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•derek.weidl@gmail.com

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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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E-MAIL

• 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