1. 1 BtoB Marketing Designing a Marketing & Commercial Policy 1

2. Designing a Commercial & Marketing Policy Sales, Margin & Profit Pareto Law and ABC The Marketing Process The Marketing Mix 2

3. Sales, Margin & Profit 3

4. Commercial Margin Rate = Commercial Margin Retail Selling Price Commercial Margin and Rate 4

5. RSP x nb units = Net Sales Gross Margin = Commercial Margin Commercial Margin and Rate 5

6. Commercial Margin is the Fuel Operations : Logistics, Promotion, Storage etc Personnel : Headquarters and Sales Force 6

7. 7 Margin in Telecom EBITA : Earnings before – Interest –Taxes –Amortization EBITDA : Earnings before – Interest –Taxes –Depreciation –Amortization 7

8. Reading « In Paris, Airbus Revs Up a New Engine” –The Wall Street Journal as of June 24. 2011 –By Matthew Curtin 8

9. The Pareto Law 9

10. 20% 80% 100% 20% of Customers Account for 80% of Sales Customers Sales 10

11. Vilfredo PARETO 1848-1923 11

12. 20% of Customers account for 80% of Sales 12

13. Make an ABC analysis Nb of Customers 100% 95% 80% Sales 20% 50% 100% 20/80 30/1550/5 13

14. Training Hercules Case 14

15. Position vs Customer High Profitability forCompany Weak Market Share at Customer Weak Dominant Niche Marginal Mismanaged 15

16. The Marketing Process 16

17. The Sequential Process in Market Needs Market Product Customer & Wants Means Product Market Customer of Production Starting Point Focus Means Target 193019602000 17

18. The Customer Benefit Cost Product Service Features Price Customer Benefits + Margin = 18

19. Defining the Marketing Mix Product Price Place Promotion 19

20. The 4P’s : the controllable Factors Product Price Place Promotion Competitors Share Marginal Share Own Share Total Available Market The Mix Decisions Source : Jerome Mc Carthy 20

21. The 3 C’s : the uncontrollable Factors Source : R Wensley COSTS COMPETITION CUSTOMERS COMPANY 21

22. 4P’s + 3P’s = 7P’s Product Price Place Promotion Product Price Place Promotion Physical Evidence Process People Physical Evidence Process People To Market 22

23. 23 The 3 additional P’s : The extended Mix Physical Evidence : the context in which products and services are purchased and consumed. Process : all mechanisms and procedures by which products and services are consumed People : all staff and consumers concerned by the delivery, consumption or use of product or service Source : Bernard Booms & Mary Jo Bitner

24. The 7 P’s Product Quality Style Features Options Sizes Services Price Price list Discount Rebates Price allowances Place Channels Coverage Inventory Logistics Promotion Advertising Sales Promotion Publicity Personal Selling Product Quality Style Features Options Sizes Services Price Price list Discount Rebates Price allowances Place Channels Coverage Inventory Logistics Promotion Advertising Sales Promotion Publicity Personal Selling Physical Evidence Furnishings Colour Noise level Temperature Process Policies Procedures Mechanization Employee discretion People Training Incentives Commitment Attitudes Physical Evidence Furnishings Colour Noise level Temperature Process Policies Procedures Mechanization Employee discretion People Training Incentives Commitment Attitudes To Market Source : Boom & Bitner 24

25. Defining The Marketing Mix Product 25

26. What’s in a Product ? Source : Theodore LEVITT 26

27. 3 Dimensions in a Product Source : Theodore LEVITT Benefit Brand Features Pack Design Delivery Credit Service Installation 27

28. Defning the Marketing Mix Price 28

29. Industrial Customers Market Cost Competition Demand What are the objectives ? What’s at stake ? Competition Price & Difference decision = Selling Price COGS + Margin = Selling Price Psychological Price - ( COGS) = Margin Internal analysis to external analysis Setting up Price Point 29

30. Defining Price Point Price Nb of Customers Optimum Price Highest Potential 30

31. Defining Price Point Price Performance/Price Perceived Too Low Optimum Too High 31

32. Defining the Marketing Mix Place 32

33. Routes to Market B TO B B TO C Industrial User Consumer 33

34. A long Way Down Supplier Chain Manufacturer Wholesaler Sub Wholesale ENDCUSTOMERENDCUSTOMER Retailer Wholesaler Dealer 34

35. Pull Push Producer Consumer Retailer Wholesaler Producer Wholesaler Retailer Consumer Push or Pull Strategy ? 35

36. Defining the Marketing Mix Promotion 36

37. Promotion & Advertising 37

38. Advertising towards … 38

39. Managing Reach and Repeat Reach Repeat Intensive Campaign Extensive Campaign 39

40. 80% Fostering Plan Media Efficiency Nb of Messages Nb of Customers 1 2 3 4 5 6 N 40

41. How to Invest best Ad Intensity nb & Frequency Impact on target Visibility Threshold Over Exposure Threshold 41

42. Market as a Battlefield 1 3 2 1: Company wins 2: Competitor wins 3 : Area of overlap = Battlefield BtoB BtoC Product Service 42

43. Conclusions Sales, Margin and Profit The 20/80 rule The 4P’s The 3 additional P’s 43