BusinesstoBusiness B2BMarketing

1

• Chapter 6
• Business-to-Business (B2B)Marketing

2
Objectives

• Explain each of the components of the business
  market.
• Describe the major approaches to segmenting
  business-to-business markets.
• Identify the major characteristics of the
  business market and its demand.
• Describe the major influences on business buying
  behavior.
• Outline the steps in the organizational buying
  process.
• Classify organizational buying situations.
• Explain the buying center concept.
• Discuss the challenges of marketing to
  government, institutional, and international
  buyers.

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B2B Marketing

• Deals with organizational purchases of goods and
  services to support production of other products,
  to facilitate daily company operations, or for
  resale.

4
B2B Marketing

• StorageTek Company Vision Statement
• Be the Storage Experts who deliver easy to use,
  industry-leading, innovative storage solutions to
  manage and protect business critical
  information.
• Source storagetek.com/home/about/vision.htm

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Comparing Business-to-Business Marketing and
Consumer Marketing
CONSUMER MARKETING
BUSINESS-TO-BUSINESS MARKETING
Standardized form, service important but less
than for business products
Relatively technical in nature, exact form often
variable, accompanying services very important
Product
List prices
Competitive bidding for unique items, list prices
for standard items
Price
Emphasis on advertising
Emphasis on personal selling
Promotion
Product passes through a number of intermediate
links en route to consumer
Relatively short, direct channels to market
Distribution
Comparatively infrequent contact, relationship of
relatively short duration
Relatively enduring and complex
Customer Relations
Individual or household unit makes decision
Diverse group of organization members makes
decision
Decision-Making Process
6
Components of the Business Market

• Commercial market
• Trade industries
• Government organization
• Institutions

7

• A Component of the Business Market, is a
  government agency we all know, the IRS.
• IRS buys products to provide federal tax service.

8
Commercial Market

• Largest segment of the business market.
• Includes all individuals and firms that acquire
  products to support, directly or indirectly, the
  production of other goods and services.

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Approaches to SegmentingBusiness-to-Business
Markets

• Demographics
• Customer type
• End-use application
• Purchasing situation

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A Site Designed to Help Evaluate China as a B2B
Market
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Characteristics That Distinguish theBusiness
Market from the Consumer Market

• Geographic market concentration
• The sizes and number of buyers
• Purchase decision procedures
• Buyer-seller relationships

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Todays International Marketplace

• Practice global sourcing, which involved
  contracting to purchase goods and services from
  suppliers worldwide which can result in
  substantial cost savings.
• Global sourcing requires companies to adopt a new
  mind-set some must even reorganize their
  operations.

13
Outsourcing

• Improves efficiency.
• Allows firms to concentrate their resources on
  their core business. It also allows access to
  specialized talent or expertise.
• Outsourcing downside
• Can reduce a companys ability to respond
  quickly.
• A major danger of outsourcing is the risk of
  losing touch with customers.
• Controversial topic with unions.

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Influences on Purchase Decision
Environmental Factors
Organizational Factors
Interpersonal Influences
15
Influences on Purchase Decision
Environmental Factors
Organizational Factors
Interpersonal Influences

• Economic
• Political
• Regulatory
• Competitive
• Technological Consideration Influence

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Influences on Purchase Decision
Environmental Factors
Organizational Factors
Interpersonal Influences

• Economic
• Political
• Regulatory
• Competitive
• Technological Consideration Influence

• Customers organizational structures
• Policies
• Purchasing systems

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Influences on Purchase Decision
Environmental Factors
Organizational Factors
Interpersonal Influences

• Economic
• Political
• Regulatory
• Competitive
• Technological Consideration Influence

• Customers organizational structures
• Policies
• Purchasing systems

• Should know who influences buying decisions
• Group
• Individual
• Committees

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Buying Center Concept

• Provides a vital model for understanding
  organizational buying behavior.
• Encompasses everyone who is involved in any
  aspect of its buying action.
• Not part of a firms formal organization
  structure.