Introduction to B2B Flashcards
Definition
Organisations that purchase products and services for use IN THE PRODUCTION of other products and services for sale, rental or to be SUPPLIED to others
Three basic appeals
- Increasing sales
- Reducing costs
- Meeting government regulations or avoiding negative PR
Differences between B2B and Consumer Marketing
B2B vs. B2C (ICU)
- Internal to Company
- Consumer/Marketing
- Uncontrollables/Environment
Internal to Company
…
Internal to Company (DWS)
- Interdependence of department
- Wider product management responsibilities
- Marketing strategies = Corporate Strategies
Consumer/Marketing
…
Consumer (MRS PIN)
- More markets and channels
- Rational decisions
- Different segmentation
- Personal customer contact
- More buying influences and locations
- Narrower customer base
Uncontrollables/Environment
…
Uncontrollables (TIC)
- Technology
- Less end-user information
- Derived demand = Consumers
How Business Organisations Buy
Decision Making Unit / Buying Centre
Environmental & Organisational Factors Influencing Buying Decisions
Classifying Business Customers
Buying Situations
Industrial Buying Process
Value Analysis
Decision Making Unit
…
GUDBII
Initiators Gatekeepers Buyers Deciders Users Influencers
Environmental Factors
…
CEEPPT
Cultural
Economic
Ethical
Political
Physical
Technological
Organisational Factors
…
STTP
Structures
Tasks
Technology
People
Classifying Business Customers
4 types: IBGR
Institutional organisations
Business and commercial organisations
Governmental organisations
Reseller organisations
Buying Situations
3 types:
Straight re-buy
Modified re-buy
New task
Industrial buying process
8 steps:
Recognise a problem (need) and a general solution
Determine the characteristics and quantity of needed item
Description of characteristics and quantity of needed item
Search for and qualification of potential sources
Acquisition and analysis of proposals
Evaluation of proposals and selection of supplier(s)
Selection of an order routine
Performance feedback and evaluation
Value-in-use
Price that would equalise the overall costs and benefits of using one product rather than using another
E.g. Higher overall cost of aircraft brand, with benefit of lower operating cost in terms of fuel efficiency
Value analysis
Evaluating ways to cut cost or improve finished products (product components, raw materials, manufacturing process)
E.g. Improving production process = outsourcing = cut operation cost
