Download 1.5 Supply Chain Management in B2B Exercise

Engagement Exercises
CHAPTER 1
A BUSINESS MARKETING PERSPECTIVE
Contents
1.1 Why B2B is different ................................................................................................................................................................................................ 3
1.1 A Why B2B is Different: Conceptual Exercise ...................................................................................................................................................... 4
1.1B Why B2B is Different: Critical Thinking Exercise ................................................................................................................................................ 6
1.1 C Why B2B is Different: INTELLECTUAL INNOVATION Exercise ........................................................................................................................... 9
1.2 How B2B is Different .............................................................................................................................................................................................. 11
1.2 How B2B is Different: CRITICAL THINKING Exercise .......................................................................................................................................... 12
1.3 Types of B2B Customers and how they vary.......................................................................................................................................................... 15
1.3 Types of B2B customers and how they vary: INTELLECTUAL INNOVATION Exercise ........................................................................................ 16
1.4 Customer Value Proposition .................................................................................................................................................................................. 19
1.4 Customer Value Proposition: INTELLECTUAL INNOVATION Exercise ................................................................................................................ 20
1.5 Supply Chain Management in B2B ......................................................................................................................................................................... 22
1.5 Supply Chain Management in B2B: CONCEPTUAL Exercise ............................................................................................................................... 23
1.6 Types of B2B Products ........................................................................................................................................................................................... 26
1.6 Types of B2B Products: CONCEPTUAL Exercise ................................................................................................................................................. 27
1.7 B2B Marketing Strategies....................................................................................................................................................................................... 29
1.7 B2B Marketing Strategies: CRITICAL THINKING Exercise ................................................................................................................................... 30
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1.1 Why B2B is different
Upon completion of these exercises student should be able to state the reason WHY
B2B marketing is different from B2C –the intended use of the product (usage purpose)
and the intended consumer/buyer (target market)-with varying levels of conceptual,
critical thinking or creative support.
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1.1 A Why B2B is Different: Conceptual Exercise
Students will analyze familiar B2C products and convert them into B2B equivalents, describing what distinguishes them from consumer products
by indicating the intended use of the product and the intended consumer/buyer.
Refer to handout 1.1 WHY_concpetual, pg 4)
1. Divide teams into groups of 4-5
2. Show slide or copy of the handout 1.1 Why_Conceptual
3. Provide the following instructions:
“Using the categories provided interpret and convert the common B2C products into a B2B product by indicating both the
intended consumer and the intended use of the product.”
4. Compare results and discuss.
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PRODUCT
B2C
USAGE
PURPOSE
B2C
INTENDED
CONSUMER
B2B
USAGE
PURPOSE
B2B
INTENDED
CONSUMER
3M SAND PAPER
CHAMPION SPARK PLUG
CLOROX BLEACH
COCA-COLA CARBONATED
BEVERAGE
DELL LAPTOP COMPUTER
GE FLUORESCENT LIGHT
FIXTURE
IDAHO POTATO
KRUPS ESPRESSO
MACHINE
RIM BLACKBERRY STORM
Handout 1.1A Why_Conceptual Exercise
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1.1B Why B2B is Different: Critical Thinking Exercise
Students will analyze products and use critical thinking to determine the degree to which a product is a B2B offering or a B2C offering
Please refer to the handout that is titled: 1.1B Why B2B is Different: CRITICAL THINKING Exercise found on pages 7-8.
1. Divide class into teams of 4-5.
2. Distribute handout.
3. Provide the following instructions:
“Many products have both B2C and B2B consumer and usage purpose. Using the list provided place appoint in the grid
between B2B and B2C that indicates if the product is predominantly a B2C product or B2B product. In the column to the
right, support your analysis. Rarely, products are exclusively B2C or exclusively B2B products. Using the second section of
the handout provide examples of each. Support of your conclusion in the column to the right.
4. Compare results and discuss.
Note: Student answers will vary and likely create diverse discussion.
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PRODUCT
B2B
B2C
SUPPORTING ANALYSIS
BUICK LACROSSE
CHAMPION SPARK
PLUG
CLOROX BLEACH
DELL LAPTOP
COMPUTER
DEWALT CORDLESS
HAMMER/DRILL
GE FLUORESCENT LIGHT
FIXTURE
IDAHO POTATO
JIF PEANUT BUTTER
KIWI BRANDS SHOE
POLISH
KRUPS EXPRESSO
MACHINE
RIM BLACKBERRY
STORM
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PRODUCT
SOLEY B2C
SUPPORTING ANALYSIS
PRODUCT
SOLEY B2B
SUPPORTING ANALYSIS
1.1B Why B2B is Different: CRITICAL THINKING Exercise
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1.1 C Why B2B is Different: INTELLECTUAL INNOVATION Exercise
Students are asked to create and describe a new usage purpose and or a new consumer for a specified product or offering.
1. Divide teams into groups of 4-5
2. Read 1.1 C Decision Situation found on page 10.
3. Provide the following instructions:
You are your team are role playing the roles of Lindsay and Derek. Based on your previous successes and your strong desire to
succeed in your new role you want to create the winning product concept, usage situation and customer.
Provide a summary, in an email format that describes the product concept/idea. Be thorough in your description of the intended
customer, usage situation, consumption rates, incremental sales etc to try to convince upper management you have a thorough
understanding of B2B marketing management.
Try to be as innovative as possible noting that identifying new usage purposes is a way to achieve sales growth as long as it does not
detract from the original usage purposes (ex: Baking soda as a baking product, a digestive aid, teeth cleanser, household cleanser,
and leavening agent in baking.)
When you complete your email, you will present it to the other teams in a brief 3 minute exchange. Only one product concept will be
forwarded to upper management.
4. Check on the progress of each group, making certain that teams have varying innovations/product concepts.
5. Once all teams have read their emails, students vote on most marketable or most innovative concept. Often is it easier to narrow
the vote to top two choices then revote.
6. Discussion: Ask the students why some product concepts were dismissed and why others were more attractive. Suggest students
support their answers with strategic marketing decision making.
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1.1 C DECISION SITUATION:
B2B INTENDED USAGE PURPOSE/INTENDED CONSUMER
REPURPOSING A PRODUCT
HISTORY
Lindsay and Derek are part of the original internal product development and marketing team at Smuckers. One of their key innovations
and successes was the creation and launch of Smuckers “Uncrustables” a premade, individually wrapped serving of a crust-free peanut
butter and jelly sandwich. Uncrustables are sold in the freezer section of the grocery store and were originally launched as a premium
consumer ready to eat consumer item. Growth of the product expanded into new markets and Uncrustables are now frequently
purchased by institutions such as universities, day care facilities, schools and restaurants. Due to their high level of success, Lindsay and
Derek have been assigned a new challenge:
CURRENT SITUATION
Based on their success in the consumer market division, the Smuckers B2B division has requested that Lindsay and Derek join the
industrial/commercial enterprise segment of their marketing department. They must develop an innovative new usage purpose for
Smuckers fruit filling at the B2B level.
They agreed to brainstorm different usage purposes and then identify the intended customer for each purpose.
DECISION
You have been asked to assist Derek and Lindsay in identifying key usage purposes and the intended customer in an email summary
which highlights the product concept, customer and usage purposes, and supporting marketing strategy.
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1.2 How B2B is Different
Upon completion of these exercises student should be able to state HOW B2B
marketing is different from B2C –Customers, Demand, Buyer Behavior, Relationships,
Environmental Forces, and Marketing Strategies.
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1.2 How B2B is Different: Critical Thinking Exercise
Students will compare and contrast the variables across B2B and B2C segments by describing key differences and similarities and state
genralized conclusions as to the apparent adjustments marketing managers must make when addressing B2B customers. Using activities
on the web, students provide evidence of the different marketing actions that are apparent .
Please refer to the handout that is titled: 1.2 How B2B is Different: CRITICAL THINKING Exercise found on pages 13,14.
1. Divide into teams of 4-5.
2. Distribute handout that is titled: 1.2 How B2B is Different: CRITICAL THINKING Exercise.
3. Provide the following instructions:
“B2B buyers are very different from B2C buyers. Explore the offering: Champion Spark Plugs (or other product/service
chose by professor).
Using the internet, refer to the Champion Spark Plug home pages: (note one is specifically focused on the consumer
and the other is focused on the industrial buyer.)
http://www.federalmogul.com and http://www.championsparkplugs.com/
A) Provide supporting differences in HOW B2B buyers differ from B2C buyers. (The text provides conceptual support)
B) After identifying key buying differences, identify the implementation differences on each web site to draw
conclusions about B2B marketing strategy/tactical differences. Use of the site maps provides key areas of
interest.
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A)
PRODUCT/SERVICE: CHAMPION SPARK PLUGS
B2B
ENVIRONMENTAL IMPACTS
RELATIONSHIPS
BUYER
BEHAVIOR
DEMAND
B2C
Economic
Competitive
Technological
Regulatory
Ecological
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B) Marketing Strategies
PRODUCT/SERVICE: CHAMPION SPARK PLUGS
B2B
MARKETING STRATEGIES
B2C
1.2 How B2B is Different: CRITICAL THINKING Exercise
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1.3 Types of B2B Customers and how they vary
Upon completion of this exercise, students should be able to identify the types of B2B
customers: commercial enterprises, government units and institutions.
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1.3 Types of B2B customers and how they vary: INTELLECTUAL INNOVATION Exercise
Students will consider a product in the marketplace and determine the manner in which each type of business market customer might
use the product. Students should try to cover as many possible types of customers as possible with consideration to creative usage
purposes.
In order to randomly pair a type of customer with a type of product, please refer to grid titled 1.3.1 Types of Customers found on pages
17 and grid titled Types of Products found on page 18.
1. Divide groups into teams of 4-5
2. Randomly assign each group a Type of Customer by having a group member choose a number between 1-20. Assign each
group the Type of Customer (1.3.1 Types_Innovation B2B Customers) based on the number selected.
3. Randomly assign each group a B2B Product by having a group member choose a number between 1-20. Assign the Product
(1.3.2 Types_ Innovation B2B Products)
4. Each group will be given 5-10 minutes to discuss and write a brief description as to how the type of Business Market selected
would use and or buy the product selected.
*Note, some combinations may be easily applied, and other combinations will require significant creativity.
IF a student group cannot make the connection and it is apparent that no connection is possible, they may
“redraw”.
5. Provide the following instructions:
“Your team is has been assigned as the new account manager for the product category provided and you are to call on the
business market customer to present your offering. Describe a usage situation that would be appropriate for this
combination.”
6. Compare results and discuss. (Allow for creative innovation)
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1.3.1 Types of Customers
1.
MANUFACTURER
2.
CONSTRUCTION
3.
SERVICE FIRMS
4.
WHOLESALERS
5.
RETAILERS
6.
SCHOOLS
7.
FOUNDATIONS
8.
ART GALLERIES
9.
CLINICS
11.
LOCAL
GOVERNMENTS
12.
SHIPPING SERVICES
14.
LIBRARIES
15.
HEALTH CARE
ORGANIZATIONS
17.
FEDERAL
GOVERNMENT
DEFENSE
18.
STATE GOVERNMENT
10.
STATE GOVERNMENT
13.
PROFESSIONAL
GROUPS
16.
FEDERAL
GOVERNMENT
COMMERCIAL
19.
LOCAL GOVERNMENT
COUNTIES
20.
LOCAL GOVERNMENT
TOWNSHIPS
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1.3.1 Types of Products
1.
SURGICAL SUPPLIES
2.
FINANCIAL
SERVICES
3.
SPARK PLUGS
4.
FORK LIFTS
5.
INSURANCE
6.
LAPTOP COMPUTERS
7.
SECURITY SYSTEMS
8.
AIRPLANES
9.
GRAPES
10.
STEEL DRUMS
11.
CHEMICALS
12.
SHIPPING
13.
TRAVEL SERVICES
14.
PAINT
15.
LIGHT FIXTURES
16.
CARBONATED
BEVERAGES
17.
CORN
18.
SMARTPHONE
19.
ADVERTISING AND
MARKETING
SERVICES
20.
ASPHALT PAVING
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1.4 Customer Value Proposition
Upon completion of this exercise, students should be able to describe the purpose of a
value proposition and how it is established. Students must consistently consider that
value propositions are based on the customer, the competitor and the company.
The students will also communicate and apply the concepts of points of difference and
points of parity.
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1.4 Customer Value Proposition: INTELLECTUAL INNOVATION Exercise
Students will observe customer, company and competitor marketing materials and arrive at the value proposition for a company.
Please refer to the handout titled: 1.4 Customer Value Proposition INNOVATION Exercise found on page 21.
1. Divide teams into groups.
2. Provide the following instructions.
“You are asked to describe the current competitive, customer and supplier situation and arrive at a strategic Customer Value
Proposition based on your exploration. You have been asked to provide a CVP to United Airlines for an In-flight Entertainment
(IFE) System. Complete the series of question found on the handout to assist with your positioning and Value Proposition.
Each group represents a competing company:
Group One- Panasonic Avionics Corporation
Group Two- Thales Group
Group Three- Rockwell Collins
Group Four – LiveTV
Group Five – Honeywell”
*Note: For additional research/rigor, suggest students explore databases such as Hoover’s or Datamonitor.
3. Distribute the handout .
4. Compare results and discuss clear points of difference and points of parity.
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Establishing a Customer Value Proposition for
In-Flight Entertainment (IFE) System
Identify the three key elements necessary to assess in order to create a customer value proposition: Company, Competition, and Customer
Using these criteria, and through the use of internet research, complete the following
1) Who are your competitors? What are their “customer value propositions”?
2) Determine your company’s product points of parity and points of difference.
3) Provide a customer value proposition for your company.
1.4 Customer Value Proposition INNOVATION Exercise
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1.5 Supply Chain Management in B2B
Upon completion of this exercise, students should identify and define upstream
suppliers, direct suppliers, manufacturers and buyers - both resellers and consumers.
In addition students will learn the basic strategies for managing suppliers and
understanding relationships in the supply chain.
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1.5 Supply Chain Management in B2B: CONCEPTUAL Exercise
Student groups/tables will be assigned a supplier/customer role which represents a level of the supply chain areas. (All members of the
group/table represent an organization at one level of the supply chain: BASF/Scott/Municipal Fire Department, etc)
Each group will review and discuss their respective supplier web site to gain insight into establishing their role in the supply chain.
Group members will be then be redistributed to a “new group”/table so that the new table has a representative of EACH member of the
supply chain. (One each from Draeger, BASF, Municipal Fire Department etc)
At the end of the exercise, students will have a conceptual idea of the goals at each level.
Please refer to the handout(S) titled: 1.5 Supply Chain Management in B2B Exercise found on page
1. Divide class into 7 groups.
2. Distribute a position/role in the supply chain to each group. (1.5 SCM_Conceptual pgs 25-26)
3. Provide the following instructions:
Review and assess your designated role in the supply chain. Review the goals that are typical at that level of the
supply chain and refer to the internet/web to identify with your product/company.
4. Allow 5-10 minutes for group to familiarize themselves with the product/offering at their level using the internet.
5. Redistribute/rearrange the groups by assigning one representative from each level of the supply chain to create a new
group. (Every new group should have all 7 roles in the supply chain represented)
6. Provide the following instructions:
You each represent a role in the supply chain. Create a dialogue with the members of your table to learn about each
role and how you might integrate and collaborate to satisfy the goals at each organizational level, ultimately
providing consumer satisfaction to the end user.
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1.5 Supply Chain Management in B2B Exercise
Group
1
Company
BASF
Level in Supply Chain
Upstream supplier to
Elastron
weblink
http://www.basf.com/group/corporate/en/
Group
2
Company
Elastron
Level in Supply Chain
Upstream supplier to
Scott
weblink
http://www.elastron.com/
Group
3
Company
Scott
Level in Supply Chain
Manufacturer of SCBA
weblink
https://www.scottsafety.com/en/us/Pages/Default.aspx
Group
4
Company
Grainger
Level in Supply Chain
Distributor of Scott SCBA
weblink
http://www.grainger.com/Grainger/SCOTTSCBA-Respirator-Assembly-9KKU6
Group
5
Company
Municipal Fire
Department
Level in Supply Chain
Funding and Buyer of Fire
Department PPE from Scott
weblink
http://www.cityofoxford.org/Index.asp
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Group
6
Company
Fire Fighter
Level in Supply Chain
Service Provider of Fire Rescue
Operations (user of PPE)
Group
7
Company
Student
Level in Supply Chain
Ultimate end
user/consumer
weblink
N/A
weblink
N/A
1.5 Supply Chain Management in B2B Exercise
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1.6 Types of B2B Products
Upon completion of these exercises student should be able to state the types of B2B
products: Entering, Foundation and Facilitating. Students will be able to distinguish
subcategories of each and sort products into appropriate category based on usage
situations.
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1.6 Types of B2B Products: CONCEPTUAL Exercise
Students will establish the type of B2B product using the table provided in by stating the type of product with supporting justification for why
that product is considered either entering, foundation or facilitating.
Please refer to handout titled: 1.6 Type of B2B Product CONCEPTUAL Exercise found on page 28.
1. Divide teams into groups or allow students to work individually.
2. Distribute handout (1.6 Types B2B Products).
3. Provide the following instructions:
“Determine the type of product for each item in the table. Support your answers by specifying usage purpose and
intended customer.”
4. Compare and discuss results.
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PRODUCT
TYPE OF
B2B
PRODUCT
B2B
USAGE
PURPOSE
B2B
INTENDED
CONSUMER
3M SAND PAPER
CHAMPION SPARK PLUG
FLOOR
BUFFER/CLEANING
SYSTEM
COCA-COLA
CARBONATED
BEVERAGE
DELL LAPTOP
COMPUTER
GE FLUORESCENT LIGHT
FIXTURE
IDAHO POTATO
KRUPS ESPRESSO
MACHINE
RIM BLACKBERRY
STORM
1.6 Type of B2B Product CONCEPTUAL Exercise
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1.7 B2B Marketing Strategies
Upon completion of this exercise students will have an understanding of the marketing
pattern differences in tactics and strategies as products are marketed to varying
B2B/organizational customers.
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1.7 B2B Marketing Strategies: CRITICAL THINKING Exercise
Students will be presented with two product offerings and relevant marketing materials. Students will “reverse engineer” the marketing
strategies and compare the two platforms to identify differences and similarities.
1. Provide examples of marketing materials. (see Appendix for examples)
2. Provide the following instructions:
“Review the marketing materials provided and describe the implementation of the 4 P’s and the Customer Value Proposition.
Compare the strategies for each type of good represented. What broad conclusions might be made regarding the marketing of
Entry, Foundation or Facilitating Goods?”
3. Share and discuss.
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Familiarize yourself with the Automotive Industry by briefly reviewing Automotive News http://www.autonews.com/
Review the web content available on Firestone’s Industrial Parts web site and 3M Automotive/Dealer.
http://www.firestoneip.com/index.aspx?region=north_america
http://solutions.3m.com/wps/portal/3M/en_US/ScotchgardAutoProtection/Home/AutoDealerships/Home/
Complete the table
Firestone
3M
CVP
Product
Price
Place
Promotion
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1) What conclusions could you make regarding types of strategic actions across the different product type? Support.
2) What changes or improvements might you recommend? Support.
1.7 B2B Marketing Strategies CRITICAL THINKING Exercise Handout
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