4MD3 Business to Business Marketing Lecture 10 Steve Howse March 9, 2009.
4MD3 Business to Business Marketing
Transcript of 4MD3 Business to Business Marketing
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4MD3 Business to Business Marketing
Steve Howse, C. Dir
March 8, 2007
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The hand-in Case
86.0%61.0%
HighLowRange
75.9%Mean Marks
•Take a look at the break and hand it back•Any questions book a meeting with the TA•[email protected]
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Date: Saturday, March 10, 2007 10:00 a.m. - 12:30 p.m. Room: REF-102
In preparation of the exam this Saturday - here are a few tips:
• focus on the text, the lectures reinforce the readings the cases done in class are not on the exam the format is a mix of T/F, Multiple Choice, Short Answer and a Short Case it is a closed book exam, no material can be brought in except your ID, pencils/pens/ erasers and a McMaster approved calculator
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• Wind Technology (p. 652 of your text)• As a business marketing consultant - highly paid of course! - what
would you say to Wind Technology regarding the following issues?• 1) Market Entry: Do you recommend that WT enter the HVPS
market or not? Justify your recommendation in detail.• 2) Segments and Positions: Assume for this question that WT does
enter the HVPS market, regardless of your answer in a). Which segments do you recommend that WT serve, and within each segment, what position? Justify your recommendations in detail.
• 3) Promotion and Distribution: Still assuming that WT enters the HVPS market, what changes do you recommend to WT’s promotion (including its sales force) and distribution?
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6 Step Selling Plan1. Prep work
2. Get the meeting – make the call
3. Ask questions
4. Present your solution
5. Overcome objections
6. Close the deal
Always follow up
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DIRECT MARKETING
• database-centred “marcom”• requires a response that is…
o measurable o direct to the manufacturer (DIRECT REPSONSE MARKETING)
• direct marketing media… o direct mail o e-mailo telemarketing o the Web
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DIRECT MAIL
• the near-perfect promotional medium• mailings are typically “tiered”• synergy with personal selling• response rates • direct mail costs
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THE FOUR PARTS OF A DIRECT MAILING
• envelope• letter• enclosure • customer-reply device
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• avoid outbound "spam"
• e-mail has its uses
• integrate with other media
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TELEMARKETING• systematized selling by phone• “inbound telemarketing ” • “outbound telemarketing” AKA “inside
selling” is good for….o generating qualified sales leadso selling to high-access-cost customers o even selling to all customers
• cost per outbound contact
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MORE ON TELEMARKETING
• how to make it effective
• pros to doing "in-house"? • pros to "contracting out"?
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LISTS
• needed for the foregoing forms of DM• you can create your own “house list”• or rent or purchase a list
• "compiled lists" • "response lists"
• list brokers
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THE WEB
• not strictly direct marketing • B2B dominates total sales on Web • why less popular with consumers? • marketer sites have varied purposes
o online informationo database publishingo customer self-serviceo transactions
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ADVANTAGES TO MARKETERS OF THE WWW
o marketer extends its geographic reacho a small marketer looks largero customer exposure is verifiableo marketer communicates info fast and 24/7o some two-way communication possible o low-cost alternative channelo customer outsourcing should increase
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KEY DISADVANTAGES TO MARKETERS OF THE WWW
o can undercut the basic goal of marketing! o and hurt the relationshipo and lower the unit price paido swings power balance to buyer
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OTHER DISADVANTAGES TO MARKETERS OF THE WWW
o a large marketer looks smallero suited to “cataloguable” products onlyo not for high-risk productso customers must actively searcho marketer must promote the siteo site can create channel conflict
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ANOTHER KIND OF MARKETER SITE - ONLINE BRAND COMMUNITY
• Website still initiated by the marketer• but customers provide the content• promotes brand loyalty and involvement• frees customers from geographic restrictions
on communication• frees marketer from info-blocking by
middlemen
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THE “BUY-SIDE” OF THE WEB
• online buying reduces purchasing costs
• usage level varies by buyer’s industry
• two types of purchasing site…
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CUSTOMER-ESTABLISHED PURCHASING SITES
• a direct link to suppliers
• reverse auction • other e.g.s
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MIDDLEMAN-ESTABLISHED PURCHASING SITES
o sites established by“market-makers”
o catalog hubso vertical market siteso reverse auctions – again!o other e.g.s
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Have A Goal List• Two columns (want to do & BTDTGTTS)• These are personal goals
o Run a marathon or See the great wall of Chinao Concerts to see or vacations to go on
• Some are time sensitiveo Skydivingo Bike trip through Italy
• Keep the list throughout your lifeo Add to it, remove items, enjoy what you have accomplished