11 Business-to-Business Marketing Industrat Results and Summary Haas School of Business UC Berkeley Fall 2008 Week 15 Zsolt Katona.

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11 Business-to-Business Marketing Industrat Results and Summary Haas School of Business UC Berkeley Fall 2008 Week 15 Zsolt Katona

Industrat Stock Prices

Net Marketing Contribution

Prediction Market 1. Rags Ariel Vandita 23329

Cost/Sales

Buying Process

Instrumentation

Consumer

Korex by End Product

Sales Force Allocation on General Manager

Korex Market Shares

Korex Market Shares - Instrumentation

Korex Market Shares - Consumer

Product Positioning

Korex vs. Lomex

Lomex

R&D Investments Period 2: Firm 4 invest 4M alone LOMEX Period 3: Firm 5 joins them: go up to 12M total Period 3: Firms 1 and 3 joint investment: 5M in LOMEX Period 4: Firms 4 and 5 get LOMEX (14M total) Period 5: Firms 1 and 3 get LOMEX (14.25M total) Period 6: Firm 3 invest in TECH 4 Period 7: Firm 3 gets TECH 4

Lomex Market Share

Lomex Buying Behavior

Sales Force Allocation on General Manager

Conclusion Not only product attributes matter Understand decision makers Investment in people vs. technology R&D alliances are crucial

B2B Marketing - Takeaway Differences between B2B and B2C - Fewer, larger customers/transactions - Importance of Process and Relationship Benefits - Customer is an organization (DMP, DMU) - More complex products - Importance of alliances Typical B2B areas - Sales force management - Key account management

B2B Marketing - Takeaway Differences between B2B and B2C - Fewer, larger customers/transactions - Importance of Process and Relationship Benefits - Customer is an organization (DMP, DMU) - More complex products - Importance of alliances Typical B2B areas - Sales force management - Key account management

Implications Segmentation - Macro-segmentation - Micro-segmentation Pricing - Ideal point pricing (price is a signal) - Price is a contract (MFC, MCC, Take or pay) R&D and new products - Research and Development are separate - Co-development

Even More Implications Branding - Brand also includes process and relationship benefits - Pull strategy (Ingredient brands) Two-sided markets - At least one side is typically B2B - Consumer side is usually subsidized B2B and the Internet - Ecommerce is huge - Online advertising

Marketing Tools Funnel analysis Perceptual maps Conjoint analysis Response function analysis Delphi procedures Prediction markets

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