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marketingGREWAL / LEVYM 6
BUSINESS-TO-BUSINESS MARKETING
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
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?
6-2
B2B Marketing
Who is the end user?
6-3
B2B Markets
U.S. Census Website
6-2
6-4
Manufacturers or Producers
Gear Expo News Clip
6-5
Resellers
6-6
How is this B2B ad similar to B2C
ads?
6-7
In what kind of publication might this appear?
6-8
_________________ buy products from other businesses but do not significantly alter the form
of the products they buy.
A. Producers
B. Consumers
C. Resellers
D. English auctioneers
E. Gatekeepers
6-9
Institutions
Schools, Museums and
Religious Organizations
Schools, Museums and
Religious Organizations
London Museum News Clip
6-10
Government
US Government spends $2.1 trillion procuring goods
State and local governments also make significant purchases
Firms specialize in selling to government
6-11
Adding Value: Paris Runways
6-12
1. Identify the various types of B2B markets.
2. What are NAICS codes and how are they used?
Check Yourself
6-13
B2B Buying Process
6-14
Compared to the B2C process, the information search and alternative evaluation steps in the
B2B process are:
A. central planned.
B. subject to government regulation.
C. more formal and structured.
D. conducted before need recognition.
E. all of the above.
6-15
Stage 1: Need Recognition
Can be generated internally or externally
Sources for recognizing new needs: Suppliers Salespeople Competitors
6-16
Stage 2: Product Specifications
Used by Suppliers to develop proposals
Can be done collaboratively with suppliers
6-17
Federal Business Opportunities Website
Stage 3: RFP Process (Request for Proposal)
6-18
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
6-19
Step 5: Order Specification
Firm places the order
The exact details of the purchase are specified
All terms are detailed including payment
6-20
During the __________ stage of the buying process B2B buyers invite alternative suppliers to bid on
supplying what is requested.
A. information search
B. need recognition
C. RFP
D. vendor analysis
E. all of the above
6-21
Step 6: Vendor Analysis
6-22
Check Yourself
1. Identify the stages in the B2B buying process.
2. How do you do a vendor analysis?
6-23
Factors Affecting the Buying Process
6-24
The Buying Center
6-25
Which of the following is NOT one of the roles typically played by one of the members of a
buying center?
A. reseller
B. initiator
C. influencer
D. decider
E. gatekeeper
6-26
Organizational Culture
6-27
Buying Situations
6-28
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
6-29
Modified Rebuy
Purchasing a similar product but changing specifications
Current vendors have an advantage
6-30
Straight Rebuys
Buying additional units or products that have been previously purchased
Most B2B purchases fall into this category
6-31
In a ___________ B2B buying situation, the buying decision is likely to be quite involved.
A. new buy
B. modified rebuy
C. straight rebuy
D. either a new buy or a modified rebuy
E. all of the above
6-32
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?
6-33