Upload
rodger-barker
View
215
Download
0
Tags:
Embed Size (px)
Citation preview
B2B
• Why Organizations Buy: Business-to-Business Markets
and B2B E-Commerce
Business Markets
• Generally, the same principles are true for business and consumer customers
• There are characteristics that make B2B buying more complex– Multiple buyers
– Number of customers
– Size of purchases
– Geographic concentration
Types of Organizational Markets
• Industrial Markets• Industrial firms
• Reseller Market• Resellers
• Government Markets• Government Units
• Global Organizational Markets
Type and number of organizational customers
NAICS breakdown for information industries sector: NAICS code 51 (abbreviated)
Key characteristics of organizational buying behavior
Derived Demand
• B2B demand is derived demand because a business’s demand for goods and services comes either directly or indirectly from consumers’ demands
Derived Demand
Demand for education
Derived demand - textbooks
Derived demand - paper
Derived demand - pulp
Derived demand - forestry products
The Nature of Business Buying
• The Buying Situation
• The Professional Buyer
• The Buying Center
The Professional Buyer
• Titles: purchasing agents, procurement officers, director of materials management
• Focus on economic factors beyond the initial price of a product including transportation and delivery charges, accessory products or supplies, maintenance, disposal costs, etc.
• Large firms practice centralized purchasing - one department does all buying
The Buying Center
• A cross-functional group of people in the organization who participate in the decision-making process
• May include production workers, supervisors, engineers, secretaries, shipping clerks, and financial officers
Roles in the Buying Center
• Initiator begins the buying process
• User needs the product
• Gatekeeper controls the flow of information to other members
• Influencer dispenses advice or shares expertise
• Decider makes the final decision
• Buyer executes the purchase
The Buying Situation
• A buy class framework identifies the degree of effort required of the firm’s personnel to collect information and make a purchase decision
• Straight rebuy
• Modified rebuy
• New task buying
How they buying situation affects buying center behavior
International Organization for Standardization (ISO)
Geneva , SwitzerlandOne standards organization per country:
• USA – ANSI• Japan – JISC (MITI)• Germany – DIN• Australia – SAI
ISO 9000
Electronic B2B Commerce
• Internet exchanges between two or more businesses or organizations
• Allows marketers to link directly to suppliers, factories, distributors, and their customers
• Reduces time necessary to order and deliver goods, track sales, and get feedback
Intranets, Extranets, and Private Exchanges
• An intranet is an internal corporate computer network that uses Internet technology to link company departments, employees, and databases
• An extranet allows outsiders to the organization to access its intranet
• A private exchange links invited groups of suppliers and partners over the Web
Security Issues• Authentication - making sure only authorized
individuals are allowed to access a site• Firewalls - combination of hardware and software
that ensures only authorized individuals gain entry• Encryption - scrambling a message so that only
another individual has the right “key” for deciphering it
Comparing the stages in consumer and organizational purchases