Business Marketing

1 Business marketing – managing value creation 9

 

 

1.2 Marketing and the creation of competitive advantage 10
 

1.3 Marketing is about value 12
 

1.4 Relationships – a key to successful B2B marketing 15
 

1.5 Market orientation – a key starting point 19
 

1.6 Market-driven and market-driving 22
 

1.7 Business marketing and consumer marketing – differences and similarities 27
 

1.8 A reader’s guide and the structure of the book 29
 

2 Value – a funda­mental building block 33
 

2.1 What is value? 33
 Benefits 35
 Sacrifices 37
 Value creation as a process 38
 Value as a customer perception 38
 Two sides to value 39
 

2.2 Value and value propositions 42
 

2.3 Value as co-created 45

2.4 Capturing value 49
 

2.5 Different levels of value – a value hierarchy 49
 

2.6 Value-in-use and value-in-exchange 52
 

2.7 Value and willingness-to-pay 57
 

3 Value propositions – enabling competitive advantage 59
 

3.1 What is a value proposition? 59

3.2 Developing value propositions 62

Value propositions – a modular approach 64

Key aspects in developing value propositions 65

Qualifiers and differentiators in a value proposition 66

Service-based value propositions 67

3.3 Bundling 69

Three different bundling strategies 69

Price bundling 71

Product bundling 72

3.4 Pricing value propositions 76

Cost-based pricing 79

Competitor-based pricing 80

Value-based pricing 81

Pricing new value propositions 83

3.5 Revenue models 84
 

4 Customer relationships – a key to successful B2B marketing 87
 

4.1 Relationship marketing 87
 

4.2 Relationships or transactions – a strategic choice 94
 

4.3 Value from a transactional and a relationship perspective 96

Value creation from a transactional and relationship perspective 98

4.4 Interactions within a relationship 100

Action 100

Episode 101

Sequence 101

Relationship 102

4.5 Relationship development 102

Adaptation is key 105

From stranger to acquaintance  106

From acquaintance to friend 106

From friend to partner 107

4.6 What is the value of a relationship? 107

Relationship value of a customer 107

Measuring relationships 108

A framework for profitable relationships  111

4.7 The dark side of relationships 113
 

4.8 Customer experience management in business markets 116

Managing control of touchpoints 117

CEM dimensions and challenges 117

5 Sales and purchasing 125
 

5.1 Sales and purchasing – two sides of the same coin? 125

The evolving role of sales and purchasing 126

5.2 Designing the sales function 127

Transactional and value-based sales approaches 130

The B2B selling process 136

5.3 Designing the purchasing function 140

Price-focused and integrative purchasing approaches 144

The B2B purchasing process 144

5.4 Segmenting B2B markets and customers 150

Challenges of segmentation 153

Bases for segmentation 153

Targeting – choosing the right customer 156

6 Networks and marketing channels 159
 

6.1 A network perspective on markets 159
 

6.2 Relationships in business networks 163
 

6.3 Understanding networks 165

Activities in networks 165

Resources in networks 166

Actor bonds 169

Developing and analyzing networks and relations 170

6.4 Value constellations 172
 

6.5 Risks in business networks 175

Perceived risk 175

Trust 176

Control 177

6.6 Marketing channels 179

Designing marketing channels 181

Managing marketing channels 183

Marketing channel functions 184

Power in marketing channels 187

7 Market strategy, strategy, and business models 189
 

7.1 What is strategy? 190

Competitive advantage 192

7.2 Market strategy 197

Marketing strategies 199

7.3 Three levels of strategy 199

Corporate strategy 200

Business strategy 202

Functional strategy 204

7.4 Strategies for value creation and competitive advantage 204

Strategy and differentiation 210

Servitization – service-led growth and differentiation 212

7.5 Market-related resources and capabilities 214

What are resources? 214

What are capabilities? 215

Market-oriented capabilities 216

7.6 What is a business model? 217

7.7 Business model innovation 220

Level, scope, and locus of business model innovation 221

Designing business model innovation 222

References 225

Index 243