International Business & Supply Chain Marketing (EBB609B05)
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Rijksuniversiteit Groningen (RuG)
Summary of the book, articles and tutorials for the course International Business and Supply Chain Marketing.
Chapter 1-11 & 13-15, articles and tutorials
International Business & Supply Chain Marketing (EBB609B05)
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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
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