Summary of the book, articles and tutorials for the course International Business and Supply Chain Marketing

SUMMARY
International Business and Supply Chain Marketing




Quirine Rodenberg

,Content
Chapter 1 – B2B Markets and Customer Relationships..........................................................................2
Chapter 2 – Customer Value Marketing.................................................................................................6
Chapter 3 – Value of the Customer........................................................................................................8
Chapter 4 – Value for the Customer.....................................................................................................13
Chapter 5 – Combining Value of and for the Customer........................................................................15
Chapter 6 – Offering Superior Value Propositions................................................................................18
Chapter 7 – From Products to Total Solutions......................................................................................22
Chapter 8 – Differentiating in Customer Service and Customer Relationship Management................25
Chapter 9 – Value Enhancement through Sustainability......................................................................27
Chapter 10 – Total Cost of Ownership and Customer Value-Based Pricing..........................................29
Chapter 11 – Improving Trustworthiness Through Risk Reduction.......................................................33
Chapter 13 – Return on Value: The Business case of CVM...................................................................36
Chapter 14 – Customer Perceived Value, Satisfaction, Delight and Trust.............................................41
Chapter 15 – Commitment and Loyalty: the ultimate VOC Antecedents.............................................44
Article 1 – Issues in Supply Chain Management...................................................................................50
Article 2 – What is the right supply chain for your product?................................................................53
Article 3 – Supply Chain Postponement and Speculation strategies.....................................................55
Article 4 – Aligning Marketing and Purchasing for new value creation................................................57
Article 5 – Supply chain integration and performance: the effects on long-term relationships, IT and
sharing, and logistics integration..........................................................................................................59
Article 6 – Centralised supply planning at IKEA....................................................................................60
Article 7 – Information Distortion in a Supply Chain: the Bullwhip effect.............................................62
Article 8 – Ericsson’s proactive supply chain risk management approach............................................64
Article 9 – From risk to resilience: learning to deal with disruption.....................................................66
Tutorial 1..............................................................................................................................................69
Tutorial 2..............................................................................................................................................70

,Chapter 1 – B2B Markets and Customer Relationships
- Introduction
o The company’s total value proposition is being evaluated by comparing the benefits
of a proposition against the sacrifices they must make
 Benefits  the product/service, customer service, solutions
 Sacrifices  money, risk

- B2B Markets and companies
o B2B markets deliver their products directly to other companies, governmental
agencies or public organizations
o B2B organizations are operating in different B2B sectors;
 Primary sector
 Extracting, mining and harvesting natural products from our earth
 Secondary sector
 Processing, manufacturing and constructing products using goods or
materials the primary sector delivers
 Two sectors
o Input-to-process
 Suppliers providing goods that are utilized as inputs
in the B2B customer’s process
o Installed-base
 They provide investment goods to B2B customers
 Two types;
 The Capex business
o Capital items
 The Opex business
o Operational expenditure for internal
consumption
 Service, maintenance and
repair related to Capex
 Tertiary sector
 Services sector
o Accountancies and advertising agencies
o B2B can sell five different product groups;
 Resell as is
 Products bought for trade
 Unmodified
 Integrate as components
 They become part of a final product
 No need for further processing
 Modify and resell
 Products become part of the B2B customer’s final product
 They need further processing by the B2B customer
 Capital items
 Used for production within the B2B customer’s organization
 This customer is the end user for internal use
 These goods and services help the company operate and conduct
their main activities
o Desks, machines
 Internal consumption

,  The products do not become part of the final product and are no
capital items
 Used for operating the company, maintenance or repair
 Toilet paper for in the company’s toilet

- Value Chains and B2B customers
o Value chains
 Combinations of companies that produce, distribute, and eventually deliver
products to the end user
 Raw material supplier, distributor, manufacturer, wholesale, retail, consumer
o Strategic network competition
 To develop the best set of capabilities and resources to be competitive in the
market
 Three views;
 Traditional view
o Horizontal and company-to-company competition
o Suppliers in the same business compete to get and retain the
best customers
 Hierarchical competition
o Vertical integration by buying companies
o Competition between integrated companies
 Strategic network competition
o Various companies work together as network partners
o Companies should focus on direct customers and indirect customers
 Three types of B2B relationships;
 B2B
o When the business customer is the end-user
 B2B2B
 B2B2C
o Suppliers can gain competitive advantages by doing research to their customers’
customers
 Direct customer downstream support
 Push marketing principle
 Supporting their customers to improve their power downstream in
the value chain
 Cooperative indirect customer marketing
 Joint activities of the supplier and direct customer
 Independent indirect customer marketing
 Pull approach
 Supplier directly contacts indirect customers

- Customer-Supplier relationships
o Companies enter relationships with other companies when such a relationship
contributes to the competitiveness of the organization, to achieve competitive
advantage and superior financial performance
o The relationship
 Determinants
 Factors that have an impact on an exchange relationship
 Use of the product by the customer, availability of alternatives,
supply market dynamism, importance of supply, complexity of
supply