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LEARNING OBJECTIVES

Learning Objectives

How do B2B firms segment their markets? How does B2B buying differ from consumer

buying behavior? What factors influence the B2B buying

process? How has the Internet changed B2B

marketing?

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B2B Marketing

Who is the end user?

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B2B Markets

U.S. Census Website

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Manufacturers or Producers

Gear Expo News Clip

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Resellers

How is this B2B ad similar to B2C

ads?

In what kind of publication might this appear?

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Institutions

Schools, Museums and

Religious Organizations

Schools, Museums and

Religious Organizations

London Museum News Clip

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Government

US Government spends $2.1 trillion procuring goods

State and local governments also make significant purchases

Firms specialize in selling to government

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Adding Value: Paris Runways

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B2B Buying Process

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Stage 1: Need Recognition

Can be generated internally or externally

Sources for recognizing new needs: Suppliers Salespeople Competitors

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Stage 2: Product Specifications

Used by Suppliers to develop proposals

Can be done collaboratively with suppliers

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Federal Business Opportunities Website

Stage 3: RFP Process (Request for Proposal)

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Step 4: Proposal Analysis, Vendor Negotiation and Selection

Often several vendors are negotiating against each other

Considerations other than price play a role in final selection

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Step 5: Order Specification

Firm places the order

The exact details of the purchase are specified

All terms are detailed including payment

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Step 6: Vendor Analysis

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Factors Affecting the Buying Process

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The Buying Center

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Organizational Culture

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Buying Situations

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New Buy

• Purchasing for the first time

• Likely to be quite involved

• The buying center will probably use all six steps in the buying process

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Modified Rebuy

Purchasing a similar product but changing specifications

Current vendors have an advantage

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Straight Rebuys

Buying additional units or products that have been previously purchased

Most B2B purchases fall into this category

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Power of the InternetPutting Volkswagen Together

Realigned purchasing Introduced iPAD

(internal purchasing agent desk)

Cut time per order from 60 to 20 minutes

Online connection to suppliers

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Role of the Internet in Business-to-Business Marketing

How is this ad B2B and B2C?

How is this ad B2B and B2C?

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1. Identify the various types of B2B markets.

2. What are NAICS codes and how are they used?

Check Yourself

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Check Yourself

1. Identify the stages in the B2B buying process.

2. How do you do a vendor analysis?

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Check Yourself

1. What factors affect the B2B buying process?

2. What are the six different buying roles?

3. What is the difference between new buy, rebuy, and modified rebuy?

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Glossary

Business-to-business (B2B) marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, and/or for resale by wholesalers and retailers.

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Glossary

Buying center participants are people responsible for the buying decisions.

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Glossary

A private exchange occurs when a specific firm (either buyer or seller) invites others to participate in online information exchanges and transactions.

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Glossary

The request for proposals (RFP) is a process through which buying organizations invite alternative suppliers to bid on supplying their required components.

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Glossary

Resellers are marketing intermediaries that resell manufactured products without significantly altering their form.

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