Kapitel 3: Oranizational Marketing (Supplier) Flashcards
Product decisions: the phases of the innovation management and possibiltites to integrate the customer:
- Definition of the strategic direction: Interviews with experts, written surveys of customers
- Brainstorming and evaluation: Group discussion with customers
- Research and development: joint development teams with customers
- Market test: test of prototypes with pilot customers
- Market launch: reference projects with pilot customers
–>best in cooperation with a lead user (extremetly innovative and initiates trends in the market) –>Dell is a lead-user for the producer of computer components
What are the pros and cons of innovation management and integration of the customer for a supplier?
Pros:
- time & cost savings, quality improvements, image enhacement, gaining info on competitors
COns:
- know-how can leak to customer or competitor
Different pricing strategies in B2B marketiing?
- Cost-oriented price determination
- demand-oriented price determination
- Competitive price determination
Why do we have more price differentiation, discounts and bonuses in B2B marketing?
the individualization of products in B2B benefits the usage of price differentiation as well as discounts and bonuses
–>Price differentiation is a result of negotiable character of prices
Price differentiation ensures stronger on delivery amount and customer segment
On what do firms differentiate their prices?
- Purchase quantities
- customer or customer segments (customer attractiveness/potential)
- sales region (regions, countries)
- Sales channels(deaer, retail/direct sales, e-commerce)
- Time of purchase (season, inventory clearance)
Why are there price list in B2B?
Discounts and bonuses are important for price negotation
Price lists should therefore provide some scope for discounts and bonuses
What is competitive Bidding?
(Used by, goal, procedure)
- mainly used by public facilities but also private companies
- Goal is to fomalize the process of highly complex procurement activities
Procedure:
1. Potential suppliers are asked to submit an offering for a well-defined performance bundle
2. Process of biding is secret usually
3. Supplier offering lowest price is likely to win the bid and hence is awarded with the contract
What are the problems for suppliers in the competitive biding?
Problems for suppliers:
- Price to high –>no order
- Price too low –>less profit or even loss
–>Use competitive bidding model to be able to roughly eetimate the variables of interest, based on decision theory
The intuition behind this competitive bidding model –>supplier
- usually supplier wants to maxmimize the expected order result rather than the probability of success
- Therefore the multiplication of the calculated profit contribution with the probability of winning the contract is required
How to calculate the probability to win and Maximal expected order result?
Prob. to win: Sum of (own prob to win price x * prob of occurence of comp price)
Max expected order result: Calculated profit contribution * prob of win
What is important for the communication dession and their characteristics in B2B MKT?
- Transmission of technical information plays a major role
- Heterogeneity of the information needs due to the different members of the buying center
- strong personal nature
Example: BASF worldwide campaign “We create chemistry” –>first time globally standardizted campaign for print, TV and onlie
->global topics (mobility, energy efficiency) or solutions fo daily problems
Communication decisions: What is Inbound Marketing?
Inbound marketing: focuses on creating interesting content to be found by potential existing, and aspirational consumers or business partners
- creatig long-lasting relationships by reaching and converting qualified consumers
- Target: interested prospects
- Tactics: blogs, eBooks, white paper, videos on YouTube, infographics, etc.
Why B2B firms should engage in Social Media:
- sales facilitating tool
- relationship building enabling
- integrated commincation tool through compelling content creation Inbound markting
- employee engagement resulting in empowerment & sense of belonging
What are the characteristics of the sales decision iin B2B MKT?
- High relevance of sales
- Especially based on personal selling
- Strong foucs on direct selling –>High level of importance of the own sales force as well as the supporting service department (75% of B2B products are sold and distributed directly)
- Development and formation of selling teams
What are the general characteristics of a selling team?
- Permanently installed or temporary working group of 3 to 12 people
- Common market objectives, for which team has collective responsibility
- Combination of technical and social skills, which should complement each other, leading to synergy effects
