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Marketing Chapter 7
Business-to-Business Marketing
| Term | Definition |
|---|---|
| Business-to-business marketing | Buying/selling goods and services that are either used to make other goods and services, used by another business, or resold by wholesalers and retailers |
| Differences in selling to businesses compared to consumers | Derived demand (demand is driven by demand from ultimate consumers), order size is bigger and # of buyers is smaller, B2B buyers have to justify their purchases so they require more facts/etc., relationship is stronger |
| B2B markets | Manufacturers and service providers (buy raw materials, resellers (resell manufactured products without significantly altering them), institutions such as hospitals/schools/churches, governments |
| Buying center/committee | Group in an organization that makes buying decisions. Can be autocratic, democratic (majority wins), consultative (one person decides with input), consensus (everyone agrees) |
| Buying roles in the organization | Initiators (decide something is needed), influencers (can get to the decision-makers), deciders, buyers (negotiate price/terms/etc., approve purchases), users, gatekeepers (people like secretaries who can keep salespeople out) |
| Types of buys | New buy, modified rebuy, straight rebuy |
| Stage 1 in the B2B buying process: need recognition | Realizing, through internal or external sources, that a need is not being met--e.g. a uni deciding all its students will be provided with tablets |
| Stage 2 in the B2B buying process: product specification | Listing specific features to tell vendors/look for in the product--e.g. battery life, screen size, etc. |
| Stage 3 in the B2B buying process: RFP process | AKA request for proposals--inviting alternative vendors to bid on supplying the required components or specifications (bigger companies may do this on their websites, smaller companies on web portals) |
| Stage 4 in the B2B buying process: proposal analysis, vendor negotiation, and selection | Evaluating all the responses to the RFP including finances, long-term value, etc. and ultimately making a selection |
| Stage 5 in the B2B buying process: order specification | Placing an order including a detailed description of the goods, the prices, and the other terms--supplier then sends acknowledgement that it has received the order and fills it by specified date |
| Stage 6 in the B2B buying process: vendor performance assessment | Evaluating based on key metrics |
Created by:
ejrasmus
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