Chapter 5 - Business-to-Business marketing Flashcards
what is business-to-business
selling products or services from one business to another
what are the four type of B2B marketers?
Retailers, institutions, government, manufactures
Explain the four types of B2B markets
Resellers - market intermediaries that resell the manufactured products with altering them.
Manufacturers - Buy raw materials and produce products
Institutions - Hospitals, educational orgs, all purchase goods and services
Governments - governments make large purchases, so they are another market
What are the key challenges to reaching B2B clients?
- Identifying the right people
- Understand the buying process of each client
- Identify factors that influence the buying process of potential clients
What are the four differences between B2B and B2C markets
Market characteristics, product characteristics, Buying process characteristics, marketing mix characteristics
what is the B2B buying process
need recognition, product specification, RFP process, Proposal analysis and supplier selection, order specification (purchase), Vendor performance assessment using metrics.
Need recognition?
generated internally or externally, needs that have to be recognized/satisfied, sources can be suppliers, salespeople, or competitors
Product specification?
A list of specific products that vendors could use to develop their proposals
Request for Proposal? (RFP)
Buying organizations invite alternative suppliers to bid on supplying their required components or specifications
Proposal analysis and supplier selection?
several vendors are negotiating against each other to become the main vendor
Order specification (purchase)
Firms place the order, exact details of purchase, all terms are detailed including payment
Performance assessments using metrics?
A way to quantify the results to see if it was a good deal revolving around the vendor
what is the buying centre?
Group of people responsible for buying decisions in large organizations
what are the roles in the buying centre?
Influencer, decider, buyer, user, gatekeeper, initiator.
what are the roles in the buying centre?
Influencer, decider, buyer, user, gatekeeper, initiator.
