Business-To-Business Marketing - Chapter 5 Flashcards
Business to business (B2B) marketing
Process of buying & selling goods/services to be used in production of other goods/services, for consumption by the buying organization, or for resale by wholesalers and retailers
Resellers
Marketing intermediaries that resell manufactured products without significantly altering their form
What are the 3 key challennges to master to be successful in B2B marketing?
- Marketers must identify right persons or decision makers within the organizations who can authorize or influence purchases
- Understand buying process of each potential client
- Identify factors that influence the buying process of potential clients
Derived demand
Linkage between consumers’ demand for a company’s output and its purchase of necessary inputs to manufacture or assemble that particular output
What is the B2B Buying Process?
Step 1. Need Recognition
Step 2 : Product Specification
Step 3 : RFP Process
Step 4 : Proposal Analysis and Supplier Selection
Stage 5 : Order Specification (Purchase)
Stage 6 : Vendor Performance Assessment Using Metrics
Buying centre
Group of ppl typically responsible for the buying decisions decisions in large organizations
What are the 6 different buying roles within a typical buying centre?
- Initiator
- Influencer
- Decider
- Buyer
- User
- Gatekeeper
What does an initator do?
Buying Roles within typical buying centre
Person who first suggests buying the particular product/service
Example : Doctor :
U seek treatment from ur doctor, she initiates the buying process by determining the products/services that best address and treat ur illness
What does an influencer do?
Buying Roles within typical buying centre
Person whose views influence other members of the buying centre in making the final decision
Example : Pharmacy :
Ur doctor always used Mendel bone screws. Mendell’s sales rep effectively influenced ur doctor’s decision to use that screw
What does a decider do?
Buying Roles within typical buying centre
Person who determines any part of or the entire buying decision
Example : Hospital :
Even though doctor requested Mendell bone screw, hospital ultimately decides whether to buy those screws
What does a buyer do?
Buying Roles within typical buying centre
Person who handles the paperwork of the actual purchase
Example : Hospitals Material Manager :
Actual buyer of the screws is Hospital Materials Manager
What does a user do?
Buying Roles within typical buying centre
Person who consumes or uses the product/service
Example : Patient :
Buying process is greatly effected by you
What does a gatekeeper do?
Buying Roles within typical buying centre
Person who controls info or access or both to decision makers and influencer
Example : The Purchasing Department :
Hospital’s purchasing department may believe that Mendell bone screws are too expensive and that other screws deliver equally
Organizational culture
The set of values, traditions, and customers that guide its managers’ and employees’ behaviour
Autocratic buying centre
A buying centre in which 1 person makes the decision alone, though there may be multiple participants
