Marketing Chapter 7 Business to Business Marketing – Flashcards

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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 resale by wholesalers and retailers.

is not the product or service itself; rather, it is the ultimate user of that product or service. Another key distinction is that B2B transactions tend to be more complex and involve multiple members of both the buying organization and the selling organizations, whereas B2C often entails a simple transaction between the retailer and the individual consumer. B2B firms focus on serving specific types of customer markets by creating value for those customers.

reflects the link between consumers demand for a company's output and the company's purchase of necessary inputs to manufacture or assemble that particular output.

... The most visible types of B2B transactions are those in which manufacturers and service providers sell to other businesses. However, re sellers, institutions, and governments also may be involved in B2B transactions. Therefore, in the next sections we describe each of these B2B organizations. Resellers, Institutions, Government, Manufacturing/Service providers.

manufacturers buy raw materials, components, and parts that allow them to make and market their own goods and ancillary services.

are marketing intermediaries that resell manufactured products without significantly altering their form. Move is downstream intermediaries

is an intermediary entity in the distribution channel that buys in bulk and sells to resellers rather than to consumers.

an agent who supplies goods to stores and other busiensses that sell to consumers.

such as hospitals, educational organizations, and religious organizations, also purchase all kinds of goods and services.

...as noted in the previous section, the B2B buying process is unique: It both parallels the B2C process and differs in several ways. Both start with need recognition, but the information search and alternative evaluation steps are more formal and structured in the B2B process. Typically B2B buyers specify their needs in writing and ask potential supploers to submit formal proposals, wheras B2C buying decisions are usually made by indiviudals or families and do not need formal proposals. Thus, for an individual to buy a tablet computer, all that is required is a trip to the store or a few minutes online and perhaps some preliminary research about iPads, versus computers. 1.Need recognition 2.Product specification 3.RFP process 4.Proposal analysis and sipplier selection 5.order specification 6.Vendor performance assessment using metrics.

In the first stage of the B2b buing process, the buying organization recognizes, through either internal or external sources, that it has an unfilled need.

After recognizing the need and considering alternative solutions, including laptop computers, the university wrote a lost of potential specificaitons that vendors might use to develop their proposals. The school's specifications include screen size, battery life, processor speed, how the device connects to the Internet, and delivery date. In addition, the board of directors loaded on the tablets, that all other apps be removed, and that each tablet come equipped with a screen protector, power cord, cover, stand, keyboard, and headphones. The school hopes to obtain a four-year service contract that includes replacement within 24 hours for any tablets that are returned to the vendor for servicing.

The request for proposals (RFP) is a common process through which organizations invite alternative vendors or suppliers to bid on supplying their required components or specifications. The purchasing company may simply post its RFP needs on its website or work though various B2B web portals or inform their preferred vendors directly.

in internet site whose purpose is to be a major starting point for users when they connect to the web. BENEFITS: Reduced paperwork, simplified negotiations, streamlined procurement

The buying organization, in conjunction with its critical decision makers, evaluates all the proposals it receives in response to its RFP. price financing and quality sre discussed

In the fifth stage, the firm places its order iwht its preferred supplier (or suppliers)

Just as in the consumer buying process, firms analyze their vendors' performance so they can make decisions about their future purchases. The difference is that in a B2B setting, this analysis is typically more formal and objective.

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participants can range from employees who have a formal role in purchasing decisions to members of the design team that is specifying the particular equipment or raw material needed for employees who wil be using a new machine that is being ordered. Made up of: Initiator, influencer, decider, buyer, user, gatekeeper

the person who first suggests buying th epartiulcar product or service Your doctor

the person whose views influence other member sof the buying center in making the final decision The medical device supplier, the pharmacy

the person who ultimately determines any part of or the entire buying decision-whether to buy, what to buy, how to buy, or where to buy The hospital

the person who handles the paperwork of the actual purchase. Hospitals materials manager

the person who consumes or uses the product or service the patient

the person who controls information or access, or both, to decision makers and influencers. the insurance company

reflects the set of values, traditions, and customs that guide its employees' behavior. The firm's culture often comprises a set of unspoken guidelines that emplyees share with one another though various work situations. organizational culture can have profound influence on purchasing decisions. COrporate buying center cultures can be divided into four general types: autoractic, democratic, consultative, and consensus.

one person makes the decision alone.

the majority makes the decision.

use one person to make a decision but solicit input from others before doing so.

all members of the team must reach a collective agreement that they can support a particular purchase.

... the type of buying situation also affects the B2B decision process. Most B2b buying situations can be categorized into three types: new buys, modified rebuys, and straight rebuys.

a customer purchases a good or service for the first time, which means the buying decision is likely to be quite involved because the buyer or the buying organization does not have any experience with the item. Most difficult of the three buys

the buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, options, and so forth.

occur when the buyer or buying organization simply buys additional units of products that had previously been purchased. Many B2B purchases are likely to fall in the straight rebuy category. For example, sports teams need to repurchase a tremendous amount of equipment that is not covered by apparel sponsorship, such as tape for athletes' ankles or weights for the weight room. The purchase of bottled water also typically involves a straight rebuy from an existing supplier. the buyer is often the only member of the buying center involved in the process.

3.7 trillion dollars

manufacturers