The firm had aggregate numbers on its trade promotions, but it couldn't break them down by individual customer, product, or shipment.
Kimberly-Clark found itself spending huge quantities of marketing dollars, uncertain which promotions were producing retailer loyalty, shelf space, and sales, and which were going to waste.
integrating that with shipment data
what the real-time impact on our sales and profit is when running promotions
we can integrate this information into our sales and planning process with our customer
salespeople used the tool in the field to design promotional packages for specific retailers, while the company's marketing staff used it to plot broader promotion plans
Profit Calculator
>, which its sales department had developed to track investments in individual promotion efforts.
Rather than think purely of managing sales, they think in terms of managing the business
Brand Builder, helps the company plan and evaluate the success of individual activities--a freestanding coupon inserted into the Sunday papers, for instance--and measure the combined effect of a number of integrated activities.
The Brand Builder suite comprises three related components
It includes a state-of-the-art collaborative tool that lets sales agents, designers, vendors, and retailers plan promotions online
It puts marketing research and information learned about consumers online in real time
science of marketing
by integrating promotional-spending data with scanner and financial information, it provides a powerful analytical tool
Manufacturing inputs are the raw materials and components that go directly into a product or a process.
Operating inputs, by contrast, are not parts of finished products. Often called maintenance, repair, and operating (MRO) goods, they include things like office supplies, spare parts, airline tickets, and services
tend not to be industry specific;
Systematic sourcing involves negotiated contracts with qualified suppliers.
the contracts tend to be long term
In spot sourcing, the buyer's goal is to fulfill an immediate need at the lowest possible cost
MRO hubs are horizontal markets that enable systematic sourcing of operating inputs.
Yield managers are horizontal markets that enable spot sourcing of operating inputs.
Exchanges are vertical markets that enable spot sourcing of manufacturing inputs.
Catalog hubs are vertical markets that enable systematic sourcing of manufacturing inputs.
Yield managers create spot markets for common operating resources
This type of e-hub adds the most value in situations with a high degree of price and demand volatility, such as the electricity and utilities markets, or with huge fixed-cost assets that cannot be liquidated or acquired quickly, such as manpower and manufacturing capacity.
The exchange maintains relationships with buyers and sellers, making it easy for them to conduct business without negotiating contracts or otherwise hashing out the terms of relationships
Like MRO hubs, catalog hubs bring together many suppliers at one easy-to-use Web site. The only difference is that catalog hubs are industry-specific
The B2B Matrix
What businesses buy
operating inputs manufacturing inputs
How businesses buy
MRO Hubs: Catalog Hubs:
Systematic sourcing Ariba Chemdex
W.W. Grainger SciQuest.com
MRO.com PlasticsNet.com
BizBuyer.com
Yield Managers: Exchanges:
Spot sourcing
Employease e-Steel
Adauction.com Paperexchange.com
CapacityWeb.com Altra Energy
IMX Exchange