Graduate School of Management

BACHELOR PROGRAMS

Fall Semester
2010/2011

Course Outline

Business-to-Business Marketing

Professor: Sergei P. Kouchtch

e-mail:

Course Summary

Program / Bachelor Program in Management (Marketing)
Year / 4-th year, fall semester
Course status / Elective
Workload / 4 ECTS, 45 hours of classes
Prerequisites / Marketing
Course layout / Lectures, practicum, group work, exercises, presentations, case studies, home and class assignments, guest lecture.

General Course Goals and Objectives

The main objective of this course is to form a clear understanding of b2b marketing with its specific issues, including both conceptual and methodological levels as well as practical implementation.
This course examines the nature and the role of b2b marketing while implementing marketing strategy and measuring its impact on a firm’s marketing performance.
General course objectives include:
-to explore the nature and dynamics of some of the principal marketing management issues associated with b2b sector as well as characteristics of b2b marketing;
-to consider the role and scope of business markets;
-to analyze trends and challenges business-to-business markets face;
-to understand the nature and the role of relationships between companies and within networks as well as trends and challenges relationship marketing faces;
-to examine current issues concerning the development and implementation of segmentation processes in b2b markets;
-to evaluate the nature of business products;
-to give an understanding of marketing channels, supply chains and networks;
-to explore individual communication tools and media of the b2b promotional mix;
-tounderstand the framework of developing strategy in business markets.

Course content

Topic 1. The nature of b2b marketing
Topic 1 introduces the fundamental characteristics used to define business markets and considers the nature, size and dynamic of the sector. It establishes the key elements of business-to business marketing and makes comparisons with the better-known business-to-consumer sector.
Topic 2. Relationship marketing approach in b2b marketing
This topic examines the nature and role of external relations and networks in implementing marketing strategy, their impact on a firm’s marketing performance and how they are managed.
One of the most important aspects of marketing is relationship and network management which involves developing and managing the relationships with external organizations in order to gain access to and develop key resources and competences.
Topic 3.Buying process in b2b markets
Buying process in b2b markets is considered to be one of the most important issues in b2b marketing because of different buying procedures andconsumer behavior of business clients.
Topic 4. Business information systems and marketing research in b2b sector
This part of the course introduces fundamental IT concepts in order to give a basic appreciation of business information systems and related technologies. The main aspects of the topic relates to functional systems of data gathering and management as well as specific issues of marketing research in b2b markets.
Topic 5. Different approaches to segmenting b2b market
Topic 5 considers issues concerning different approaches to segmenting b2b markets. It develops conventional approaches and explores issues around the implementation and practicalities of b2b segmentation. It concludes by discussing ways in which organizations can use different positioning when segments and targets are agreed.
Topic 6. The product strategy of b2b company
This topic examines the nature and features of b2b products and services. These constitute some of the essential elements through which organizations operating in b2b market develop value-based propositions for their customers. Product market portfolios, including the product and technology life cycles, new product development processes in b2b markets are investigated.
Topic 7. Communication tools and media of the b2b promotional mix
Topic 7 focuses on the nature and characteristics of the individual communication tools and media of the b2b promotional mix. Attention is giving to the importance of the personal selling and direct marketing in this sector, but also to the characteristics and usage of exhibitions, sponsorships, public relations and the role of the Internet within b2b marketing communications.
Topic 8. Channel management in b2b markets
This part covers marketing channels, supply chains and networks in b2b markets examining their role, purposes and structures and explores the challenges of managing interorganisational relationships within the marketing channel or network.

Outline of OverallCourse Structure

Topic 1. The nature of b2b marketing

Class 1. Introduction to business-to-business marketing
Preliminaryassignment / Required reading for class:
Ross Brennan, Louise E Canning, Raymond McDowell. Business-to-Business Marketing. London, 2007. Chapter 1.
Keypoints:

the definition and understanding of b2b marketing
the nature and scope of business markets
different types of organisational customers
characteristics of b2b marketing
external environment of b2b markets

Learning outcomes:

awareness of the fundamental characteristics used to define business markets and the nature, size and dynamic of the sector;
an ability to indentify the key characteristics associated with b2b markets and suggest how they might impact on b2b marketing activities;
the knowledge of the key elements of business-to business marketingand different types of organisational customers;
an ability to make the comparisons between business-to-business markets and better-known business-to-consumer sector as well as define similarities between them;
understanding of the role of b2b marketing in the global environment

Assignments for class2:

Reading:
Anderson J.C., Narus J.A. Business marketing: understand what customers value // Harvard Business Review, 1998, 76 (June), pp. 53-65.

Project work:

Working groups formation
Topic selection for group projects
Class 2.Modern trends of b2b marketing
Keypoints:

modern trends of development of b2b marketing
contribution of the firm to the industry value chain
b2b marketing and Supply Chain Management
IT systems in b2b marketing
b2b marketing as the basis of relationship marketing

Learning outcomes:

the knowledge of the most fundamental modern trends of b2b marketing development;
an ability to draw value chain as depicted by Porter (1985) and appraise the contribution of a firm to the industry value chain;
an awareness of interrelation between business-to-business marketing theory and Supply Chain Management;
an ability to analyze b2b marketing using modern approaches (IT, relationship marketing)

Assignments for class3:

Reading:

Gronroos Ch. From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing // Asia-Australia Marketing Journal, 1994, Vol. 2, Is.1, pp.9-23.
Hunt Sh., Morgan R. Relationship Marketing in the Era of Network Competition // Marketing Management, 1995, Vol. 3, iss.1, pp.19-29.
Ross Brennan, Louise E Canning, Raymond McDowell. Business-to-Business Marketing. London, 2007. Chapters 3, 9.

Project work:

Working groups formation
Topic selection for group projects

Topic 2. Relationship marketing approach in b2b marketing

Class3.Basics of relationship marketing theory in b2b marketing
Keypoints:

the roots of relationship marketing in b2b sector
transactions versus relationships

Learning outcomes:

awareness of main issues of relationship marketing;
understanding the trends driving the paradigm shift in marketing theory from transactions to relationships.

Assignments for class4:

Reading:

Achrol S., Kotler Ph. Marketing in the Network Economy // Journal of Marketing, 1999, Vol.63 (Special issue)

Project work:

Working groups formation
Topic selection for group projects
Class4.Basics of relationship marketing theory in b2b marketing
Keypoints:

competitive advantage from relationships
Commitment-Trust Theory

Learning outcomes:

an ability to introduce the importance of relationships in b2b marketing
understanding of the Commitment-Trust Theory

Assignments for class 5:

Reading:

LisaM. Hunter, Chickery J. Kasouf, Kevin G. Celuch and Kathryn A. Curry. A classification of business-to-business buying decisions: risk importance and probability as a framework for e-business benefits // Industrial Marketing Management, 2004, Volume 33, Issue 2, pp. 145-154.
Ross Brennan, Louise E Canning, Raymond McDowell. Business-to-Business Marketing. London, 2007. Chapter 2.

Topic 3. Buying process in b2b markets

Class5.Buying process in b2b markets and organisational buying behavior
Key points:

consumer and organisational buying behavior
decision making unit and decision making process in b2b marketing
the membership and main characteristics of decision making unit
a classification of business-to-business buying decisions and different types of buying situations
the influences that impact on organisational buyer behavior

Learning outcomes:

an ability to compare the characteristics of organisational with consumer buying behavior;
understanding the traditional views about organisational buying behavior, before progressing to consider the importance of relationships and the contribution that systems and technology have made to this aspect of business marketing;
an awareness of the factors influencing organisational buyer behavior

Assignments for class 6:

Reading:

Newall J. Industrial buyer behavior // European Journal of marketing, 1977, Volume 11, Issue 3, pp. 166-211.

Class6.Buying process in b2b markets and organisational purchasing behavior
Key points:

behavior, characteristics and processes that organizations use to purchase products and services
a classification of business-to-business purchasing decisions
consumer and organisational purchasing behavior
b2b marketing in the context of organisational purchasing behavior
Supply Chain Management

Learning outcomes:

understanding the factors that influence the purchasing behavior of the company;
an ability to consider the impact that different relationships between buyers and sellers might have on purchasing behavior of the company;
an awareness of the current trends in purchasing behavior of the b2b companies

Assignments for class7:

Reading:

Ross Brennan, Louise E Canning, Raymond McDowell. Business-to-Business Marketing. London, 2007. Chapter 5.

Exercises:

Case “OOO RusAl-Sayanskaya Folga’s Choice of marketing strategy” – read and be prepared for discussion

Topic 4. Business information systems and marketing research

Class 7. Business information systems and marketing research in b2b sector
Key points:

the history of information technology in business
an overviewof Business Information Systems (BIS) and related technologies
Marketing Information Systems (MIS) of b2b companies
particular features of marketing research in b2b markets

Learning outcomes:

knowledge of MIS defining common terms and the context within which specific b2b marketing applications are explored
awareness of the particular features of marketing research in b2b markets and special instruments that are used to collect the data

Class8.Practicum
Case discussion:
“OOO RusAl-Sayanskaya Folga’s Choice of Marketing Strategy”
Keypoints:

the analysis of marketing strategy chosen by the company paying attention to the constraints it faces (limited marketing budget, intense competition, consumer pressures, etc)
product categories in company’s product portfolio and approaches related to the creation of the marketing plan for each category

Learning outcomes:

an ability to define and analyze the strategy of the company in both the b2b and b2c markets;
a capability to evaluate the efficiency of marketing strategy

Assignments for class9:

Reading:

Goller S., Hogg A., Kalafatis S. А new research agenda for business segmentation. // European journal of Marketing, 2002, Volume 36, Issue 1/2, pp. 252-271.
Ross Brennan, Louise E Canning, Raymond McDowell. Business-to-Business Marketing. London, 2007. Chapter 6.

Class9. Mid-term Exam
Mid-term test

Topic 5. Different approaches to segmenting b2b markets

Class10. Different approaches to segmenting b2b market
Key points:

current issues concerning the development and implementation of segmentation processes in b2b markets
the bases of segmenting business markets
the process of micro- and macro segmentation
some of the processes used to select target markets
b2b product positioning

Learning outcomes:

understanding of the main barriers to successful b2b segmentation
an ability to identify the variables that might influence the nature of the decision making unit and its utility within the segmentation process

Assignments for class10:

Reading:

Michael Beverland, Julie Napoli, Adam Lindgreen. Industrial global brand leadership: A capabilities view // Industrial Marketing Management, 2007, Volume 36, Issue 8, pp. 1082-1093.
Ross Brennan, Louise E Canning, Raymond McDowell. Business-to-Business Marketing. London, 2007. Chapter 10.

Topic 6. The product strategy of b2b company

Class 11. The product strategy of b2b company
Key points:

the nature of business products – the characteristics of business products and services
the business products life cycle
business services marketing
the strategy of business product
the key issues associated with the new product development process
marketing of high technology products and innovations

Learning outcomes:

understanding of nature and significance of product strategies of b2b companies
an ability to examine both the product and technology adaptation life cycles and determine how these might impact on business and evaluate the new product development process
knowledge of the various ways in which technology can be used to develop value through products and pricing
an ability to evaluate the new product development process

Assignments for class 11:

Reading:

Moller K., Rajala A. Organizing Marketing in Industrial High-Tech Firms. The role of Internal Marketing Relationships // Industrial Marketing Management, 1999, Volume 28, pp. 521-535.
J. David Lichtenthal, Vivek Yadav and Naveen Donthu. Outdoor advertising for business markets // Industrial Marketing Management, 2006, Volume 35, Issue 2, pp. 236-247.
Ross Brennan, Louise E Canning, Raymond McDowell. Business-to-Business Marketing. London, 2007. Chapter 7.

Class12. Practicum
Group presentations
Learning outcomes:

knowledge of factors influencing the company’s marketing decisions in b2b markets
developing presentation skills and abilities
posting and answering the questions and sharing opinions concerning b2b marketing problems in real business environment

Topic 7. Communication tools and media of the b2b promotional mix

Class13. Communication tools and media of the b2b promotional mix
Key points:

the key characteristics and effectiveness of each of the primary tools used in b2b marketing communications
the degree to which the promotional instruments can be used to support one another
business advertising, sales promotion and business PR

Learning outcomes:

knowledge of the main characteristics of each of the tools of the promotional mix and their significance in business-to-business promotional mix;
an ability to determine the fundamental criteria associated with the selection and use of particular tools and review the effectiveness of the tools relative to the organisational purchase decision process;
a capability for creating and developing the promotional plan for b2b products based on the concept of integrated marketing communications

Assignments for class13:

Reading:

Supply chain management: Retrospective and Prospective // JournalofMarketing Theory & Practice, 2004, Volume 12, Issue 4, pp. 60-65.
Ross Brennan, Louise E Canning, Raymond McDowell. Business-to-Business Marketing. London, 2007. Chapter 11.

Topic 8. Channel management in b2b markets

Class 14. Channel management in b2b markets
Key points:

marketing channels, supply chains and networks – their roles, purposes and structures
managing distribution channels of b2b companies and interorganisational relations
different channel structures
multi-channel approach

Learning outcomes:

the knowledge of the key elements of any b2b marketing channels, their types and the most important functions as well as the main roles that channels participants assume;
an ability to explain the nature and concept of marketing channels;

an awareness of the basic principles concerning types and structure of marketing channels and an ability to analyze the structure of the b2b marketing channel
Class15. Practicum
Group presentations
Learning outcomes:

knowledge of factors influencing the company’s marketing decisions in b2b markets
developing presentation skills and abilities
posting and answering the questions and sharing opinions concerning b2b marketing problems in real business environment

Evaluation system

Forms of current evaluation:

a) participation in lectures: students will be encouraged to actively participate in class discussions, challenge each other and the lecturer and be prepared to defend their own arguments. Students will be evaluated on the following criteria: individual attendance, participation in classroom discussions and quality of contributions.

b) participation in seminars: seminars are essential for the learning process so attendance and participation in class discussions is crucially important. Asking questions, making comments, offering examples and other mental activity will be evaluated in terms of its quality and actuality.

c) individual project: each student should prepare up to 5-page report (Times New Roman, 12) with an appropriate case analysis showing decision making ability. At first the case “OOO RusAl-Sayanskaya Folga’s Choice of Marketing Strategy”will be discussed on the 8th class (28.09.2009, 14.45 – 16.15) and after all the student should sum up their own ideas and present them in the individual paper till the 19th of October, 2009.

d) mid-term test: the written mid-term test covers the main topics studied during the first part of the course and consists of both multiple choice and essay type questions.

e) group project: each project includes Power Point presentation (20 minutes) and handouts.Each project presentation has to start with the clear research proposition and the problem to be analyzed (perspective of presentation, main theoretical issues investigated, model tested, etc.) and include structured outcomes and conclusions both theoretical and practical. Not less than 3 questions should be prepared for class discussion.

f) test on articles: written test on articles will be held during the class. The date will be announced in advance. The list of the articles needed to be read is included to the program as assignments for every class. You need to read them before the class to be prepared for the discussions in class.

Form of final evaluation: the final written testwill consist of a selection of questions based on all course issues and materials (relevant textbook chapters, lecture and seminar material, casesdiscussed etc.) The test will be made of forty questions, 30% of which are multiple-choice type and 70% are essay type questions. Each question gives from 2 to 4 points.

Grading policy

Participation in lectures/seminars 5%

Teston articles 5%

Mid-term test 10%

Individual project 10%

Group project10%

Final written test60%

Requiredtextbook

Brennan R. Business-to-Business Marketing [Text] / Ross Brennan, Louise E Canning, Raymond McDowell. – London: SAGE Publications Ltd, 2007. – 380 p.