Covers the importance of B2B strategy making and planning. www.b2bwhiteboard.com

1. B2B Strategy Making and Planning
Overview

2. Overview
• Developing market strategy – is the
process of studying how to exploit a
firm’s resources to achieve short-
term and long-term marketplace
success, deciding on what course
of action to pursue, and flexibility
updating it as learning occurs
during implementation.

3. Crafting Market Strategy
Business Strategy
Update Business Strategy
Resources:
Fundamental
Value Based Strategies
Orderly Radical
# Core competencies
# Product leadership
advance
advance
# Capabilities
# Customer intimacy
# Partners resource
# Operational excellence
Update Market Strategy
Knowledge
Orderly Radical
Market Strategy
• Deliberate
advance
advance
What do we What do we How will we • Emergent
know?
want to do it?
accomplish?
Anderson, James, James Narus and Das Narayandas (2009),
Business Market Management: Understanding, Creating, and
Delivering Value, Third Edition, Prentice Hall.

4. Business Strategy the Cornerstone for
Market Strategy
• Strategy is written more than any other
topic in management practice
• What is strategy? Porter contends that
firms fail to distinguish between
Operational effectiveness – “means
performing similar activities better than
rivals perform them”
• Porter says Strategy “is the creation of a
unique and valuable position, involving a
different set of activities.

5. Business Strategy the Cornerstone for
Market Strategy
A Resource Based View of the Firm
• The resourced based view “sees companies
as very different collections of physical and
intangible assets and capabilities”.
• No two companies are alike.
• Resources are the building blocks for
strategy.

6. Business Strategy the Cornerstone for
Market Strategy
• Core Competencies
– A core competence is “ a complex
harmonisation of individual technologies and
production skills”
– As an example 3M Company has core
competencies in substrates, coatings, and
adhesives that it has brought together in distinct
ways to create a number of successful
businesses.

7. Business Strategy the Cornerstone for
Market Strategy
• Capabilities
– A capability is “a set of business processes
strategically understood”
– i.e. Woolworth's / Walmart – are examples of
company’s with a capability, which closely
coordinates business processes with its
strategic suppliers to provide superior inventory
turns.

8. B2B Brands as Resources
Overview

9. Definition of a Power Brand
A power brand identifies a company, product
or service and has high awareness and recall
with customers and is associated with a very
successful global company’s.

10. Advantages of Power Brands
• Improved perceptions of • Larger margins
product performance • More inelastic consumer
• Greater loyalty response
• Less vulnerability to • Greater trade cooperation
competitive marketing • Increased marketing
actions communications
• Less vulnerability to crises effectiveness
• Possible licensing
opportunities

11. DuPont Company
• Dacron®
• Teflon®
• Lycra®
• Kevlar®

12. IBM Company
• IBM integrates
hardware, software,
business consulting
and IT services into
business solutions to
meet your goals. IBM
also has strong
alliances with partners
to deliver business
solutions.

13. 3M Company
• 3M is the industry leader
in fire stopping. 3M
dedicated to stringent
testing and code
developments help make
buildings safer today than
they were even 10 years
ago. The product is
backed by a brand as
powerful as 3M, you get
proven reliability and
outstanding service.

14. Top Brands 2010

15. Nine ways to manage your brand as
an asset
1. Formally link business and brand strategy
2. Create a unique and relevant Brand Identity
3. Create a clear and distinct Positioning
4. Extend your brand strategically
5. Build a strategic Brand Architecture
6. Evaluate and align touch points
7. Consistently deliver on your Brand Contract
8. Practice effective global brand management
9. Set the organization up for success

16. Business Strategy As the Cornerstone For
Market Strategy
• Reliance On Outside Partners For
Resources
– Firms use collaborative relationships with other
firms to gain access to resources and to
leverage their own resources.
– In a rapidly changing, technology drive markets,
no one firm will possess all of the resources
needed to create innovative products.

17. Business Strategy the Cornerstone for
Market Strategy
Fundamental Value-Based Strategies
• At the core of every successful strategy is
understanding what targeted market
segments that firms regard as superior value
and how to provide it to them.
• Three value based strategies product
leadership, customer intimacy and
operational excellence.

18. Dimensions of Business Value

19. Crafting Market Strategy
Business Strategy
Update Business Strategy
Resources:
Fundamental
Value Based Strategies
Orderly Radical
# Core competencies
# Product leadership
advance
advance
# Capabilities
# Customer intimacy
# Partners resource
# Operational excellence
Update Market Strategy
Knowledge
Orderly Radical
Market Strategy
• Deliberate
advance
advance
What do we What do we How will we • Emergent
know?
want to do it?
accomplish?
Anderson, James, James Narus and Das Narayandas (2009),
Business Market Management: Understanding, Creating, and
Delivering Value, Third Edition, Prentice Hall.

20. Business Strategy the Cornerstone for
Market Strategy
• Product Leadership
– Leading edge products and services that
consistently enhance the customer’s use or
application of the product, thereby making rivals
obsolete.
– Company pursues innovation relentlessly
– Variety based positioning

21. Core Marketing Strategies: Product Leadership
Strategic Direction Corporate Culture
Ideas to Products Experimental
Skillful marketing Out of box thinking
Systems Organization
Rewards innovation Ad hoc, Organic
New product success Flexible, Changes

22. Business Strategy the Cornerstone for
Market Strategy
• Customer Intimacy
– Customer Intimacy “means segmenting and
targeting markets precisely and then tailoring
offerings to match exactly the demand of those
niches”.
– Retaining customers over time
– Needs based positioning
– Your share of the customers business

23. Core Marketing Strategies: Customer
Intimacy
Strategic Direction Corporate Culture
Provide solutions Flexible
Improve customer’s business Have it your way
Systems Organization
Measures cost of service Empowerment
Customer loyalty Close to customer

24. Customer Service Indicators

25. Business Strategy the Cornerstone for
Market Strategy
• Operational Excellence
– Operational Excellence means “ providing
customers with reliable products or services at
competitive prices and delivered with minimal
difficulty or inconvenience.
– Dell is an example of a company that has
pursued operational excellence.

26. Core Marketing Strategies: Operational
Excellence
Strategic Direction Corporate Culture
Distribution Predictable
No-hassle service One-size-fits-all
Systems Organization
Standard operating Central authority
procedure Finite empowerment

27. Value Innovation
• Value innovation – instead of focusing on
beating the competition you focus on making
the competition irrelevant by creating a leap
in value for buyers and your company

28. Strategy Canvas of NetJets

29. The Four Action Framework

30. Business Strategy the Cornerstone for
Market Strategy
Strategy Making
• How firms develop strategy is a topic of
keen interest.
• Who Makes Strategy?
• Defining Purpose.
• Implementing change if needed.

31. Business Strategy the Cornerstone for
Market Strategy
• Who Makes Strategy?
– Conventional view is that top management
make strategy
– Top down Vs Bottom up
– Need to promote broader involvement of
managers across the firm is preferable.
– This requires a more democratic process of
strategy making.

32. Business Strategy the Cornerstone for
Market Strategy
• Defining Purpose
– Cornerstone of strategy making is defining
purpose in a mission or vision statement.
– Purpose can also be defined as strategic intent
(Hamal and Prahalad 1992)

33. Planning Market Strategy
“Chance favours the prepared mind”
Quote- Louis Pasteur

34. Planning Market Strategy In Business
Markets
What Do we Know?
• It is important to emphasize the
word know
• It is important to distinguish
between what they know, what we
believe, and what we want to
believe.
• We must be willing to challenge
what they think we know.

35. Box 4.2
Market Information essentials for Strategic Planning in Business
Markets

36. Planning Market Strategy In Business
Markets
What Do We Want to Accomplish?
• Management team attempts to reach a shared
agreement.
• Marketing strategy begins with targeting
segments and customer firms.
• Setting Goals and Objectives
• Positioning
• Building Brands

37. Positioning in Business Markets
Establishing and (sustaining) an intended meaning
Positioning: for a market offering in the minds of targeted
customers
Succinctly characterizes the specific type of
Target: customer for the market offering that are of the most
interest to the supplier
Component specifies the essential attributes of the
Offering market offering for the selected target, out of the
Concept: potentially larger set of attributes that an offering
might possess

38. Customer Value Propositions
Value Favorable
All Benefits Resonating Focus
Proposition: Points-of-Difference
Consist of: The one or two points-of-
All benefits All favorable points-of- difference (and, perhaps, a
customers difference a market offering point-of-parity) whose
receive from a has relative to the next-best improvement will deliver the
market offering alternative greatest value to the customer
for the foreseeable future
Answers the “Why should our “Why should our firm “What is most worthwhile for
customer firm purchase purchase your offering instead our firm to keep in mind about
question: your offering?” of your competitor’s?” your offering?”
Requires: Knowledge of how own market
Knowledge of Knowledge of own market
offering delivers superior value
own market offering and next best
to customers, compared to
offering alternative offering
next-best-alterative offering
Has the
Requires customer value
potential Benefit assertion Value presumption
research
pitfall:

39. Planning Market Strategy In Business
Markets
How Will We Do It?
• The question is about thinking
through implementation of the
market strategy.
• Firms can propose the most
wonderful sounding market
strategies, but if they lack the
requisite knowledge, skills, and
abilities to put them into play, little
will be accomplished.

40. Develop an Action Plan
• Translates the market strategy into
the coordinated activities and
specific resources the firm will use to
attain what it wants to accomplish
– Gain input from each functional area
– Each objective or set of objectives is associated with a
program or programs
– Coordinate various market activities

41. Take Stock of Implementation Skills
A manager’s behavioral style of relating to others inside
Interaction and outside the firm. Captures how a manager works
Skills together with others, uses influence strategies, and
negotiates.
Allocation A manager’s expertise in budgeting time, people, and
Skills money.
Monitoring Manager’s ability to stay informed about what matters and
Skills to recognize when to intervene in ongoing activities.
Organizing Captures manager’s proficiency at drawing upon or
Skills circumventing the formal organizational structure to bring
together the resources to accomplish a market task.

42. Competitive Position Tactics

43. Summary
• Crafting market strategy is the process of
studying how to exploit a firm’s resources
to achieve short term and long term
success.
• It requires significant participation from
many functional areas.
• Business Strategy involves a resource
based view, product leadership or
customer intimacy view of the firm.

44. Summary
• Radical change versus orderly advance.
• Through planning market strategy members
of a management team can compare, revise
and update individual market views, so as to
devise alternative courses of action
• We need to ask fundamental questions such
as
– What do we know?
– What do we want to accomplish?
– How we will do it?

45. You are welcome to contact Nigel Bairstow at B2B
Whiteboard your source of B2B Asia / Pacific
marketing advice
http://www.linkedin.com/pub/nigel-bairstow/6/41b/726
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