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International and Business to business marketing - Partner Relationship Management

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INTERNATIONAL AND BUSINESS-TO-BUSINESS MARKETING Business markets are "markets for products and services, local to international, bought by businesses, government bodies, and institutions, for incorporation, for consumption, for use, or for resale."1 In business marketing, the customers are organisations, (businesses, governments, and institutions). An organisation is a group of people pursuing a common aim through co-ordinated activities, organisations are characterised by structure, activity and goals.2 The search for improved quality and superior performance has spawned a significant shift in the purchasing practices. To develop profitable relationships with organisational customers, business marketers must be attuned to these changes, rather than relying on competitive bidding and dealing at arms-length with a large number of suppliers, a new approach to purchasing has been adopted in many industries. Siebel Systems Inc has done just that, (NASDAQ: SEBL) is the world's leading provider of eBusiness applications software. Siebel Systems provides an integrated family of eBusiness applications software, enabling multi-channel sales, marketing, and customer service systems to be deployed over the web, call centres, field, reseller channels, and retail and dealer networks. OBJECTIVE - In 2001, BT Retail decided to undertake a bold customer-centric strategy to improve its competitive position. The objective of this strategy was two-fold: to increase customer retention and revenue by improving its customer service capabilities and to reduce costs through improved efficiency and greater productivity. BT Retail defined customer satisfaction as the metrics that would determine the level of the projects success. Therefore, BT's decision making would typically involve many people, as the value of purchase would be substantial thus making the decision high risk. BT's specifications are precise therefore more emphasis would be placed on personal selling, guided by long term-relationship. ...read more.


* Influencers. * Deciders. * Gatekeepers. However, Hill (1972)9, rather than analyse the structure of the buying centre through the roles of the participants, he suggested an analysis on the basis of function units: * Control unit: responsible for policy making which influences buying. * Information unit: responsible for providing information relating to the purchase. * Buying unit; anybody within the organisation who will use the product or the service. * Decision-making unit: those people within the buying centre who between them will arrive at a decision. While there are a host of variables that can determine the composition of the buying centre, they can be broadly categorised into market, company and product factors. Products and services are often technologically complex and this, combined with bulk purchasing, leads to many industrial purchases being of high value.10 Also, industrial markets are characterised by derived demand and marketing thus requires careful evaluation of the secondary markets, which influence demand for the primary product. Furthermore, many industrial products are highly concentrated and there tends to be greater differences between buyers. Therefore, we can conclude that each individual market will have its own characteristics, thus in this case, Siebel Systems will organise their buying centre to meet the particular conditions that are demanded by BT. The organisation of the buying centre to meet these market characteristics will vary depending upon the size of the company and the service being purchased. Weighand (1966) defines a product as 'variety of promises to perform'. Performance will be judged according to the expectations that the individual has according to the expectations that the individual has of the product, the product variable embraces a number of characteristics, including product essentiality, technical complexity, value of the purchase, consequence of failure, novelty of the purchase and frequency of the purchase. ...read more.


Thus every action of the industrial marketer is based on the probable response of organisational buyer in relation to price, product, distribution, advertising and promotion. Industrial marketing is characterised by complex interaction processes both within the marketing and purchasing companies. High technological and financial dependencies are common in industrial markets. These dependencies lead to extensive involvement and interchange over a long time periods. Thus purchasing is a multiphase and a multi-objective process. 1 Prospectus for the institute for the study of Business markets, College of Business Administration, the Pennsylvania State University. 2 Michael J. Baker; The Marketing Book, (2nd ed., pp. 152; Article by Peter W. Turnbull) 3 Peter W. Turnbull; Birmingham business School 4 http://www.selling2bt.com/html/working/how/default.asp 5 WWW.SIEBEL.COM 6www.siebel.com/bestpractices/bt.shtm 7 WWW.SIEBEL.COM 8 Webster, F. & Wind, Y. Organisational buyer behaviour', prentice hall (1972) 9 Hill, R. The nature of industrial buying decisions, industrial marketing management, vol.2 (1972) 10 Wallace (1976) 11 Cyer & March, A behavioural theory of the firm, Prentice hall, 1963 12 Luffman, G. Industrial buyer behaviour, European journal of marketing vol. 8 no. 2, 1974 13 Michael D. Hutt & Thomas W. Speh; Business Marketing Management - a strategic view of industrial and organisational markets, (6th ed, pp. 16) 14 Frank V. Cespedes, Concurrent Marketing: Integrating Products, Sales, and Service (Boston: Harvard Business School Press 1995), pp. 14-18. 15 http://www.btplc.com/society/values/suppliers_fr.htm 16 Ford, 1982 17 Wilson & Mummalaneni (1986) 18 Michael D. Hutt & Thomas W. Speh; Business Marketing Management - a strategic view of industrial and organisational markets, (6th ed, pp. 215). ID NO. - 323763 Dr. LOUISE CANNING PROF. PETER TURNBULL COURSEWORK - 07 13452 (Word Count - 2,714) 1 ...read more.

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