Launch your PollEV session: Text : UWMBUSINESS to 37607

1. Launch your PollEV session: Text: UWMBUSINESS to 37607 *Text LEAVE at the end of class* Alternate #: (747) 444-3548

2. + Heart health

4. The Elaboration Likelihood Model

5. Consumer

7. Derived demand Fishermen B2B Fish Wholesalers B2B Restaurants B2C Consumer

9. Your questions • An example of “non-derived demand”?? • Products are a result of the demand of consumers, so wouldn’t that result in every product being derived demand?

10. Your questions • Can a risk be both psychological and another simultaneously? • If we forget to text “leave,” will the system still count our attendance?

12. B2B Buying Process The CONSUMER Buying decision process

13. Stages 1-2: • Stage 1: Need Recognition - The buying organization recognizes an unfulfilled need through either their internal or external sources • Stage 2: Product Specification – The organization then needs to come up with potential specifications that vendors can use to develop proposals to fulfill that need “specs” Suppliers/ sellers

14. Stage 3: • Stage 3: RFP Process • This is a Request for Proposals, a process through which the organization invites alternative vendors to bid on supplying their required components or specifications • This is done on the firm’s website, through a web portal, or by advertising in publications

15. Stage 3: “gateway” • Stage 3: RFP Process • A web portal in B2B marketing is a specialized site that connects vendors and organizational buyers, allowing rich, relevant, information exchanges. They bring enormous efficiencies to the procurement or distribution processes

19. Stage 4: • Stage 4: Proposal Analysis, Vendor negotiation, and Selection • The buying organization then evaluates all the proposals it receives in response to its RFP • Clear criteria are used to evaluate the proposals such as the amount of experience of the vendor, ability to meet the specifications, and financial position

21. Stage 5: • Stage 5: Order Specification • The order is placed with the selected vendor • This includes a detailed description of the goods, prices, delivery dates, and penalties for noncompliance • Vendor sends an acknowledgment; fills the order

22. Stage 6: • Stage 6: Vendor Performance Assessment using Metrics • After the purchase, firms analyze the vendor’s performance so they can make decisions about future purchases, using formal, objective methods, and criteria called “performance metrics” (e.g., product quality, timely delivery)

24. The Buying Center • In most large organizations, several people are responsible for buying decisions: “buying center participants” • There are generally six different buying roles within a typical buying center

25. The Buying center ROLES

26. Buying Center Roles • Initiator – the person who first suggests buying the product • Influencer – the person whose views influence other members of the buying center in making the final decision • Decider – the person who ultimately decides whether to buy, what to buy, how or where to buy

27. Buying Center Roles • Buyer – the person who handles the paperwork of the actual purchase • User – the person who consumes or uses the product • Gatekeeper – the person who controls information or access, or both, to decision makers and influencers

31. The Buying Center ROLES

32. Organization Culture • Culture can have a profound influence on purchasing decisions • A firm’s organization culture reflects the values, traditions, and customs that guide its employees’ behavior • Unspoken guidelines that employees share with one another

33. Organization Culture example:

35. Common Buying Center Cultures • Autocratic – there may be multiple participants; one person makes the decision alone • Democratic – the majority rules • Consultative – one person makes a decision but solicits input from others before doing so • Consensus – all members of a team must reach a collective agreement that they can support a given purchase

37. Some notes • White papers – it is common to use white papers for marketing efforts in a B2B context

38. White papers: • These are authoritative documents or reports that describe the solving of a problem using the firm’s product or technology. • They are valuable marketing tools, as they serve to educate customers

41. The Buying Situation • New Buys: • A customer purchases a product for the first time • The most complex and challenging of the situations, and one that requires more time to be spent at each stage

44. The Buying Situation • Modified Rebuy: • The buyer has purchased a similar product in the past but has decided to change some specifications (desired price, quality level, options or features, etc.)

45. The Buying Situation • Straight Rebuy: • This occurs when the buyer simply buys additional units of products previously purchased • The buyer is often the only member of the buying center involved in the process

46. Wrapping up • We can see how, in various ways, B2B marketing both differs from and mirrors the B2C process. Note: • The differences in the six stages; • The constitution of the buying center; • How the culture of the purchasing firm influences the process; • How the context of the buying situation all influences the process • The widespread use of the Internet in the process

47. Key concepts/ terms to know • B2B marketing – how it is similar to and different from B2C • Derived demand • Six stages of the B2B Buying Process • RFP • Web portal in B2B marketing • Performance metrics in vendor assessment • The buying center and participants • Organization culture and common buying center cultures: autocratic, democratic, consultative, consensus • White paper • Buying situations: new buy, modified rebuy, straight rebuy

50. B2B Buying Process The CONSUMER Buying decision process