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From the special issue editors: Global Business-to-Business Marketing

Welcome to the JGSMS Special Issue on Global Business-to-Business Marketing! Our global marketplace presents unique challenges to firms that sell goods and services in the business-to-business (B2B) market. B2B marketing is perhaps less appreciated because many B2B marketing activities are behind the scenes for most people. We go into an auto dealership and purchase a car – one business-to-consumer (B2C) transaction. Consider how many B2B transactions occurred in the process of manufacturing that car and bringing it to the consumer (for example, dozens or hundreds of suppliers provide parts and components, capital equipment, software, consulting services and so forth). Consider also how the firm will seek economies in car manufacture, for example, by developing a single platform upon which many lines of cars may be manufactured over several years. Other opportunities for economies may exist in operations, or procurement, or research and development (R&D). Ultimately, all of these components of the B2B marketing activity network combine to offer increased value to the ultimate consumer. Here is the point: all of these components become ten times, or a hundred times, more complex once the firm is on a global scale. And, like competitors in so many other industries, car manufacturers have gone global in a big way. In many ways, B2B marketing resembles B2C marketing. Analysis of the customer base, the competition and the market and technology environment leads to the development of a marketing strategy (segmentation, targeting and positioning) and marketing programs (product, price, promotion and distribution). Brand value is also becoming critical, even in the B2B market setting (Han & Sung, 2008). But there are special challenges facing B2B marketers, especially those operating on a global scale. Product demand may be very volatile and uncertain, and demand may depend heavily on the target country’s stage of development. Steel exporters, for example, might target countries in early stages of development (some parts of the Middle East, for example, or sub-Saharan Africa) due to their great need for basic infrastructure. Also, unlike B2C producers, B2B marketers experience the effects of derived demand. As was illustrated by the “Intel Inside” campaign, derived demand is one of the most representative characteristics of B2B marketing. A components manufacturer for the car or aircraft industry experiences sales shortfalls and possibly inventory overstock if demand for cars or aircraft slows. Some carmakers may have better strategies for smoothing out peaks and valleys in final demand, which in turn lessens unpredictability due to derived demand. Toyota or Ford, for example, produce and sell cars in many parts of the world, so a slowdown in the European market may be balanced by stable sales in North America. On the other hand, there are often fewer differences due to cultural reasons, so adaptation of the product or other marketing programs may not be necessary. Businesses in Southeast Asia, Western Europe or North or South America all need laptops, software, projectors, copiers, phones, and so forth, and requirements and preferences are not so different. All B2B marketers care about quality, of course, but when operating on a global scale, one must consider global quality standards. Manufacturers wishing to export parts and components for sale strive to meet ISO 9000 certification standards. This is a set of industrial standards developed to assess and assure quality control, including quality of delivery and levels of customer satisfaction. Many B2B buyers, in fact, will not even purchase components from a company that