SECTION Ⅰ: INTRODUCTION AND OVERVIEW

CHAPTER 1 Business Market Management:Guiding Principles

Overview

Value as the Cornerstone of Business Market Management

What Is Value in Business Markets?

Assessing Value in Practice

Managing Business Market Processes

Shareholder Value,Business Processes,and Marketing

Core business processes

Contributions of marketing

Business Market Management and Business Marketing

Business market processes

Business marketing

Doing Business Across Borders

Language and Culture

Cross-Border Negotiation and Dispute Resolution

Cross-border negotiations

Cross-border dispute resolution

Currency Exchange and Payment Risk

Working Relationships and Business Networks

Work Teams

Working Relationships

Collaborative relationship agreements

Collaborative relationship development

Business Networks

Business network characteristics

Analyzing business networks

Summary

SECTION Ⅱ: UNDERSTANDING VALUE

CHAPTER 2 Market Sensing: Generating and Using Knowledge About the Market

Overview

Defining the Market

Market Segmentation

Conventional bases of segmentation

Progressive bases of segmentation

Determining Market Segments of Interest

Market segment size and growth

Sales and profit potential

Monitoring Competition

A Framework for Competitor Analysis

Future goals

Assumptions

Current strategy

Capabilities

Improving Monitoring Performance

Competitor intelligence systems

Seek disconfirming as well as confirming evidence

Assessing Customer Value

Value Assessment Methods

Internal engineering assessment

Field value-in-use assessment

Indirect survey questions

Focus group value assessment

Direct survey questions

Conjoint analysis

Benchmarks

Compositional approach

Importance ratings

Customer Value Management

Translating business issues into projects

Customer value workshop

Customer value research

Constructing a business case for change

Value realization

Gaining Customer Feedback

Customer Satisfaction Measurement

American Customer Satisfaction Index(ACSI)

What customer satisfaction results mean

Customer Value Analysis

Summary

CHAPTER 3 Understanding Firms as Customers

Overview

Understanding Purchasing Orientation

The Buying Orientation

Obtaining the best deal

Maximizing power over suppliers

Avoiding risk

Developments in buying

The Procurement Orientation

Improving quality

Reducing total cost of ownership

Cooperating with suppliers

The Supply Management Orientation

Focus on end-users

Craft a sourcing strategy

Build a supply network

Sustain highly collaborative relationships with select suppliers

Apply purchasing portfolio management

Putting Knowledge of Purchasing Orientation to Use

Understanding How Purchasing Works with Other Functions and Firms

Value Management as a Cooperative Framework

Adding Value to the Purchasing Process Through Buying Teams

Team member roles

Buying situations

Buying team tasks

Working with Suppliers and Across Functions

Developing supply resources

Improving existing offerings

Contributing to new offering realization

Understanding the Purchase Decision Process

Understanding Customer Requirements and Preferences

Triangulate on customer requirements

Map customer activity and value cycles

Learning the Customer's Purchase Process

Evaluating Supplier Performance

Reviewing price,quality,and availability

Scrutinizing total costs

Tracking supplier value

Summary

CHAPTER 4 Crafting Market Strategy

Overview

Business Strategy as the Context for Market Strategy

A Resource-Based View of the Firm

Core competencies

Capabilities

Brands as resources

Reliance on outside partners for resources

Fundamental Value-Based Strategies

Product leadership

Customer intimacy

Operational excellence

Strategy Making

Who makes strategy?

Defining purpose

Strategy as orderly advances punctuated by radical change

Planning Market Strategy in Business Markets

What Do We Know?

Review recent performance

Gather essential market information

Construct scenarios

What Do We Want to Accomplish?

Targeting

Setting goals and objectives

Positioning in busine markets

Building brands in business markets

How Will We Do It?

Develop an action plan

Marketing and sales programs

Take stock of implementation skills

Learning and adapting

Summary

SECTION Ⅲ:CREATING VALUE

CHAPTER 5 Managing Market Offerings

Overview

Some Conventional Thinking About Market Offerings

The Tunnel Vision of Commodity Markets

Understanding the true extent of commoditization

Rebuilding differentiation

Services as Core Products in Market Offerings

Constructing Flexible Market Offerings

The Concept of Flexible Market Offerings

Articulate the Present Market Offering for Each Market Segment

The true breadth of the market offering

The arbitrary nature of charges

Lack of variation across segments

Assess Customer Value and Supplier Cost

Measuring customer value

Coming to grips with service costs

The payoff from value and cost assessments

Formulate Flexible Market Offerings by Market Segment

Reevaluating existing standard services

Reexamining optional services

Building flexibility with new services

Pricing implications

Prepare to Implement Flexible Market Offerings

Option menu versus tailored-value package

Branding market offerings

Anticipating implementation problems with customers

Breaking away from the pack

Value-Based Pricing

Traditional Pricing Approaches

Cost-plus pricing

Competition-based pricing

An Approach to Value-Based Pricing

Managing Market Offerings Across Borders

Adapting Market Offerings Across Borders

International market development

Providing transnational market offerings

Global branding

Pricing Across Borders

Pricing in local markets

Harmonizing pricing across borders

Summary

CHAPTER 6 New Offering Realization

Overview

Realization Strategy

Development Goals and Objectives

Overall development goals

Project objectives

The Aggregate Project Plan

Mapping the kinds of development projects

Making capacity decisions

Gaining critical skills and capabilities

Concurrent Engineering in Realization Strategy

Point-based versus set-based approaches to concurrent engineering

Set-based concurrent engineering and flexible market offerings

Outside Development Relationships and Networks in Realization Strategy

Alternative development structures

Aims of development relationships and networks

Decision considerations

Realization Process Models

A Variety of Realization Process Models

SMALLFRY Industrial Design

AKZO NOBEL Coatings

Kleinwort Benson Investment Management

ABB Asea Brown Boveri large-system projects

ABN-AMRO Bank Global Transaction Services

A General Realization Process Model

Augmenting services in realization process models

"Next-generation"realization process models

Market-Oriented Realization

Market-Oriented Research

Creating focused research centers

Connecting research with the market

Market-Oriented Development

Positioning statements as a market-focusing mechanism

Researching market requirements and translating them into design specifications

Guiding realization efforts with customer value assessment

Tailoring market introductions of new offerings

Summary

CHAPTER 7 Business Channel Management

Overview

Designing Superior Value-Adding Marketing Channels

Assess the Value of Potential Augmenting Service Offering Elements to Customers

Envision a Value Proposition for Each Targeted Market Segment

Reformulate the Augmenting Service Offering for Each Targeted Market Segment

Configure the Channel Network

Think in terms of business processes and functions

Consider streams of competition and plan lean enterprises

Adopt a channel network strategy

Build a channel network model

Finalize Marketing and Distribution Arrangements

Balance exposure and coverage in marketing channels

Devise profit models

Carefully select channel partners

Consider e-business and wireless technologies

Build international marketing channels

If possible,place side bets

Creating Value Through Direct Channels

Creating a Sales Force of Value Merchants

Internally promote a value-based marketing philosophy

Train value merchants

Compensate value merchants based on profitability of accounts

Deploying Value Merchants

Establish necessary sales units

Determine the number of value merchants needed

Designate areas of responsibility

Assign value merchants to areas of responsibility

Designing a Logistics System That Creates Value

Segment the market into logistically distinct businesses

Establish differential service standards for each market segment

Tailor unique logistics systems to deliver differential services

Exploit economies of scale among the different logistics systems

Strengthening Reseller Performance

Build Marketplace Equity

Decompose marketplace equity

Cultivate brand and reseller equity

Determine Reseller Performance Expectations

Assess the Reseller Value of Channel Offering Elements

Construct a channel positioning matrix

Craft a Reseller Value Proposition and Channel Offering

Devise and pretest the channel offering

Improve reseller target-marketing efforts via tailored channel offerings

Communicate the Reseller Value Proposition

Summary

SECTION Ⅳ: DELIVERING VALUE

CHAPTER 8 Gaining Customers

Overview

Prospecting for New Business Relationships

Generating Leads from Business Market Databases

Prompting and Gathering Inquiries via Integrated Marketing Communications

Use integrated marketing communications to reach the target market

Encourage and process inquiries

Foster strong brands

Qualifying Leads and Inquiries as Prospects

Getting the Sales Force to Follow Up with Prospects

Provide knowledge to create an informed sales force

Motivate sales representatives to follow up

Give sales representatives experience dealing with prospects

Furnish abundant sales support

Assessing Mutual Fit

Scheduling the First Meeting

Getting started for simple sales

Initiating dialogue for complex sales

Learning Each Other's Requirements and Preferences

Plan the call

Open the call

Investigate requirements and preferences

Gaining the Initial Order

Demonstrating and Documenting Value

Propose solutions

Gain the order

Negotiating the First Sale

Pricing the initial offering

Negotiation approaches

Understanding BATNA

Initial Order Fulfillment

Coordinating Supplier Functions

Completing the Transaction

Manage revenue

Follow up with prospects after the sale

Deciding Whether to Continue Doing Business Together

Summary

CHAPTER 9 Sustaining Reseller Partnerships

Overview

Fulfilling Commitments to Deliver Value

Fulfilling Supplier Commitments to Deliver Value

Provide responsive sales and marketing programs

Back up resellers with pricing support

Furnisn operational and technical support

Pass the critical incident test

Fulfilling Reseller Commitments to Deliver Value

Provide consistently superior service to customer firms

Innovate in the local marketplace

Enhance the supplier's brand equity

Pass the critical incident test

Ensuring That Value Is Delivered

Conduct market research

Getting an equitable return on delivered value

Synchronizing Joint Fulfillment Efforts

Strengthening Delivered Value

Adjusting Commitments

Reformulate channel partners' gives ＆ gets

Make responsive adjustments to the joint annual plan

Working Together More Effectively

Establish a reseller advisory council

Train and coach partner firms

Strengthen interfirm coordination

Working Together to Fulfill Changing Marketplace Requirements

Creating Adaptive Channels

Provide support in extraordinary situations

Responsively broaden the market offering

Share capabilities with other channel members

Overcome implementation problems

Skillfully Handling Relationship Transfers

Delineate relationship transfer criteria

Establish equitable compensation for relationship transfers

Summary

CHAPTER 10 Sustaining Customer Relationships

Overview

Fulfilling Mutually Agreed-Upon Customer Requirements

Thinking Strategically About Relationships

Consider industry bandwidths

Partnering as a focused market strategy

Delivering Superior Value with Relationship-Specific Offerings

Construct relationship-specific market offerings

Pricing relationship-specific offerings

Organize to deliver relationship-specific offerings

Sell relationship-specific offerings

Solve common relationship-offering implementation problems

Pursuing Continuity and Growth

Working Together

Promote honest and open communication

Build trust and commitment

Implement coordination mechanisms

Anticipate and resolve conflicts

Customer retention planning

Selectively Growing the Relationship

Estimate and target share of customer's business

Focused share building

Pursue single-sourcing and multiple single-sourcing

Expand the scope of working relationships

Broaden working relationships

Adopt new profit models

Document the profitability of greater share

Ongoing Customer Relationship Management

Monitoring,Evaluating,and Reassigning Accounts

Estimate customer equity

Implement activity-based costing

Monitor transaction prices

Evaluate relationship outcomes and reassign accounts

Emerging CRM Applications

Allocating resources for customer acquisition,retention,and growth

Synchronizing marketing efforts

Updating customer value

Sustaining Customers Through Connected Relationships

Managing within a business network context

Adding value through business networks

A final thought on sustaining relationships

Summary

Index