1 / 18

Chapter 6 Business-to-Business (B2B)Marketing

Chapter 6 Business-to-Business (B2B)Marketing. Objectives. Explain each of the components of the business market. Describe the major approaches to segmenting business-to-business markets. Identify the major characteristics of the business market and its demand.

ursula
Download Presentation

Chapter 6 Business-to-Business (B2B)Marketing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 6 Business-to-Business (B2B)Marketing

  2. Objectives • Explain each of the components of the business market. • Describe the major approaches to segmenting business-to-business markets. • Identify the major characteristics of the business market and its demand. • Describe the major influences on business buying behavior. • Outline the steps in the organizational buying process. • Classify organizational buying situations. • Explain the buying center concept. • Discuss the challenges of marketing to government, institutional, and international buyers.

  3. B2B Marketing Deals with organizational purchases of goods and services to support production of other products, to facilitate daily company operations, or for resale.

  4. 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

  5. Comparing Business-to-Business Marketing and Consumer Marketing BUSINESS-TO-BUSINESS MARKETING CONSUMER MARKETING Product Relatively technical in nature, exact form often variable, accompanying services very important Standardized form, service important but less than for business products Price Competitive bidding for unique items, list prices for standard items List prices Promotion Emphasis on personal selling Emphasis on advertising Distribution Relatively short, direct channels to market Product passes through a number of intermediate links en route to consumer Customer Relations Relatively enduring and complex Comparatively infrequent contact, relationship of relatively short duration Decision-Making Process Diverse group of organization members makes decision Individual or household unit makes decision

  6. Components of the Business Market • Commercial market • Trade industries • Government organization • Institutions

  7. A Component of the Business Market, is a government agency we all know, the IRS. • IRS buys products to provide federal tax service.

  8. 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.

  9. Approaches to SegmentingBusiness-to-Business Markets • Demographics • Customer type • End-use application • Purchasing situation

  10. A Site Designed to Help Evaluate China as a B2B Market

  11. Characteristics That Distinguish theBusiness Market from the Consumer Market • Geographic market concentration • The sizes and number of buyers • Purchase decision procedures • Buyer-seller relationships

  12. 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.

  13. 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.

  14. Influences on Purchase Decision Environmental Factors Organizational Factors Interpersonal Influences

  15. Influences on Purchase Decision Environmental Factors Organizational Factors Interpersonal Influences • Economic • Political • Regulatory • Competitive • Technological Consideration Influence

  16. Influences on Purchase Decision Environmental Factors Organizational Factors Interpersonal Influences • Economic • Political • Regulatory • Competitive • Technological Consideration Influence • Customers’ organizational structures • Policies • Purchasing systems

  17. Influences on Purchase Decision Environmental Factors Organizational Factors Interpersonal Influences • Economic • Political • Regulatory • Competitive • Technological Consideration Influence • Customers’ organizational structures • Policies • Purchasing systems • Should know who influences buying decisions: • Group • Individual • Committees

  18. 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.

More Related