Business to Business Marketing

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 1

Evaluation Criteria
1) End term 30%
2) Midterm 20%
3) Quiz 10%
4) Class Participation 05%
5) Grp Component 35%
i) PPT – Case Analysis 15%
ii) Group Project 20%

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 2

Group Project
• Select a B2B product/service offering
• Analyze the market for the product
• Major players / competitor analysis
• Key customers and their characteristics

• Design the same product as a product manager and define

• Feature / form /Design
• Price, promotion and distribution
• Customers
• Value proposition

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 3

Why this course is important?
• Around 50% job offers in top B schools are in Marketing
• Out of the total jobs in marketing, around 70% jobs are for B2B
marketing or sales manager
• The remaining jobs in marketing involving brand management and
analytics also require understanding of B2B
• Consulting and investment banking jobs also require one to interact
with businesses, which is essentially B2B

Hence, B2B Marketing Course is one of the most important courses in

your PGP curriculum

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 4

Business to Business Marketing
When organizations market product and services to other organizations, that
buy products for direct selling, or using in production of other products and
services that are sold, rented or supplied to end customers.

Eg:

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 5

Examples

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 6

Characteristics of Business to business
marketing
- Complex buying
- Multiple stakeholders
- Coordination between departments

- Importance of processes and relationships

- Standardizing the customized solution
- Buying situations
- Rebuy
- Modified rebuy
- New buy

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 7

 Guiding Principles

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 8

Guiding principles of Business Market
Management
- Value
- Business market processes
- Business across borders
- Working relationship and business networks

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 9

Value
“ worth in monetary terms of the economic, technical, service, and
social benefits a customer firm receives in exchange for the price it
pays for a market offering”

Value equation

Valuef - Pricef > Valuea - Pricea

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 10

Business Processes
• Management Process
• Business Process
• Work Process

• Shareholder Value and customer value

Core business processes – PDM, SCM, CRM
• PDM – superior design vs maximum value
• SCM – best input at cheapest price vs integration of supply chain with
supplier and customers
• CRM – sell, deliver, service vs identify, create, satisfy need

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 11

Doing business across borders
• Culture
• Negotiation and dispute resolution

CPRL Vs McDonalds
https://www.livemint.com/companies/news/mcdonald-s-buys-out-vikram-bakshi-ends-six-year-
long-dispute-1557429965862.html
Godrej Vs GE
https://www.business-standard.com/article/specials/ge-breaks-up-with-godrej-
199093001020_1.html

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 12

Working relationship and business networks
• Network Embeddedness
• Guanxi
• Jaan-Pehchan

Social Economic
Relations Relations

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 13

Difference between B2B and B2C marketing
• Customers
• Numbers
• Geographic concentration
• Relationship Management
• Personal selling
• Demand
• Direct demand vs derived demand

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 14

B2B vs B2C : Kotler

B2C B2B

• Large number of customer • Smaller number of customer

• Large number of transactions • Smaller number of
• Low average value of transactions
transaction • High average value of
• Mass selling approach transaction
• Standard products • Personal selling approach
• Customized solutions

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 15

A behavioural perspective on Sales
• Laddering theory:
Laddering refers to an in-depth one-on-one interview technique used
to develop an understanding of how consumers translate the attributes
of products into meaningful associations.

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 16

Means-End Theory

Product Knowledge Self-Knowledge

Attributes Consequences Value

Functional Psychological
Consequences Consequences

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 17

B2B vs B2C

Feature and
Brand advantage
Essence
Benefits and
Attributes Translate features to
Points of
Difference customer benefits
Category
Membership
Translate benefits to
Laddering up approach in B2C worth

Drilling down to worth approach in B2B

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 18

Activity
• Name the potential B2B transactions/customers of these companies
• HUL
• Maruti Suzuki
• Coca-Cola
• DHL
• Samsung appliances

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 19

Value maximization
• Shareholder value vs customer value??

Organization's long-term cash flow is its satisfied customers. But providing

customer satisfaction does not automatically translate into shareholder
value.

Thus, translating customer value into shareholder value critically depends on

a business being able to claim an equitable return on value it delivers to
customers.
And one of the ways it can be done by persuasively demonstrating and
documenting the superior value it delivers to customers.

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 20

Example: Post It

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 21

Post-it
• 1980-1986 : A star is born
• 1987-1996 : Staying power
• 1997- 2003: Brand goes Hollywood
• 2004 -2013 : Made with water based adhesive, many size and shapes
more than 1000 SKUs
• 2014: Super dry erase surface
• 2018: Extreme notes for outdoor surfaces
• 2019: Post it App
• 2020: Flex write Surface and foil tabs

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 22

Scope and Challenge of Business to Business
Marketing
• Key Linkages
• External linkages External Internal
• Derived demand Linkage Linkage
• Complex buying process Customer Marketing Mfg.
• Concentrated customer base
• Internal linkages
• Emphasis on technology
• Customization
• Order fulfillment mechanism

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 23

Management Challenges in B2B
• New Product Commercialization
• Fractional horsepower motor vs. semiconductor vs. Graphene
https://www.youtube.com/watch?v=IesIsKMjB4Y

• Customer education and market development

• Market Segmentation
• Product Policy/Pricing
• Channels of Distribution
• Direct vs indirect
• Cross functional and Interdepartmental Coordination
• Marketing effort which cuts across departments
• Managing Social Responsibility
• Beyond profit-maximizing objectives

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 24

Indian B2B landscape

• Fewer organized players

• Digital transformation of B2B Marketplace

https://www.youtube.com/watch?v=xiI8DKJlosQ
https://www.youtube.com/watch?v=WU7CUQRpdUQ

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 25

GeM

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 26

Point of Discussion
• Are business markets fundamentally different from consumer
markets?

• Do business markets deal more with services compared to products?

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 27

 Value

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 28

Fundamental Value Equation

Value (f) – Price (f) > Value (a) – Price (a)

{Value(f)-Price(f)}-{Value(a)-Price(a)} > 0

Customer Incentive to Purchase

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 29

Understanding Value in Business Markets
• Market Sensing
• Defining the market
• Monitoring competition
• Assessing customer value
• Gaining customer feedback

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 30

Defining the market
Measurable – Profitable –Accessible - Actionable
• Market Segmentation
• Conventional bases of segmentation
• Progressive bases of segmentation

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 31

Customer Persona

• Customer Persona:

https://www.youtube.com/watch?v=Zx
DXLWkZfbE

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 32

Activity
• Imagine yourself as the national B2B Sales manager for a
new laptop company Computec. As an organization, you
sell predominantly through retail channels. Now the
organization has decided to formalize the B2B Sales by
hiring a young talent.

• As a first step towards understanding your target segment,

you have to do segmentation. Using the discussion so far,
please create conventional and progressive segmentation
for your organization.

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 33

 Session 2& 3

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 34

Recap…
• B2B Marketing
• Value
• Business Processes
• Working Relationships
• Management Challenges
30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 36
Group Presentations: StickK.com
• Group 1, 3, 5, 7, 9, 11, 13
• Time (max): 10 minutes, lesser the better

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 37

Case: Making StickK Stick: The Business of
Behavioral Economics
• StickK.com
• Synopsis

• Commitment contract website designed to help people achieve goals

• CEO Jordon Goldberg was unsure whether to stick with B2C model or go for
B2B customers

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 38

Case: Making StickK Stick: The Business of
Behavioral Economics
Points for discussion
• How does stick help customers to accomplish their goals?
• How does stick make money?
Discussion
• Bad behavior paradox
• StickK a solution?
• Which model – B2C or B2B is more viable?
• What should Goldberg do?

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 39

Case: Making StickK Stick: The Business of
Behavioral Economics
• Revenue
• B2C
• Total Number of Contracts – 70,000
• Contract with Stakes – 32%
• Number of contracts per year that have stakes – 22,400
• Average Stake Value - $360
• Contract Specific
• Charity – 21.6%
• Success rate – 80.1%
• Failure Rate – 19.9%
• Stickk takes 19.5% of failed charity contract
• AntiCharity – 52.1%
• Success rate – 87.1%
• Failure rate- 12.9%
• Stickk takes 29.5% of failed anti charity contract
• Credit Card Fee – 3%
30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 40
Case: Making StickK Stick: The Business of
Behavioral Economics
• B2C Revenue
Contract Type Number of Contracts Number of Failed Avg Revenue per Total Revenue
Contract Failed Contract

Charity 4838 (0.216 X 22400) 963 (0.199 X 4838) $70 (0.195 X 360) $67,410 (70 X 963)

Anti-Charity 11670 (0.521 X 1505 (0.129 X $106 (0.295 X 360) $159,831 (106 X
22,400) 11,670) 1505)

Total – $ 2,27,241
30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 41
Case: Making StickK Stick: The Business of
Behavioral Economics
• B2B Revenue
• Avg. monthly license fee - $15,000 (License fee ranges from 10,000 – 20,000)
• Number of Customer – 04
• Yearly License Fees- (15,000 X 04 X12 ) – $7,20,000

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 42

What to do now?
• Goldberg decided to go ahead with the
B2B model along with B2C.

• By 2014, they had 16 B2B customers

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 43

Indian B2B landscape

• Fewer organized players

• Digital transformation of B2B Marketplace

https://www.youtube.com/watch?v=xiI8DKJlosQ
https://www.youtube.com/watch?v=WU7CUQRpdUQ

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 44

Point of Discussion
• Are business markets fundamentally different from consumer
markets?

• Do business markets deal more with services compared to products?

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 45

 Value

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 46

Fundamental Value Equation

Value (f) – Price (f) > Value (a) – Price (a)

{Value(f)-Price(f)}-{Value(a)-Price(a)} > 0

Customer Incentive to Purchase

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 47

Understanding Value in Business Markets
• Market Sensing
• Defining the market
• Monitoring competition
• Assessing customer value
• Gaining customer feedback

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 48

Defining the market
Measurable – Profitable –Accessible - Actionable
• Market Segmentation
• Conventional bases of segmentation
• Progressive bases of segmentation

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 49

Customer Persona

• Customer Persona:

https://www.youtube.com/watch?v=Zx
DXLWkZfbE

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 50

Activity
• Imagine yourself as the national B2B Sales manager for a
new laptop company Computec. As an organization, you
sell predominantly through retail channels. Now the
organization has decided to formalize the B2B Sales by
hiring a young talent.

• As a first step towards understanding your target segment,

you have to do segmentation. Using the discussion so far,
please create conventional and progressive segmentation
for your organization.

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 51

Group Activity
• Create progressive and conventional bases of segmentation for
Computec

• Submit/present in a single slide

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 52

Group Activity
• Create progressive and conventional bases of segmentation for
Computec

• Submit/present in a single slide

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 53

How to Define the Market?

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 54

Defining the market
• Determining Market Segments of Interest
• Size and growth
• Sales and profit potential
• Sales Potential and Sales Forecast

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 55

Monitoring Competition Defining the
Market

• Framework for competitor analysis

• Future goals
Gaining Monitoring
• Assumptions Customer the
• Current Strategy Feedback Competition
• Capabilities
• Competitor intelligence system
• Benchmarking : “Benchmarking is systematic and continuous measurement Assessing
Customer
process: a process of continuously measuring and comparing an Value
organizations business processes against process leaders anywhere in the
world to gain information which will help the organization to take action to
improve its performance” (APQC/IBC cited in Watson, 1993, p. 3).
• First Generation: Reverse Engineering
• Second Generation: Competitive Benchmarking
• Third Generation: Process Benchmarking
• Fourth Generation: Strategic Benchmarking
• Fifth Generation: Global Benchmarking
• Timelining : Tracking the progress of a competitor with milestones

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 56

Research tools for Competitor intelligence
and market Intelligence
Purpose Type of study that typically meets this purpose
Help enter new market, or expand presence in a Market entry research and market expansion
market studies
Minimize the risk of an investment decision Market assessment research or acquisition
being wrong studies
Keep ahead of the competition, obtain first-
Competitive intelligence research
mover advantage over competitors
Give the customers what they want, expand
Needs assessment studies
market share
Establish and maintain a distinctive corporate
B2B branding research
identity
Tailor products and marketing effort around
B2B segmentation research
customer needs
30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 57
Application of market intelligence

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 58

Assessing Customer Value Defining the
Market

• Value assessment methods

• Internal engineering assessment Gaining
Customer
Monitoring
the
• Field value-in-use assessment Feedback Competition

• Indirect survey questions

• Focus group assessment Assessing
Customer
• Direct survey questions Value

• Conjoint analysis
• Benchmarks
• Compositional approach
• Importance ratings

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 59

Gaining Customer Feedback Defining the
Market

• Customer satisfaction management

• ACSI
Gaining Monitoring
Customer the
Feedback Competition
Customer
Complaints
Perceived
Assessing
Quality Customer
Overall Value
Perceived
Customer
Value
Satisfaction
Customer
Expectation
Customer
Loyalty

• Customer value analysis

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 60
 Business Market Processes
Managing New Business
Market Offering Channel
Offerings Realization Management
Marketing Gaining
Sensing New
Business

Understanding Sustaining
Understanding Creating Delivering
Firms as Reseller
Customers Value Value Value
Partnerships

Crafting
Market Managing
Strategy Customers
Difference between B2B and B2C research
• Different Skillset
• Sample Size
• Graphical spread of respondents
• Importance of tele-depth interview
• Addressing a strategic need
• Research methods used
• Pareto
• Complexity
https://www.youtube.com/watch?v=KdAOY8wInbM

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 62

Let’s get into the real world market…
Imagine that you are a B2B Sales Manager
for TATA motors. Your job is to sell “fleets”
of automobiles to major corporations.

This morning, you received a call from the

purchase manager at Godrej Appliances.
The customer’s firm would like to acquire
20 TATA 407.
The customer’s sales force will use the
vehicles to give demonstrations and sales
presentations at their clients’ offices.
While drafting a proposal and devising a
presentation for the customer
30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 63
What value could you promise the customer in
return
• Benefits and Cost
Benefits Costs

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 64

 Session 4

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 65

Recap
• Key factors for deciding attractiveness of B2B markets
• Value equation
• Value assessment
• How to do value assessment by listing benefits and costs
Let’s get into the real world market…
Imagine that you are a B2B Sales Manager
for TATA motors. Your job is to sell “fleets”
of automobiles to major corporations.

This morning, you received a call from a

purchasing manager at Godrej Appliances.
The customer’s firm would like to acquire
20 TATA 407.
The customer’s sales force will use the
vehicles to give demonstrations and sales
presentations at their clients’ offices.
While drafting a proposal and devising a
presentation for the customer
30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 67
We just completed the initial steps in value assessment…..
Going back to our fundamental value equation.

Business market managers must translate features not only into

customer benefits but also into worth in monetary terms

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 68

 Business Market Processes
Managing New Business
Market Offering Channel
Offerings Realization Management

Marketing Gaining
Sensing New
Business

Understanding Sustaining
Firms as Understanding Creating Delivering
Value Value Reseller
Customers Value Partnerships

Crafting Guiding Principles

Market Managing
Strategy Customers

Regard Value as the Cornerstone

Focus on Business Market Processes

Stress Doing Business Across Borders

Accentuate Working Relationships & Business Networks

Monitoring Competition

Knowledge about competitors used in:

• Crafting their own market strategy

• Anticipating competitor’s reactions to their strategy

• Deciding what reactions to

make in response to competitor's
action in the market
Competitor Intelligence Research
• Competitive intelligence is a process comprising the following
activities
- Planning the collection of information according to key
intelligence needs.
- Collection of information from a variety of sources.
- Using analytical tools to analyze the information.
- Packaging of information and communicating it to management.

(Viviers, Saayman & Muller 2005, 578-580)

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 71

CI Cycle

Planning Collection Intelligence Spying Strategy

Feedback Analysis

Dissemination

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 72

Market Intelligence
• Extension of spying or moving beyond…?
• Market intelligence  Business intelligence

• Helps in
• Understanding business environment
• Integrating marketing efforts
• Product and process innovation

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 73

Reading:Smarter Segmentation for Your Sales
Force
• Hill-Rom
Smarter Segmentation for Your Sales Force
• How to improve sales performance
• Incentives ?
• Increase salespeople ?
• Hill-Rom’s approach
• Customer segmentation – Key customer and
Prime customer
• Design to serve those segments
• Staffing at optimal level

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 75

Reading 1: Smarter Segmentation for Your
Sales Force
• A tailored approach – Key customer and
Prime Customer

• Key Customer have higher total capital

expenditure on medical products ||
Comprehensive solutions || View
Purchase as investment
• Prime Customer are more concerned
about getting the features and functions
for best possible price || Buy individual
products rather than complete system ||
Fulfillment time and responsiveness is
more critical

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 76

Smarter Segmentation for Your Sales Force
• Rightsizing the force

• Early returns – Sales and Product Margin

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 77
 Understanding B2B Buying Behaviour

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 78

Understanding Firms as Customers
• Purchasing orientation of business market customers
• Buying orientation

• Procurement orientation

• Supply management orientation

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 79

Buying Orientation
• Obtain the best deal
• Price analysis
• Cost analysis
• Maximize power over suppliers
• Commoditization
• Multi-sourcing vs sole-sourcing
• Avoiding risk
• Follow established procedure
• Rely on proven vendors

Developments in buying
- Target pricing
- Global sourcing
- E-sourcing, online reverse auctions
- Defeaturing or cooperative pricing
30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 80
Procurement Orientation
• Improving quality
• Reducing total cost of ownership (TCO)
• Cooperating with suppliers
• Standardization
• Target costing

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 81

Supply Management Orientation
• Focus on end users
• Craft a sourcing strategy
• Build a supply network (lean)
• Sustain highly collaborative relationship with select suppliers

Value in use (VIU) and VIU price

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 82

 MACE serves as a catalyst to Supply Chain ( Maruti
Suzuki India Ltd.)) for improvement of MSIL vendor base
through cluster approach. Short term and certification
training courses in field of quality management, Energy
and Inventory management are being organized by
MACE.

Training modules: Behavioral, Technical, Practical, Safety

and Environment

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 83

Purchasing Portfolio Management
• Generics High
• Leverage items Customer
• Critical items Value
Low

• Bottlenecks
Low High

Customer Risk

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 84

Discussion Questions
Indicate some of the potential benefits and pitfalls of of customer value
management.
30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 86
Understanding How Purchasing Works with
Other Functions and Firms
• Value management as 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
• Contribution to new offering realization

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 87

Understanding the Purchase Decision Process
• Understanding customer requirements and preferences
• Converge on customer requirements
• Map customer activity and value cycles
• Learning the customer’s purchase process
• Buygrid framework
• Webster wind model
• Evaluating supplier performance
• Reviewing price, quality and availability
• Scrutinizing total cost
• Tracking supplier value

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 88

Buygrid Model

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 89

Webster and
Wind Model

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 90

 - Economic Outlook
Environmental Forces - Pace of technological change
- Global trade relations

- Goal, objectives and strategies

Organizational Organizational Forces
- Org. position of purchasing

buying
- Roles, relative influence and
behavior Group Forces patterns of interaction of buying
decision participants

- Job function, past experience, and

Individual Forces buying motives of individual
decision participants

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 91

Session 5
Discussion So far…
• B2B marketing, how it is different from B2C
• Guiding Principles –
• Value
• Business process
• Doing business across borders
• Working relationships and networks
• Scope and challenges of B2B marketing
• Defining the Market – B2B Segmentation
• Understanding B2B buying behaviour
 Business Market Processes
Managing New Business
Market Offering Channel
Offerings Realization Management

Marketing Gaining
Sensing New
Business

Understanding Sustaining
Firms as Understanding Creating Delivering
Value Value Reseller
Customers Value Partnerships

Crafting Guiding Principles

Market Managing
Strategy Customers
Understanding firms as customers
• How customers value your offering
• IBM – Purchase products and services for internal use
• Determine value of purchase (Fair value assessment) by using techniques like
• Price comparison
• Cost build-up
• Value management (VM): Systematic use of value techniques as a general
problem-solving method in business, research and administration
• Value analysis/engineering (VA): A method customer firm uses to evaluate
supplier offerings
• Value management system (VMS): Composed of an operating structure,
management, and methods that are responsive to the external environment

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 95

Croon Elektrotechniek, B.V
• Case Study Presentations, Even Groups
• Please adhere to the timeline of 10 minutes
 Croon Elecktrotechniek,B.V.

Case Study

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 97

Case Discussion
• Croon, an electrical engineering and construction firm used document
reproduction system to duplicate technical documents including computer aided
design (CAD) diagrams, building blueprints, and construction process
specifications.
• Croon’s incumbent system, an inkjet printer, analog copier, and offline folder, had done an adequate job
for the past five years
• Fred Kombrink and his team had narrowed the choices down to three.
• First, Croon could replace the incumbent system with an updated inkjet printer, copier, and folder.
• Second, Croon could purchase newer technology in the form of the Xerox Engineering Services 8830
Digital Duplication System (XES 870 DDS) from a dealer, Hoogervorst Printing.
• Third, Croon could acquire the same technology in the Océ 950 directly from Océ Technologies.
• Select one of two competing document reproduction systems to replace Croon’s
incumbent system.

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 98

Case Study: Croon Elecktrotechniek,B.V.
• Compare the XES 870 DDS with the Océ 950. What are the points of parity, difference,
and contention between the two systems?
Questions to answer:
• What paper-changing cost savings do the XES 870 DDS and the Océ 950 provide relative
to the incumbent system? Which furnishes greater savings, the XES 870 DDS or the Océ
950?

• What total cost savings does Croon stand to gain from acquiring either the XES 870 DDS
or the Océ 950 instead of the incumbent system?

• What monetary value does the Océ 950 provide relative to the XES 870 DDS?

• Should Croon acquire the XES 870 DDS or the Océ 950?

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 99

Comparing the XES 870 DDS with the Océ 950
• Points of Parity: The two systems are very similar in terms of these
features and benefits.
• Scanner, copier, and folder
• 100 folded-sheets stacker
• Optional stacker trays
• CAD network connectivity
• Paper cost savings versus incumbent system
• Ink cost savings versus incumbent system
• Operator cost savings versus incumbent system
• Draftsman cost savings versus incumbent system
• Accountant cost savings versus incumbent system
• When a 4th paper roll is added to the XES 870, both systems can handle 95% of sets.

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 100

Comparing the XES 870 DDS with the Océ 950
• Points of Difference: Both systems excel on some features and benefits.
• XES 870 DDS Advantages:
• Job interrupt button
• Lower operating power usage of 1.5 kW per hour versus 1.7 kW per hour for Océ 950
• Greater operating power savings of - €0.41 per year versus incumbent system
• Customized XES controller and AccXES operating system
• 400 x 400 DPI resolution gives sharper images and blacker backgrounds
• Price of system will be between €16000 and €20000 lower depending on outcome of
negotiations
• Price of maintenance contract will be between €100 and €1800 per year lower
depending on outcome of negotiations
• Price of an extra paper roll is €7000 lower

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 101

Comparing the XES 870 DDS with the Océ 950
• Océ 950 Advantages:
• There are 16 possible configurations of the Océ 950
• The Océ 950 can be configured with 4 to 6 paper rolls
• Océ drivers have already been installed at Croon
• Océ 950 uses Microsoft Windows NT operating system and a PC for a controller so users will not have to
have special training
• A 5 paper roll Océ 950 would enable Croon to handle 100% of sets during the day and overnight
• The Océ 950 would enable Croon to improve service to the 5% of customers who are the most
important in terms of sales, profits, and prestige
• With an Océ 950, Croon operators would only have to change paper rolls an average of once every
other day
• Océ 950 clearly meets all ARBO standards for heat and ozone emissions and would not require a
ventilation system
• The Océ 950 has won a number of international awards for design, performance, ease-of-use, and
environmental friendliness – What to Buy for Business, IF Product Design Award, IF Ecology Award, U.S.
EPA Energy Star

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 102

Comparing the XES 870 DDS with the Océ 950
Océ 950 Advantages:
• The folder and stacker on the Océ are located at the back of the system, providing unimpeded access to the paper trays and
controller
• The Océ 950 prints at a speed of 270 meters/hour versus XES 870’s 240 meters/hour
• Océ has a Competitive Benchmarking Laboratory
• Lower standby power usage of .015 kW/hour versus .12 kW/hour for XES 870
• Océ has 4 more telephone service representatives and 10 more field representative working in the Netherlands than Hoogervorst
Printing. Océ can fly additional people in if necessary from across Europe.
• If Croon agrees to bundle its maintenance contract for the Océ 950 with its contract for its 10 Océ office copiers, Océ will give it a
€1700 discount
• The Océ 950 provides €2545 greater annual paper jam cost savings than the XES 870
• The Océ 950 furnishes €636 greater annual roll change cost savings than the XES 870
• The Océ 950 yields €161 greater annual standby power costs than the XES 870
• Océ is doing well financially and is expanding its worldwide distribution
• Xerox is experiencing severe financial problems

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 103

Comparing the XES 870 DDS with the Océ 950
• Points of Contention: Océ and XES have advanced a number of conflicting claims.
• Hoogervorst Printing claims that the XES 870 is the only truly modular document
reproduction systems on the market. Océ disagrees.
• Hoogervorst Printing says that three paper cutters result in greater system and
maintenance costs without improving system performance. Océ claims that
three paper cutters reduce the number of paper jams and related costs.
• Hoogervorst Printing state that 400 x 400 DPI resolution is important. Océ replies
that sharp reproductions and black backgrounds are not needed in Croon
applications.
• XES market research concludes that most customers only require 3 paper rolls.
Océ contends that 5 paper rolls will enable Croon to handle 100% of its sets.

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 104

What happened…?
Croon acquired the 5 paper roll, Océ 950 for a price of €81,136 plus a bundled, annual maintenance contract for
€5,300. In order, these non-quantifiable benefits of the Océ 950 most influenced the Croon team to purchase
the Océ 950:
1. 100% overnight printing capability,
2. Reduced head and ozone emissions (and hence the elimination of the need to install a ventilation system,
3. Ease-of-use based on the placement of the folder and stacker to the rear of the machine and reduced need
to change paper rolls,
4. The controller featuring a personal computer and Microsoft Windows NT operating system which eliminated
the need for extensive employee training, and
5. The fact that Croon already owned 10 Océ office copiers and had Océ drivers already installed on their CAD
network.
Understanding customer requirements
• Need Uncertainty
• Market Uncertainty
• Transaction Uncertainty

• Kano’s model
https://www.youtube.com/watch?v=j71ql_Htmhk

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 106

Gaining Customer Feedback
• Customer satisfaction management
• ACSI
• Customer value analysis
• Net promoter score
• Willingness to recommend

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Let’s come back to our buyer

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 108

Who really does the buying ?
• Getting at the human factors
• Different buying psychologies exist. Sellers must answer
• Who’s in the buying center : Initiator, Gatekeeper, Influencer, Decider,
Purchaser, User
Initiator Gatekeeper Influencer Decider Purchaser User

• Recognize that • Control • Have a say in • Say yes or no to • Obtain the • Consume the
a company information and whether a the purchased purchased
problem can be vendor access purchase is contemplated product or product or
solved or to corporate made and what product service service
avoided by decision is bought
acquiring a makers;
product or determine
service which vendor
get the chance
to sell

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 109

Who are the powerful buyers
Individuals who:
• Receive the most attention and information from others in the organization
• Are disliked by those with less power
• Send others to critical negotiations instead of attending themselves
• Interestingly, they do not always posses formal authority
Bases of power: Reward, Coercive, Attraction, Expert, Status
Reward Coercive Attraction
Expert Status
•Ability to provide monetary, •Ability to provide monetary •Ability to elicit compliance
social, political or or other punishments for from others because they like Ability to elicit Compliance-gaining
psychological rewards to non compliance you compliance because of ability derived from a
others for compliance technical expertise, legitimate position of
either actual or reputed power in a company

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 110

What do they want
• Clues to identify power
• Power and authority correlation
• Observe communication
• Dislike/like for buying center decision maker
• One way information centers
• Subtle and behind curtains
• Functional area vs power
• Benefit: Financial, Product or service, Social or political, Personal

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How do they perceive us ?
- Gathering psychological intelligence

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 112

B2B Buyer needs
• https://www.youtube.com/watch?v=gLxSNg-tIsw

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 113

Do you really understand how your business
customers buy?
• Consumerization of business buying
• More Social
• More real-time
• More modular
• Priorities for reshaping the sales organization
• Charting decision journey by customer segment and drilling down on
customer expectations and needs at each stage of the journey
• Tackling the difficult process of reallocating sales and marketing resources to
the activities most likely to influence decisions
• Changing organizational structures to ramp up collaborations between
marketing and sales
 B2B Selling Strategy

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 116

Crafting Market Strategy
- Resource exploitation

- Strategy?
Creation of a unique and valuable position, involving a different set of activities

- Strategy : Deliberate or Emergent?

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 117

Crafting Market Strategy
• RBV Barney, 1991
• Core competencies
• Firm does better than competitor
• Drucker’s recommendation

• Capabilities
• Complex bundle of skills and collective learning
• Broader

• Condition for competitive resources

• Imitability
• Durability
• Appropriability
• Substitutability
• Competitive superiority
30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 118
Crafting Market Strategy
• Brands as resources
• Dupont, Teflon..
• Brand Equity
• Greater willingness to sample or trial the offering /less willingness to try competitor
• Easy sales closing
• Higher purchase likelihood / lower switching
• Large share of purchase requirement
• Willingness to pay asked price

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 119

Fundamental Value-based strategies

• Product leadership
• Customer Intimacy
• Operational excellence

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 120

Strategy Making
• Who makes strategy?

• Defining purpose
• To be the world’s most dynamic science company, creating sustainable solutions essential to a
better, safer, healthier life for people everywhere.

• To be a leader in the Indian automobile industry creating customer delight and shareholder
wealth, A pride of India

• To Be a World Class Management Institute to Develop Socially Sensitive, Business Ready

Leaders and Entrepreneurs with Futuristic Orientation and Commitment towards Innovation
and Excellence through Cost-Effective Programs.

• Strategy as orderly advances punctuated by radical changes

• How frequently?
• How different?
30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 121
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 business markets
• Customer value propositions
• Building brands in business markets

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 122

• How will we do it?
• Action plan
• Marketing and sales programs
• Philips India supplying to CAB
• Implementation skills
• Interaction
• Allocation
• Monitoring
• Organizing
• Learning and adapting
• Customer advisory board
• Pilot programs

30-05-2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 123

Business Strategy
Fundamental Value
Resources Based Strategies
- Core Competencies - Product Leadership
Update Business Strategy
- Capabilities - Customer Intimacy
- Partner's resources - Operational Orderly advance ------ Radical Change
Excellence

Business Strategy
Update Market Strategy
What do we
What do we How will we
want to Orderly advance ------ Radical Change
know do it?
accomplish ?
Session 6
B2B Sales Process
Personal Selling
Selling approaches: Theoretical perspective
• AIDAS approach
• Right set of circumstances approach
• Buying formula approach
• Behavioral equation approach
• Need Satisfaction approach
• Consultative approach

30-05-2022 Sales and Distribution Management by Priyavrat Sanyal 128

AIDAS Approach

Attention Interest Desire Action Satisfaction

30-05-2022 Sales and Distribution Management by Priyavrat Sanyal 129

Right Set of Circumstances Approach

Circumstances

Internal Factor

Buying decision Buying behavior

External Factor

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Buying Formula Approach
Need Solution Purchase
Need Solution Purchase Satisfaction

Product
Need Purchase Satisfaction
Service/Trade Name

Adequacy Adequacy Adequacy

Product
Need Service/Trade Purchase Satisfaction
Name

30-05-2022 Pleasant
Sales feeling Pleasant
and Distribution Management by feeling
Priyavrat Sanyal 131
Behavioral Equation Approach

B=PxDxKxV

B= Response, act of buying or patronizing a supplier

P= Internal response tendency or force of habit
D= Present drive level
K= Value of the product or its potential satisfaction (to buyer)
V= Intensity of all cues, triggering and non-triggering

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Need Satisfaction Approach
• Need Identification
• Need Fulfilment
• Need Satisfaction

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Consultative Approach
• In this approach salesperson helps a prospect to solve the following
problems
• Need Problem
• Choice Problem
• Helping in deciding the choice criteria
• Product Installation
• Product-use Problem
• Product maintenance Problem
• Customer feedback Problem

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Salesperson Knowledge Universe

Product
Knowledge

Salesperson’s
knowledge
universe
Company Competitor’s
Knowledge Knowledge

30-05-2022 Sales and Distribution Management by Priyavrat Sanyal 135

Selling Process
• Prospecting :
 Anyone having a need or desire to acquire Identify and define
the product is a LEAD the prospects
 Anyone LEAD who has a current demand
for the product and can get substantial Search for sources of
benefit from it is a PROSPECT potential accounts
 Anyone PROSPECT who have a the ability
to purchase the product but need further Qualify the prospects
persuasion is QUALIFIED PROSPECT from the suspects

Process of Prospecting

30-05-2022 Sales and Distribution Management by Priyavrat Sanyal 136

SPANCO Sales Funnel
a. Automobile dealership sales manager Suspect
reviews the enquiries and conversion
data for each salesperson using the
SPANCO framework. Prospect
b. With a typical suspect-to-order
conversion rate of 10%, if the
salesperson has to sell 5 cars in a
Approach
month, sales manager can estimate if
the salesperson has ample suspects and Negotiate
prospects.
c. In this case, the salesperson must have
at least 50 suspects to achieve the Close
monthly target.
Order
SPIN Selling Framework
You are selling a Sales CRM Software, so SPIN selling will help you as

Situation Problem Implication Need-Payoff

What problem do
What is your
you face in your
current method of
current method of
recording customer Do you think
recording customer Has the
data solving this
data shortcomings in
problem would
your current CRM
help you in
systems affected
How much money achieving your
your business
Why do you use do you spend in goals
this method current setup on
CRM
Comparison between Relationship selling and
transactional selling
Relational Selling Transactional Selling

Salesperson’s focus on delivering value to the Focus only on price

customer

Buyer looks for capabilities in a salesperson Buyer focuses only on the product

More effective, less efficient More efficient, less effective

Long-term orientation in selling Short term approach

Each deal / transaction is seen as a part of relationship Each deal is independent

Customer orientation Product orientation

Example: Example:

30-05-2022 Dr. Priyavrat Sanyal 139

Customer’s buying process
B2B B2C

- Need identification - Need identification

- Product specification - Generation of awareness and interest

- Evaluation of suppliers and products - Evaluation and trials

- Pilot testing and customization - Product/service adoption

- Purchase and roll-out - Post purchase review

- Post sale handover

30-05-2022 Dr. Priyavrat Sanyal 140

Mapping Buying with Selling

Consumer Buying Process Personal Selling Process

• Need identification • Sales lead qualification

• Information search • Sales presentation
- Awareness development
-Interest development
• Intention to purchase • Handling customer objections
• Purchase behavior • Closing the sale
• Post purchase behavior • Follow-up action

30-05-2022 Dr. Priyavrat Sanyal 141

How to sell new products: Focus on earning
not performance
• Ability to innovate but inability to commercialize
• Gap due to lack of formal processes and effective talent-management
strategies
• Difficulty in selling new products
• New Sales process
• Demands on time
• 35% more time meeting customers
• 32% more time spent in face-to-face meetings
• 30% more time meeting cross functional teams of customers

30-05-2022 Sales and Distribution Management by Priyavrat Sanyal 142

Contd..
• Barriers to closing
• Resistance to sale in later stages of sales cycle: customers are initially interested but later
refuse to change status quo
• In sales enquiry and need recognition stage customer are uncertain and worried about
the disruption. Similar concerns are raised in the decision making stage as well
• This pattern is problematic for sales teams. Initial enthusiasm of customers drives sales
teams to put more time but as the process unfolds it become clear that many of those
meetings were never real opportunities
• The training needed
• Typical training focuses on product rather than sales process
• Sales team would be better off spending their time developing a psychological profile of
the ideal customer

30-05-2022 Sales and Distribution Management by Priyavrat Sanyal 143

Contd..
• What makes for successful salespeople?
• Long view
• Have different concerns
• Exhibit more resolve
• Have a learning mindset
• Knowledgeable, customer focused and adaptable
• A culture that supports new product sales
• Assess skills systematically
• Train for knowledge and resilience
• Benefits of Strategic Account Management
• Big picture
• Build partnerships with clients

30-05-2022 Sales and Distribution Management by Priyavrat Sanyal 144

What makes a good salesman?
What makes a good salesman
• Turnover; 50% in first year and 80% in first three years
• https://www.linkedin.com/pulse/why-turnover-so-high-b2b-sales-anthony-chaine/
• 89% leave due to deficient compensation
• 60%-80% leave due to lack of connection with leadership or incompetence of leadership
• 75% leave because of concerns about the company ability to meet market needs

• Cost associated with turnover

• Salary, incentive, commission and other costs
• Search, recruitment and training cost
• Lost sales, drop-outs, company reputation, poor morale, territory lost cost
• So what makes a good salesman; 7 years of field research
• Two basic qualities: Empathy and Ego Drive
30-05-2022 Dr. Priyavrat Sanyal 146
Contd..
• Ability to feel: Empathy- Not sympathy
• Old anti-aircraft weapons and new heat-attracted missile

• Need to Conquer: Ego-Drive- beyond monetary benefits

• Closing the deal enhances self-ego

Ego Close
Empathy
Drive the sale

30-05-2022 Dr. Priyavrat Sanyal 147

Contd..
• Failures must act as trigger of motivation for more effort
• Balance between partially weakened and strong ego

• Synergistic Effects

High High Ego

E Empathy D Drive

Low Low Ego

e Empathy d Drive
30-05-2022 Dr. Priyavrat Sanyal 148
Contd..
• Need for Balance
• ED
• Ed
• eD
• ed
• Why you can’t select a salesperson by taking standard test
• Test have been looking for interest rather than ability
• Tests have been eminently fakable
• Test have favored group conformity, not individual creativity
• Test have tried to isolate fractional traits rather than reveal the whole
dynamics of the man

30-05-2022 Dr. Priyavrat Sanyal 149

Contd..
• Fallacy of Experience

• Background blindness

• Role of training

30-05-2022 Dr. Priyavrat Sanyal 150

On top of it, the smell of the place…
• https://www.youtube.com/watch?v=YgrD7yJwxAM&t=1s
Action time
• Assume that your company, which sells paper products, has 60
percent of the business at your largest account. What factors would
make it relatively easy for you to get a larger share of that customer’s
business, and what factors would make it harder?

• Factors:

30-05-2022 Dr. Priyavrat Sanyal 152

 Session 7

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14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 2
Fundamental Value Equation

V f – Pf > V a – Pa

Vf –Va> Pf – Pa

∆ Value f,a > Price f – Price a

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 3

Pricing Approach
• Cost-plus Pricing
• Competition-based Pricing
• Value-based Pricing

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Value based pricing
∆ Value f,a > Price f – Price a
Price f < Price a + ∆ Value f,a
Value f
knowing Pa helps in deciding a feasible range,
So CBP is a special case of VBP
Let’s assume Ca=Cf 0 Cost Price a Value
f,a a
- Profit = Pa-Ca
- Customer incentive to purchase=Va-Pa
- Incremental value=Vf-Va

- Penetration pricing strategy : Price f = Value a

- Skimming pricing strategy : Price f = Value f
- Incentive to change pricing strategy: Price f = CIP
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 5
VIU and VIU Price
• VIU = (Vf –Va ) – (Pf– P a)

• VIU Price = Price a + (Vf –Va )

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 6

Zeus Laser Technologies
• Precision 2000 Laser Drill
• GLM 7Z84
• Value in Use
• Value in use price

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 7

Value in Use
Value-in-use = (Va – Vb) – (Pa – Pb), where
• V = value of an offering = benefits (B) – costs (C) provided by that offering
• P = price of an offering (note: for this calculation state on per year basis)
thus, value-in-use = (Ba – Bb) - (Ca – Cb) – (Pa – Pb)

1) Ba – Bb = annual NPAT generated by Zeus – annual NPAT generated by GLM

= $505,500 - $500,000
= $5,500
2) Ca – Cb = annual costs of Zeus model – annual costs of GLM model
annual costs include preventative maintenance, repair parts, lubricants, metal working fluids, and
reworking
= ($7,000 + $5,000) – ($5,000 + $3,000 + $2,500 + $4,000 + $5,000)
= $12,000 - $19,500
= - $7,500

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 8

Contd..
3) Price per year = price/lifetime (note: cost-plus priced used
here)
• Price per year Zeus = $125,000/10 years = $12,500 per
year
• Price per year GLM = $50,000/5 years = $10,000 per year
Pa – Pb = $12,500 - $10,000 = $2,500

4) Value-in-use price per year = (Ba – Bb) - (Ca – Cb) – (Pa –

Pb)
= $5,500 – (-$7,500) - $2,500)
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 9
Value in use Price
Value-in-use price = (Va – Vb) + Pb

value-in-use price per year = [$5,500 – (-$7,500)] + $10,000

= $23,000 per year

value-in-use price over lifetime = (value-in-use price per

year) x lifetime
= $23,000 x 10
= $230,000 over lifetime
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 10
Strategy
• Strategy and Structure

• Ansoff matrix

• Corporate strategy and business strategy

Busines
s
Strateg
y
Corporate
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes Strategy 11
Three Perspectives of Customer Value

The Buyer’s Perspective The Seller’s Perspective

Value Creation through Value creation through
products and services customer equity

The Buyer-Seller
Perspective
Value Creation through
networks

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 12

Foundational Characteristics of Value
• Customer value implies an interaction between and subject
(Customer) and an object (Product/Service)
• Customer value involves a trade off between benefits and costs of
an object
• Customer value is not inherited in the object, but in the
customer’s experience derived from the object
• Customer value is personal since it is subjectively determined by
the customer
• Customer value is situation specific
• Customer value is multi-dimensional and consists of multiple
value types
• Customer value if co-created by the customer by means of
resource integration
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 13
Customer Value Proposition
• What does the value proposition consist of?
• What customer question is the supplier attempting to answer
with the value proposition?
• What is required for a supplier to construct the value
proposition and have a sales force deliver it?
• What is a potential pitfall of the value proposition?

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 14

Customer Value Proposition
• All Benefits
• When supplier manager list all the benefits they believe that their offering
will deliver to the customer
• Least demanding to construct
• Some benefits might be point of parity, rather than benefit
• Favorable Points of Difference
• Conveying the value of the relative point of difference from the competitor
• At the same time ignoring that the point of difference would be valuable to
the customer
• Resonating Focus
• Consists of highlighting both points of difference and points of parity
• Offer highlighting the improvement would deliver greatest value to the
customer in the foreseeable future
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14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 16
GATI and IFTEX
• IFTEX wanted end-to-end solution from the logistic
provider, including
• PAN India presence
• Handling all taxation
• Delivery to various Petrol Stations
• Payment Collection
• Rapid money realization through local bank
• Online inventory status
• Rapid Order fulfilment

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 17

GATI and IFTEX
• Gati Provided,
• Mapped customer activity, conducted value reserach
• 100 sft dedicated space in their warehouses across country
• Dedicated manpower
• Shared information system
• Web based software for order processing and returns
• Centralized billing
• Daily MIS

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 18

Reading: Transforming Strategy One
Customer at a Time
• Thomson corporation
• Newspapers, Text books, Law books, Professional journals, Leisure
travel

• Long-term viability issues

• Unequal market growth
• Change in market dynamics

• Required transformation and radical changes in strategy to

sustain in the long-term
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 19
Reading: Transforming Strategy One
Customer at a Time
• Steps towards transformation
• Map out real market
• 3 to 8 segments
• Parthenon group

• Understand customers’ objective and work flow

• Day in the life – ethnographic research
• Three minutes approach

• Develop products that provide what users value most

• Lukewarm tea?

• Keep the focus on users

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 20
Reading: Transforming Strategy One
Customer at a Time
• Two views of product development priorities

• Ongoing implementation
• Sales and go-to-market plans
• Feedback mechanisms
• Scaling up the process

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 21

Managing Market Offerings
• Putting products, services, programs, and systems together
in ways that create the greatest value for targeted market
segments and customer firms

• Core Product + Augmented product

• Tangibility

• Average customer
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 22
Commoditization vs Value offering

“ There is no such thing as a commodity. All goods and

services are differentiable. Though the usual presumption is
that this is more true of consumer goods than of industrial
goods and services, the opposite is the actual case ”
- Levitt

Wheat, Rice ?
Metals ?

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 23

Understanding the True Extant of
Commoditization
• Difference from competitor

• What customers value? Safety glass

• Competitor price info

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 24

Rebuilding Differentiation
• Supplementary service, programs and systems

• Knowledge banks – Allegiance healthcare’s best practice

database

• Building leveraging expertise –GLS’s regulatory compliance

manual

• Changing customer’s frame of reference – Cost to TCO

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 25
Service as Core Product in Market
Offerings
• Characteristics of service
• Intangibility
• Inseparability of production and consumption
• Perishability
• Heterogeneity
• What about market research? Cleaning services?
• SD Logic
• Service vs Product : Tangibility vs Intangibility

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 26

SD Logic

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 27

Business Relationships

Social Cultural Technologi Time

Distance Distance cal Distance
• Degree to • Degree to Distance
- Requirement
which actors which firm • Degree to vs offering/
are unfamiliar values and which approach
to each other culture are product and
different production
technologies
are different
Ford et al.
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 2011 28
 Creating Value

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 29

Constructing Flexible Market Offerings
• Basic product
• Naked solution
• Mass customization
• Elicitation
• Process flexibility
• Logistics

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 30
Gaya
Augmenting Services, Programs and
Systems
Service Progra System
s Fulfilment: availability
msEconomic: terms and
s
Linking: order management
system, automated
assurance, emergency conditions, deals, discounts,
replenishment, vendor
delivery, installation, training, allowances & rebates/bonus,
managed inventory, ERP,
maintenance, warranty, guaranteed cost
Computerized maintenance
disposal/recycling saving
management

Efficacy: information and

Technical: specs, testing and Relationship: advice and
design assistance system,
analysis, troubleshooting, consulting, design, process
expert system, integrated
problem-solving, calibration, engineering, joint marketing
logistics management, asset
customer productivity research, co-marketing and
management, responsiveness
improvement co-promotion
systems

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 31
Gaya
Vedic Healthcare’s market offerings
• Vedic Healthcare caters to two segment of customers in
India:
a) transactional hospital customers, who do business on order to
order basis
b) Strategic customer, who have a close relationship and are
committed to Vedic
The marketing manager has to decide the market offerings for
both of these customers, in terms of offering different
services, programs and systems.
Please fill in the matrix if you are that marketing manager:
Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh
14/06/2022 32
Gaya
Market Offering Transaction Strategic
Elements al Customers
Customers Market Offering Transactio Strategic
Services Select among these 3 Elements nal Customers
choices: standard, optional, Customers
not offered Programs Select among these 3
- Product Returns choices: standard,
optional, not offered
- Technical Assistance
- Price Deals
- Single point contact
- Corporate customer
- Future disease
bonus
incidence forecast
Market Offering Transactional Strategic
Elements Customers Customers -Executive
Systems Select among these 3 choices: perspective
standard, optional, not offered
-Consolidated
- ASAP order entry
system purchasing report
- Technology
summary
assessment - ACCESS Program
- Stockless inventory
program
- Vedic Corporate
- Asset management
consulting
system14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh
33
Gaya
 Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh
14/06/2022 34
Gaya
Market Offering Transaction Strategic
Elements al Customers
Customers Market Offering Transactio Strategic
Services Select among these 3 Elements nal Customers
choices: standard, optional, Customers
not offered Programs Select among these 3
- Product Returns Std Std choices: standard,
optional, not offered
- Technical Assistance Std Std
- Price Deals Std Std
- Single point contact Not Std
offered - Corporate customer Not Std
- Future disease Not Option bonus offered
Market Offering
incidence forecast Transactional
offered Strategic
Elements Customers Customers -Executive Not Std
Systems Select among these 3 choices: perspective offered
standard, optional, not offered
-Consolidated Not Std
- ASAP order entry Std Std
system purchasing report offered
- Technology Not offered Std
summary
assessment - ACCESS Program Not Option
- Stockless inventory Option Option offered
program
- Vedic Corporate Not Option
- Asset management Option Option
system14/06/2022 consulting
Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh offered
35
Gaya
Market Offerings to Different Segments
• True breadth of the market offering
• Product vs service offering
• Arbitrary nature of charges
• Standard vs Option: fourth quarter habits
• Lack of variation across segments
• All Vanilla
• Assess/Measure customer value and supplier cost
• LTV, Supplier Cost

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 36
Gaya
Coming to Grips with Service Cost
• Hidden transaction costs
• ABC

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 37
Gaya
Flexible Market Offerings by Market
Segment
• Reevaluating existing standard services
• Reexamining optional services
• Building flexibility with new services
• Pricing implications

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 38
Gaya
Flexible Market Offering Strategy Matrix
Service Element Deployment

Service Element Do not market Market as standard Market as option

Status
Existing Standard Prune from std offering Retain in std offering Recast as surcharge
Service option

Existing Optional Discontinue option Enhance std offering Retain as value added
Service option

New Service Keep on shelf Augment std offering Introduce as value

added option

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 39
Gaya
 Session 9

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 40

Value merchants
• https://www.youtube.com/watch?v=Rq9pH-ovYaI

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 41

 Place Your
Bids….Computron Inc.

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 42

Case: Computron, Inc (2006)
• Thomas Zimmermann
• Computron 1000X digital Computer
• Konig & Cie, AG Germany

• List price: $1,244,800

• Nearest competitor: $872,000

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 43

Case: Computron, Inc (2006)
• Pricing structure
• Factory cost + markup 33.33% + Transportation and installation +
import duty

• 768,000 + 256,000 + 153,600 + 67,200 = 1,244,800

33.33% markup include

- Profit 11%
- R&D 8%
- Sales and admin 6%

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 44

Bids
• Group 1
• Group 2
• Group 3
• Group 4
• Group 5
• Group 6
• Group 7
• Group 8
• Group 9
• Group 10
• Group 11
• Group 12
• Group 13
• Group 14
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 45
Your Bid…?
- Identify usage of product
- Anticipate future orders
- Don’t go very low to match price
- Propose superior value to counter competition

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 46

Do you really understand how your
business customers buy?
• Consumerization of business buying
• More Social
• More real-time
• More modular
• Priorities for reshaping the sales organization
• Charting decision journey by customer segment and drilling down on
customer expectations and needs at each stage of the journey
• Tackling the difficult process of reallocating sales and marketing
resources to the activities most likely to influence decisions
• Changing organizational structures to ramp up collaborations
between marketing and sales
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 47
14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 48
Flexible Market Offerings by Market
Segment
• Reevaluating existing standard services
• Reexamining optional services
• Building flexibility with new services
• Pricing implications

14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || Great Lakes 49

Session 8
Vedic Healthcare’s market offerings
• Vedic Healthcare caters to two segment of customers in
India:
a) transactional hospital customers, who do business on order to
order basis
b) Strategic customer, who have a close relationship and are
committed to Vedic
The marketing manager has to decide the market offerings for
both of these customers, in terms of offering different
services, programs and systems.
Please fill in the matrix if you are that marketing manager:
Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh
14/06/2022 51
Gaya
Market Offering Transaction Strategic
Elements al Customers
Customers Market Offering Transactio Strategic
Services Select among these 3 Elements nal Customers
choices: standard, optional, Customers
not offered Programs Select among these 3
- Product Returns choices: standard,
optional, not offered
- Technical Assistance
- Price Deals
- Single point contact
- Corporate customer
- Future disease
bonus
incidence forecast
Market Offering Transactional Strategic
Elements Customers Customers -Executive
Systems Select among these 3 choices: perspective
standard, optional, not offered
-Consolidated
- ASAP order entry
system purchasing report
- Technology
summary
assessment - ACCESS Program
- Stockless inventory
program
- Vedic Corporate
- Asset management
consulting
system14/06/2022 Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh
52
Gaya
 Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh
14/06/2022 53
Gaya
Market Offering Transaction Strategic
Elements al Customers
Customers Market Offering Transactio Strategic
Services Select among these 3 Elements nal Customers
choices: standard, optional, Customers
not offered Programs Select among these 3
- Product Returns Std Std choices: standard,
optional, not offered
- Technical Assistance Std Std
- Price Deals Std Std
- Single point contact Not Std
offered - Corporate customer Not Std
- Future disease Not Option bonus offered
Market Offering
incidence forecast Transactional
offered Strategic
Elements Customers Customers -Executive Not Std
Systems Select among these 3 choices: perspective offered
standard, optional, not offered
-Consolidated Not Std
- ASAP order entry Std Std
system purchasing report offered
- Technology Not offered Std
summary
assessment - ACCESS Program Not Option
- Stockless inventory Option Option offered
program
- Vedic Corporate Not Option
- Asset management Option Option
system14/06/2022 consulting
Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh offered
54
Gaya
Market Offerings to Different Segments
• True breadth of the market offering
• Product vs service offering
• Arbitrary nature of charges
• Standard vs Option: fourth quarter habits
• Lack of variation across segments
• All Vanilla
• Assess/Measure customer value and supplier cost
• LTV, Supplier Cost

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 55
Gaya
Coming to Grips with Service Cost
• Hidden transaction costs
• ABC

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 56
Gaya
Flexible Market Offerings by Market
Segment
• Reevaluating existing standard services
• Reexamining optional services
• Building flexibility with new services
• Pricing implications

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 57
Gaya
Flexible Market Offering Strategy Matrix
Service Element Deployment

Service Element Do not market Market as standard Market as option

Status
Existing Standard Prune from std offering Retain in std offering Recast as surcharge
Service option

Existing Optional Discontinue option Enhance std offering Retain as value added
Service option

New Service Keep on shelf Augment std offering Introduce as value

added option

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 58
Gaya
 Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh
14/06/2022 59
Gaya
Points of Differentiation
How to Discover New Points of
Differentiation?
• Mapping the consumption chain
• How do people become aware of their need for your product or service?
• How do consumers find your offerings?
• How do customers make their final selections?
• How do customers order or purchase your product or service?
• How is product or service delivered?
• What happens when your product or service is delivered?
• How is your product installed?
• How is your product or service paid off?
• How is your product stored?
• How is your product moved around?
• What is the customer really using your product for?
• What do customers need help with when they use your products?
• What about returns or exchanges?
• How is product repaired or serviced?
• What happens when Dr.
14/06/2022 your product
Priyavrat is
Sanyal || B2B
Gaya
disposed
Marketing off or no longer used?
|| IIM Bodh
61
Analysing Customer Experience
• Is there a way to differentiate selling Fuel (
Petrol/Diesel/CNG)?
What else your
If a business
customers are
trip, then if the If alone, then from
doing when they
customer is where they buy
are buying fuel?
alone, with fuel? The first
Are they going on
colleagues, station they find,
a business trip,
friends, on the highway?
leisure trip, regular
spouse… ?
commute

What concerns the

customer has if
they want to buy
fuel from a station
on highway?
Personal security,
clean restroom,
food, round the
Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh
clock convenience
14/06/2022 store 62
Gaya
Managing Market Offerings Across
Borders
• International Market Development
• Initial foreign market entry phase
• Vary little from the home market offering
• Local or national market expansion phase
• Gaining greater market penetration by constructing segment specific offerings
• Global rationalization phase Adaptati
on

• Integration of logistics, develop transnational market offerings

Transnatio
nal Market
offering

Aggregatio Arbitrag
n e

Dr. Priyavrat Sanyal || B2B Marketing || IIM Bodh

14/06/2022 63
Gaya
 Case discussion
Siebel Systems: Anatomy of a Sale
Presentation by Odd Numbered Groups

14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 64

Siebel Systems- Anatomy of a Sale – Part
1
• About Siebel Systems
• Tom Siebel; Greg Carman; Cathy Ridley

14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 65

Synopsis
• How do multi-million dollar sales happen?

• Siebel system attempts to sell Customer Relationship

Management (CRM) software to Quick and Reilly, a discount
stock broker.

• The buying process is mapped out over four years.

• Quick and Reilly’s parent firm is Fleet Bank.

• The situation is presented in three parts with different options

available to the sales manager, Greg Carmen.
14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 66
Contd..
• Siebel’s founder Tom Siebel had a vision for his firm
• He wanted the firm to endure over time.
• He was committed to the prosperity of his customers over his
venture funders – “ we will do anything to make you succeed”
• Gave voice to tradition values: a) Professional courtesy and
decorum; 2) Bias for action in customers' interest
• Intention was to be a leader in CRM and pursued 50% market share
from the onset. Product was built hand-in-hand with potential
customers.
• Vision to make CRM a CEO issue not a CIO issue.
• Share the value created to built an ecosystem for applying IT to
sales and marketing function.
14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 67
Contd..
• Siebel Systems Targeted Account Selling (TAS) Process
• Assess the Opportunity
• Define the competitive strategy
• Develop the Relationship strategy
• Turn ideas into action
• Test and improve the plan

14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 68

Situation
• Siebel System meets Quick and Reilly
• Trade Show at NYC
• Customer asked about the competitor to Carmen (page 5)

• How should Carmen respond to the invitation to tell Quick and

Reilly executives what he thought of Oracle?

• How should Carmen qualify the prospect? Should he ask “what’s

your budget ?” or should he suppress his curiosity and leave it to the
prospect to bring up information about the size and timing of the
opportunity?

• If he asks for the information, how will he use it?

14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 69
Further..
• Despite ongoing conversations, Carmen was not sure about
the size of opportunity. Carmen’s approach at this moment
was to:
• Prove them that Siebel had a superior product
• Convince them that Siebel would collaborate with them to make the
system work
• Identify and meet the right set of executives and Q&R to convert
this opportunity to sale

• Evaluate Carmen’s interactions with the customer upto this point. Is

he doing a good job? How effective is Siebel System’s approach?

14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 70

Siebel Systems – Part 2
• Q&R’s view of the transaction
• Q&R was technologically challenged
• In 1998, installed a DOS based system to capture customer calls,
trigger outbound mailing and track results. MDFS
• In 1996, they realized a need to upgrade the system
• Found Bradley Systems from ads, called and told them they need a
system for 100 offices, 500 brokers, 1 million customers, and was
connected to Zitzner, the President at Bradley

• Put yourself in Zitzner’s position, how should he handle the

conversation? What is the objective in this call?

14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 71

Contd..
• Zitzner asked for RFP doc, which Q&R did not have, so they
offered services to prepare RFP at $15000 and took 2
weeks.
• Just when the RFP was ready, Q&R was acquired by
FleetBoston ( 1997).
• Nothing happened much for 1 year. In 1998, they were told
that the DOS based system would collapse during Y2K.
• Then the trade show….

14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 72

Siebel System – Part 3
• The meeting..

• How should Carman establish the roles of Burt and

Capodilupo in the transaction? How should he decide who
plays the most important role?

• Internal discussion about Oracle and Siebel

• At this point the account is Oracle’s to lose. It particularly

does not want to lose the Siebel Systems. How should
Oracle act?
14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 73
Contd..
• Closing the deal

• Where did Carman go wrong? How did he come to miss his

numbers?

• A turn for the worse

• How can Carman save the Quick and Reilly transaction

without injuring the FleetBoston relationship?
14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 74
Contd..
• Scopus Product…

• What is your advice to Carman? Could he have anticipated

the call from the FleetBoston manager? At this stage, how
important is the FleetBoston relationship to him? What do
you think of Siebel Systems’ approach to customer
satisfaction? Is it a realistic one? Is it possible that customers
can take advantage of Siebel Systems because of its
commitment to customer satisfaction?

14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 75

• How did Carman fared as a salesperson – Top sales person,
Average or Poor?

14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 76

The Situation…
Greg Carman of Cathy Ridley of Q&R
Siebel
GOALS- What does each party want to
accomplish
ASSETS- What does each party bring to
potential relationship
INFORMATION – What does each party give
to the other
INFORMATION – What does each party
expect to get from the other
NEXT STEPS- What would you do next in
each party’s shoes?

14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 77

Contd..
• Target Account Selling Process

• What do you think of this way of structuring the selling

process?
• It is systematic
• It tells the salesperson when to collect account information and
what to collect
• It lets management monitor selling efforts- the process of
converting leads to sales
• But it is rigid and unresponsive to the personalities of a particular
buying center
• It makes relationship building a step 3 activity – should that come
earlier?
14/06/2022 B2B Marketing || Dr. Priyavrat Sanyal 78