7a. B2B Buying Behavior

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Business to Business (B2B) Marketing & Buying

Behaviour

Presented ByDr. Kevin Lance Jones

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B2B Defined

• The management process responsible for the facilitation of exchange between producers of goods and services and their organisational customers.

• B2B marketing and purchasing is a complex and risky business involving a number of different parties.

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Flows within a B2B market

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Differences between B2B and consumer marketing (1 of 3)

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Differences between B2B and consumer marketing (2 of 3)

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Differences between B2B andconsumer marketing (3 of 3)

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B2B customers

• Commercial enterprises - profit making organisations that produce and/or resell goods and services for a profit. Can be subdivided into users, original equipment manufacturers (OEMs), resellers.

• Government bodies.

• Institutions - largely non-profit making organisations, e.g. universities, churches, etc.

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Characteristics of B2B markets

• Nature of demand - derived, joint, inelastic.

• Structure of demand - industrial and geographic concentration.

• Buying process complexity.

• Buyer-seller relationships.

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Influences on a B2B purchasing chain

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Sourcing strategies - advantagesand disadvantages (1 of 2)

Source: Adapted from Treleven (1987).

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Sourcing strategies - advantagesand disadvantages (2 of 2)

Source: Adapted from Hahn (1986) and Ramsey and Wilson (1990). Reprinted by permission of MCB University Press Ltd.

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Models of organisationalbuying decision making

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Decision problems in B2B purchasingdecision making process (1 of 2)

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Decision problems in B2B purchasingdecision making process (2 of 2)

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Roles in the buying process

• Purchasing - handle relationships with suppliers.

• Production/operations - meeting targets for the end product in both quantity and quality terms.

• Engineering - the specification and design.

• R&D.

• Finance - devolve budgets to appropriate managers.

• Marketing - outputs of the production process.

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Unit production model of buyer-seller contact in B2B markets

Source: Adapted from Johanson (1982), copyright 1982 © John Wiley & Sons Limited. Reporoduced with permission.

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Mass production model of buyer-seller contact in B2B markets

Source: Adapted from Johanson (1982), copyright 1982 © John Wiley & Sons Limited. Reproduced with permission.

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Buying centres - comparison betweenconsumer and B2B markets (1 of 2)

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Buying centres - comparison betweenconsumer and B2B markets (2 of 2)