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Strategy‐driven B2B promotions

Karl Hellman (Resultrek, Atlanta, Georgia, USA)

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Article publication date: 1 January 2005

11091

Abstract

Purpose

Typically, business‐to‐business (B2B) promotions are price cuts that drain profits and erode brand equity for the sake of short‐term volume gains. This paper shows how to elevate B2B promotions to a central place in implementing strategy – creating extra value for customers, building brand equity, improving profits, and permanently increasing sales.

Design/methodology/approach

The article examines nine successful non‐price promotions and shows the patterns and principles that made them work.

Findings

The article posits a new conceptual model that organizes the findings from the nine cases: “the customer learning curve.” Strategy‐driven promotions move customers down this mental process from having a need – but perhaps not even knowing it – all the way through to being advocates for the firm and its products.

Research limitations/implications

The model provides a framework for analyzing existing, and designing future, decision‐oriented market research.

Practical implications

Strategy‐driven promotions focus on overcoming barriers to purchase. The best are specific (don't ask the promotion to do the whole job); creative (go beyond the conventional, “drop the price” thinking); customer‐centered (borrow interest from something the customer really cares about); measurable (if you can't measure it, you can't learn from it); and brand enhancing (don't fall into the trap of eroding brand equity).)

Originality/value

The customer learning curve is an original conceptual model and practical problem‐solving tool. The nine cases provide original examples.

Keywords

Citation

Hellman, K. (2005), "Strategy‐driven B2B promotions", Journal of Business & Industrial Marketing, Vol. 20 No. 1, pp. 4-11. https://doi.org/10.1108/08858620510576748

Publisher

:

Emerald Group Publishing Limited

Copyright © 2005, Emerald Group Publishing Limited

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