CHAPTER

Day 8

BUS 222

Agenda• Questions• Assignment 2 is not done being corrected

– Will be done tomorrow or early next week.

• Assignment 3 Posted – Due Feb 27 (after break) – Covers Chap 7 in text – Marketing Assignment 3.pdf

• Quiz 2 Is Feb 27 (change from syllabus) – Chaps 5, 6 & 7 – 15 M/C , 45 min. – Open Book, Open Notes – Lowest quiz score gets dropped

• Business-to-Business (B2B) marketing

CHAPTER

BUSINESS-TO-BUSINESS MARKETING

06

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING OBJECTIVES

Business-to-Business Marketing

LO1 Describe the different types of buyers and sellers that participate in business-to-business (B2B) markets.

LO2 List the steps in the B2B buying process.

LO3 Identify the different roles within the buying center.

LO4 Describe the different types of organizational cultures.

LO5 Detail different buying situations.

The Numbers (2011)

• Total US Merchant Wholesale Trade (B2B)– $6,469,112,000,000

• Total US Retail (B2C) – $4,136,352,000,000

• US Census Data

B2B Marketing

Who is the end user?

©1998 EyeWire, IncC Squared Studios/Getty Images

B2B Markets

U.S. Census Website

Manufacturers or Producers

Gear Expo News Clip

Car Culture/Getty Images

Resellers

Courtesy Eastman Chemical Company

How is this B2B ad similar to B2C

ads?

Source: http://clockworkshadowcreations.com/graphic-design/brochures/

In what kind of publication might this appear?

Courtesy Pepsi-Cola Company

Institutions

Schools, Museums and

Religious Organizations

Schools, Museums and

Religious Organizations

London Museum News Clip

Annie Reynolds/PhotoLink/Getty Images

Royalty-Free/CORBIS

Royalty-Free/CORBIS

Government

• US Government spends $2.1 trillion procuring goods

• State and local governments also make significant purchases

• Firms specialize in selling to government

• Dyncorp

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Adding Value: Paris Runways

Photo by Eric Ryan/Getty Images

B2B Buying Process

B2C Buying Process

Stage 1: Need Recognition

• Can be generated internally or externally

• Sources for recognizing new needs:– Suppliers– Salespeople– Competitors

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Stage 2: Product Specifications

• Used by Suppliers to develop proposals

• Can be done collaboratively with suppliers

Royalt

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BIS

Federal Business Opportunities Website

Stage 3: RFP Process (Request for Proposal)

©Toyota Motor Engineering & Manufacturing North America, Inc.

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

Courtesy The Goodyear Tire & Rubber Company

Step 5: Order Specification

• Firm places the order

• The exact details of the purchase are specified

• All terms are detailed including payment

Digital Vision/Getty Images

Step 6: Vendor Analysis

1. Identify the stages in the B2B buying process.

2. How do you do a vendor analysis?

Check Yourself

Factors Affecting the B2B buying process

Organizational Culture

The Buying Center

Wine Entrepreneur

Buying Situations

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 dynamicgrapics/Jupiterimages

Modified Rebuy

• Purchasing a similar product but changing specifications

• Current vendors have an advantage

RubberBall Productions

Straight Rebuys

• Buying additional units or products that have been previously purchased

• Most B2B purchases fall into this category

Ryan McVay/Getty Images

Check Yourself

1. What factors affect the B2B buying process?

2. What are the six different buying roles?

3. What is the difference between new buy, rebuy, and modified rebuy?