Nottingham Business School (Term Paper Sample)

Nottingham Business School
MSc Marketing/ MSc Management (2013/14)
Marketing Contexts
Business-to-business (B2B)
Abstract
In business marketing there are respective theories that have to be considered in order to enhance proper relations that facilitates accomplishment of business and marketing goals and objectives. However, more emphasis will be based on Business to Business marketing, which could be defined as a managerial process that facilitates exchange of goods and services between the producers and the consumers within destined industry. In furtherance, business to business marketing could be illustrated as a situation whereby one business sells services or products of another business. Some of the products and services marketed may be directly used in other business or sold to consumers on behalf of the producing company. The key issues that will be showcased in the paper include deriving an approach on significance of business to business markets through consumer market targets, creating a better understanding of business to business (B2B) markets and corresponding differences in comparison to consumer markets. The scope of business to business would also consider decision making process and demonstrate real life application situation of business to business marketing. The discussion paper will focus on how marketing theories could be applied in business to business context.
Table of Contents
 TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc392746704"
Abstract……………………………………………………………………………………………………. PAGEREF _Toc392746704 \h
1
 HYPERLINK \l "_Toc392746705"
a) How Marketing Theory and Concepts have developed in the Academic Literature relating to Business to Business Context  PAGEREF _Toc392746705 \h
2
 HYPERLINK \l "_Toc392746706"
Significance of Business to Business (B2B) markets to Consumer Market Targets  PAGEREF _Toc392746706 \h
2
 HYPERLINK \l "_Toc392746707"
Creating a Better Understanding of Business to Business (B2B) Market  PAGEREF _Toc392746707 \h
5
 HYPERLINK \l "_Toc392746710"
Differences between B2B and Consumer Markets  PAGEREF _Toc392746710 \h
6
 HYPERLINK \l "_Toc392746711"
b) How Marketing Managers Could Use Theoretical Concept of B2B in Developing a More Effective Marketing Mix  PAGEREF _Toc392746711 \h
7
 HYPERLINK \l "_Toc392746712"
c) A personal reflection on the extent to which the theory and concepts might be transferable to other marketing contexts encountered in the Marketing Contexts module  PAGEREF _Toc392746712 \h
10
 HYPERLINK \l "_Toc392746714"
Recommendation  PAGEREF _Toc392746714 \h
12
 HYPERLINK \l "_Toc392746716"
References  PAGEREF _Toc392746716 \h
13

a) How Marketing Theory and Concepts have developed in the Academic Literature relating to Business to Business Context
Significance of Business to Business (B2B) markets to Consumer Market Targets
The business to business markets compose of products or services purchased by organisations purposefully for resale or use in manufacturing other products. Some of the products could be destined for reseller markets, public sector markets, and industrial markets. However, to effectively accomplish the requirements and necessities in business to business markets, it is essential to involve porter’s Value Chain (Brennan, 1997). A bird’s eye view of the Porters Model is effective in this regard. It offers a better view of organisation and its corresponding functions. It creates competitive advantage in the market mainly due to approach taken to transform inputs into outputs, considering consumer needs (Håkansson & Ford, 2002). In furtherance, the model ensures that consumer markets and other markets that target products for producing other products that targets the same markets are satisfied. This would mean that both targeted businesses and consumers get willing to pay for the products and services due to full satisfaction accorded (Wright, 2004).
An organisation secures competitive advantage in the market through adherence to a workable approach with regard to the firm’s value chain. This is connected to the larger value system in the targeted markets. Forthwith, an organisation or business should be determined to invest in improved or new approaches to enhance consumer satisfaction. This is due to the fact that a business is supposed to target specific market (Buttle, 1996). It entails combination of numerous activities in a better way that outweighs its competitors especially through adopting better approach to manage value chain linkages. This would enhance accomplishment of the value chain needs leading to satisfactory results. However, this brings us to the question as to why it is important to study business to business marketing. The answer would not be challenging since the main subject should derive a workable approach on significance of business to business (B2B) through consumer market targets (McDonald et. al., 1997). This implies that proper understanding business to business enhances recognition of practices that lead to consumer satisfaction at all levels of production and service delivery. According to Anderson & Narus (1998), it is important to derive a detailed understanding of supply/ demand chains in relation to products or services traded in a business. The business would be efficient in delivering to the distinct consumers. When working with or dealing with businesses whose customers are primarily other business organisations, it is important to state that approaches adopted by business to customers have been derived from the applications of business to business markets (Blois, 1998, $ Brady, 2004).
Although business to business markets are characterised by fewer buyers, research on business management indicate that it enhances customer recognition. More attention is focused on fewer customers leading to full satisfaction of their respective needs. The percentages of buyers in public sector are slightly high with about 5-8% of the GDP (Håkansson & Ford, 2002). The main involvement that businesses intending to invest in business to business markets have to take into account is the high cost of advertisement. In order for business to business to derive, there is need for closer relationship with its customers; this could be primarily accomplished through advertising. It enhances sellers and buyers’ resilience since the competitors may get promiscuous hence misleading customer (Wright, 2004).
Business involvements require legal and binding contracts. Regardless of the size of product or service that a customer intends to purchase, good business and trading terms enhances trust and long-term business deals. No customer would invest in business without product/ service guarantee. Sellers and buyers from other businesses are also trained to be experts in executing their business deals (Brennan, 1997). This is whereby business to business marketing is effective in ensuring that customers are fully satisfied with the business transactions within which they are involved (Anderson & Narus, 1998).
Most of the customers be it organisation whose main purpose is to buy the products for producing other products or services in peculiar ways, or consumers who are directly targeting their personal interests when purchasing products; customers generally have multiple factors that influence their purchasing power for both goods and services (McDonald, 2000). This is why business to business targets respective factors considered by customers before making decision on products to purchase. Some of the customer targets that business to business markets are concerned with include: service or product quality, specific customer needs, legal considerations in business, customer taste, choice and preferences, and decision making unit (McDonald et. al., 1997).
When considering consumer markets, business to business is more concerned with respective features of decision making unit. An in-depth participation of users which include managers and staff are core in deciding on what is best for the targeted markets. Product and service technicians and designers form part of the influencers (Håkansson & Ford, 2002). Thorough market research on the respective products and services that customers would like to purchase from the business would be necessary for business to business markets. This persuades customers since they may not have other reason to critisise the kind of products and services that area available in the markets. However, the impeders, and approvers also plays great role in decision making process (Buttle, 1996).
In business to business markets, having wider knowledge of the decision making team and the structural complexity in organisation may facilitate the customer/ consumer decisions to invest or purchase products from specific company. However, appropriate decision making process should be based on long term considerations (Anderson & Narus, 1998). This ensures that most of the common customer requirements are satisfactorily handled. It is true that business to business markets are delicate; this implies that when wrong products are brought to the market, there would be low chances of selling leading to waste of resources (McDonald, 2000). The longer the period taken by the decision making team while working with the business, the better the understanding of the consumer requirements. It is important to ensure that same people serve in the decision making unit for longer period to derive better understanding of the business market scope (Wright, 2004). This enhances...