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Business Market Management: Understanding, Creating, and Delivering Value, CourseSmart eTextbook, 3rd Edition

By James C. Anderson, James A. Narus, Das Narayandas

Published by Prentice Hall

Published Date: May 22, 2008

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Description

For Business-to-business marketing courses.

Anderson builds the book around a framework of understanding, creating, and delivering value.

Table of Contents

Preface

Acknowledgements

About the Authors

SECTION I:  INTRODUCTION AND OVERVIEW

CHAPTER 1: BUSINESS MARKET MANAGEMENT: GUIDING PRINCIPLES


OVERVIEW
VALUE AS THE CORNERSTONE OF BUSINESS MARKET MANAGEMENT
    What is Value in Business Markets?
    Assessing Value in Practice
MANAGING BUSINESS MARKET PROCESSES
    Shareholder Value, Business Processes, and Marketing   
Core Business Processes
Contributions of Marketing
Business Market Management and Business Marketing
    Business market processes
    Business marketing
DOING BUSINESS ACROSS BORDERS
    Language and Culture
    Cross-Border Negotiation and Dispute Resolution
        Cross-border negotiations
        Cross-border dispute resolution
    Currency Exchange and Payment Risk
WORKING RELATIONSHIPS AND BUSINESS NETWORKS
    Work Teams
    Working Relationships
        Collaborative relationship agreements
        Collaborative relationship development
    Business Networks
        Business network characteristics
        Analyzing business networks
SUMMARY

 
SECTION II:  UNDERSTANDING VALUE

CHAPTER 2: MARKET SENSING: GENERATING AND USING KNOWLEDGE ABOUT THE MARKET


OVERVIEW
DEFINING THE MARKET
    Market Segmentation
        Conventional bases of segmentation
        Progressive bases of segmentation
    Determining Market Segments of Interest
        Market segment size and growth
        Sales and profit potential.
MONITORING COMPETITION
    A Framework for Competitor Analysis
        Future goals
        Assumptions
        Current strategy
        Capabilities
    Improving Monitoring Performance
        Competitor intelligence systems
        Seek disconfirming as well as confirming evidence
ASSESSING VALUE
    Value Assessment Methods
        Internal engineering assessment
        Field value-in-use assessment
        Indirect survey questions
        Focus group value assessment
        Direct survey questions
        Conjoint analysis
        Benchmarks
        Compositional approach
        Importance ratings
    Customer Value Management
        Translating business issues into projects
        Customer value workshop
        Customer value research
        Constructing a business case for change
        Value realization

GAINING CUSTOMER FEEDBACK
    Customer Satisfaction Measurement
        American Customer 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

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Business Market Management: Understanding, Creating, and Delivering Value, CourseSmart eTextbook, 3rd Edition
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$107.99 | ISBN-13: 978-0-13-606221-9