The transition from product to service in business markets: An agenda for academic inquiry

In recent years, industrial manufacturers around the world have deployed growing efforts in developing services in addition to their traditional product business in order to secure long-term growth and to remain competitive in the marketplace. Against this background, the present article introduces the reader to this special issue. It first recalls key aspects of the emerging service-dominant logic of marketing and examines how it relates to the business marketing field. It then illustrates the challenges faced by top executives of industrial companies in the transition from a product-centric to a service-centric business perspective through an interview with the managing director of ThyssenKrupp Service AG. After discussing how the articles included in this special issue advance the extant literature on industrial services marketing, the article finally develops a number of directions for future research on services in business markets.     

Challenges of servitization: A systematic literature review

The challenges of servitization have gained significant attention from both academics and practitioners, as more firms in the industrial sector are seeking marketing opportunities leading to business growth through the adoption of a service strategy. Although existing research has explored its challenges from multiple perspectives, this is largely fragmented and the studies offer little understanding of the impacts of the challenges on the realisation of servitization benefits and improvements in business performance. This study, therefore, aims to create a formal construct of the challenges and develop a set of hypotheses through a systematic review of the servitization literature to build a theoretical model explaining the underlying relationships. Five challenges are identified: organisational structure, business model, development process, customer management, and risk management. The indicators of each challenge are discussed to support the establishment of hypotheses. This study contributes to the current body of knowledge by reaching a clear conclusion from the fragmented literature and brings together five challenges to explore their impacts on the overall business.     

Customer value propositions as interorganizational management accounting to support customer collaboration

New technology-based firms aim to create commercially successful products and services based on new technology. For example a startup company may be founded to commercialize a particular technology developed by a university. One of the key challenges is to identify which products and services are valuable for customers. However, the relevant knowledge is typically dispersed across the technology firm and potential customers. This study explores how, in this context, interorganizational management accounting may support companies to collaborate and integrate knowledge. First, drawing on business marketing literature, a customer value proposition is conceptualized as a form of interorganizational management accounting. Second, several case studies demonstrate how calculations of customer value were made by new technology-based firms, and they show that these firms had implemented particular offering changes that were informed by specific insights obtained from their calculations of customer value. Third, the study offers a theoretical lens for understanding the potential role of customer value propositions as integrating devices for managing knowledge across boundaries.     

Assessing and strengthening internal alignment of new marketing units: An interpretative tool

Business-to-business (B2B) marketing is a complex field requiring companies to put in place organizational units that are able to handle multifaceted interaction processes at the customer interface. Moreover, B2B marketing is characterized by high levels of technological, institutional etc. change. As a consequence, and in order to adapt to new market conditions, companies create new organizational units to take over tasks such as key account management, category management or social media management. These new units are developed within the pre-existing organization. Typically, these new units also display a high degree of cross-functionality since their activities are interdependent with the activities of other units. Hence, the question of alignment is of major importance. In this conceptual paper, we provide a framework for both scholarly research and managerial application. It is based on the concept of frame alignment and offers a lens allowing analyzing internal aligning processes for new B2B marketing units.     

Co-creating integrated solutions within business networks: The KAM team as knowledge integrator

This study derives from a need that is both practical and theoretical: the need to increase knowledge of how KAM teams might ensure more successful value co-creation with their business customers in the service sector. The KAM teams in this study are formed of members originating from several supplier companies that integrate and apply resources with their customers in a business network. In the co-creation of integrated solutions within such business networks, KAM teams – drawing on organizational learning theory and knowledge management – are considered as knowledge integrators. The purpose of this study is to analyze the KAM teams' absorptive capacity — that is, how knowledge is acquired, assimilated, and applied in the co-creation of integrated solutions. The study employs a qualitative case study approach, based on 30 in-depth interviews in nine supplier companies operating in advertising, marketing and consulting, and in three key customer companies. The study contributes to the KAM literature by providing new conceptual understanding and empirical insight in respect of networked co-creation of integrated solutions and the influence of the KIBS context on the solutions process.     

Managing channels of distribution in the age of electronic commerce

The emergence of electronic commerce (e-commerce) has created a new business paradigm, one that presents marketers with noteworthy opportunities and challenges. Perhaps the greatest impact is in the area of channel management. The top issue for many business-to-business (B2B) firms today is channel conflict. In this paper, we investigate the effect of introducing the Internet channel into an already complex, multichannel distribution system from the perspective of the supplier firm. We describe strategies for proactively managing conflict, both externally with channel partners and internally among the subunits responsible for managing the channels. Twelve propositions for research are developed; eight relate directly to the marketing mix and four focus on channel communication and coordination. All of the research propositions offered are mechanisms by which suppliers can influence the level of channel conflict they experience. Dedicated channel management groups, documentation of channel strategies, and superordinate goals are identified as strategies for minimizing unwanted conflict.     

Preparing industrial suppliers for customer integration

In real world markets and business markets in particular, the idea of customized products and services receives increasing attention. A management tool called customer integration has been developed as an approach to master the challenges originating from customization for a supplier. Customer integration competence is the organizational quality that results from this tool after being implemented. Putting this together, we can hypothesize a causal relation between customer integration competence and market success. In order to confirm this hypothesis, the paper presents a conceptualization of customer integration competence. To accomplish this, references are made to competence models from psychology, success factor research and organizational science. The concept was validated through a survey with 78 industry experts from business markets responding. Customer integration competence measured in this way was then contrasted to a second measure capturing market success. Regression analysis supports our hypothesis strongly. Finally, implications for marketing research as well as marketing practice are presented.     

Coopetition close to the customer — A case study of a small business network

Coopetition interactions are traditionally divided into competing activities close to the customer, called output activities (e.g., sales and marketing), and cooperating activities far from the customer, known as input activities (e.g., logistics, production and R&D). In many coopetition networks, most of the cooperation has been in input activities, essentially meaning that little research is conducted in coopetition business networks with cooperative activities close to the customer. This article closes the gap by investigating coopetition in an ICT business network comprising small-to-medium-sized enterprises (SMEs) in the B2B sector. The purpose of this paper is to increase understanding of cooperation between competing firms by analyzing the success factors of cooperative activities close to the customer that lead to a positive outcome of coopetition. The results of the study show that some case companies are more competition oriented, whereas the others are more cooperation oriented. At the activity level of analysis, cooperation occurs in branding, marketing, joint customers, and delivery of services; whereas companies compete in local services, marketing campaigns, and pricing. In addition, our study shows that certain success factors for coopetition are highlighted, particularly in output activities such as activeness, geographical distance and personal resources.     

A methodological approach to the marketing process in the biotechnology-based companies

The article addresses the commercialization activities of biotechnology-based companies in a European context and discusses whether these companies are able to gain adequate market perceptions and set adequate marketing processes, taking into account three analytical steps: strategic marketing definition, marketing implementation, and evolution of strategy and implementation. A methodological approach was developed, considering the specific nature of the technology and the companies. The case of Portuguese companies was used to test this methodology.The findings support the hypothesis that marketing issues constitute a problem for these companies, since most of them had serious difficulties in going through the marketing process. Marketing deficiencies were largely connected to the access to human resources with relevant management and marketing capabilities and were particularly felt by companies introducing discontinuous innovations.The research confirms that this methodology is useful in the assessment of the marketing management process in biotechnology-based companies.     

Effective implementation of relationship orientation in new product launches

The critical role of relationships in business performance is widely recognized in the business marketing literature. However, to date, the prevailing new product launch research has concentrated on firms' general customer and competitor focus on predicting launch performance, and mainly applied a product centered or marketing mix perspective on considering effective strategic and tactical launch activities. Consequently, there is only scant knowledge on the relevance of a relational perspective when launching new products. The study contributes to this gap by examining the impact of firms' relationship orientation on launch performance and the key activities through which it is transformed into performance in the new product launch context. A set of hypotheses is developed and tested with data collected from 109 new product launches in pharmaceutical companies. The results show that sales force management and relationship leveraging mediate relationship orientation's impact on launch performance through complexly intertwined relationships. From a theoretical perspective, this study highlights the role of the relational perspective in new product launch and fosters our understanding on how relationship-focused culture is effectively implemented in practice. From a managerial perspective, the results offer insights on how firms can effectively enhance the successful commercialization of new products through relationship-oriented sales and marketing activities.     

An Agency Theory perspective on the purchase of marketing services

The purchase of business services has become an important part of organizations' acquisition of external resources, and is therefore receiving growing scholarly attention. The supply management function is increasingly supporting more complex service purchases, including a wide range of marketing services. The trend to involve supply management in the purchase of these complex business services is partially being driven by increasing awareness of the value of applying standard purchasing techniques to the purchase of these non-standard items. The purchase of such services has historically been managed by content experts, with limited involvement of supply management. However, the involvement of supply management in these purchases is driving the content experts to adopt a more facilitating relationship in which both areas interact with the supplier. This research uses Agency Theory as a lens to look at the Agency Triad among supply management, marketing, and suppliers. Elaborating on prior seminal work, the basic tenets of Agency Theory and its assumptions regarding human behavior are combined with the results of a focus group and case studies to develop propositions on the design of contractual arrangements between two Principals (marketing and supply management) and a single Agent who provides marketing services.     

Key trends in business-to-business services marketing strategies: Developing a practice-based research agenda

The marketing of B2B services has become an important field of academic enquiry. Industrial Marketing Management scholars have contributed to building a robust body of scholarship on the role of services as an indispensable aspect of company’s strategic performance process. However, with digitization, there is a clear need for theoretical concepts and frameworks that can guide companies in the development of contemporary and strategic roadmaps for their B2B service marketing strategies and performance practice. This position paper outlines an agenda and delineates issues in B2B service delivery that need to be addressed to close the gap between service marketing theory and practice and collaborate on the development of strategic service capabilities for the industrial marketing space. More specifically, we identify and discuss the impact of 5 important trends shaping B2B services: 1) gamification, 2) personalization, 3) Mixed Reality (MR), 4) data visualization, and 5) privacy. On the basis of these, we will offer a number of specific directions for future research by industrial marketing researchers.     

Training Requirements for Professional Certification of Manufacturers’ Representatives

Manufacturers’ representatives provide the marketing and sales function for many small firms. Although reps offer critical professional marketing services, little has been written about these entrepreneurs. Currently, the profession is experiencing major challenges and threats in the marketplace. This industry-sponsored study deals with a survey of manufacturers’ representatives on their perceived training needs in both marketing and small business. The results of the study provide input for planning and designing the curriculum for fulfilling the requirements of a new three-year, three-level certification program that includes three qualifying exams within the different levels. This research assists a major channel member in improving operations while enhancing their marketing skills.     

Setting B2B digital marketing in artificial intelligence-based CRMs: A review and directions for future research

The new business challenges in the B2B sector are determined by connected ecosystems, where data-driven decision making is crucial for successful strategies. At the same time, the use of digital marketing as a communication and sales channel has led to the need and use of Customer Relationship Management (CRM) systems to correctly manage company information. The understanding of B2B traditional Marketing strategies that use CRMs that work with Artificial Intelligence (AI) has been studied, however, research focused on the understanding and application of these technologies in B2B digital marketing is scarce. To cover this gap in the literature, this study develops a literature review on the main academic contributions in this area. To visualize the outcomes of the literature review, the results are then analyzed using a statistical approach known as Multiple Correspondence Analysis (MCA) under the homogeneity analysis of variance by means of alternating least squares (HOMALS) framework programmed in the R language. The research results classify the types of CRMs and their typologies and explore the main techniques and uses of AI-based CRMs in B2B digital marketing. In addition, a discussion, directions and propositions for future research are presented.     

Artificial intelligence as an enabler of B2B marketing: A dynamic capabilities micro-foundations approach

Over the past few decades research has predominantly focused on the technical aspects and theoretical challenges of Artificial Intelligence (AI). With the deluge of data and the increase in processing power, businesses are now facing the challenge of how to deploy AI that generates business value. In this direction, there is still nascent research on how AI can be leveraged in for B2B operations, and particularly marketing. To address this gap, this study draws on the dynamic capabilities view of the firm and specifically on the micro-foundations approach and builds on three selected case studies of large organizations in Norway that use AI for B2B marketing purposes. The study identifies a number of AI-specific micro-foundations of dynamic capabilities, essentially highlighting how organizations can use AI to manage B2B marketing operations in dynamic and uncertain environments. This study also identified several key cross-cutting elements emerging from the data, demonstrating how some key concepts are inter-related and how they affect overall business value.     

How marketers argue for business – Exploring the rhetorical nature of industrial marketing work

This paper takes a rhetorical approach to the study of everyday marketing work. It seeks to understand how marketers make sense of the work they do, what discourse is used, and with what rhetorical effect. The study is based on interviews, observations and daily interaction with five marketers involved in marketing and selling of consulting services. It was found that these marketers draw on relationship discourse and customer need discourse – among others – when arguing for business. These discourses could be understood as contradictory discursive forces used by marketers to talk up suitable rhetorical selves, by means of which they accomplish their work. As a whole, this paper provides an illustration of the rhetorical nature of marketing, and discuss theoretical implications, aiming to expand the intellectual agenda for future studies of marketing work that takes marketers' use of language seriously.     

Service procurement in manufacturing companies: Results of three embedded case studies

An increasing part of companies' purchasing expenditures is being spent on (business) services. At the same time, the interactive character of business services has so far largely been neglected in purchasing and supply management studies. The success of a service purchase is however established during the ongoing production and consumption of that service, which takes place in continuous interaction between buyer and seller.This paper investigates these ongoing interactive processes between buyer and seller after the purchase decision has been made. The specific focus is on services buying by manufacturers, since manufacturers' services spend increasingly encompasses services that eventually become part of the final offering to customers. This is expected to pose specific challenges for manufacturing companies, who have traditionally been involved with purchasing goods.Case studies into ongoing buyer-seller interaction are conducted at three manufacturing companies. Starting from a usage-based classification which contains four types of business services, four services are studied at each manufacturing company. The results show that indeed the different types of services can be associated with distinct patterns of ongoing interaction. Furthermore, the results provide initial support for the idea that having differentiated patterns of interaction contributes to successful ongoing service exchange.     

You have not been archiving emails for no reason! Using big data analytics to cluster B2B interest in products and services and link clusters to financial performance

The potential of big data analytics when it comes to gaining business insights, such as market trends and consumer preferences, has captured the interest of both scholars and business practitioners. However, the extant literature has so far provided limited empirical evidence to demonstrate how big data analytics can create business value. To address this research gap, this paper followed a novel big data analytical approach that involved analysing email archives about product/services demand clusters in a B2B setting. We analysed 621 k emails exchanged between 2009 and 2018. We identified a number of discussion clusters that were considered proxies for the interest buyers expressed in the products/services on offer. These clusters and associated discussion trends were linked to the company's revenues and financial performance, showing good predictive power. In doing this, we have demonstrated how widely available data, such as emails, which all companies have, can be used to underpin new methods for the early identification and monitoring of product demand trends, informing marketing strategies.     

天然气企业市场营销业务闭环管理的思考

依据天然气行业经济发展形势,结合国内天然气企业存在的主要问题,基于国内天然气企业市场营销管理的现状,提出天然气企业市场营销业务闭环管理的思考,为丰富天然气企业市场营销管理思路和方法提供参考。     

Forecasting business needs in the telephone market

The last decade has seen substantial changes in the environment in which U.S. telephone companies operate. As regulated monopolies, telephone companies are experiencing effective competition in several areas of their operations. Additionally the consumerist movement has made regulatory agencies more aware of the requirements of the numerous markets served by the utilities. With “good” telephone service available at reasonable cost throughout the United States, users and telephone companies are more aware of secondary product attributes such as style (decorator sets) and auxiliary features (the ability to place one caller on hold and answer another call). These changes reflect the evolution of the marketing function within the telephone companies and the increasing use of marketing research for product line expansion and sales forecasting. What has caused this shifting perspective on the function of marketing? How have the utilities responded? The following discussion deals with these questions as well as the ways in which marketing research has aided the telephone company in forecasting sales to business customers.