Introduction
This course is designed to train and enhance the students’ knowledge and skills in business-to-business (B2B) relationship management. This is an important topic for three reasons. First, B2B transactions account for a large part of the economy. By some estimates, between half and two thirds of all transactions in a developed economy take place in B2B relationships and more than half of all employment in most countries is found in B2B markets. According to input-output tables from Statistics Norway, in Norway, B2B-transactions (sales to Norwegian companies and the Norwegian government as well as exports) account for 67% of total use (i.e., sales value). In comparison, household consumption accounts for 18% of total use.
Second, B2B marketing and managing relationships with business customers is different from consumer marketing. For example, individual transactions are usually much larger, more complex, and more strategic, and require more attention and dedicated organizational structures, such as contracts, that create incentives and promote collaboration.
Third, B2B marketing has changed markedly over the last couple of decades. For example, in most OECD countries the share of manufacturing has fallen while services now account for well over sixty percent of total gross value added. Notably, the majority of service value added is B2B. Also, among what we typically consider as “industry value chains” (as introduced by Michael Porter), we see major changes. More than sixty percent of Fortune 100 firms now offer “solutions” rather than pre-developed goods and services.
Understanding B2B marketing and in particular how to manage B2B relationships, is therefore essential for those who want to succeed in marketing and management roles within B2B businesses.