3PL Industry. A Practical Guide to Market Oriented Business. Presented by Brian Martin, VP Sales & Marketing Kuehne + Nagel Canada October 30, 2014

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1 Marketing and the 3PL Industry A Practical Guide to Market Oriented Business Presented by Brian Martin, VP Sales & Marketing Kuehne + Nagel Canada October 30, 2014 Today s Discussion Points and Intent A few concepts and a little theory to set the stage Market Oriented Business vs. Sales Oriented Business Practical guide on driving market orientation within your business B2B Marketing A few emerging trends that can t be ignored A Few Cautionary Notes Closing remarks and questions 1

2 Concepts and Theory: Setting the Stage Definition #1: Marketing is the process by which businesses employ a multilayered strategy for the purpose of converting targeted business prospects into customers. Definition #2: Marketing is a social & managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others. OUR REPOSITORY OF TERMS & COMMON THREADS Strategy Process Customers Creating Value Definition on behalf of Content Marketing Institute Philip Kotler, the Father of Marketing Widely regarded as the Father of Modern Marketing. Started his career with S.C. Johnson & Son Professor of International Marketing at Northwestern University s Kellogg School of Management Obtained his PhD at MIT under Nobel Prize winning economist Paul Samuelson. Forefront of marketing in 1967 through the groundbreaking textbook Marketing Management Text became the marketing Bible for MBA Popularizing the idea of the Marketing Mix, aka the Four Ps of Marketing, The Four Ps stand for product, price, place and promotion 2

3 Kotler s 4P s Kotler, The Marketing Mix is the set of controllable variables that the firm can use to influence the buyer s response. These four variables help a company develop a unique selling point as well as a brand image. Product (the Goods or Service) Variety or Features Quality Design Brand name Packaging PRODUCT PRICE Price List price Discounts Allowances Payment period Credit terms Place Industry Channels Locations Inventory PLACE PROMOTION Promotion Sales Channels Advertising Brand Development Kotler s 4P s from the Customers Perspective The downside of Kotler s 4P model was its connection to the customer The models was based on the company or sellers perspective. Many modern marketing theorists have converted Kotler s 4P model to the 4C model PRODUCT PLACE PRICE PROMOTION 4 P s vs. 4 C s Product: Customer needs/wants Price: Cost to customer Place: Convenience Promotion: Communication OUR REPOSITORY OF TERMS & COMMON THREADS Strategy 4P s Process 4C s Customers Buying Behaviors Value 3

4 Porter: Making the Connection between Strategy and Marketing Cost leadership Strategy Achievement of lowest production & distribution costs allowing the company to price lower than competition & win a large market share Typical Attributes: Commodity pricing, market domination, lower marketing spend Differentiation Strategy Achievement superior performance, quality leadership, or uniqueness Typical Attributes: Targeted market, higher margins, higher marketing spend Focus Strategy Business focuses on 1 or more narrow market segments, gets to know these segments intimately & pursues either cost leadership or differentiation within the target segment (niche marketing). Typical Attributes: Highly targeted market, higher margins, higher marketing spend Market Oriented Business Sales-based vs. Market-based Organizational Structure 4

5 Sales Oriented vs. Market Oriented Business Selling focuses on the needs of the seller, marketing on the needs of the buyer. Selling is preoccupied with the seller s need to convert his product into cash, Marketing is preoccupied of satisfying the needs of the customer by means of the product & service characteristics creating value, delivering & consuming it. Selling is push, Marketing is pull. OUR REPOSITORY OF TERMS & COMMON THREADS Strategy 4P s Process 4C s Customers Buying Behaviors Value Market Oriented Business Marketing is Brian Martin Definition A process that supports your companies ability to convert targeted business opportunities into profitable customers. The marketing plan must be aligned to your company strategy and focus on value creation. Value is the benefits your customer will gain by purchasing goods/services from your company Market Oriented. Similar to any process, your marketing plan must be measured and evaluated for effectiveness. The tools in which you will use to support your marketing initiatives and influence buying behaviors are: Promotion (Brand Image, Advertizing, Sales Channel) Price (Rate, Solution Orientation, Trade Discounts, Payment Terms) Place (Service Locations, Inventory) Product (Product Description, Features, Quality, Benefits) 5

6 Practical Guide to Market Oriented Business Marketing Attribute Practical Tools Key Takeaway Does your company have a strategy? (remember the Porter discussion) Strategy Does Sales or Marketing have equal representation at the most senior level? Is there alignment between strategy and the marketing plan? Alignment Does the senior team evaluate marketing in an objective manner? Practical Guide to Market Oriented Business Marketing Attribute Marketing Plan and Related Documents Practical Tools Is there a documented marketing plan that includes initiatives, roles, responsibilities, SWOT, budgets? Does your company have clear product/service definitions that describe benefits/value to the customer? Does your marketing budget include entertainment, brand development, advertizing, sales training Is the website and product/service definitions aligned? Audit your staff do they really know your product/service offering in detail? Are they aware of pricing strategies? Key Takeaway Market Oriented or Sales Oriented 6

7 Practical Guide to Market Oriented Business Marketing Attribute Market Segmentation Practical Tools Do you know your top 20 customers by name? What % do your top 20 customers represent to your top line sales and bottom line profitability? What are the 3 5 detailed objectives you have in place to brickwall your top 20 customers Do you have a documented sales pipeline? Can the sales pipeline be segmented by customer size, industry or geography and does this segmentation fit your market plan? Key Takeaway Market Oriented or Sales Oriented Practical Guide to Market Oriented Business Marketing Attribute Performance Practical Tools Do you have clear marketing performance criteria? Examples include: Win Ratio, Pipeline Valuation, Year-over-Year Sales Growth, Customer Retention/Loss, Market Share Increase/Decrease. Do you review marketing performance with top management? Do you experiment with Price, Promotion, Campaigns, Refreshed Websites (and others) to gauge customer behaviors? Key Takeaway Marketing Effectiveness 7

8 Practical Guide to Market Oriented Business Aligning Company Strategy & Marketing Document Marketing Plan Set Marketing Budgets Establish the Marketing Calendar Quarterly Performance Reviews Complete SWOT Analysis, Assess Competition, Set Realistic Objectives Assign Roles and Responsibilities, Outline New Product/Service Introductions, Develop Go-to-Market Plans Advertizing, Sales Training, Price/Rates, Promotional Activities, Campaigns, Events, Entertainment Establish the Event Calendar, Promotional Calendar, Advertizing Calendar Assess and Evaluate Performance on a Quarterly Basis, Make Necessary Course Corrections B2B: Emerging Marketing Trends that Can t be Ignored B2B Content Marketing Usage (by tactic) Social Media continues to be the fastest growing B2B marketing tactic surpassing Websites, News Letters, Blogs and In-Person Events 8

9 B2B: Social Media is Growing, but is it Effective? Percentage of B2B Marketers who Use Various Social Media sites to Distribute Content Confidence Gap Effectiveness Ratings of Social Media Platforms Among B2B Users Cautionary Notes Campaigning Creativity vs. Cost Outsourcing Marketing Search Engines (SEO) 9

10 Final Remarks: Market Oriented Business Customer Focus An obsession with understanding customer needs and delivery customer satisfaction Value Proposition Recognition of your company s differentiation, competitive advantage and defined market strategies Competitor Orientation Recognition of competitors sources of advantage, competitive position, and marketing strategies Team Approach Cross-functional team dedicated to developing and delivering customer solutions. 10

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