,© 2019 University of South Africa
All rights reserved
Printed and published by the
University of South Africa
Muckleneuk, Pretoria
MNM2604/1/2020–2022
70708770
InDesign
MNB_Style
,CONTENTS
Page
INTRODUCTION vii
LEARNING UNIT 1: Introduction to business-to-business marketing 1
1.1 Introduction 3
1.2 Defining B2B markets and B2B marketing 3
1.3 Types of B2B customers or buyers 4
1.3.1 Resellers 4
1.3.2 Producers 4
1.3.3 The government 4
1.3.4 Institutions 5
1.4 Market structures and characteristics of B2B and B2C markets 5
1.5 Buying behaviour of B2B and B2C customers 6
1.6 Marketing practices of B2B and B2C businesses 6
1.7 Classification of B2B products 7
1.8 Summary 8
1.9 Self-assessment questions 9
1.10 Self-reflection 9
1.11 References 9
LEARNING UNIT 2: Business-to-business buying (B2B) 10
2.1 Introduction 11
2.2 The strategic importance of B2B buying 12
2.3 The buying centre of customer firms 13
2.4 The B2B buying process followed by client firms 14
2.5 Types of products that customer firms buy 16
2.6 Types of buying decisions taken by customer firms 17
2.7 Summary 18
2.8 Self-assessment questions 18
2.9 Reflection 19
LEARNING UNIT 3: Business development and planning 20
3.1 Introduction 22
3.2 Defining strategic planning, strategy and the strategic and operational
organisation levels 22
3.3 The strategic planning process 24
3.3.1 Formulate the mission of the firm 24
3.3.2 Perform an environment or situation analysis (step 2 of the process shown
above) 25
3.3.3 Set long-term and medium-term strategic objectives 25
3.3.4 Selecting a strategy 26
3.3.5 Implementing the strategy 32
3.3.6 Monitoring, evaluating and controlling strategy implementation 32
3.4 Summary 32
3.5 Self-assessment questions 33
3.6 Reflection 33
(iii) MNM2604/1/2020–2022
, LEARNING UNIT 4: Marketing research and competitor analysis 34
4.1 Introduction 35
4.2 Marketing research in business-to-business markets 36
4.3 B2B versus business-to-customer (B2C) market research 37
4.4 B2B marketing research approaches, techniques and information sources 38
4.4.1 Primary research 40
4.4.2 Secondary research 41
4.5 The keys to successful B2B marketing research 42
4.6 B2B marketing research challenges 43
4.7 Performing a competitor analysis 44
4.7.1 The purpose of a competitor analysis 44
4.7.2 Defining the competitor arena 45
4.8 Summary 51
4.9 Self-assessment questions 52
4.10 Reflection 52
4.11 References 52
LEARNING UNIT 5: egmenting business markets, choosing target markets and positioning
S
products 54
5.1 Introduction 57
5.2 A practical business-to-business scenario 57
5.3 The market structure or market preference pattern 58
5.4 Should market segmentation be done? 60
5.5 The market segmentation exercise 61
5.6 Target market selection 63
5.7 Perception analysis and product positioning 64
5.8 Summary 65
5.9 Self-assessment questions 66
5.10 Reflection 66
5.11 References 66
LEARNING UNIT 6: Business innovation and product management 67
6.1 Introduction 69
6.2 Innovation management 69
6.2.1 The changing nature of innovation 70
6.2.2 Drivers of innovation 70
6.2.3 Creating a culture of innovation 72
6.2.4 Types of innovation 72
6.3 Product management 74
6.3.1 The strategic importance of developing new products 74
6.3.2 Managing the organisations product portfolio 75
6.3.3 Developing new products in B2B markets 76
6.4 B2B service products 77
6.5 Summary 78
6.6 Self-assessment questions 78
6.7 Reflection 79
LEARNING UNIT 7: Pricing in business-to-business marketing 80
7.1 Introduction 81
7.2 The price setting process 81
7.3 Summary 83
7.4 Self-assessment questions 83
7.5 Reflection 83
(iv)
All rights reserved
Printed and published by the
University of South Africa
Muckleneuk, Pretoria
MNM2604/1/2020–2022
70708770
InDesign
MNB_Style
,CONTENTS
Page
INTRODUCTION vii
LEARNING UNIT 1: Introduction to business-to-business marketing 1
1.1 Introduction 3
1.2 Defining B2B markets and B2B marketing 3
1.3 Types of B2B customers or buyers 4
1.3.1 Resellers 4
1.3.2 Producers 4
1.3.3 The government 4
1.3.4 Institutions 5
1.4 Market structures and characteristics of B2B and B2C markets 5
1.5 Buying behaviour of B2B and B2C customers 6
1.6 Marketing practices of B2B and B2C businesses 6
1.7 Classification of B2B products 7
1.8 Summary 8
1.9 Self-assessment questions 9
1.10 Self-reflection 9
1.11 References 9
LEARNING UNIT 2: Business-to-business buying (B2B) 10
2.1 Introduction 11
2.2 The strategic importance of B2B buying 12
2.3 The buying centre of customer firms 13
2.4 The B2B buying process followed by client firms 14
2.5 Types of products that customer firms buy 16
2.6 Types of buying decisions taken by customer firms 17
2.7 Summary 18
2.8 Self-assessment questions 18
2.9 Reflection 19
LEARNING UNIT 3: Business development and planning 20
3.1 Introduction 22
3.2 Defining strategic planning, strategy and the strategic and operational
organisation levels 22
3.3 The strategic planning process 24
3.3.1 Formulate the mission of the firm 24
3.3.2 Perform an environment or situation analysis (step 2 of the process shown
above) 25
3.3.3 Set long-term and medium-term strategic objectives 25
3.3.4 Selecting a strategy 26
3.3.5 Implementing the strategy 32
3.3.6 Monitoring, evaluating and controlling strategy implementation 32
3.4 Summary 32
3.5 Self-assessment questions 33
3.6 Reflection 33
(iii) MNM2604/1/2020–2022
, LEARNING UNIT 4: Marketing research and competitor analysis 34
4.1 Introduction 35
4.2 Marketing research in business-to-business markets 36
4.3 B2B versus business-to-customer (B2C) market research 37
4.4 B2B marketing research approaches, techniques and information sources 38
4.4.1 Primary research 40
4.4.2 Secondary research 41
4.5 The keys to successful B2B marketing research 42
4.6 B2B marketing research challenges 43
4.7 Performing a competitor analysis 44
4.7.1 The purpose of a competitor analysis 44
4.7.2 Defining the competitor arena 45
4.8 Summary 51
4.9 Self-assessment questions 52
4.10 Reflection 52
4.11 References 52
LEARNING UNIT 5: egmenting business markets, choosing target markets and positioning
S
products 54
5.1 Introduction 57
5.2 A practical business-to-business scenario 57
5.3 The market structure or market preference pattern 58
5.4 Should market segmentation be done? 60
5.5 The market segmentation exercise 61
5.6 Target market selection 63
5.7 Perception analysis and product positioning 64
5.8 Summary 65
5.9 Self-assessment questions 66
5.10 Reflection 66
5.11 References 66
LEARNING UNIT 6: Business innovation and product management 67
6.1 Introduction 69
6.2 Innovation management 69
6.2.1 The changing nature of innovation 70
6.2.2 Drivers of innovation 70
6.2.3 Creating a culture of innovation 72
6.2.4 Types of innovation 72
6.3 Product management 74
6.3.1 The strategic importance of developing new products 74
6.3.2 Managing the organisations product portfolio 75
6.3.3 Developing new products in B2B markets 76
6.4 B2B service products 77
6.5 Summary 78
6.6 Self-assessment questions 78
6.7 Reflection 79
LEARNING UNIT 7: Pricing in business-to-business marketing 80
7.1 Introduction 81
7.2 The price setting process 81
7.3 Summary 83
7.4 Self-assessment questions 83
7.5 Reflection 83
(iv)
