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Business-to-Business Marketing
Business-to-Business Marketing
Relationships, Networks & Strategies
Nick Ellis
Great Clarendon Street, Oxford OX2 6DP
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© Nick Ellis 2011
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You must not circulate this book in any other binding or cover and you must impose this same
condition on any acquirer
British Library Cataloguing in Publication Data
Data available
Library of Congress Cataloging in Publication Data
Data available
ISBN 978–0–19–955168–2
eBook ISBN 978–0–19–258759–6
10 9 8 7 6 5 4 3 2 1
Typeset by Glyph International, Bangalore, India
Printed in Italy
on acid-free paper by
L.E.G.O. S.p.A.—Lavis TN
To my mother, Karin Ellis
Preface
Aims
This book represents my desire to promote the wider teaching of business-to-
business (B2B) marketing within higher education. Having worked, taught,
and researched in the B2B field for several years, I share the view that any
management student graduating without understanding how business or
organizational markets work is missing something vitally important (Barclay
et al, 2007). I have thus set out to raise readers’ awareness of the significance
of B2B marketing in contemporary economies, in both local and global
contexts. With this in mind, the text is pitched at a highly accessible level in
order to appeal simultaneously to British, European, and broader international
readership.
The book provides a comprehensive introduction to the main theoretical
and managerial issues in the area of B2B marketing. From the outset, I stress
that for every consumer (or end-user) market there are typically several
upstream organizations which must deal with each other in products and
services before anything is ultimately consumed. The book aims to show that
B2B marketing is about trying to manage the complex network of buying and
selling relationships between these organizations. This is captured in its
striking cover design: the links in the chain depicted can be seen as a
metaphor for inter-organizational relationships, relationships that have a
positive side in bonding organizations together for mutual benefit and
strength, yet that also have a negative side in tying firms into networks where
they can never be fully in control of their own destiny.
To help those readers thinking of a career in B2B marketing, I have
included detailed discussions concerning the role of individual managers and
the organizations they represent. As well as outlining possible managerial
solutions to common B2B marketing dilemmas (such as the design and
delivery of business products and services, and the selection of
communication methods), the text also examines issues like e-commerce in
B2B markets, key account management, and supply chain ethics. I am aware,
however, that most students’ original introduction to the study of marketing
was probably conducted in the context of consumer (B2C) markets, and thus
the approach I take allows for the necessary adjustment of perspective that
readers may have to make.
Indeed, I deliberately use several B2C-related illustrations to capture
readers’ interest, and then move beyond consumer marketing issues to
provide a host of real-life examples that focus on the challenges of marketing
to organizational (or business) customers. A key aim is to make students
aware of some of the tensions encountered by B2B marketing and purchasing
managers as they go about their daily tasks. This is achieved through a
careful interweaving of clearly explained, relevant theoretical discussion and
a series of (short and long) case study examples. Conceptual material is
drawn from marketing scholarship in US and European contexts, as well as
some contributions from researchers working further afield. Empirical
material is global in scope, with examples from organizations operating in a
large number of international contexts.
Intended Readership
It is my firm belief that there is room for an accessible B2B marketing
textbook written for the undergraduate market and for the postgraduate
market where students often have no prior knowledge of the subject. The
contextual focus of many B2B texts continues to be rather biased towards the
US and, whilst some fine UK/European-based books have emerged recently,
no B2B text has adequately catered for the high proportion of international
students (for whom English is rarely their first language) that typically make
up higher education business courses. This book intends to plug that major
gap.
I have found that the subject of B2B marketing appeals to both
management generalists and marketing students, many of whom recognize
the greater employment potential in this field compared to the superficially
more ‘glamorous’ area of B2C marketing. It is also worth noting that after a
few years of commercial employment, people with initial training in non-
marketing disciplines often gravitate to B2B roles where they can combine
their technical know-how with an understanding of organizational markets
gleaned from books such as this one. Thus, as well as helping readers with
prior knowledge of general marketing concepts to specialize in the
challenging yet rewarding area of B2B, this text will also be extremely useful
for prospective managers with a more scientific/engineering background who
are seeking to move into marketing-related jobs.
Indeed, with B2B-related issues such as the overseas sourcing of products
of dubious quality, farmer/manufacturer/retailer relations in the food supply
chain, and the concept of fair trade remaining extremely relevant to
contemporary society, the demand for managers who have been taught
something about these issues will surely grow, as will the demand from
students who wish to become better informed about such high profile issues.
The book has been slanted to attract the interest of students wanting to
explore ‘behind the scenes’ of B2C marketing by analysing these sorts of
B2B problems.
The overall approach taken in this book, and many of the teaching
materials in it, have been ‘road tested’ on hundreds of students during my ten
years’-plus experience of teaching B2B marketing. My ideas have been
presented at academic conferences such as those of the Industrial Marketing
and Purchasing (IMP) Group and the Academy of Marketing. Several
lecturers from around the world have also drawn upon draft versions of my
chapters in their teaching, including colleagues in the UK, North America,
Africa, and the Far East. The feedback I have received from my students and
my peers has enabled me to fine-tune my materials.
I hope it will be agreed that this combination of factors means that this is a
book worthy of study. I am sure it will help readers make sense of the
fascinating yet challenging world of B2B marketing!
Nick Ellis
University of Leicester
References
Barclay, D. W., Deutscher, T. H., & Vandenbosch, M. H. (2007) Business
Marketing in Master’s Programs: A Part of the Fabric, Journal of
Business-to-Business Marketing, 14 (1), pp 31–51
Acknowledgements
My thanks go to the following guest contributors of case study material:
Peter J. Batt, Curtin University of Technology, Perth, Western Australia
(Main Case Study, Chapter Eight)
Bella Butler, Curtin University of Technology, Perth, Western Australia
(Box 6.6, Chapter Six)
Steve Carter, Leeds Metropolitan University, Leeds, UK (Main Case
Study, Chapter Four; Box 5.5, Chapter 5)
Maurizio Catulli, Sustainable Business Process Research Group
(SPRING), University of Hertfordshire, Hatfield, UK (Main Case Study,
Chapter Ten)
Phil Cooper, Abbeysteel™, Stevenage, Hertfordshire, UK (Main Case
Study, Chapter Ten)
Gillian Hopkinson, Lancaster University, Lancaster, UK (Main Case
Study, Chapter Three; Main Case Study, Chapter Eleven)
Sylvie Lacoste, Advancia-Negocia Business School (run by the Paris
Chamber of Commerce), Paris, France (Main Case Study, Chapter Two)
Sid Lowe, Kingston University, Kingston upon Thames, UK (Box 5.7,
Chapter Five; Box 10.2, Chapter Ten)
Kevin Morris, Abbeysteel™, Stevenage, Hertfordshire, UK (Main Case
Study, Chapter Ten)
Michel Rod, Carleton University, Ottawa, Canada (Main Case Study,
Chapter Seven)
Sarena Saunders, Victoria University of Wellington, Wellington, New
Zealand (Main Case Study, Chapter Seven)
Peter Svensson, Lund University, Lund, Sweden (Main Case Study,
Chapter Nine)
Theingi, Assumption University, Bangkok, Thailand (Box 6.1, Chapter
Six)
Natalia Tolstikova, University of Gloucestershire, Cheltenham, UK
(Main Case Study, Chapter Eleven)
Ibrahim Umar, University of Leicester, Leicester, UK (Main Case
Study, Chapter Five)
Angela Vickerstaff, Nottingham Trent University, Nottingham, UK
(Main Case Study, Chapter Six)
The following copyright holders have kindly granted permission to use the
material detailed below:
American Marketing Association, Chicago, US for: Figure 11.3 –
adapted from Figure 1 on p 38 of J. Mohr & J. R. Nevin (1990)
Communication Strategies in Marketing Channels, Journal of
Marketing, 54 (4), pp 36–51
Cengage Learning Services Ltd, Andover, UK for: Figure 2.8 – adapted
from Table 2.4 on p 50 of D. Wilson (1999) Organisational Marketing,
International Thomson Business Press, London; Figure 5.3 – adapted
from D. Ford (ed.) (2001) Understanding Business Markets and
Purchasing, p 37, Thomson Learning, London
Elsevier Inc, New York, US for: Figure 3.8 – adapted from Figure 1 on
p 84 of S. Wagner & R. Boutellier (2002) Capabilities for Managing a
Portfolio of Supplier Relationships, Business Horizons, 45 (6), pp 79–
88; Figure 6.1 – adapted from Table 2 on p 389 of U. Juttner, M.
Christopher, & S. Baker (2007) Demand Chain Management –
Integrating Marketing and SCM, Industrial Marketing Management, 36,
pp 377–92; Figure 7.2 – adapted from Figure 1 on p 556 of E. Penttinen
& J. Palmer (2007) Improving Firm Positioning through Enhanced
Offerings and Buyer–Seller Relations, Industrial Marketing
Management, 35, pp 552–64
Elsevier Ltd, Oxford, UK for: Figure 3.1 – adapted from Table on p 19
of M. Christopher, A. Payne, & D. Ballantyne (2002) Relationship
Marketing: Creating Stakeholder Value, Butterworth-Heinemann,
Oxford; Figure 3.3 – adapted from Figure 2.6 on p 48 of M. Christopher,
A. Payne, & D. Ballantyne (2002) Relationship Marketing: Creating
Stakeholder Value, Butterworth-Heinemann, Oxford; Figure 3.4 –
adapted from Figure 1.1 on p 4 of M. Christopher, A. Payne, & D.
Ballantyne (2002) Relationship Marketing: Creating Stakeholder Value,
Butterworth-Heinemann, Oxford; Figure 3.6 – adapted from Figure 2.1
on p 40 of F. Buttle (2004) Customer Relationship Management:
Concepts & Tools, Elsevier Butterworth-Heinemann; Figure 4.3 –
adapted from Figure 4.5 on p 84 of M. Christopher (1997) Marketing
Logistics, Butterworth-Heinemann, Oxford; Figure 4.8 – adapted from
Figure 2.4 on p 37 of M. Christopher (1997) Marketing Logistics,
Butterworth-Heinemann, Oxford; Figure 10.2 – adapted from Figure 3.2
on p 49 of M. Christopher (1997) Marketing Logistics, Butterworth-
Heinemann, Oxford; Figure 10.3 – adapted from Figure 3.8 on p 67 of
M. Christopher (1997) Marketing Logistics, Butterworth-Heinemann,
Oxford
Emerald Group Publishing Ltd, Bingley, UK for: Figure 2.2 – adapted
from Table 1 on p 8 of B. Cova & R. Salle (2008) The
Industrial/Consumer Marketing Dichotomy Revisited, Journal of
Business & Industrial Marketing, 23 (1) pp 3–11; Figure 12.3 – adapted
from p 39 of D. W. Cravens, T. N. Ingram, & R. W. la Forge (1991)
Evaluating Multiple Channel Strategies, Journal of Business &
Industrial Marketing, 6 (3/4), pp 37–48
Ben Enis for: Figure 2.6 – adapted from M. B. Enis (1980) Marketing
Principles, 3rd edn, Scott Foresman & Co, Glenview, IL
Pearson Education Ltd, Harlow, UK for: Figure 5.4 – adapted from p
112 of J. Egan (2001) Relationship Marketing: Exploring Relational
Strategies in Marketing, FT-Prentice Hall, Harlow; Figure 5.5 – adapted
from Figure 8.1 on p 155 of J. Egan (2001) Relationship Marketing:
Exploring Relational Strategies in Marketing, FT-Prentice Hall, Harlow;
Figure 7.3 – adapted from Figure 4.5 on p 93 of M. Christopher (1992)
Logistics and Supply Chain Management, FT Pitman, London
Lynette Ryals for: Figure 12.5 – adapted from Table 3 on p 410 of L. J.
Ryals & S. Holt (2007) Creating and Capturing Value in KAM
Relationships, Journal of Strategic Marketing, 15, pp 403–20
Taylor & Francis for: Figure 12.5 – adapted from Table 3 on p 410 of L.
J. Ryals & S. Holt (2007) Creating and Capturing Value in KAM
Relationships, Journal of Strategic Marketing, 15, pp 403–20
(http://www.informaworld.com)
Wiley-Blackwell, Oxford, UK for: Figure 5.1 – adapted from p 24 of H.
Håkansson (ed.) (1982) International Marketing & Purchasing of
Industrial Goods: An Interaction Approach, John Wiley, Chichester
The publishers would be pleased to clear permission with any copyright
holders that we have inadvertently failed, or been unable to contact.
I am also grateful for the conscientious manner in which the book’s
reviewers, all of whom were experienced B2B educators, commented on draft
versions of the text. Although I could not respond to all their suggestions, the
volume and depth of feedback received from these reviewers played a
significant part in the book’s development.
Finally, I would like to thank the editorial team at Oxford University Press,
in particular my two commissioning editors, Claire Brewer and Nicki Sneath.
Their advice and encouragement throughout this project have been much
appreciated.
Outline Contents
Guide to the book
Guide to the Online Resource Centre
Index
Detailed Contents
Guide to the book
Guide to the Online Resource Centre
3. Inter-Organizational Relationships
Introduction & Learning Objectives
3.1 From Market Transactions to Relational Exchange
Some conceptual views of business relationships
Key elements of relationship marketing
3.2 Customer Relationship Management (CRM)
Relationship life cycles
3.3 Partnerships & Alliances
3.4 How IORs May ‘Work’ in Different Contexts
IORs under pressure
Summary
Discussion questions
Case study
Case study questions
Further Reading
References
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