GRA 6436 Managing Business-to-Business Relationships

GRA 6436 Managing Business-to-Business Relationships

Course code: 
GRA 6436
Department: 
Marketing
Credits: 
6
Course coordinator: 
Jon Bingen Sande
Course name in Norwegian: 
Managing Business-to-Business Relationships
Product category: 
Master
Portfolio: 
MSc in Strategic Marketing Management
Semester: 
2017 Autumn
Active status: 
Active
Level of study: 
Master
Teaching language: 
English
Course type: 
One semester
Introduction

Most firms have at least some involvement in business-to business (B2B) marketing. 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. B2B sourcing of products and services typically represent more than fifty percent of a company’s total costs and more than ninety percent of e-commerce is B2B.  Importantly, the structure of total value added to the economy has changed considerably over recent decades. For example, in most OECD countries the share of industry 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. For example, what does it mean that more than sixty percent of Fortune 100 firms offer solutions rather than pre-developed goods and services? How can we understand value creation and claiming in such business-to-business relationships? How should managers develop marketing strategies for such companies?  

This course is designed to train and enhance the students’ knowledge and skills in business-to-business relationship management.

 

Learning outcomes - Knowledge

Upon completion of this course, students will:

  1. have a basic understanding of the nature and role of B2B relationships;
  2. understand how value is created in B2B relationships through problem formulation and solution search, and development of customer solutions;
  3. understand how firms can mitigate governance problems through various governance mechanisms, such as incentive contracts, relational contracts, detailed formal contracting, and network governance, to both motivate value creation and ensure efficient value capture; and
  4. know how development of B2B strategies relies on understanding B2B relationships and their attributes, and recognize the distinguishing characteristics of developing B2B strategies, such as product form decisions and value-based pricing.
Learning outcomes - Skills

Upon completion of this course, students will be able to

  1. formulate different value-based strategies available to firms and suggest different ways for them to communicate value to customers;
  2. analyze and suggest procedures that B2B firms can use to formulate problems and develop high-value customer solutions;
  3. analyze B2B relationships to identify sources of governance problems that might prevent the parties from motivating each other to create value and share value efficiently, and suggests ways for the parties to mitigate those problems through better governance choices; and
  4. design effective marketing strategies for new and existing B2B products and services.
Learning Outcome - Reflection

Upon completion of the course, the students will have reflected on

  1. the nature and importance of B2B marketing for firms, their profitability and society at large;
  2. on how they, as individuals, can contribute to identifying and solving problems in B2B relationships;
  3. on the different kinds of governance problems that can arise in B2B relationships, and how they as B2B marketers can approach these problems in a manner that mitigate conflicts and opportunistic behavior;
  4. the special nature of B2B marketing strategies and how they differ from B2C marketing strategies, how they can account for the nature of B2B relationships in generating B2B relationships.
Course content

The course takes a model-based approach to teaching the topic of B2B relationship management. A model-based approach means that the students learn to understand and use models of how B2B firms behave and make decisions. The broad structure of the course is based on Brandenburger and Stuart’s (1996) model of value capture in value chains. This model makes a clear distinction between value creation and value capture, and different parts of the course address these different topics. To understand value creation in B2B relationships, we draw on marketing literature around customer solutions and the problem solving approach to strategy. To understand value capture in B2B relationships we draw on various transaction cost theories, such as agency theory, relational contracting theory and transaction cost economics. Finally, we use the insight into how firms create and capture value in B2B relationships as a basis for understanding how B2B firms can develop marketing strategies.

  1. Introduction to the course and to B2B relationships and B2B marketing
    1. The characteristics and importance of B2B markets and B2B relationships
    2. Value creation and value capture through B2B relationships
    3. Communicating value through value propositions.
  2. Creating value in B2B relationships
    1. Customer solutions in B2B marketing
    2. Value creation through problem formulation and problem solving
    3. Impediments to successfully formulating and solving problems
  3. Efficient value capture in B2B relationships
    1. Governance problems and transaction costs
    2. Agency theory and the measurement problem
    3. Relational contracting theory and the safeguarding and adaptation problems
    4. Transaction cost economics
    5. Formal and relational contracting
    6. Negotiations vs. auctions
    7. Network governance
    8. Knowledge governance in B2B relationships
  4. Developing B2B strategies for value creation and value capture
    1. Developing strategies based on governance value analysis
    2. Segmentation in B2B markets
    3. Product strategies and product form decisions
    4. Pricing strategies and value-based pricing
    5. Branding strategies in B2B markets

A detailed schedule with dates will be distributed during the first meeting.

Learning process and requirements to students

A set of required readings will be assigned for each meeting. The readings will be a mix of scientific articles and case descriptions. Students are expected to thoroughly read and analyze all of the required readings prior to each meeting. My own style is to combine some lecture time with discussion time. 

I may ask students to prepare discussion questions for specific readings. Depending on the number of course participants students may be asked to prepare discussion questions for more than one meeting. A copy of the questions should be distributed to each of the course participants prior to the meeting (TBD). The discussion leader(s) will have the responsibilities of leading the discussion and summarizing and synthesizing the readings with some brief closing remarks. 

For each session, two students are assigned the role of scribes. Using an excel-sheet provided on It's learning, they will make notes of what all students contribute with during class. The scribes must hand in their notes to me the same day. I use the scribes' notes as additional reference material when judging class-participation grades.  

To a large extent, the value of this course will depend on the students' level of preparation and participation in the discussion. Course credit will be given based on quality of class participation, hand-in assignments, and a written exam (see Evaluation below). 

If students have to miss class on a particular day, it is the students' responsibility to get notes from a classmate. Let me know as soon as possible if you have to miss a class. 

During the semester, if students experience any problem(s) with the class or any of the classmates I expect the students to report any problem(s) that they are not able to resolve themselves to me as soon as possible. 

Unexcused absence will result in a lower participation grade. 

Students will be required to complete three different assignments during the course. The assignments can be written as a group project, with groups consisting of no more than three members. The assignments may also be completed on an individual basis. The assignments will be posted on It’s learning at least 14 days before each deadline. One of the assignments will require extensive use of spreadsheet analyses, for example using Microsoft Excel's Solver. Deadlines for handing in the assignments will be provided once the course has started. Each assignment should be no more than 3 pages long (plus appendices).

Class-participation is based on both the quantity and quality of participation in class discussions. However, sheer quantity of comments, with little depth or relevance to the focal issues, will not be rewarded (although not punished).

Note also that the topics we deal with in assignments and in class discussions are highly relevant for the final exam, so that working well with the assignments and prepare well for class discussions, also implies good preparation for the final written exam.

Please note that it is the student’s own responsibility to obtain any information provided in class that is not included in itslearning or the text book.

This is a course with continuous assessment (several exam components) and one final exam code. Each exam component is graded by using points on a scale from 0-100. The components will be weighted together according to the information in the course description in order to calculate the final letter grade for the examination code (course). Students who fail to participate in one/some/all exam elements will get a lower grade or may fail the course. You will find detailed information about the point system and the cut off points with reference to the letter grades when the course start.

At resit, all exam components must, as a main rule, be retaken during next scheduled course.

Software tools
No specified computer-based tools are required.
Qualifications

All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA64361
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
30No 2 Week(s)Group/Individual (1 - 3)3 written assignments - 2 weeks on each assignment
Exam category:
Activity
Form of assessment:
Class participation
Exam code:
GRA64361
Grading scale:
Point scale
Grading rules:
Internal examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
30No -Individual
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA64361
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
40Yes3 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Individual Written examination
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:30
Invigilation:No
Grouping (size):Group/Individual (1-3)
Support materials:
Duration: 2 Week(s)
Comment:3 written assignments - 2 weeks on each assignment
Exam code:GRA64361
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Activity
Form of assessment:Class participation
Weight:30
Invigilation:No
Grouping (size):Individual
Support materials:
Duration: -
Comment:
Exam code:GRA64361
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:40
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Duration:3 Hour(s)
Comment:Written examination
Exam code:GRA64361
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam organisation: 
Continuous assessment
Grading scale: 
ECTS
Total weight: 
100
Sum workload: 
0

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.