Business to business marketing a step-by-step guide

537 Pages·4.811 MB·English

by  Wright, Ray

Business-to-Business Marketing W
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A Step-by-Step Guide Ray Wright t
Business-to-Business
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Business-to-Business Marketing: A Step-by-Step Guide offers the reader a clear, cogent S u
understanding of this newly-emerging and rapidly evolving sub-discipline. Ideal for college t
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students, undergraduates and non-specialised post-graduates, as well as marketing practitioners, p i Marketing
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this book is designed specifically to explain the nuances of B2B marketing. With a wealth of local b
and global case studies, comparisons between B2B and B2C marketing and material linked y e A Step-by-Step Guide
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questions, Business-to-Business Marketing: A Step-by-Step Guide, provides a comprehensive s
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overview of an expansive sector to inspire the reader with confidence. e s
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Features include: i
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• Comparisons between B2B and B2C marketing
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• Up-to-date examples reflecting national and international marketing needs
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• Case studies in each chapter based on local and global B2B examples i
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• End-of-chapter questions linked to chapter material (available on the website)
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Instructor and Student Resources

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To enhance your learning, go to www.booksites.net/wright where you will find an instructor’s
manual, case studies, Internet exercises, a chapter on Understanding Organisational Behaviour a
and more! r
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Ray Wright is Lecturer in Marketing at the Ashcroft International Business School at Anglia e
Polytechnic University. He is an experienced marketing author and consultant. t
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an imprint of www.pearson-books.com
Business-to-Business Marketing
We work with leading authors to develop the
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Business-to-Business
Marketing
A Step-by-Step Guide
Ray Wright
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
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First edition 2004
© Pearson Education Limited 2004
The right of Ray Wright to be identified as the author of this work has been asserted by
him in accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, without either the prior written permission of the
publisher or a licence permitting restricted copying in the United Kingdom issued by the
Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP.
ISBN 0 273 64647 8
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Wright, Ray, 1942—
Business-to-business marketing / Ray Wright. — 1st ed.
p. cm.
Includes bibliographical references and index.
ISBN 0–273–64647–8
1. Industrial marketing. I. Title: B2B marketing. II. Title.
HF5415.1263.W75 2004
658.8′04—dc21
2003048260
10 9 8 7 6 5 4 3 2 1
08 07 06 05 04
Typeset in 9.25/12pt Stone Serif by 35
Printed and bound by Bell & Bain Ltd, Glasgow
The publisher’s policy is to use paper manufactured from sustainable forests.
I would like to dedicate this book to my wife Barbara for showing, despite
little understanding, intermittent tolerance and patience for the many hours
I spent working alone on the word processor. Anything else would have been
de-stabilising.

s
t Preface xiii
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Chapter 1 The business marketing environment in the
modern world 1
Aims and objectives 1
Part 1: What is the business market? 1
Introduction 1
What is the business-to-business market? 2
Why business-to-business marketing? 5
Marketing definitions 6
Growth of business-to-business markets 9
Part 2: Characteristics of business markets 15
Harmonisation of laws in business markets 15
Barriers to trade 20
Economic systems 24
Part 3: Market classification 32
Regional markets for industrial goods and services 33
National markets for industrial goods and services 33
Global markets for industrial goods and services 33
Marketing trading types 35
B2B trading forms: organisational types 40
B2B selling in the not-for-profit sector 51
The need to understand the behaviour of organisations 53
Summary 55
Discussion questions 55
Bibliography 56
Chapter 2 Understanding environment influences affecting
organisational behaviour and markets 58
Aims and objectives 58
Part 1: Macro-environmental factors influencing B2B
organisational behaviour 58
Introduction 58
Wider environmental forces 59
Part 2: Immediate environmental factors influencing
organisational behaviour 73
viii CONTENTS
Competitive influences 73
Customers and markets 81
Part 3: Demand and supply in the economy 85
Managing demand 86
Derived demand 86
Other demand categories 88
Trends and shifts in demand 90
Measuring the level of demand 93
Demand potential and analysis 94
Market potential 95
Industry and market life cycles 97
Summary 98
Discussion questions 99
Bibliography 100
Chapter 3 Understanding business marketing environments 101
Aims and objectives 101
Part 1: Information for understanding strategic and
tactical decision making 101
Introduction 101
Information is power 102
Information-gathering process 108
Marketing information system 109
The MkIS process 110
Part 2: The B2B marketing research process 118
Clear marketing objectives 118
Secondary research (desk research) 119
B2B primary research 127
B2B research in international markets 139
Strategic concerns with marketing research 141
Forecasting in B2B marketing 142
Summary 143
Discussion questions 143
Bibliography 144
Chapter 4 Decision making and segmenting business markets 145
Aims and objectives 145
Part 1: Decision making in B2B organisations 145
Introduction 145
Ethics in business 146
Choosing a supplier 149
The decision-making unit (DMU) 151
The B2B decision-making process (DMP) 156
The buying decision difficulty (BDD) 161
Part 2: Business-to-business segmentation 165
Why segment business markets? 165
CONTENTS ix
Market segmentation 166
Information, marketing research and segmentation 166
Viability of segmentation 168
Part 3: Segmentation methods in business-to-business markets 173
Macro and micro segmentation 173
Macro segmentation 173
Micro segmentation 182
Changing importance of segmentation factors 190
Part 4: Market segmentation process 192
Identify the basis for market segmentation 192
Determine the important characteristics of each segment 193
Evaluate the market attractiveness of each segment 194
Segment selection 196
B2B corporate/product positioning 198
Develop a marketing mix strategy for each targeted segment 200
Summary 201
Discussion questions 202
Bibliography 202
Chapter 5 Managing business products/services for strategic
advantage in business-to-business markets 204
Aims and objectives 204
Part 1: Organisations, products and services 204
Introduction 204
B2B product definition 205
Types of business goods and services 206
Major product/service categories 206
Other B2B product categories 213
Importance of product/service purchase to buying company 217
Market research 222
Part 2: Adding value to the products 225
Basic Benefits demanded in B2C and B2B markets 225
The value added process 227
Unique selling Propsition (USP) 229
New Product Development in B2B marketing 231
Part 3: Branding 237
What is a brand? 237
Corporate and product branding strategies 239
Advantages associated with branding 242
Packaging 245
Summary 249
Discussion questions 250
Bibliography 251
Chapter 6 Managing business marketing channels 253
Aims and objectives 253
Part 1: Evaluating strategic channel alternatives 253