1. Dr. Wes Johnston Director
B2B Marketing in the Decade Ahead: Key Challenges We Face Key Capabilities We Must Build
Dr. Wes Johnston
Director

2. Exploratory Study Interviewed 30 leaders in Sales
Business Leaders
Key professors
Identified 7 imperatives
Key challenges
Key capabilities

3. 7 Imperatives for the next decade
1. Moving from Web sites to e*business
2. Making profitable decisions using information
3. Stepping up to accountability for Sales ROI
4. Developing skills to manage across the Global Marketplace

4. 7 Imperatives for the next decade
5. Better navigation of Alliances, Partnerships, and Business Relationships
6. Build organizational agility and strong linkages across your firm.
7. Really understand value: Offerings, Markets, Customers

5. 1. e*business Level one strategy get up a Web-site mostly image
some selling?
Customer support
experiment
now have to justify

6. e*business Build the company around the internet ESP
electronic selling proposition
disintermediation of competitors
selling everything
integrated marketing communications

7. E*business relationships
E*commerce smart
Order basic materials
buying portal
Marketing research
conduct surveys
analyze buying patterns
Set up direct distribution
Be ready to switch fast
Suppliers
Distributors

8. ESM (electronic supply-chain management)
ECR
efficient consumer response
grocery industry QR
quick response
soft goods
b2b (XML)
electronic data interchange
business-to-business

9. ECR (efficient consumer response)
supply chain data exchange for consumer goods
Category management
Bar codes & scanning

10. Core Value-Adding Processes and ECR Strategies
Providing a products the consumer wants
Maintaining high in-stock levels of the required assortment
Communicating product benefits
Developing products to meet consumer needs
Efficient Store
Assortments
Better:
Products
Quality
Assortments
In Stock Service
Convenience
Value
Efficient
Replenishment
Efficient
Promotion
Greater
Consumer
Satisfaction
Efficient Product
Introductions

11. Vision - The ECR System The new buyer-seller relationship
Timely, accurate, paperless information flow
Supplier
Distributor
Retail
Store
Consumer
Household
Smooth, continual product flow matched to consumption

12. TPL????? Leasing trucks Renting warehouse space
Single integrated source
Small Package Shipments
Information Systems
Pickup pack fulfillment
Call centers
Billing

13. U.S. B to B by Industry (billions of dollars)
Motor vehicles $35.1 $411.5
Office products $14.4 $235.3
Petrochemicals $27.0 $299.2
Construction $ $ Source: Forrester Research (2/00)
11/11/2018

14. 2. Using information effectively
No lack of information
large amount of information available
available instantly
Who needs to see what
Organizational information matrix
How do we protect ourselves

15. Information Marketing Engineering Quantitative subjective modeling
Decision support systems
Simple models
Quantitative subjective modeling
Quantitative data modeling (scanner data)
Electronic data interchange

16. 3. Marketing ROI Only half your advertising works
we don’t know which half
Activity based cost accounting
Customer profitability
Sales ROI

17. Marketing ROI Customer profitability
20% = 225%
70% = 0%
10% = (125%)
Asleep
Aristocrats
Advantageous

18. 4. Globalization Triad Single currency Minimalization or colonization
EU&everybody else
NAFTA/N&SAFTA
Japan/China + ?
Single currency
Dollar or euro or ?
Minimalization or colonization

19. Thinking globally acting locally
Promotion
Product
Straight
extension
Do not change
product
promotion
Develop new
product
Product
invention
Product
adaptation
Adapt
product
Communi-
cation
adaptation
Adapt
promotion
Dual
adaptation

20. 5. Alliances, Partnerships, and Relationship Marketing
Customer acquisition costs 5 X retention
Small improvements in retention yield large increases in profit
Networks of core competency
Tier 1 and Tier 2

21. Historical Forms of International Marketing Interactions
Traditional
Competitive
Efficient
Emphasize Price
Arm’s Length
Free Market

22. Changing World A number of changes
The rise and fall and rise of the US
The rise and fall of Japan and Korea
The rise of China
The fall of the Soviet Union and East Block
The rise and fall of e*business and the NASDAQ

23. Buyer-seller relationships
Buying
Organization
Selling
Organization
$ or Credit
Reciprocity
Product/Service C o m p e n s a t i C o m p e n s a t i L o y a l t E f o r t E f o r t L o y a l t
Image
Information
Buyer
Buying Center
Credit for sale
Sales
Rep
Trust, friendship
Help in problem solving

24. Complex Buyer-Seller Exchanges

25. Buyer-seller networks

26. 6. Organizational agility and strong linkages
Planning
Implementation
Control
Corporate
planning
Division
Business
Product
Organizing
Implementing
Measuring
results
Diagnosing
Taking
corrective
action

27. The McKinsey 7-S Framework
Strategy
Structure
Systems
Skills
Shared
values
Staff
Style

28. 7. Value Image value Personnel value Total customer value
Services value
Product value
Total
customer
value
Customer
delivered
value
Monetary cost
Time cost
Energy cost
Psychic cost
Total
customer
cost

29. Forget customer satisfaction!
Stop measuring satisfaction
Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.

30. Low Perceived quality High
Value Line
High
Price
Low
Rip-off
Premium
Value
Economy
Low Perceived quality High

31. Conclusion: Questions and Answers
The Decade Ahead