Class 5: Business Marketing Flashcards
What are business markets
orgs that purchases goods and services to use in creation of their own g and s
Business marketing
process of matching and combining capabilitie of supplier to desired outcomes of the customer
GOAL of B2B marketing
CREAET VALUE FOR THE CUSTOMERS CUSTOMER
Differences in business marketing
- Non consumer: you have small amounts of customers (due to size and volume!)
- Relationship focus: you are focused on building and developing relationships. FUTURE RELATIONS MATTERS.
- demand differences:
- Purchasing: Who do you buy for, who uses the product?
stratify business customers
- PRODUCERS: profit oriented indivs and orgs that build products. ROLE IS TO COORDINATE BACK END OF SUPPLY CHAIN TO PRODUCE PRODUCT
- Resselers: intermediaries
- Govts: long contracts that are put for bid! There is the MASH market
- Other institutions:
also consider labour unions, clubs, markets etc. rplaces of worship
MASH market
muniipal, academic, social and hospitals! this is common…
in b2b environment
RELATIONSHIPS ARE THE FOCUS!!!!
- trust
- mutual respect
- achieving companys goal through cooperation
RELATIONSHIPS ARE CIRITCAL CUZ ONLY FEW!
How to think of B2B relations
NETWORK FOCUSED! centre of network is the business, but then there are multiple tiers of suppliers around the product
ITS ABOUT INTERACTION! not one time transacion!
Demand difference in b2b
- derived demand: caused BY demand for CONSUMER G and S
- inelastic: buyers demand ma ynot change much regardless of price
- joint: demand for one product increases as there is greater demand for aonther
- fluctuating: demand fluctuates during eocnomic turns
buying situations
- New task: FIRST TIME/UNIQUE PURCHASE THAT REQUIRES EFFORT. must consider many alternatives and vendors.
- Modified rebuy: purchasers looking to reevaluate situations cusotmers may look externall for soluiton. Often due to the issue with current suplier.
- straight rebuy: recurring purchase: customers reorders product to satisifis needs- STRICE FOR STABLE RELATIONSHIP! THIS IS GOALS
Purchase-Type comparison
INVOLVEMENT
Consumer:
- High involvement: comlex, dissonance reducing
- Low involvement: variety seeking, hahbitural
Businss:
- High involvement: new task buying. modified rebuy
- Low involvement: stratight rebuy
What is org buying process
- org need: problem recognition, need description products spec
- vndor analysis: supplier search, proposal oslicitation, suplier selection
- purchase actiivites: order specs
- post purchase evaluation: product vendor performance review
NOT EVRY ORG GOES THROUGH THESE STEPS EXACTLY! WE FOCUS more on the exactly purchase!!!!
What influences org buying process
PURCHASE TYPE
STRUCTURAL
BEHAVIOURAL
roles in buying centre
initaitor: could be anyone, their responisbility is to recognize what need to meet and communicate
user
gatekeeper: buyer,secreatry, controls flow of info
infleucncer: tech experts
decider: make purchase deicisons
buyer: executes purchase deicison
all these roles are filled by people!
B2B segmentation is diffeernt from consumer side
need to focus on businesses themselves, industries they operate, and the employees themselves!
needs and wants relate to OPERATING THE BUSINESS!!
DOES NOT INCLUDE: RESELLING THE PRODUCT!! (Reselling is about other channels)
How to do B2B segmentation
GEOGRAPHICS: location
DEMOGRAPHICS: indsutry, type of business, size, # employees
PSYCHOGRAPHICS: what are the vlaues and orientation of the firm, what is the otivation to buy, WHAT ARE THE FIRM INTERESTS!
BEHAVIORAL: benefits dervied from offering!, usage
BUYING CENTER -> EVALUATIVE CRIETIRA -> BUING SITUATIONS
AND CUSTOMER SERVICE LOOPS BACK TO THE BEGINNING!! customer service is the key here
