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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?. B2B Marketing. Who is the end user?. B2B Markets. U.S. Census Website.

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Learning Objectives

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  1. 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?

  2. B2B Marketing Who is the end user?

  3. B2B Markets U.S. Census Website

  4. Manufacturers or Producers Gear Expo News Clip

  5. Resellers

  6. How is this B2B ad similar to B2C ads?

  7. In what kind of publication might this appear?

  8. Institutions Schools, Museums and Religious Organizations London Museum News Clip

  9. Government • US Government spends $2.1 trillion procuring goods • State and local governments also make significant purchases • Firms specialize in selling to government

  10. Adding Value: Paris Runways

  11. Check Yourself Identify the various types of B2B markets. What are NAICS codes and how are they used?

  12. B2B Buying Process

  13. Stage 1: Need Recognition • Can be generated internally or externally • Sources for recognizing new needs: • Suppliers • Salespeople • Competitors

  14. Stage 2: Product Specifications • Used by Suppliers to develop proposals • Can be done collaboratively with suppliers

  15. Stage 3: RFP Process (Request for Proposal) Federal Business Opportunities Website

  16. 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

  17. Step 5: Order Specification • Firm places the order • The exact details of the purchase are specified • All terms are detailed including payment

  18. Step 6: Vendor Analysis

  19. Check Yourself Identify the stages in the B2B buying process. How do you do a vendor analysis?

  20. Factors Affecting the Buying Process

  21. The Buying Center

  22. Organizational Culture

  23. Buying Situations

  24. 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

  25. Modified Rebuy • Purchasing a similar product but changing specifications • Current vendors have an advantage

  26. Straight Rebuys • Buying additional units or products that have been previously purchased • Most B2B purchases fall into this category

  27. 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

  28. Role of the Internet in Business-to-Business Marketing

  29. How is this ad B2B and B2C?

  30. Check Yourself What factors affect the B2B buying process? What are the six different buying roles? What is the difference between new buy, rebuy, and modified rebuy?

  31. 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. Return to slide

  32. Glossary Buying center participants are people responsible for the buying decisions. Return to slide

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

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

  35. Glossary Resellers are marketing intermediaries that resell manufactured products without significantly altering their form. Return to slide

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