Business Marketing: Present and Future

by Gary L. Lilien Pennsylvania State University, USA

1. Business Marketing: Nature and Uniqueness Industrial marketing or the new term, business marketing, is the marketing of goods and services to industrial customers for use, in turn, in their own production of goods and services. The marketing of business goods and consumer goods have two attributes in common: a purchase is the usual outcome of the process and the result derives from some decision-making activities. In spite of these superficial similarities, business or industrial marketing problems must be handled differently from consumer marketing for several important reasons outlined below. (In what follows, we use the terms "business" and "industrial" marketing interchangeably.) This paper highlights areas of progress in structuring industrial marketing problems and outlines prospects for important new developments in the near future.

The reasons for the consumer market/industrial market differences include the following:

Derived Demand. One characteristic of the industrial goods market is that its demand is derived from the demand for final consumer goods and services. This implies that the direct demand for most industrial goods is fairly inelastic. A major increase in the price of steel cord in radial tyres, for example, will not reduce the demand for tyres by a motor manufacturer (although it may cause manufacturers to look for substitute materials). Thus, products are purchased by organisations to meet the needs of their customers. Impulse buying is uncommon while objective criteria-such as meeting production needs and schedules with a minimum-cost product - often drive the choice process.
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Multiple Influences. More than one and, often, many individuals are involved in the purchasing decision process; as Wind (1976) points out, purchasing managers rarely make a buying decision independent of the influence of others in the organisation. Long Purchase Cycles. Due to (a) the often high cost volume involved, (b) the number of individuals involved and (c) the technical nature of the products under consideration, the purchasing process may take a long time. This extended purchase process, taking months or years in some cases, makes it difficult to determine a direct relationship between marketing effort and customer actions. Customer Heterogeneity. The number and heterogeneity of customers in industrial markets lead to special problems. There are more steel companies than car manufacturers, so the car market for steel has more sellers than buyers. A manufacturer of machine tools may number among his customers many small machine shops and General Motors as well. These firms respond differently to marketing activities, having different purchasing requirements in terms of service needs, delivery requirements and the like. Decentralised Transactions. Products in industrial markets often move through difficult-to-measure channels. A driving force behind the sophistication of consumer marketing analysis methods is the availability of services that regularly and frequently collect detailed product-class sales data as well as retail price, promotion and brandswitching information. Because of the importance of direct selling and the independent nature of the industrial distributor, such data are rarely available in industrial markets. Varying, Fragmented Market Structure. Industrial markets with few buyers and few sellers are structured differently from consumer markets. When a market contains only three or four customers, and a complete census is taken of customer activities, statistical methods are not relevant. In such markets, buyer-seller relationships are often longterm, and based on mutual respect as well as relative power (Corey, 1983). This leads to purchasing arrangements that differ significantly from those in consumer markets. In general, less data are available in industrial markets, with fewer and harder-to-measure transactions, and relevant data for decision making must incorporate measures of power and long-term buyer-seller relationships. Systems Selling. As Hudson (1971) and others have pointed out, organisational buyers are interested i6 the satisfaction of a total need. The determining factors in the success of an offering may include such items as technical support, training, delivery dates and financial terms.

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This is part of the trend towards systems selling in industrial markets (Mattsson, 1973). For the reasons given above, it is unrealistic to expect that approaches developed in consumer markets should apply directly to industrial marketing problems. As Webster (1978, 1984) has pointed out, the word cornplexzty is used most appropriately to describe industrial markets. That complexity is often used by academics and practitioners alike as the reason for not applying rigorous problem-solving methods to industrial marketing problems. Yet industrial marketing activity represents over half of the economic activity in the industrialised world, and the very complexity of industrial marketing makes the potential great for the introduction of analytical ri,uour. In what follows, we will focus on a broad range of progress areas and prospects for development. The treatment here will be selective rather than exhaustive and, as in any list of research priorities, the selection of topics is personal.

11. Buying Behaviour To analyse marketing opportunities when customers are other organisations requires an understanding of organisational buying behaviour. A number of thorough reviews of the literature on the organisational buying process are available and we will not try to duplicate them here (Webster, 1984; Sheth, 1977; Choffray, 1977; Bonorna et a/., 1977; Wind 1978a; Wind and Thomas, 1981; Moriarty, 1983; Moeller, 1985). Much of this research has focused on three issues: the nature and the structure of the buying centre, the organisational buying process, and the factors affecting purchasing decisions.
A number of empirical studies (Buckner, 1967; Lilien and Wong, 1984) have demonstrated that a single industrial decision does not exist. The buying centre concept (Wind, 1978a; Spekman and Stern, 1979) is widely accepted, yet little is known about the dynamics of the buying centre, what determines that composition and how it changes. Wind and Thomas (1981) review the relevant literature and find little agreement in the findings of published studies. The buying process has been modelled in a number of ways, often as a sequence of stages (Robinson and Faris, 1967; Ozanne and Churchill, 1971; Webster and Wind, 1972; Kelley, 1974; Bradley, 1977; Wind, 1978a). Variations in these sequences suggest that the process is complex and varies by product, market, company and buying situation.
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The buying situation has long been recognised as a determinant of the structure of the buying centre as well as of the information needs and the decision process associated with the purchase. Robinson and Faris (1967) have suggested a classification of buying situations into new buy, modified rebuy and straight rebuy situations. In addition, the composition of the buying centre and its buying process is affected by four sets of factors: personal, interpersonal, organisational and interorganisational (Wind and Thomas, 1981). There have been several attempts to provide a structure for the interorganisational decision process. Two models (Webster and Wind, 1972; Sheth, 1977) provide checklists of the issues and interactions important in organisational buying. A model by Choffray and Lilien (1980), while simpler, suggests operational models and associated measurement methods for a more comprehensive approach.
A somewhat different perspective on the nature of the organisational buying process is what is known as the Interaction Approach (Hakansson, 1982). This approach posits that the key to understanding industrial product marketing and purchasing lies in the interaction process between individuals within functional departments and hierarchical levels in supplier and customer firms. That interaction process can be described in terms of: (1) the elements of interactions (product exchanges, information exchanges, etc); (2) the parties involved (organisation, individuals, product technology, etc); (3) the environment (market structure, cultural/geographica1 distance) and (4) the atmosphere (the power/dependence relationships that characterise the long-term interaction process). This approach has been extensively applied by the International Marketing and Purchasing (IMP) group via an extensive programme of parallel, multi-country research studies (see Ford, 2980; Hakansson and Wootz, 1979; Hakansson, 1982; Turnbull and Valla, 1986; Ford e f al., 1986). Several research methods including the Network Approach (Easton and Araujo, 1986) and Decision System Analysis (Vyas and Woodside, 1986) have been shown to be useful in understanding these relationships and the buying process.

On net, our current knowledge of organisational buying provides some useful decision-making support for the industrial marketing manager. Currently available are (1) general, conceptual models, identifying important variables and providing a checklist of important issues, (2) much detailed, situation-specific research, suggesting the type and direction of effects in certain situations, and (3) the beginning of the development of comprehensive methodologies to support industrial marketing decision making.

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Our knowledge of organisational buying is clearly rudimentary at the moment, however, and some important areas of potential progress include: (1) How can the variables and the relationships in models such as Webster and Wind's and Sheth's be put into equation form and used? ( 2 ) What does purchase influence mean? How can we establish, validly and reliably, who is involved (or likely to be involved) in a decision process and what influence these individuals are likely to exert? (3) How do individuals in organisations become aware and knowledgeable about product information? (4) What product, market and environmental characteristics can predict the structure of the buying process across industries? (5) What measurement instruments (decision matrices? buying panels? protocol studies? gaming/laboratory procedures? network analysis? decision systems analysis?) can be developed for industrial buying situations?

111. Segmentation Industrial markets are heterogeneous. Customers have different constraints, needs and incentives. Products compete imperfectly with one another in satisfying those needs. Market segmentation is the grouping of potential customers into sets that are homogeneous in response to some elements of the marketing mix to allow the allocation of marketing resources among heterogeneous customer-requests.
Empirical and conceptual work by Wind and Cardozo (1974) forms the basis of current thinking about segmentation in industrial markets. The results of a survey they performed reveal that segmentation strategies are used primarily after the fact, to assess a product's past performance, rather than to develop effective marketing programmes. Managers perceive organisational-characteristic bases as the easiest to use but only modestly relevant, while they perceive DMU (decision-making unit) characteristics as most relevant but also the most difficult to implement. Wind and Cardozo recommend a two-stage approach. The first stage calls for identifying macrosegments through the use of such characteristics as (1) end-use market, (2) product application, (3) customer size, (4) usage rate, and (5) geographical location. The second stage calls for dividing macrosegments into microsegmenls through the use of such characteristics as (1) job position, (2) personal characteristics, (3) perceived product importance, (4) attitudes towards vendor, (5) buying decision criteria, and (6) stage in the buying process. Thomas and Wind (1982) provide a review of current literature and findings in the area of industrial market segmentation (see also Choffray and Lilien, 1980; Cardozo, 1980; Plank, 1985; Wind, 1978b). Their review is structured around five basic decisions faced by industrial

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marketing managers: (1) the segmentation decision (to segment or not), (2) how to segment (identification), (3) resource allocation, (4) segment selection (what segments should see resource allocations) and (5) implementation. In spite of recent progress in the area, several key issues face researchers and practitioners. If DMU composition is to be used as a segmentation basis, how can such composition be measured reliably and validly? This problem is critical. As Thomas and Wind (1982, p. 13) point out, "...more multiple person buying center studies with 'buying center response' variables need to be conducted". Methods such as the Analytic Hierarchy Process (Wind and Saaty, 1980) may be employed here. In addition, market segmentation studies need to be linked to resource allocation. The normative theory of segmentation (Claycamp and Massy, 1968), integrated segmentation and resource allocation and the theory-practice gap has yet to be bridged (Wind, 1978b).

IV. Product Policy and the Marketing Mix We structure the area of industrial product policy into several sub-areas: communications, pricing, distribution, product design, interactions and competitive response.

IV. I Communications Industrial marketing communications covers the mix of personal and impersonal communications activities aimed at the industrial buyer, including personal selling, space advertising, the use of catalogues and brochures, direct mail, trade shows and the like. The effectiveness of these activities depends not only on their particular merits but on the way they interact with other communication activities.
The progress we review here can be broken into sub-categories: descriptive analysis, providing a picture of current procedures for these decisions in industry, and normative analysis, aimed at saying what decisions are best.

Descriptive Models for Communicotions Decisions. Two studies have attempted to explain differences in marketing communication spending behaviour by studying a cross-section of business situations: the ADVISOR models (Lilien, 1979) and the PIMS-based models (Farris and Buzzell, 1979). Both of these efforts showed that a few product and market variables -such as product sales rate, stage in the life cycle of the product, number and concentration of customers, product complexity and the like-explain a major fraction of the variation in budgets for advertising and sales promotion, salesforce expenditures, and total
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marketing spending as well as the split in the budget between personal and impersonal marketing communication spending. Farris and Buzzell (1979, pp. 119-20) conclude that "in spite of some evidence for instability of a few regression coefficients . . . the overall pattern seems to be one of consistent relationships across a wide variety of industrial businesses". This is consistent with the findings of Lilien and Weinstein (1984), comparing a sample of 80 European businesses with 131 US businesses.

Normative Models for Communication Decisions. The literature is almost devoid of studies of response to marketing communication effort in industrial markets. An exception is reported by Lilien and Ruzdic (1982). They report on applying a common measurement and modelling approach to six product markets, each of which had gone through a major disruption which permitted knowledge of causality of marketing sales effort response. Only two important studies appear concerning industrial sales response to industrial advertising. Weinberg (1956) related changes in a firm's market share to its "advertising exchange rate" (the firm's advertising expenditures per dollar of sales divided by the corresponding ratio for its competitors), and used the model to find a profit-maximising advertising .level. Morrill (1970) carried out a large body of survey research, relating magazine readership to purchase behaviour. His work, while having methodological flaws (Lilien et al., 1976), provides evidence that advertising pays off by making selling effort more effective. The salesforce area is rich in normative models. Zoltners and Sinha (1980), Zoltners and Gardner (1980) and Cravens (1979) provide classifications and reviews. Three observations seem appropriate: (1) good, normative salesforce models exist; (2) those models contribute to the state of the art through methodology and model formulation rather than through generalisable findings; and (3) those models are weak on their ability to integrate behavioural science concepts into the calibration of sales response curves and rarely consider salesforceadvertising interactions.
Important areas for future development include the following: (1) Two important areas where descriptive norms are not currently available are for new industrial products and for industrial services; (2) We need to understand how stable are these norms. D o they vary over time? Across markets? (3) The work by Lilien and Ruzdic (1982) suggests that the differences in response elasticities may eventually be related to market and environmental variables. A larger study of this nature, then, may provide material for development of normative communications

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spending guidelines; (4) Sales response to selling effort needs to be tied to sales effort data, using a consistent methodology. The work of Lucas et a/. (1975) illustrates what is required here; (5) Finally, integrative model structures should be developed and implemented. These models recognise interdependencies between territory design, salesforce time allocations and salesforce size (Beswick and Cravens, 1977; Shanker et a/., 1975; Lodish, 1980; Glaze and Weinberg, 1979).

1V 2 Pricing
Price is an intimate element of the product offering of the industrial marketing mix (Monroe, 1979). It is generally believed that most industrial marketers set prices for new products and adjust prices for old products on a cost-plus basis. A more contemporary view, one that is clearly tied to segmentation theory, is value-based pricing (Gross, 1978). Here price is set on the basis of the value to the customer and may vary by market segment. Economic theory provides some superficial guidance for pricing in monopolistic situations or in situations of price competition. These situations are unrealistic for the typical industrial market. Important current work models pricing strategy dynamically in markets where economies of scale and experience curve cost declines may drive costs down. Jeuland and Dolan (1982) and Kalish (1983) review approaches in this area and develop some important insights into dynamic pricing policies. Two other important areas in pricing are product line pricing decisions (Monroe and Zoltners, 1979) and competitive bidding models (Monroe, 1979). Several important issues facing the contemporary industrial marketer include: (1) How should price-terms be set during negotiations? When the number of buyers and sellers is similar, bargaining theory will have to be used to replace market response analysis (Chatterjee and Lilien, 1986). Economists have failed to provide operational models for pricing in an oligopoly. How should the manufacturer of a processed product or material manage price when the market is oligopolistic and gradually moving towards commodity pricing (price competition)? (3) Some observations (Gross, 1982) suggest that advertising can be used to sustain a premium price in the marketplace. How can this information be incorporated in a pricing model? (4) The dynamics of pricing strategy in a monopoly is beginning to be structured and understood. Similar dynamic guidance is needed for a firm that is second or third into the market with a new industrial product (Eliashberg and Jeuland, 1986).

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It? 3 Distribution The distribution decision is the determination of the most profitable ways to reach customers. The seller may distribute his product directly or indirectly through agents or distributors. This decision has implications for the size and type of the salesforce, the size of the advertising budget and the price strategy.
In a survey of industrial purchasing managers, Perreult and Russ (1976) found that physical distribution services were second only to product quality and more important than price in influencing industrial purchase decisions. Distribution problems can be broken into four components: (1) strategy, how to sell products to end markets; (2) location, how many and where to locate warehouses and other outlets; (3) logistics, the best way to supply product to intermediate sellers or final buyers, and (4) management, the development, management and control of margins, allowances and services that encourage the network to operate at peak capacity. Hutt and Speh (1984) view the channel strategy question in five stages: (1) Channel objectives, integrating the channel strategy into the overall marketing plan; (2) Channel constraints, recognising limitations in middleman availability, traditional patterns, etc; (3) Channel tasks, assigning tasks to each element in a level in a channel; (4) Evaluation of alternatives, in terms of number of levels, number and types of intermediaries and the number of distinct channels, and (5) Channel selection, choosing the best alternative. There have been few quantitative studies related to the distributive channel strategy decision. Lilien (1979) provides a descriptive model, relating product and market factors -such as size of firm, order size, stage in the life cycle- to the selection of internal versus external channels. Webster (1984) provides a discussion of the role of distribution in marketing strategy. The other areas of distribution outlet selection, logistics and management - bridge the rnarketingoperations-management gap (see Geoffrion, 1975, for a discussion of some of the important issues). Distribution planning and strategy has seen little formal research in industrial marketing. Two important issues are: (1) How do advertising selling effort and distribution channel choice interact? i.e. what are the important synergies and the important trade-offs? (2) How can the elements of distribution strategy- location, logistics and management -be related in an integrative structure (for a related, ambitious attempt at this problem, see Corstjens and Doyle, 1979).

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IV: 4 Product Design The physical (as well as psychological) aspects of an industrial product critically affect that product's market potential. The role of product specifications is well established in industrial purchasing behaviour. The product design question addresses two important issues: What percentage of the potential buying population will find a given product design feasible? a How do potential customers trade off design features? (How much more can be charged for a product with a 15-year life than for one with a 10-year life?) The most widely used method for industrial product design is conjoint analysis: Cattin and Wittink (1982) and Wind et al. (1978) refer to hundreds of industrial applications. An alternative approach specifically developed for industrial markets is called "designer" (Choffray and Lilien, 1982). One important research issue in the product design area is measurement reliability and validity testing: the data for conjoint analysis and designer procedures are derived from surveys or other artificial choice situations. Wittink and Montgomery (1979) and Cattin and Wittink (1982) point out that the main problems with conjoint analysis involve external/predictive validity, the lack of reliable estimation methods and the lack of ability to handle large numbers of attributes. A second important research area relates to handling market dynamics: most product design models are static and do not incorporate market learning. The time-path of the new product is a critical piece of management information and associated methodology would be an important addition to the field.

IT/: 5 Interactions and Competitive Response The effects of elements of the marketing mix interact and competitors respond to marketer-actions. Both of these effects complicate the marketing mix decision. Dolan (1981) examined a number of industries to determine the extent to which structural variables determine the mode of competition and concluded: (1) High fixed costs promote competitive response to share gain attempts; (2) High storage costs reduce competitive reactions; (3) Growing primary demand reduces competitive reactions; (4) Large firms avoid price competition. As noted earlier, studies have suggested that advertising can support price and that advertising and selling interact. In addition, advertising and other elements of the marketing mix may show non-linearalities as well as interactions. An approach to the competitive response issue is that of the "reaction matrix",* which permits the econometric
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measurement of contemporaneous o r lagged responses to change in either the same or a marketing mix element different from the one changed. (A price change this period "causes7' competitor "A7'to raise advertising next period.) Work by Bensoussan et 01. (1978), Lambin (1976), Schultz and Hanssens (1976) and Hanssens (1980) suggest that the reaction matrix approach, while seeing some conceptual and empirical difficulties, is a step in the direction of incorporating competitive effects into marketing mix models.
,

Research in this area should involve the following: (1) We need an understanding of the way marketing mix elements interact. There is lack of agreement about whether advertising increases or decreases price elasticity. We must understand how elements of the marketing mix interact and model those effects better; (2) Competitive response is critical for decision making, yet most marketing models ignore that response. As with interactions, the nature of competitive response must be better understood before it can be modelled adequately (Chatterjee and Lilien, 1986).

V. New Product Forecasting Industrial firms recognise that new product development and introduction is accompanied by high costs and high risks. Yet such innovation is necessary to the long-term survival of the firms. Risks can be controlled through a well conceived and professionally managed programme for new product development. Key ingredients for such a programme include effective management of new product research and development as well as sound, explicit models for planning and forecasting new product sales.
Two types of model are generally available for consumer products: pretest market models and market forecasting models. The former type attempt to project market sales from laboratory data while the latter project sales from early market data. Currently there is no industrial analogy to pre-test market models (see Urban and Hauser, 1980, for a review). An approach called substitution analysis has been extensively applied to industrial products. This work, derived from that of Mansfield (1961, 1968) and Fisher and Pry (1971), postulates that when a new industrial product or process replaces an old one, the rate of adoption is proportional to the fraction of the older one still in use times the current level of penetration. Mansfield (1968) showed that the rate of substitution was higher when the relative profitability from adopting the innovation was greater, and when the initial investment was lower. Blackman et d.(1973) and Blackman (1974) show that a number of

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buying industry factors-such as current and planned R&D expenditures, new product sales as a percentage of total sales, etc -can be used to create an industry coefficient index that can be used to help predict the relative diffusion rate. The new industrial product area provides a number of exciting opportunities for development: (1) How, before the preliminary sales of a product are recorded, can diffusion coefficients be estimated? Mansfield's study is 15 years old; an update is required on a large database incorporating more product and marketing variables (Choffray and Lilien, 1986); (2) How should the new product budget be allocated? How large should the budget be? How much should go for research? For development? For each of the various stages of market development? (3) What sources should be tapped, in a particular market, for successful new products? Von Hippel (1978) suggests that customers are often good sources of new products. In what industries/markets is this likely to be the case? (4) Many industrial markets (for new communications equipment, for energy systems, etc) may take 10-15 years to develop. How can we forecast market potential many years into the future? (5) Can the ideas that lead to successful pretest product models in the consumer goods area be adapted to the industrial environment? Is a laboratory-measurement procedure applicable for predicting penetration of industrial products? (6) How can the market be assessed for an "original product", one that does not share its market with existing products? Such a product may create a new market; how can that market be evaluated?

VI. Market Definition We have assumed throughout that the market is well defined or well understood. This is rarely the case. Key strategic issues in industrial marketing, such as the basic business definition, opportunity assessment, threat analysis and the like are closely tied to the breadth or narrowness of the market. When attainment of market share represents a desirable objective, market boundaries must be defined to determine the extent to which that objective is met.
Day et a!. (1979) define a product market as a group of physical products perceived to be substitutes by a particular group of customers for a specific use. They classify methods for identifying product markets by whether they rely on behavioural data (cross-elasticity of demand, behaviour similarities, brand switching) or judgemental data, perceptual mapping and similarity assessments. The area of market

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structure analysis is in its infancy and has yet to yield a "best method'' to describe an industrial market.

VII. Industrial Market Strategy Development The tools for industrial market strategy development and analysis can be classified as:
(1) Shared experience models (the PIMS approach); (2) Product portfolio models: (i) standardised (BCG/GE) (ii) customised (conjoint analysis, analytic hierarchy process) (iii) financial (efficient portfolio/risk-return models); (3) Normative resource allocation models.

All of these approaches, explicitly or implicitly, incorporate life cycle analysis, experience curve effects, market definition and market structure approaches in their development. The PIMS approach (Schoeffler et a[., 1974) used the concept that the shared experience of a large number of successful and unsuccessful businesses will yield strategy insights. Product portfolio models (Wind and Mahajan, 1980) deal with product interactions in a number of ways, some specific to the product-market (Wind and Saaty, 1980), some standard, to be applied to all markets (the BCG approach). Normative product portfolio models (Larrechk and Srinivasan, 1981, 1982; Corstj ens and Weinstein, 1982) provide an analystic framework to produce normative guidelines from these product portfolio concepts. This field -model development for industrial marketing strategy- is in its infancy. The next decade should permit synthesis, empirical testing and improvement of all these proposed approaches.

VIII. Industrial Marketing Databases and Decision Support Systems Little (1979) provides a picture of a marketing decision support system (MDSS) as an integrated system of data, models, tools and computer hardware and software aimed at the problems of marketing management. As this paper has suggested, many of the models in the industrial area are nearly as well developed as consumer marketing models. Why then are industrial MDSSs in a state of underdevelopment?
The problem lies mainly with data sources. Consumer marketers have traditionally had store audit data (Nielsen), warehouse shipment data (SAMI), or panel data (MRCA) to analyse. The advent of the

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automated check-out system is providing even cleaner and richer data sources for the consumer market analysts.
Can comparable developments be expected in the industrial marketplace? The lack of accurate, inexpensive, frequently collected industrial market data will continue to be the weak link in development in this area for a number of years to come. However, as telemarketing begins to substitute for personal sales in some markets, and as entrepreneurs learn to centralise the collection of data in some industrial market segments, we expect this to change. Some sources (TRINET and Dunn and Bradstreet, in the USA) are providing more and better quality data about markets, but even these data are not as directly usable for marketing decisions as are their consumer counterparts.

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The salesforce represents an untapped yet rich source of market information. Salesforce-based data systems combined with computerised collection of transactions data from other sources promises to bring the MDSS revolution to the industrial marketplace, although a bit after the consumer revolution.

IX. Conclusion This brief review of progress and-prospects for development is by no means exhaustive. It portrays the industrial market as one with analytical and conceptual problems but one with large opportunity as well. The "complexity" of the industrial market must be exploited in successful methodological applications; consumer-based approaches will fail in most cases due to simplifying and naive assumptions. The areas of significant progress identified above suggest that real progress in measurement and modelling is possible. Webster (1984) suggests that the small sample, heterogeneous nature of industrial markets may require more use of experienced managers' judgement in place of larger scale of data collection. Of over-riding significance is the fact that rewards await those who invest the time and creativity to address industrial marketing problems as they exist, who adapt and develop the tools required to treat industrial marketing problems as they are.
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Blackman. A.W., Jr., Seiigman, E. J. and Solgliero, G.C. (1973) "An Innovation Index Based upon Factor Analysis7', Technological Forecasting and Social Change, Vol. 4, pp. 301-16. Bonoma, T Y . , Zaltman, G . and Johnson, W. (1977) Industrial Buying Behavior, Marketing Science Institute, Cam bridge, Mass. Bradley, M.F. (1977) "Buying Behaviour in Ireland's Public Sector"', Industrial Markering Management, Vol. 6, August, pp. 25 1-8. Buckner, H. (1967) How British Industry Buys, Hutchinson, London. Cardozo, R. (1980) "Situational Segmentation of Industrial Markets", European , Journal of Marketing, Vol. 14, pp. 264-76. Cattin, P. and Wittink, D.R. (1982) "Commercial Use of Conjoint Analysis: A Survey7',Journal of Marketing, Vol. 46 No. 3, Summer, pp. 44-53. Chatterjee. K. and Lilien, G.L. (1986) "Game Theory in Marketing Science: Uses and Limitations7', International Journal of Research in Marketing, Vol. 3, Winter, pp. 79-93. Choffray, J.-M. (1977) 'R Methodology for Investigating the Structure of the Industrial Adoption Process and the Differences in Perceptions and Evaluation Criteria among Potential Decision Participants7', unpublished PhD dissertation, Massachusetts Institute of Technology, Cambridge, Mass, April. Cho ffray, J.-M. and Lilien, G.L. (1980) Market Planning for New Industrial Products, John Wiley, New York. Choffray, J.-M. and Lilien, G.L. (1982) "DESIGNOR: A Decision Support Procedure for Industrial Product Designy7,Journal of Business Research, Vol. 10 No. 2, Septem ber, pp. 185-97. Choffray, J.-M. and LiIien, G.L. (1986) "A Decision Support System for Evaluating Sales Prospects and Launch Strategies for Industrial New Products7', Industrial Marketing Management, Vol. 15, pp. 75-88. Claycamp, H.J. and Massy, W.F. (1968) "A Theory of Market Segmentation", Journal of Marketing Research, Vol. 5, November, pp. 388-94. Corey, E.R. (1983) Industriaf Marketing: Cases and Concepts (3rd ed.), Prentice Hall, Englewood Cliffs, N.J. Corstjens, M. and Doyle, P . (1979) "Channel Optimization in Complex Marketing Systems", Management Science, VoI. 25 No. 10, October, pp. 1014-25. Gorstjens, M. and Weinstein, D. (1982) "Optimal Strategic Business Unit Portfolio Analysis7',in Zoltners, A. (Ed.) Marketing Planning Models, TIMS Studies in the Management Sciences, Vol. 18, North-Holland, New York, pp. 141-60. Cravens, D.W. (1979) "Salesforce Decision Models: A Comparative Assessment", in Bagozzi, R. (Ed.) Sales Management: New Developments from Behavioral and Decision Model Research, Marketing Science Institute, Cambridge, Mass., pp. 3 10-24. Day, G.S., Shocker, A.D. and Srivastava, R.K. (1979) "Consumer-Oriented Approaches to Identifying Product Markets7', Journal of Marketing, Vol. 43 No. 4, Fall, pp. 8-19. Dolan, R.J. (1981) "Modeis of Competition: A Review of Theory and Empirical Evidence", in Enis, B. and Roering, K. (Eds.) Review of Marketing, American Marketing Association, Chicago, pp. 224-34.

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