Commodity Marketing: Strategies, Concepts, and Cases

Preface
Contents
Part I: Fundamentals of Commodity Marketing
Commodity Marketing: An Introduction into Key Concepts and Processes
1 Introduction
2 Conceptual Background
2.1 Types of Commodities
2.2 Commoditization and De-commoditization
3 Drivers of Commoditization
3.1 Company-Related Factors
3.2 Offering-Related Factors
3.3 Buyer-Related Factors
3.4 Market-Related Factors
4 Strategies for De-commoditization
4.1 Overview of De-commoditization Approaches
4.2 De-commoditization Based on Operational Excellence and Fair Value Solutions
4.3 De-commoditization Based on Innovation and Superior Offerings
4.4 De-commoditization Based on Customer Bonding and Relationship Quality
5 Conclusion
References
Commodity Differentiation: A Cross-Industry Approach
1 Introduction
2 The Product Differentiation Excellence Approach
2.1 What Is the Product Differentiation Excellence Approach?
2.2 What Is the Benefit of Product Differentiation Excellence?
2.3 How Can the PDE Approach Be Used in the Company?
3 ``Differentiation Instruments´´ Dimension
3.1 Fundamental Instruments for Product Differentiation
3.2 Combination of Differentiation Instruments
4 ``Market Development´´ Dimension
4.1 Market Segmentation: Differentiated Market Development
4.2 Value-Based Communication: Highlighting Product Benefits
4.3 Value-Based Pricing: Centering on Product Performance
4.4 Value-Based Selling: Standing by the Customer´s Side
5 ``Internal Conditions´´ Dimension
5.1 Top Management Commitment and Corporate Culture: Tuning the Company´s Mindset
5.2 Systems: Clearly Formulating and Implementing Measures
5.3 Coordination: Avoiding Organizational Bermuda Triangles
6 Conclusion
References
Commodities in the Service Sector: Particularities and Implications for Marketing
1 Relevance of Commodity Services
2 Concept and Forms of Commodity Services
2.1 Conceptual Basics of Commodity Services
2.2 Characteristics of Commodity Services
2.3 Drivers of the Commoditization in the Service Sector
2.4 AI-based Commodity Services
3 Peculiarities in the Consumer Behavior for Commodity Services
3.1 Impact of Information Behavior on the Purchase Decision Process
3.2 Switching Behavior and Customer Loyalty
4 Implications for the Marketing of Commodity Services
4.1 Strategic Marketing Options for Commodity Services
4.2 Specifics in the Use of Marketing Instruments for Commodity Services
4.3 Self-Services as an Example of Commodities in the Service Sector
5 Summary and Further Development
References
Part II: Commodity Marketing Strategies and Tools
Commodity Pricing: Fast, Simple, Intelligent
1 What Makes Commodity Pricing Special
2 Price and Contract Management for Commodities
3 Price Models for Commodities
3.1 Price Formulas
3.2 Pricing Based on Industry Cost Curves
3.3 Price Forecasting Models
4 Price Differentiation for Commodities
5 Implementation Essentials for Commodity Pricing
5.1 Data
5.2 Systems
5.3 Key Indicators
6 Summary
Price Negotiations in Commodity Markets
1 Importance of Price Negotiations in Commodity Markets
2 Management of Price Negotiations
2.1 Analysis
2.2 Organization
2.3 Preparation
2.3.1 Analysis and Structuring of the Negotiation Issues
2.3.2 The Definition of Negotiation Objectives, Negotiation Strategies, and Tactics
2.3.2.1 Negotiation Objectives
2.3.2.2 Negotiation Strategies
2.3.2.3 Negotiating Tactics
2.3.3 Negotiation Reporting
2.4 Administration
2.5 Controlling
3 Conclusion
References
A Behavioral Approach to Pricing in Commodity Markets: Dual Processing of Prices within and around Willingness-to-Pay Ranges
1 Room for Behavioral Pricing Approaches in Commodity Markets
2 Purchase Decisions as a Dual Process with a Focus on Price
3 Concepts of Willingness to Pay in the Dual Process of Purchase Decisions
4 Empirical Illustration of the Dual Process of Purchase Decisions
5 The Dual Process of Purchase Decisions in Commodity Markets
6 Recommendations on Pricing in Commodity Markets
References
Price Knowledge and Price Expectations: Their Role for Customer Relationship Marketing of Telecommunications Providers
1 Introduction
2 Services as Commodities
2.1 Perspectives of Commoditization
2.2 Definition of Commodity Services
2.3 Heterogenization: Related Industries and Strategies
2.4 Market for Telecommunications Services in Germany
3 Pricing Approaches in the Telecommunications Industry
3.1 Fundamentals of Price Knowledge and Price Expectations
3.1.1 Price Knowledge
3.1.2 Price Expectations
3.2 Price Importance and Price Satisfaction in the Telecommunications Sector
3.3 Price Knowledge and Price Expectations in the CRM Phases
3.3.1 Implicit Price Knowledge
3.3.2 Customer Acquisition
3.3.3 Customer Retention and Churn Management
3.3.4 Customer Win-Back
4 Summary and Outlook
References
On Price Roles and Budget Branding
1 Introduction
2 Conceptual Background
3 Research Approach
3.1 Data Collection and Sample
3.2 Data Analysis Procedure
4 Findings and Discussion
4.1 Summary of Findings
4.2 Contributions to the Literature
4.3 Managerial Implications
5 Conclusion
References
Customer Participation and Commodity Marketing
1 Introduction
2 Foundations of Customer Participation
3 Customer Co-Production for Commodity Marketing
4 Customer Co-Creation of Value-in-Use for Commodity Marketing
5 Summary and Discussion
References
An Economic View on Group Buying as Marketing Approach for Commodities
1 Group Buying as Marketing Approach
2 Importance of Group Buying for Commodities
3 Two-Sided Benefit Analysis of Group Buying as Marketing Approach for Commodities
3.1 Group Buying from the Seller´s Perspective
3.1.1 Advantages for Sellers
3.1.2 Disadvantages for Sellers
3.2 Group Buying from the Buyer´s Perspective
3.2.1 Advantages for Buyers
3.2.2 Disadvantages for Buyers
4 Conclusion
References
Commodities and Customer Loyalty: Squaring of the Circle?
1 The Importance of Customer Loyalty for Commodity Suppliers
2 Factors Influencing Customer Loyalty in the Commodity Sectors
2.1 Loyalty Factors According to Different Levels of the Buying Process
2.2 Analysis of the Relevance of the Loyalty Factors
2.3 Approaches to Differentiation
3 Measures for Customer Retention in Commodities
3.1 Satisfaction Management as an Instrument of Customer Loyalty
3.1.1 Explanation of the Net Benefit Based on Satisfaction Models
3.1.1.1 Brandt´s Two-Factor Theory
3.1.1.2 The Kano Model for the Differentiation of Utility Elements
3.1.1.3 Influence of the Buyer´s Involvement on Satisfaction
3.1.2 Differentiation for Commodities Through Satisfaction Management
3.2 Reputation Building and Brand Management as an Instrument of Customer Loyalty
3.2.1 General Differentiation Through Reputation Building and Brand Management
3.2.2 Differentiation for Commodities Through Reputation Building and Brand Management
3.2.3 Efficient Differentiation for Commodities in the Case of International Marketing
4 Non-Price Competition as an Alternative for the Commodity Supplier
References
Updates on the Connection Between Customer Relationship Management and Commoditization
1 Introduction: Commoditization and CRM as an Alternative for Differentiation
1.1 Product Homogeneity
1.2 Price Sensitivity
1.3 Switching Costs
1.4 Industry Stability
2 Theoretical Views on CRM Strategy
2.1 CRM Definition
2.2 CRM as a Marketing Capability to Build a Sustainable Competitive Advantage
3 CRM Implementation Ideas Based on Practical Experience
3.1 CRM as an Organizational Unit and CRM Thinking Through the Firm
3.2 Functional Components of a CRM Strategy
3.3 The CRM Implementation Timeline
3.4 It Is Always About Customer Experience
3.5 Some Good CRM Implementation Cases
References
Customer Engagement as an Approach to De-Commoditisation
1 Introduction
2 Customer Engagement Phenomenon
2.1 Theoretical Foundation
2.2 Conceptualisation of Customer Engagement
2.3 Customer Engagement Value
2.3.1 Customer Lifetime Value
2.3.2 Customer Referral Value
2.3.3 Customer Influencer Value
2.3.4 Customer Knowledge Value
2.4 Relationships Between Customer Engagement Components
3 Managing Customer Engagement Value Through the Customer Lifecycle
3.1 Customer Engagement Value During Customer Relationship Phases
3.1.1 Acquisition
3.1.2 Retention or Development
3.1.3 Attrition or Win-Back
3.2 Customer Engagement Goals and Measures Through the Customer Lifecycle
3.2.1 Acquisition: Engagement Goals and Measures
3.2.2 Retention or Development: Engagement Goals and Measures
3.2.3 Attrition or Win-Back: Engagement Goals and Measures
4 Conclusion
References
On Becoming Market Oriented in a Commodity Market: Aligning Internal Operational Capabilities with Customer Needs
1 Introduction
2 Marketing in Commodity Markets
3 Commodities, Agricultural Markets, and Aligning Operations and Marketing
3.1 The Fresh-Cut Flower Marketplace
4 Linking Crop Production and Customer Intimacy in the Floriculture Marketplace
4.1 Floral Farms
4.1.1 The Marketing Side of the Firm
4.1.2 The Production Side of the Firm
4.2 Linking Crop Production and Customer Intimacy
5 Becoming Market Oriented in a Commodity Market
References
Differentiating the Indifferent: Dealing with Commoditization Paradox Through Innovation
1 Introduction
2 What to Differentiate: Possibilities
2.1 Case 1: Differentiation in Consumer Technologies
2.2 Case 2: Differentiation in Retail Banking Services
3 How to Differentiate: Approaches to Innovation
3.1 Approach 1: Innovating for Customer Experience
3.2 Approach 2: Innovating for Superior Value
3.3 Approach 3: Innovating for Value Creation
4 Conclusion
References
A Configurational Perspective on Brand Relevance in Commodity Markets
1 Introduction
2 Conceptual Background
2.1 The Relevance of the Brand as a Purchase Criterion
2.2 Perspectives on the Relevance of Brands in Commodity Markets
3 A Configurational View on Brand Relevance
4 Discussion
5 Conclusion
References
Influencer Marketing as a Counterstrategy to the Commoditization of Marketing Communications: A Bibliometric Analysis
1 Introduction
2 Theoretical Background
2.1 Marketing Communication Commoditization
2.2 Influencer Marketing
2.3 Influencer Marketing to De-commoditize Marketing Communication
3 Method
3.1 Keyword and Paper Search
3.2 Bibliometric Analysis
4 Results
4.1 Data Pre-Processing
4.2 Publication Year
4.3 Journal Analysis
4.4 Author Analysis
4.5 Citation Analysis
4.6 Keyword and Trend Analysis
5 Discussion
6 Limitations and Further Research
References
Part III: Commodity Marketing in Specific Contexts
An International Perspective on Commodity Marketing
1 The Power and Responsibility of International Business
1.1 Recognizing Challenges and Dilemmas
1.2 The Increased Role of Government
1.3 Diminished Trust
2 Curative International Marketing
2.1 New Steps for Marketers
2.2 Good Souls Bring Curative Marketing
2.3 The Shifting of International Marketing
2.3.1 Truthfulness
2.3.2 Simplicity
2.3.3 Expanded Participation
2.3.4 Responsibility
3 The Leadership Challenge: Aligning Strategy, Products, and Societal Interests
4 Propositions for Commodity Marketing
References
Non-price-Related De-commoditization: An Exploratory Study in the Refractories Industry
1 Introduction
2 Conceptual Framework
2.1 Generic Approaches to De-commoditization
2.2 Pathways to a Non-price De-commoditization
3 Empirical Investigation to Implement Non-price De-commoditization
3.1 Context of the Investigation
3.2 Method
3.3 Case Study Results
3.3.1 Identification of Non-price De-commoditization Approaches
3.3.2 Implementing the Approach of Customized Solutions
3.3.3 Implementing the Approach of Customized Processes
3.3.4 Requirements for Implementing Non-price De-commoditization
4 Summary
References
CRM in the Energy Market: Customer Relationship Management in Commodity Industries Using the Example of an Energy Service Prov...
1 Relevance of Customer Relationship Management in the Energy Market
2 Characterisation of the German Energy Market
2.1 Electricity and Gas as Commodities
2.2 Current Challenges in the Energy Sector
2.3 Changing Needs and Expectations of Energy Customers
2.4 Conclusion
3 The Customer Lifecycle in the Energy Market
4 Customer Relationship Management Using the Example of an Energy Service Provider
4.1 Acquisition Management
4.2 Customer Retention Management
4.3 Recovery Management
4.4 Digitalisation as an Enabler
4.4.1 Data as an Enabler of Transformation
4.4.2 Inferences for Market Cultivation
5 Conclusions
References
Illuminating Organizational Processes Behind the Rising Phenomenon of Industry Commoditization
1 Introduction
2 The Phenomenon of Industry Commoditization
3 Organizational Drivers of Industry Commoditization
3.1 Institutional Isomorphism
3.2 Coercive Pressures
3.3 Mimetic Pressures
3.4 Normative Pressures
4 Empirical Examination of the Organizational Drivers
4.1 Questionnaire Design and Measures
4.2 Data Collection and Sample Characteristics
4.3 Results
5 Conclusion
References
De-commoditization in B2B Markets: A Communication Perspective
1 Introduction
2 Conceptual Foundations-Buying Phases and B2B Buyer-Seller Relationships
3 Case Study
3.1 Methodology and Research Context
3.2 Empirical Findings
3.2.1 Initiation Phase
3.2.2 Presentation Phase
3.2.3 Negotiation Phase
3.2.4 Production and Delivery Phase
3.2.5 Operating
4 Discussion
References