Transcript Chapter 6

Marketing 6
Business-to-Business (B2B) Marketing
B2B Marketing - 6
• Business to Business Markets (B2B)
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Types of business customers
Contrast B2B with Consumer behavior
Business Buying Behavior
Trends in B2B marketing
6.1
Business Customers
• Producers
• Resellers
• Governments
• Institutions
6.2
North American Industrial
Classification System
• http://factfinder.census.gov/servlet/SAFFEconFac
ts?_submenuId=business_0&_sse=on
• Businesses are grouped by similarities
• Digits 1 & 2: major economic sector (ag, mfr)
• Digit 3: economic sub-sector (crop production/apparel mfr)
• Digit 4: industry group (grain farming/fiber, yarn, thread mill)
• Digit 5: industry (wheat farming/broadwoven fabric mills)
• Digit 6: subdivisions of user needs
Organizational Markets I
VS. Consumer Markets
• Demand
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Derived
Inelastic
Joint
Fluctuating (ripple/multiplier effect)
• Big Volume
• Fewer, but Concentrated Customers
6.3
Organizational Markets II
• Promotion
– Heavier reliance on personal selling
– Advertising limited and focused
– Advertising and Marketing Promotions support Sales
6.3
Organizational Markets III
• Nature of Buying
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Formal
Complex
Lengthy
Multiple parties in buying center
Bids/Proposals
Buyers are professional
6.3
Organizational Markets IV
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Products / Services
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Major Equipment
Accessory Equipment
Raw Materials
Component Parts
Processed Materials
Supplies
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Services
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6.3
Organizational Markets V
• Negotiations
• Distribution
• Reciprocity
• Leasing
6.3
B2B. Buying Decision Process
• Recognize the problem
• Form buying center
• Develop product specs
• Supplier search
• Product / vendor solicitation
• Supplier selection and order
• Performance review
6.5
BUSINESS BUYING
BEHAVIOR
• Buying Centers
– Initiator
– Influencers / Evaluators
– Gatekeepers
– Decider
– Purchaser
– User
6.6
Types of Buying Decisions
• Straight rebuy
• Modified rebuy
• New task
6.4
TRENDS in B2B MARKETING
• B2B Internet Marketing
– Vast majority of Internet Sales are B2B
– Offers:
• lower price / cost
• greater selection of product/ vendors
• around the clock ordering and customer service
• Strategic Alliances
6.7