4MD3 Business to Business Marketing

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4MD3 Business to Business Marketing

• Steve Howse, C. Dir
• March 6, 2008

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Date Thursday March 13, 2008230 to 520

• In preparation of the exam next week - 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
• A few tips

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TIGHT AND LOOSE SALES LEADS

• meaning?
• tightness is created during lead generation
• how create tight leads?
• ask the prospect to accept an obligation
• or to do some work  
•  how create loose leads?
• use an incentive
• a mix of tight and loose leads is needed

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PREVIEW OF PERSONAL SELLING

• intro to PS
• BM/CM differences - PS
• PS as an interface function
• the PS process
• more PS concepts
• tight and loose sales leads

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DIRECT MARKETING

• database-centred marcom
• requires a response that is
• measurable  
• direct to the manufacturer (DIRECT RESPONSE
  MARKETING)
• direct marketing media 
• direct mail 
• e-mail
• telemarketing 
• 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.
• generating qualified sales leads
• selling to high-access-cost customers
• even selling to all customers (low cost
  products)
• cost per outbound contact (15 to 20)

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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 (trade publications
  etc)
• compiled lists (scrubbed)
• response lists (bought from mail before)
• list brokers
•  

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THE WEB

• not strictly direct marketing
• B2B dominates total sales on Web  (101)
• why less popular with consumers?
• marketer sites have varied purposes
• online information
• database publishing
• customer self-service
• transactions

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ADVANTAGES TO MARKETERS OF THE WWW

• marketer extends its geographic reach
• a small marketer looks larger
• customer exposure is verifiable
• marketer communicates info fast and 24/7
• some two-way communication possible
• low-cost alternative channel
• customer outsourcing should increase

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KEY DISADVANTAGES TO MARKETERS OF THE WWW

• can undercut the basic goal of marketing
• Dont compete on price
• and hurt the relationship
• and lower the unit price paid - reverse auctions
• swings power balance to buyer

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OTHER DISADVANTAGES TO MARKETERS OF THE WWW

• a large marketer looks smaller
• suited to cataloguable products only
• not for high-risk products
• customers must actively search
• marketer must promote the site
• site can create channel conflict

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ANOTHER KIND OF MARKETER SITE - ONLINE BRAND
COMMUNITY

• BLOGS
• Chat rooms
• Website still initiated by the marketer
• but customers provide the content

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THE BUY-SIDE OF THE WEB

• online buying reduces purchasing costs
• usage level varies by buyers industry
• two types of purchasing site

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CUSTOMER-ESTABLISHED PURCHASING SITES

• a direct link to suppliers
• reverse auction

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MIDDLEMAN-ESTABLISHED PURCHASING SITES

• sites established bymarket-makers
• catalog hubs
• vertical market sites
• reverse auctions again!

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Have A Goal List

• Two columns (want to do BTDTGTTS)
• These are personal goals
• Run a marathon or See the great wall of China
• Concerts to see or vacations to go on
• Some are time sensitive
• Skydiving
• Bike trip through Italy
• Keep the list throughout your life
• Add to it, remove items, enjoy what you have
  accomplished

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Texas Instruments

• What questions would you need to ask to begin
  building an intigrated market communications
  program for the digital signal processor?
• What are the most important things you know now?
• What would you need to know?
• What are the key audiences you should be
  considering?
• Build a behavior timeline for each of these
  audiences
• Outline a brief IMC plan to accomplish the task
  set out in your behavior timeline.
• How would you begin to compute the ROI on the
  program?