Chapter 5 Flashcards
(8 cards)
B2B Markets
- Manufacturers (Producers): IBM and Volkswagen
- Resellers: Manufacturer, Reseller, Retailer
- Institutions: Educational institutions, Religious institutions, Museums, Charities / Hospitals
- Government (B2G): largest purchasers of G&S
B2B marketing involves buying & selling goods or services to be used
in the production of other goods & services
for consumption by the buying firm (e.g., obtaining tech products)
for resale by wholesalers & retailers
B2B marketing vs. B2C marketing
Demand for B2B products tends to be inelastic and derived.
Products tend to be complex/technical with heavy emphasis on delivery time, after-sales service, financing, etc.
Buying process is complex, more formalized/structured, involving negotiations, and participation from several qualified people with varied backgrounds/interests.
Focus on personal selling, technical advertising, physical distribution, and negotiating price and product specification (for custom-order)
Key challenges in B2B marketing
- Identify decision makers in organization who authorize or influence purchases
- Understand the buying process (and motivation) of each decision maker
- Identify factors that influence the buying process of potential clients
The B2B Buying Process
- Need recognition
- product specifications
- RFP process
- proposal analysis and supplier selection
- order specification (purchase)
- vendor performance assessment using metrics
4 types of Corporate/Buying Culture
Autocratic
Consultative
Democratic
Consensus
The Buying Centre:
influencer, decider, buyer, user, gatekeeper, initiator, influencer
Buying situations
a) NEW BUY
Likely to be quite involved, use all 6 steps in the buying process
b) MODIFIED BUY
Purchasing a similar product but changing specifications, Current vendors have an advantage
c) STRAIGHT REBUY
Buying additional units or products that have been previously purchased
