Business Market Management

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