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Provides an overview of the managing markets module in the Business Marketing course taught at HBS.

How does a $2 million software sale happen? This case traces efforts by Siebel Systems to sell lead management software to discount broker Quick & Reilly. The buying process is mapped out over four years. Covers in detail the last six months--from Siebel's initial involvement to a challenge from competitor Oracle to the climax. The structure of Quick & Reilly's buying center is mapped, as is the role of its parent, Fleet Bank. The fortunes of the sale rise and fall as the Siebel account manager faces one obstacle after another. Presented in three parts, with opportunities to debate the account manager's choices and actions at each state. Part 2 describes the start of the sale from the buyer's perspective.

How does a $2 million software sale happen? This case traces efforts by Siebel Systems to sell lead management software to discount broker Quick & Reilly. The buying process is mapped out over four years. Covers in detail the last six months--from Siebel's initial involvement to a challenge from competitor Oracle to the climax. The structure of Quick & Reilly's buying center is mapped, as is the role of its parent, Fleet Bank. The fortunes of the sale rise and fall as the Siebel account manager faces one obstacle after another. Presented in three parts, with opportunities to debate the account manager's choices and actions at each stage. Part 1 describes the start of the sale from the seller's perspective.

How does a $2 million software sale happen? This case traces efforts by Siebel Systems to sell lead management software to discount broker Quick & Reilly. The buying process is mapped out over four years. Covers in detail the last six months--from Siebel's initial involvement to a challenge from competitor Oracle to the climax. The structure of Quick & Reilly's buying center is mapped, as is the role of its parent, Fleet Bank. The fortunes of the sale rise and fall as the Siebel account manager faces one obstacle after another. Presented in three parts, with opportunities to debate the account manager's choices and actions at each state. Part 3 describes the unfolding of the sale over a 4-year period.

Lays out a framework for the management of customers using examples of forms in a variety of industries.

Spreadsheet supplement for case 501-070.

Focuses on the launch of a new elevator product in Germany. In 1996, global construction slumps and low differentiation among competitive offerings has led to significant price competition and margin erosion in the elevator industry. In these circumstances, KONE, one of the global players in this industry, has developed the Monospace elevator product that uses revolutionary technologies. This new product is expected to have a significant impact on the current product lines of KONE and its competitors. The firm has test marketed the product in three European country markets to varying degrees of success. The firm is now planning to launch the new product in Germany, the largest country market in Europe and vital to KONE's overall success. With little room for error and the future of the firm at stake, KONE's German subsidiary needs to develop a detailed launch plan for Monospace in Germany.

Supplements the (A) case.

Two-year-old start-up Color Kinetics has developed unique colored lighting technology using digitally controlled LEDs, and has developed that technology into a successful line of products for its first targeted market of "retailtainment." Now in November 1999, the management team is evaluating how to best extend this success into other markets and/or strategic initiatives and achieve the growth it has targeted internally and with investors.

Since 1995, Nortel Networks' Optical Networks (ON) division has been incorporating customer satisfaction and loyalty measures into its business practices to increase customer value. Over the years, key process owners in various parts of the organization have become accustomed to receiving such information in the format with which they are familiar. Recent initiatives by the Customer Value Measurement (CVM) team have shown that the current methodology does not provide all the insights required to achieve the full potential of customer value measurement. The CVM team now needs to present Nortel's senior management with the optimal combination of the many choices for soliciting customer perceptions that would make the best use of available resources, minimize the intrusion on customers' time, and add value for the business and customers alike.

Sam Marcus recently purchased a small cabinet-making company, and is looking for dramatic growth. The company competes in commercial and residential construction markets; shortly after the acquisition, the company gains a large new residential customer. The case traces the changes made at the company and how the relationship with this customer begins to deteriorate. At the end of the case, Marcus must decide whether to fix or end the relationship.

Describes a process for managing customers for profit.

This is an MIT Sloan Management Review article. As adapting to globalization becomes increasingly necessary, business customers are pressuring suppliers to accept global pricing contracts (GPCs). However, before signing a contract, suppliers should do due diligence. Purchasers may promise a supplier access to international markets, guaranteed production volumes, and improved economies of scale and scope--but too often they fail to deliver. According the authors, suppliers must fully understand the customer's global strategy and the business conditions in its respective markets. They also need a firm grasp of their own strategy and local practices. Which GPCs would be suitable and which would be detrimental? Using data collected from interviews with global account managers in diverse industries on four continents, the authors help suppliers navigate the uneven terrain. By exploring why customers want GPCs, under what circumstances the contracts are likely to profit suppliers, and how to implement contracts successfully, the authors identify preparation as the key to success. The more information suppliers can gather (for example, about variances in their own pricing in different markets, the cost to serve the customer, exchange rates, and local regulations), the better their negotiating position.

In late 1996, Manuel Diaz, head of Worldwide Sales for Hewlett-Packard's (HP) Computer Systems Organization (CSO), is reviewing the results of an audit of HP's enterprise customer management approach with the objective of identifying market and organizational opportunities that might provide HP the next wave of growth while further reducing sales and support costs. HP's current customer management approach, although successful, had involved structural changes that had forced a deep-rooted overhaul of HP's traditional regional sales approach. The new recommendations would necessitate another round of drastic changes in the way HP manages relationships with its large enterprise customers. Diaz does not want to put the sales organization through another round of changes unless he is sure they are necessary. He has to figure out if the organization is ready for more change, and whether the benefits outweigh the costs of implementation. The case provides a detailed review of the audit process and the findings.

Chairman and CEO M. Douglas Ivester stumbles when he tells a Brazilian newsmagazine about a new Coke vending machine that can automatically raise prices in hot weather. Reaction around the world is swift and negative.

The Hunter Business Group (HBG), a direct marketing consulting firm specializing in reorganizing the sales and marketing efforts of industrial firms, uses integrated customer contact technologies (including field sales, telephone, and mail) as a means of "revolutionizing the face of business-to-business (b2b) direct marketing." The firm operates under the theory that a seller's communications provide genuine value to a customer, and that successful direct marketing programs result in solid relationships, high retention rates, and increased profitability for the customer. This case highlights, in detail, HBG's implementation of its approach for Star Oil's tire, battery, and accessory (TBA) business that has been facing declining market share and profitability in the face of ever-increasing competition.

The young entrepreneurs of Granny's Goodies, Inc., a corporate gift package specialist, face the challenge of finding ways to create consistent revenue streams and reduce sales costs. Outside of a few long-term contracts, the two founders have had to work very hard for each sale. Using extensive customer information that the firm has diligently collected over the previous two years, students need to develop a plan that covers market selection, product policy, and relationship management strategy for the firm.

VerticalNet, a leading creator of targeted business-to-business vertical trade communities on the Internet, is trying to expand its model to facilitate e-commerce. Mark Walsh, the CEO of VerticalNet, has to decide how far he can extend the firm's business model without negatively affecting his current franchise.

Deals with the issue of cross-selling and managing a portfolio of products and services in business markets. Arrow/Schweber (A/S), a subsidiary of electronic parts distributor Arrow Electronics, has a portfolio of products that differ in the amount of value added by A/S. A/S uses value-added items such as programmable logic chips as "loss leaders" in order to acquire and retain a customer. It makes money when it sells the so-called "commodity" or low value-added products to the same customer. An Internet-based distributor is now offering Arrow a chance to sell commodity products through its e-commerce site. This new channel can threaten Arrow's overall business model if a large portion of its existing customers switch their purchases of the commodity products to this new distribution channel. Arrow needs to decide how it should respond to this challenge.

Spreadsheet supplement for case 598-022.