Integrated Marketing Communications

and services marketing process

9Using communications for B2B

B2B……the business to business channel of marketing

There are some significant differences with B2C

the size of the markets are larger, but there are less customers

There is a higher average spend per customer, a wider geographic spread…

…and buyer behaviour is more complex

B2B buying is made up of four main sub-sectors…

Buying for own consumption

Buying for incorporation and/or assembly

Resale to another organisation

Retail to be sold on

Behaviour can be influenced by specific risks…

technical

personal

relationship

delivery

financial

service

professional

Personal selling...

…is the most important tool in B2B

It can help build relationships with members of buying centres

Products can be demonstrated

Technical aspects can be explained

Supporting tools…

There are many communications tools can be used to support the personal selling effort

Trade promotions

Trade advertising

exhibitions

Technology, and especially the internet, offers new methods of communications that are great for delivering communications content

Direct marketing

Public relations

Trade promotions

Trade shows and exhibitions

sell, sell, sell… and meet your targets!

networks and relationships…

There is significant strategic value in marketing channels, partnership, alliances and networks

The structure of a network has one focal organisation (yours) and those connected to it for various reasons… predominantly exchanges

…networks are maintained for the potential opportunities they offer

Those that are more profitable or beneficial can develop through relationships, into partnerships…

…with a mutual desire to maintain that value

Trust, commitment and loyalty

Necessary for development of relationship marketing

Trust…necessary in all relationships…

needs credibility

…the brand is a great tool to instill trust

trust, commitment and loyalty

commitment…

the desire for an enduring relationship

we achieve commitment through…

shared values

good communications

The potential for losses through termination are high

…evolution of Key Account Management

key accounts are customers in a business-to-business market identified by selling companies as of strategic importance

…think about Pareto’s 80-20 rule

Millman, 1995

…relationships matter more than products

Company

CustomersEmployees

External marketing communications…AdvertisingSales PromotionPublic RelationsDirect Marketing

Internal marketing communications…

Interactive marketing communications…Personal SellingService EncountersServicescapes

Communications and the services marketing triangle

Wilson, A. et.al, (2008) adapted from Kotler (1997)

services marketing…

A complex part of marketing and communications due to 5 key factors…

heterogenity

ownership

inseperability

intangibility

perishability

intangibility implications

Customers need more information to make a decision…

…there are higher levels of perceived risk

word of mouth… both face to face and online is very powerful

…informing and persuading are key tasks

it’s important to build a good reputation

…open days

inseparability implications

The service is not separate from the provider

High quality customer facing staff supported by high quality training

Employees (customer facing staff) are key here

Heterogeneity implications…

Variability of quality can affect the service

Standardisation of the service offered

Influence or control over customer perceptions of service

Consistency of quality control, customer service

Perishability implications…

Particular services are perishable…

… for example a show at a theatre

Meet customer demands when needed

Stimulate off-peak demand

Ownership implications…

No tangible product or good transferred to customer

Brochures, programmes, photos, giftware…

Offer symbolic tangible items

Service quality gaps model

customer

provider

Word-of-mouthCommunications Personal needs Past experience

Expected service

Perceived service

Servicedelivery

Service qualityspecifications

Management perceptionsof customer expectations

Externalcommunications to

customers

Gap 5

Gap 4Gap 1

Gap 3

Gap 2

Zeithaml, Parasuraman & Berry, 1996

managing the gaps...Gap 1 – Consumer expectations and management perceptions gap

Gap 2 – Management perceptions and service quality specification gap

Gap 3 – Service quality specifications and service delivery gap… standards

Gap 4 – Service delivery and external communications gap… consider promises

Gap 5 – Expected service and perceived service gap… service quality