Chapter 7 Flashcards
B2B marketing
- Process of buying/selling goods/services to be used in the production of other goods/services
- consumption by the buying organization; and/or resale by wholesalers and retailers
B2C marketing
How product or service improves life
B2B markets
Reseller, Institutions, Government, Manufacturers/service providers
Reseller
Purchase products from businesses and sell them to other businesses without significantly altering them (Wholesalers, Distributers, Retailers)
Institutions
Schools, museums and religious organizations
Government
State and local gov.
Firms specialize in selling to the government
Manufacturers/service providers
Buy raw materials, components or parts, manufacture their own goods
B2B buying process
- Need recognition
- Product specification
- request for proposal (RFP)
- Proposal analysis
- Order specification
- Vendor analysis
Amazon
Retailer and Manufacturer
Buying center and roles
Initiator Influencer Gatekeeper Decider Buyer User
Organizational culture
Autocratic - one vote
Democratic - majority rules
Consultative - one person makes decision, solicits input from others
Consensus - all agree
Buying situations
New Buy
Straight Rebuy
Modified Rebuy
New buy
Purchasing for the 1st time
Lengthy process
The buying center will probably use all 6 steps
Straight rebuy
Buying additional units or products that have been previously purchased
Most B2B purchases fall in the category
Straight rebuy
Buying additional units or products that have been previously purchased
Most B@B purchases fall in the category