Select a business-to-business company, and discuss the segmentation strategies that they might utilize as they identify their target market. 200-300 words onlyAnswer all 3 questionsExplain why you be

MBA 5871 , Business -to-Business Marketing 1 Cou rse Learning Outcomes for Unit II Upon completion of this unit, students should be able to: 1. Differentiate between business -to-business (B2B) and business -to-consumer (B2C) marketing. 1.1 Describe how the development of relationship strategies are different in the B2B vs. the B2C world. 2. Analyze several strategic marketing B2B models. 2.1 Examine costs incurred when developing business relationships with different B2B customers. 2.2 Identify strategies to increase the switching costs of current B2B customers. 8. Explain business -to-business marketing ethics. 8.1 Discuss potential ethical implications of establishing strategies to increase profit levels within the B2B organization. Reading Assignment Chapter 3: Customer Relationship Management Strategies for Business Markets Chapter 4: Segmenting the Business Market and Estimating Segment Demand Unit Lesson Relationship marketing , as defined by Morgan (1994) , is about establishing, developing , and maintaining successful exchanges with customers and other constituents. Perrault (2014) suggests that close relationships between buyers and sellers produce mutual benefits. The best relationships involve mutual trust and a long -term outlook. Firms can share tasks at a lower total cost than would be possible if the close relationship did not exist. Companies that are able to maintain a larger degree of brand equity amongst its customers are able to enjoy increased business but also their ability to share their level of commitment by word -of-mouth. This is true in both B2B as well as B2C situations. There are a host of different types of business relationships. Halt (2013) identi fies three main types to include transactional exchange, operational linkage , and collaborative exchange. Transactional exchange might be considered the most basic of relationships where the product/service is exchanged quickly with a focus on competitive pricing. W ith respect to operational linkages, there is a closer relationship with free exchange of information. Finally, the collaborative exchange is the closest of relationships where a significant amount of social interaction occurs with mutual commitm ents and partnerships formed . Customer relationship management (CRM) is a system for managing a company’s interactions with their customers. This might include continued personalized dialogue with customers often using technology to organize and increase the efficiency of the process. In an effort to create an effective CRM strategy, there has been a host of software tools produced that will facilitate the critical tasks to increase the probability of a solid CRM program within the organization. Popular C RM software programs are detailed in the below chart: UNIT II STUDY GUIDE The Business Customer MBA 5871, Business -to-Business Marketing 2 UNIT x STUDY GUIDE Title CRM Software Description Salesforce.com Market leader focusing on sales and support Infusion soft Features lead generation tools and marketing automation, email and social media tools to engage leads ProsperW orks Cloud -based tool that provides complete views of their customers Pipeliner Creates significant visibility of the sales process including lead generation, tracking and contact management Bullhorn Offers the ability to use multiple devices as the firm tracks pitch effectiveness Base Offers free apps for mobile devices for both B2B and B2C sales professionals Netsuite Offers multiple features for increasing sales, marketing support through monitoring performance and projecting future sales. PipelineDeals Offers contact management and sales force uncomplicated automation functionality zendesk Offers a simple web -based help desk solution for B2B customers Snapforce Offers automatic recording of phone interactions Using these or other CRM software packages in assisting with the management of your customers should lead to an improved relationship , lending itself to the overall goal of an efficient CRM program . Segmentation is a basic practice within the marketing field leading to the ident ification of the target market. Segmentation suggests that the marketer will separate the population based on certain criteria. This criteria might include demographics such as income, age, sex, family size, family life cycle, occupation, education and soc ial class. Another criteria might be behavioral , which includes interests, thoughts, benefits sought, rate of use , and level of brand equity. Another involves the psychographic criteria such as personality, values, perceptions and personal motivations. Fin ally, geographic criteria should be considered , which includes the region of the world or a region within a country. Once a market is segmented, the marketer will have a greater understanding of their customer and will be able to identify the target market . As a reminder, the target market is defined as a fairly homogeneous (similar) group of customers to whom a company wishes to appeal (Perreault, 2014). As marketing departments do not have unlimited promotional budgets, it makes logical sense to focus on the group of customers that are the most likely to purchase the product . Segmentation principles leading to the identification of the target market can also be applied to the B2B world.

The B2B customer is a person with certain motivations which need to be considered. If the B2B buyer is purchasing a product to be used in the manufacture of another product, this buyer is looking for the most profitable answer to fit into their manufacturing equation. Remembering that ultimately, the B2B buyer will be sell ing to the consumer, the end -consumer motivations also need to be considered. Hutt (2013) discusses four requirements within the B2B scenario which include the following:  Measurability is the degree to which the information on the buyer can be obtained.  Accessibility is t he ability of the company to reach the identified target market.  Sustainability is the ability of the target market to provide a profit  Responsiveness is the degree to which the target market actually responds positively to the applied ma rketing mix (product, pricing, place and promotional strategies). One method used to segment industries is the North American Industrial Classification System (NAISC), which basically organizes businesses into groupings that have similar production proces ses. This provides B2B marketers with a good understanding of groupings of customers , which can provide better insight into the needs of certain customers within business segments . Segmentation can also aid in forecasting demand both from a qualitative a s well as quantitative basis. With respect to qualitative, executive judgment suggests that top executives within an organization will possess the wisdom to successfully predict demand. Another similar approach is that of the sales force composite , which MBA 5871, Business -to-Business Marketing 3 UNIT x STUDY GUIDE Title suggests that since the sales force deals with the customer regularly, they should be able to accurately predict demand. The Delphi method relies on a panel of experts to predict. With respect to quantitative, the time -series methods use historical data to project and the causal approach utilizes factors that have affected past sales applying this in a mathematical model to predict demand. Finally, the Collaborative Planning Forecasting and Replenishment (CPFR) is a somewhat collaborative approach that uses the combined efforts of many functions within the organization as well as the members of the supply chain. This method really takes on a holistic approach to supply chain management along with the expertise of many different departments within the organiza tion. It tends to improve customer service with the improved forecasting and lower inventory rates. Additionally, relationships with suppliers are improved and most organizations reap the benefits of overall cost reductions. Basically, it utilizes best pra ctices lea ding to greater efficiencies. The basics of CPFR include the following :  strategy & planning (mission vision and objectives of the collaboration including delegation of roles ),  demand & supply management (sales forecasting, inventory planning and lead -time management ),  execution (implementation of plan ), and  analysis (measurement and assessment ). While the CPFR is widely accepted and utilized, there are some challenges involved including the selection of the CPFR partners, obtaining senior management buy -in and the issues surrounding the sharing of confidential information from within the organization. Additionally, utilizing this plan, may involve a significant cultural change within the organization. References Hu tt, M. D., & Speh, T. W. (2013). Business marketing management: B2B (11th ed.). Mason, OH: South - Western. Morgan, R., & Hunt , S. (1994). The commitment -trust theory of relationship marketing. Journal of Marketing . Perreault, W., & Cannon, J. (2014). Basic marketing, a marketing strategy planning approach. McGraw - Hill. Suggested Reading In this video , you will learn about best -practices for business development. Ward, R. (2011, November 11). The art of business development: Tips for buildin g relationships [Video File]. Retrieved from https://www.youtube.com/watch?v=CwHvN9JcAgE The author of this article discusses the 7 B’s of building a solid relationship with your customers. Sanburn, M. (2013). The 7 B's of relationship building, customer service exper t. [Video File]. Retrieved from https://www.youtube.com/watch?v=7 -UfI2BZ0cU In this article the reader will learn about the importance of collaboration. Fidel, P., Schlesinger, W ., & Cervera, A. (2015). Collaborating to innovate: Effects on customer knowledge management and performance. Journal of Business Research, 68 (7).