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8/3/2019 Support Christ Op He Benaroya

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Christophe Bnaroya

Program based on and adapted from the books written by Philippe Malaval, with the collaboration of Christophe Bnaroya:-Lefficience commercialeen BtoB EMS 2010

-Marques BtoB - Pearson Education 2010

-Marketing Business to Business Pearson Education 4me Ed 2009

-Aerospace Marketing Management Kluwer Academic Publishers 2002

-MarketingAronautique et Spatial Pearson Education 2002

Business to Business Marketing

Sensitizing to B2B marketing

October 2011

Christophe Bnaroya


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Christophe Bnaroya

FromMarketing to

B2BMarketing:behindhandor ahead?

IndustrialMarketing

or B2BMarketing?

Not justone but 3

B2Bs!

Main B2B

features

Key advices toimplement anefficient B2B

marketing approach

1 2 3 4 5

Christophe Bnaroya Programme based on Philippe Malaval & Christophe Bnaroya book Marketing Busines s to Business , Pearson Education, 4th ed.

A business marketing perspective

Business Markets Consumer Markets

Who buys Organizations(commercialenterprises, institutionsboth profit and not-for-profit,

governments)

Individuals(individual buyers,householdconsumers)

Buying motives Buy goods or servicesto incorporate intoanother product or tosupport organizationalneeds

Buy goods orservices forpersonalgratification


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"Engineer" culture

WHY B-TO-B MARKETING APPEARED LATELY COMPARED TO

CONSUMER GOODS MARKETING ?

High-tech products and project marketing

Basic products

A business marketing perspective


THE THREE LEVELS OF PRODUCT

Installation

After-sale ServiceWarrantyCredit

Augmented Product

3

Actual ProductPackaging, Design

Brand Name

2Core Product

Core Benefit or Service

1

Introduction to business-to-business marketing


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Understanding the B2B environment and its changes

Buyer-sellerinterface

Publics

Macroenvironment

Government

Financial publics : investmenthouses, stock brokerage firms,

individual stockholders,institutional investors

Independent press : massmedia, trade media

Public interest groupsGeneral public

Internal public : directors,board of managers,employees, workers

Physical environment

Ecology

EconomicsTechnology

Culture

Businessmarkets are

megamarkets


B2B versus B2C marketing areas of differences

Business Markets Consumer Markets

Market Structure Geographically concentrated

Relatively fewer buyers

Oligopolistic competition

Geographically dispersed

Mass markets

Monopolistic competition

Products Technical complexity

Customized

Service, delivery and availability veryimportant

Standardized

Service, delivery, and availability somewhatimportant

Buyer behavior Functional involvement

Rational/task motives predominate

Technical expertiseStable relations

Interpersonal relationships

Reciprocity

Family involvement

Social/psychological motives predominate

Less technical expertiseNonpersonal relationships

Decision making Distinct, observable stages Unobservable, mental stages

Channels Shorter, more direct, fewer linkages Indirect, multiple linkages

Promotion Emphasis on personal selling Emphasis on advertising

Price Competitive bidding, negotiating oncomplex purchases

List prices on standard items

List prices


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Christophe Bnaroya

Complex sales

Traditional sales

Transactional sales

Request forproposals

Classicnegotiation

Purchase onInternet

B to B: different types of business transactions

Christophe Bnaroya

The 3 main types of B2B marketing

Mass B2BRecurrent B2B (regular)formerly calledindustrial marketing

Project or business B2B

Non strategicproducts/services

Strategic issues Huge stakes


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Christophe Bnaroya

B2CServices

B2CProducts

RecurrentB2B

MassB2B

Project B2B

Time

Amount of new brands created

Level of advertising investmentsMarketing/sales new job creation

Marketing lifecycle

Christophe Bnaroya

In addition, diverse strategies might be implemented throughout operations andleverages based on the final customer (or user), leading to 4 approaches:

- Core-BtoB (information systems, machine-tools)

- BtoBtoC (components, car or building equipment)

- BtoAtoU (collective equipment, trains, hospitals, schools, water,energy)

- BtoBtoE (Individual protection equipment, catering, car fleetlease)

Different B2Bs according to the final target


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Business-to-business marketing characteristics

1. Scope of the industrial sector

2. Clientele : number of clients, heterogeneity, international

3. Demand Supply chain : top requirement, specialization,opportunities of the Derived Demand

4. Marketing research in B to B

5. Active role of the customer Customer-Supplier Mutualinvolvement

6. A purchasing process involving many players

7. Communication, sales force, promotion

8. Longer product life cycle (new applications)

Christophe Bnaroya

Similar to B to C :

Internal sources before external sources

Desk research before field research

A qualitative phase before the quantitative one

Ad hoc and permanent surveys

Business-to-business marketing research


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Christophe Bnaroya

The specificities of the surveys in B to B :

Generally not available data

Generally not possible to give money to obtain answers to our questions(Too few : an insult ! Too much : perceived corruption !)

Necessary to explain a joint interest in the survey

Generally a synthesis (not confidential) to promise

Necessary to use the support of friends :- In the top management of the targeted organization

- Better: among the customer purchasers of the organization

Invitation to a meeting with a celebrity (opinion leader) from the businessfield: physician professor, famous architect / designer, famous gastronomychef, test pilot in aeronautics

Business-to-business marketing research

Christophe Bnaroya

Derived Demand & Supply chain

ARCELOR MITTAL

steel

Electric household appliancesBrandt, Ariston, Whirlpool...

DistributorsDarty, But...

End consumer

Recycling

Value


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Christophe Bnaroya

THE PRODUCT (SERVICE) DEMAND DEPENDS ON THE DEMANDOF THE FINAL PRODUCT...

... IN WHICH OURS IS GOING TO BE :

INCORPORATED (Ingredients, Raw Materials...)ASSEMBLED (Components, Spare Parts...)

... OR FOR THE PRODUCTION OF WHICH IT MUST BE :

CONSUMED (Lubricants, Energy...) USED (Vehicles, Machine-tools, Bureautics...)

ECONOMIC DEPENDENCE MULTI-LEVEL ACTIONS (pull marketing programs)

2 CONSEQUENCES :


Christophe Bnaroya

FAURECIACAR PARTS MANUFACTURER

RENAULTCAR BUILDER

FINAL CUSTOMER Satisfaction Surveys(Comfort, Ergonomic...)

Medical Surveys

Studying customers customer to get business

customers more loyal


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Christophe Bnaroya

IN INDUSTRIAL MARKETING, BEST IS TO USE MARKETINGMETHODS FOR EACH CLIENTELE LEVEL :

CUSTOMERCUSTOMERS CUSTOMERCUSTOMER OF CUSTOMERS CUSTOMER

MARKETS SURVEYS

MARKETING INFLUENCE

IN TERMS OF :


Christophe Bnaroya

Relationship management

Selling Firm Buying Firm

Organizational

Selling Center

Organizational

Buying Center

Salesperson

Purch

asingAgent

EXCHANGE

PROCESS

Information

Problem-solving

Negotiation

Friendship, trust

Products /

services

Payment

Reciprocity

Marketing

Manufacturing

R&D

Engineering

Physical

Distribution

Purchasing

Manufacturing

Engineering

R&D

Marketing


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Christophe Bnaroya

BUYING CENTER MEMBERS CAN BE DIVIDED INTO 4 CATEGORIES :

DECIDER (S)

The Buying Center or DMU

PURCHASER (S) (Data gathering, short list, negotiation... Purchase Marketing)

INFLUENCERS

- Within the company (Marketing, RD, Quality, )

- functional

- individual

- Outside the company (architects, journalists, customers, engineering

consultants + advocate: customer providing unpaid promotion for yourorganization, product or service)

USERS (complexity level, national and company culture)

+ (GATEKEEPERS : hidden influencers)

Christophe Bnaroya

The evolution of the influence power in the customer organization

Observed ChangesBuying Center

Members

Weight and

influence

A more and more adaptable composition in the

Buying CenterPurchasers

Ad hoc teams for each business type withtemporary leaderships

Deciders

More important perceived risks: need of more

precise information for complex purchases

Part of the Human Resources Dpt for the

purchases involving employees (BtoBtoE) & of

the Marketing Dpt for the purchases

concerning the final customers (BtoBtoC)

Influencers

Growing importance of the Users, especially,those with a prestigious status (pilots,

surgeons, engineers)

Users


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Christophe Bnaroya

FUNCTION MAIN ARGUMENT TO USE

Production Manager- ability to be used with in-plant machine tools- productivity- working conditions

Quality Manager- production process- final product

RD Manager- interest to integrate it for new projects- help him innovating and finding new applications

Marketing Manager- enhancing the advantages for his product- influencer on production

Sales Manager- facilitator for final product selling- influencer on marketing

Maintenance Manager- new supply is easy to master- his task gets easier

Purchase Manager- to anticipate new tendencies : materials, processes...(purchase marketing)

Financial Manager - better profit in spite of higher price (and costing price)

A STRATEGIC B TO B PURCHASE HAS MULTIPLE CONSEQUENCES.SEVERAL FUNCTIONS ARE CONCERNED :

Understanding Buying Center Members MotivationsChoosing the Arguments

Buying Center

Christophe Bnaroya

BUYING CENTER (OR PURCHASE COMMITTEE) THAT VARIESACCORDING TO CIRCUMSTANCES :

PROJECT IMPORTANCE HIS TECHNICAL SPECIFICITIES

A COLLECTIVE DECISION TAKEN BY A VARIABLE NUMBER OFMANAGERS, HETEROGENEOUS BY THEIR MOTIVATIONS :

WITH DIFFERENT EXPERIENCES (within the company and before)

WITH DIFFERENT DEGREES AND TRAINING LEVELS

WITH DIFFERENT RESPONSIBILITIES

DESERVING DIFFERENT CONFIDENCE LEVELS (results, numberof years service with the company)

WITH DIFFERENT INFLUENCE LEVELS

Buying Center


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Christophe Bnaroya

There are many models of Industrial Purchase

BUY GRIDComponents

BUY CLASSES- New Task- Modified Rebuy- Straight Rebuy

BUY PHASES1. Recognition, anticipation of a

need2. Definition of the characteristics

and quantities necessary3. Search and qualification of

potential sources4. Collection and analysis of

propositions

5. Choice of suppliers and orderingprocess6. Information feedback and

performance evaluation

(source : Robinson, Faris)

Industrial Buying Process

Christophe Bnaroya

The members of the buying center have different needs and expectations : the

stronger the expectations, the more active will be the search for information with a

view to buying.

Two expectations levels :

EXPLICIT EXPECTATIONS :

Product Quality

Delivery Delays Services associated with the products

Prices

THE SHETH MODEL

Buying Process

IMPLICIT EXPECTATIONS :

Reputation

Size

Geographical Location

Existence of reciprocal agreements between the Buyers and the Suppliers

Personality

Perceived Competences

Lifestyle of the supplier s sales staff


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Christophe Bnaroya

UNCERTAINTY LEVEL ABOUTTHE CONSEQUENCES OF THE

CHOICE

IMPACT OF THECONSEQUENCES OF THE

CHOICE

FOR THECOMPANY

FOR THE

EMPLOYEE

PERCEIVEDRISK

A key-concept to understand the B-to-B buyingbehavior (2/2)

To reduce perceived risks: specific buying agreements

Reciprocity contracts, contracts with supply parts guarantee (10 years) even in case of

business closed down (Armament, machine-tools)

Christophe Bnaroya

Buying AgreementsPurchasing agreements affect the buyers purchasing styles. This

might complicate (or facilitate !) the buyer-seller relationships. All of

the agreements are exchange-oriented.

Buy-back

Barter

Countertrade

Offset

4 main agreements :


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Christophe Bnaroya

TO SUCCEED IN BUSINESS NEGOTIATIONS, IT ISTHEREFORE NECESSARY TO KNOW :

1- THE BUYING CENTER MEMBERS- their precise role in this negotiation, their individual motivations- their previous responsibilities- their degree and training level- personal information (family, hobbies...)

2- THE PHASE OF THE BUYING PROCESS- anticipation and need recognition- product type and quantity definition- vendor search and evaluation- proposal analysis, evaluation and supplier selection- supplier and order process choice- feedback and performances evaluation

3- WHICH BUYING SITUATION- Straight rebuy- Modified rebuy- New task

Christophe Bnaroya

BRAND LINKS TO THE ENVIRONMENT

Other economical players(Financial organizations, public bodies, labor market,

experts, professional associations)

Suppliers Customers

CompetitorsCompanyShareholders,employees,subsidiary


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Christophe Bnaroya

Key role of interpersonal Supplier-Customer relationships

2- A CUSTOMIZED INTER-INDIVIDUAL APPROACH REQUIRING:

TARGETED ACTIONS :- technical manager- marketing manager- quality manager

COHERENT ACTIONS AND CONSISTENT ACTIONS : A 360APPROACH TO STRENGTHEN SYNERGIES AND AVOID

CONTRADICTIONS BETWEEN INTERNAL AND EXTERNAL TARGETS

1- TAILOR MADE ACTIONS FOR KEY ACCOUNTSExample : Works council of a company

THE SUPPLIER NEEDS SEVERAL NEGOTIATOR PROFILES, ATLEAST 2, WITH A TECHNICAL AND A BUSINESS BACKGROUND

Christophe Bnaroya

B2B COMMUNICATION

Communication

Influencers Decision makersOpinion leaders

Purchasers Users

B to B communication main targets


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Christophe Bnaroya

The use of specialized medias: trade-shows,professional press and DM

Budget Contacts

Trade-Shows

1 3

TradePress

2 2

Direct

Marketing 3 1

Christophe Bnaroya

FROM A SUPPLIER STATUS BECOMING A PERFORMANCE FACILITATOR

CONCEPTION

TO HELP THE CUSTOMER TO PRODUCE

PRODUCTION

COMMUNICATION

TO HELP THE CUSTOMER TO SELLSALE

MANAGEMENTPRODUCTIVITYTO HELP THE CUSTOMERS RUNNING

HUMAN CLIMATE


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Christophe Bnaroya

INNOVATION

SURVEYS

DESIGN

GREEN MARKETING

NORMS & QUALITY

MAINTENANCE

CUSTOMERS TRAINING

CUSTOMERS SATISFACTION TOOLS

Christophe Bnaroya

SUPPLIER CUSTOMER

SUPPLIER

CUSTOMER

DESIGN COMMUNICATION LOGISTICSQUALITYTRAINING MAINTENANCEGREENMARKETING

SURVEY

SUPPLIER CUSTOMER

SHORT TERM

LONG TERM

1- Simple business relationship : transaction

2- Toward a stronger business relationship

3- Loyalty : active and lasting customer s satisfaction


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Christophe Bnaroya

Books

Anderson, J.C. et Narus, J.A., (2004), Business Market Management: Understanding, Creating and Delivering Value, 2nd Ed., Upper

Saddle River, NJ, Prentice-Hall.Bnaroya, Ch. et Lagrasse, H., (2010), Lefficience commerciale en BtoB. Marketing et vente pour les PME-PMI en mode affaire, ditionsEMS.

Blanc, F., (2003), Marketing industriel : vade-mecum, EMS.Bonoma, T.V., Zaltman, et Johnston, W.J., (1977), Industrial Buying Behavior, Cambridge, Marketing Science Institute.Cova, B., Ghauri, P. et Salle, R., (2002), Project Marketing: Beyond Competitive Bidding, New York: John Wiley & Sons Ltd, Chichester.Cova, B. et Salle, R. (2003), Le marketing d'affaires : stratgies et mthodes et mthodes pour vendre des projets ou des solutions, 2me

d., Paris, Dunod.Dwyer, F.R. et Tanner, J.F.J., (2006 ), Business Marketing: Connecting strategy, relationships, and learning, 3rd. Ed., Boston, MA,

Irwin/McGraw Hill.Fill, Ch. et Fill, K.E., (2005), Business to business marketing relationships, systems and communications, Harlow, England: Financial

Times Prentice Hall, Pearson Education.Ford, D. et Snehota, I., (2000), Business Marketing Strategy, John Wiley & Sons.Ford, D., (2002), Understanding Business Marketing and Purchasing, 3rd. Ed., Thomson Learning, London.Gadde, L.-E. et Hkansson, H., (2001), Supply network strategies, New York, NY, John Wiley.Hague, P. et Jackson, P., (1994), The Power of Industrial Brands: An Effective Route to Competitive Advantage, London: McGraw Hill.Hkansson, H. et Snehota, I., (1995), Developing relationships in business networks, Routledge, London.Hutt, M.D. et Speh, Th. W., (2007), Business Marketing Management: B2B, 9th Ed., The Dryden PressJohnston, W.J., (1981), Patterns in Industrial Buying Behavior, Praeger.Kotler, Ph. et Pfrtsch, W., (2006), B2B brand management, Springer.Malaval, Ph. avec la collaboration de Bnaroya, Ch. (1998a), Stratgie et gestion de la marque industrielle, Paris, Publi-Union/Pearson.

Malaval, Ph. et Bnaroya, Ch., (2009), Marketing Business to Business, 4me d., Paris, Pearson Education.Malaval, Ph. et Bnaroya, Ch., (2010), Marques BtoB, Paris, Pearson.Michel, D., Naud, P., Salle, R. et Valla, J.P., (2003), Business-to-Business Marketing, 3rd Edition, Bristol: McMillan, Palgrave.Michel, D., Salle, R. et Valla, J.-P., (2000), Marketing industriel, Stratgies et mise en uvre, 2me d., Economica.Morris, M.H., (2001), Business-To-Business Marketing: A Strategic Approach, Sage Publications.Pras, B. et Tarondeau, J.C., (1981), Comportement de lacheteur, Paris, Sirey.Reeder, R.R., Brierty, E.G. et Reeder, B.H., (1991), Industrial Marketing, Englewood Cliffs, N.J., Prentice-Hall.Webster, F.E. et Wind, Y., (1972), Organizational Buying Behavior, Upper Saddle River, NJ: Prentice-Hall.

BIBLIOGRAPHY

Christophe Bnaroya

BIBLIOGRAPHY

Articles

Artto, K.A. et Wikstrom, K., (2005), What is project business?, International Journal of Project Management, 23, 5, p. 343-353.Avlonitis, G.J., Karayanni, D.A. (2000), The Impact of Internet Use on Business -to-Business Marketing, Industrial Marketing

Management, Vol. 29, 441-459Ballantyne, D. et Aitken, R., (2007), Branding in B2B markets: insights from the service-dominant logic of marketing, Journal of

Business & Industrial Marketing, 22, 6, p. 363-371.Cova, B. et R. Salle (1992), L'volution de la modlisation du comportement d'achat industriel : panorama des nouveaux courants

de recherche , Recherche et Applications en Marketing, vol. VII no 2/92, 83-106.Coviello, N. E et R.J Brodie (2001), Contemporary Marketing Practices of Consumer and Business -to-Business Firms: How

Different Are They? The Journal of Business and Industrial Marketing, V. 16 N. 5, 382400.Dwyer, D., P. Schurr, et S. Oh (1987), Developing Buyer-Seller Relationships Journal of Marketing, 11-27.Johnston, W. et L. J. E. Lewin, Organizational Buying Behavior : Toward an Integrative Framework , Journal of Business

Research, 35, 1996, 1-15

Johnston, W.J. and T.V. Bonoma (1981), The Buying Center: Structure and Interaction Patterns, Journal of Marketing, t, 143-156.Kohli, A. (1989), Determinants of Influence in Organizational Buying: A Contingency Approach , Journal of Marketing, juillet, 50-65.Lichtenthal, D.J. et S. Eliaz (2003), Internet Integration in business Marketing Tactics, Industrial Marketing Management, 31, 3-13.Mouzas, S. (2006), Efficiency versus effectiveness in business networks, Journal of Business Research. New York: Oct 2006. Vol.

59, Iss. 10/11; 1124.Reed, G., Story, V., Saker, J. (2004), Business-to-Business Marketing : W hat is Important to the Practitioner?, Marketing

Intelligence & Planning, Vol. 22, No. 5, 501-510.Seppnen, R., K. Blomqvist et S. Sundqvist (2007), Measuring Inter-organizational Trusta Critical Review of the Empirical

Research in 19902003, 249-265.Sheth, J. (1973), A Model of Industrial Buyer Behavior, Journal of Marketing, printemps, 50-56.Simkin, L. (2000), Marketing is marketing - maybe!, Marketing Intelligence & Planning. Bradford: 2000. V.. 18, no.3; 154- 159. Webster, F. and Y. Wind (1972) A General Model of Organizational Buying Behavior , Journal of Marketing, 12-19.Wilson, D.T. (1995), An Integrated Model of Buyer-Seller Relationships, Journal of The Academy of Marketing Science, Vol. 23,

No. 4, 335-345.

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