Chapter 6 Business-to-Business (B2B)Marketing
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Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Chapter 6 Business-to-Business
(B2B)Marketing
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Objectives1. Explain each of the components of the business market.2. Describe the major approaches to segmenting
business-to-business markets.3. Identify the major characteristics of the business market
and its demand.4. Describe the major influences on business buying
behavior.5. Outline the steps in the organizational buying process.6. Classify organizational buying situations.7. Explain the buying center concept.8. Discuss the challenges of marketing to government,
institutional, and international buyers.
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B2B Marketing
Deals with organizational purchases of goods and services to support production of other products, to facilitate daily company operations, or for resale.
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B2B Marketing•StorageTek Company Vision Statement:“Be the Storage Experts who deliver easy to use, industry-leading, innovative storage solutions to manage and protect business critical information.”Source: storagetek.com/home/about/vision.htm
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Comparing Business-to-Business Marketing and Consumer Marketing
Individual or household unit makes decision
Diverse group of organization members makes decision
Decision-Making Process
Comparatively infrequent contact, relationship of relatively short duration
Relatively enduring and complexCustomer Relations
Product passes through a number of intermediate links en route to consumer
Relatively short, direct channels to market
Distribution
Emphasis on advertisingEmphasis on personal sellingPromotion
List pricesCompetitive bidding for unique items, list prices for standard items
Price
Standardized form, service important but less than for business products
Relatively technical in nature, exact form often variable, accompanying services very important
Product
CONSUMER MARKETINGBUSINESS-TO-BUSINESS MARKETING
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Components of the Business Market
1. Commercial market2. Trade industries3. Government organization4. Institutions
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• A Component of the Business Market, is a government agency we all know, the IRS.
• IRS buys products to provide federal tax service.
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Commercial Market
Largest segment of the business market. Includes all individuals and firms that acquire
products to support, directly or indirectly, the production of other goods and services.
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Approaches to SegmentingBusiness-to-Business Markets
1. Demographics2. Customer type3. End-use application4. Purchasing situation
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A Site Designed to Help Evaluate China as a B2B Market
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Characteristics That Distinguish theBusiness Market from the Consumer Market
1. Geographic market concentration2. The sizes and number of buyers3. Purchase decision procedures4. Buyer-seller relationships
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Today’s International Marketplace
Practice global sourcing, which involved contracting to purchase goods and services from suppliers worldwide which can result in substantial cost savings.
Global sourcing requires companies to adopt a new mind-set; some must even reorganize their operations.
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Outsourcing
Improves efficiency.• Allows firms to concentrate their resources on their
core business. It also allows access to specialized talent or expertise.
Outsourcing downside:• Can reduce a company’s ability to respond quickly.• A major danger of outsourcing is the risk of losing
touch with customers.• Controversial topic with unions.
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Influences on Purchase Decision
Environmental Factors
Organizational Factors
Interpersonal Influences
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• Economic• Political• Regulatory• Competitive• Technological
Consideration Influence
Influences on Purchase Decision
Environmental Factors
Organizational Factors
Interpersonal Influences
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• Economic• Political• Regulatory• Competitive• Technological
Consideration Influence
• Customers’ organizational structures
• Policies• Purchasing
systems
Influences on Purchase Decision
Environmental Factors
Organizational Factors
Interpersonal Influences
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• Economic• Political• Regulatory• Competitive• Technological
Consideration Influence
• Customers’ organizational structures
• Policies• Purchasing
systems
Should know who influences buying decisions:• Group• Individual• Committees
Influences on Purchase Decision
Environmental Factors
Organizational Factors
Interpersonal Influences
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Buying Center Concept
• Provides a vital model for understanding organizational buying behavior.
• Encompasses everyone who is involved in any aspect of its buying action.
• Not part of a firm’s formal organization structure.
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