business processes which closely coordinates business processes

of Walmart - and its strategic suppliers to

provide superior inventory turns.

Business Strategy as the foundation for

developing Market Strategy

• Partner Resource

– Partner resource is how firms share technology

and processes to improve speed to market with

other firms

– i.e. IBM - is an example of a firm that shares – i.e. IBM - is an example of a firm that shares

resources and relies on outside partners to

develop complex ICT solutions.

Fundamental Value Based Strategies

• Product Leadership– Leading edge products and services that consistently

enhance the customer’s use or application of the

product, thereby making rivals obsolete.

– Company pursues innovation relentlessly – Company pursues innovation relentlessly

– Variety based positioning

– i.e. Apple - is an example of a company that develops

leading edge products that change the basis of

competition

Core Marketing Strategies:Product Leadership

Strategic Direction

Ideas to Products

Skillful marketing

Corporate Culture

Experimental

Out of box thinkingSkillful marketing

Systems

Rewards innovation

New product success

Organization

Ad hoc, Organic

Flexible, Changes

Out of box thinking

Fundamental Value Based Strategies

• Customer Intimacy– Customer Intimacy “means segmenting and targeting

markets precisely and then tailoring offerings to match

exactly the demand of those niches”.

– Retaining customers over time– Retaining customers over time

– Needs based positioning

– Your share of the customers business

Core Marketing Strategies:

Customer Intimacy

Strategic Direction

Provide solutions

Improve customer’s business

Corporate Culture

Flexible

Have it your wayImprove customer’s business

Systems

Measures cost of service

Customer loyalty

Organization

Empowerment

Close to customer

Have it your way

Fundamental Value Based Strategies

• Operational Excellence

– Operational Excellence means “ providing

customers with reliable products or services at

competitive prices and delivered with minimal

difficulty or inconvenience.difficulty or inconvenience.

– Dell is an example of a company that has

pursued operational excellence.

Core Marketing Strategies:

Operational Excellence

Strategic Direction

Distribution

No-hassle service

Corporate Culture

Predictable

One-size-fits-allNo-hassle service

Systems

Standard operating

procedure

Organization

Central authority

Finite empowerment

One-size-fits-all

Business Strategy as the Foundation for

Market Strategy

Strategy Making• How firms develop strategy is a topic of keen

interest.

• Who Makes Strategy?

• Defining Purpose.

• Implementing change if needed.

Business Strategy as the foundation for

Market Strategy

• Who Makes Strategy?– Conventional view is that top management make

strategy

– Top down Vs Bottom up

– Need to promote broader involvement of managers – Need to promote broader involvement of managers

across the firm is preferable.

– This requires a more democratic process of strategy

making.

– Identify revolutionary thinkers with fresh perspectives

Business Strategy as the foundation for

Market Strategy

• Defining Purpose– Cornerstone of strategy making is defining

purpose in a mission or vision statement.

– Purpose can also be defined as strategic intent

(Hamal and Prahalad 1992)(Hamal and Prahalad 1992)

– i.e. Komatsu

Planning Market Strategy

“Chance favours the prepared mind”

Quote- Louis Pasteur

Planning Market Strategy In Business

Markets

What Do we Know?

• It is important to emphasize the word

know

• It is important to distinguish between • It is important to distinguish between

what they know, what we believe, and

what we want to believe.

• We must be willing to challenge what

they think we know.

Planning Market Strategy In Business

Markets

What Do We Want to Accomplish?• Management team attempts to reach a

shared agreement.

• Marketing strategy begins with targeting • Marketing strategy begins with targeting segments and customer firms.

• Setting Goals and Objectives

• Positioning

• Building Brands

Planning Market Strategy In Business

Markets

How Will We Do It?• The question is about thinking through

implementation of the market strategy.

• Firms can propose the most wonderful • Firms can propose the most wonderful sounding market strategies, but if they lack the requisite knowledge, skills, and abilities to put them into play, little will be accomplished.

Summary

• Developing market strategy is the process of studying how to exploit a firm’s resources to achieve short term and long term success.

• It requires significant participation from many functional areas.

• Business Strategy involves a resource based view, • Business Strategy involves a resource based view, product leadership or customer intimacy view of the firm.

• Radical change versus orderly advance.

• Through planning market strategy members of a management team can compare, revise and update individual market views, so as to devise alternative courses of action

Summary

• We need to ask fundamental questions about our firms operation such as

– What do we know?

– What do we want to accomplish?

– How we will do it?

You are welcome to contact Nigel Bairstow at B2B

Whiteboard your source of B2B Asia / Pacific

marketing advice

http://www.linkedin.com/pub/nigel-bairstow/6/41b/726

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