Module 5: B2B Marketing Flashcards
how are business customers different than individual customers
they make decisions and are influenced differently in the decision-making process
the marketing of products to companies, govs, or not-for-profit orgs for use in creation of g/s that they then produce and market to others
business-to-business (B2B) marketing
manufacturers, wholesalers, retailers, gov and non-profit agencies that buy g/s for their own use or for resale
organizational buyers
organizational buyers can be divided into 4 different markets
industrial
reseller
gov markets/units
non-profit orgs
reprocess a product or service they buy before selling it again to the next buyer
industrial firms
wholesalers and retailers who buy physical products and resell them again without any reprocessing
resellers markets
the fed, prov, regional, and municipal agencies that buy g/s for the constituents they serve
government firms
dont have any financial profit as a goal, and seek to provide g/s for the good of society
non-profit orgs
companies who talk directly to consumers without going through a traditional supply chain
direct-to-consumer (DTC)
involves providing relevant, valuable, and educational content to potential and current customer at various touhcpoints
content marketing
the evolution of _______ has increased the importance of content marketing
technology
is provided in variety of ways: videos, news, white papers, e-books, infographics, etc.
content marketing
demand for B2B products is (3)
derived, inelastic, and fluctuating
does not change relative to a change in price but fluctuates more than demand for consumer products
demand for B2B products
the demand for a factor of production or intermediate good that occurs as a result of the demand for another intermediate or final good
derive demand
the demand for B2B products is driven by demand for
consumer products
for business firms, the buying objective is to -______ through ________
increase profit
reducing costs and increasing sales
objective for not-for-profit and gov agencies is to
meet the needs to the groups they serve
regardless of if there is an increase or decrease of price of a B2B product, customers will buy still buy same quantity
ineslatic demand
small changes in demand for products result in large increases or decreases in demand for the facilities and equipment needed to make the product
fluctuating demand
orgs buy p/s to help
achieve their objectives
deliberate effort by org buyers to build relationships that shape supplier’s products, services and capabilities to fit a buyer’s needs and those of its customers
reverse marketing
B2B buying decisions are usually driven by a desire to
minimize fear by managing risk
more likely to involve complex and lengthy negotiations concerning delivery schedules, prices, warranties, and claim policies
organizational buyers
where 2 orgs agree tp purchase each other’s products and services
reciprocity
when buyer and its supplier adopt mutually beneficial objectives, policies and procedures
supply partnership
the decision-making process that orgs use to establish the need for p/s
organizational buying behaviour
5 steps to the org buying process
- problem recognition
- info search
- evaluate alternatives
- purchase decision
- post-purchase behaviour
consists of ppl in an org that participate in the buying process and share common goals, risks, and knowledge to make purchase decisions
buying center
the composition of the buying center depend on the
items being purchased
is almost always a member and individual from other functional areas and included depending on the purchase
buyer or purchasing manager
affect the buying decision, usually by helping define the specifications for what is purchased
influencers
have formal authority and responsibility to select the supplier and negotiate the terms of the contract
buyers
have the formal or informal power to select or approve the supplier that receives the contract
deciders
controls the flow of info in the buying center
gatekeepers
the number of ppl in the buying center depends on the specific
buying situation
3 types of buying situations (buying classes)
straight rebuy
modified rebuy
new buy
where the buyer re-orders an existing product/service from the list of acceptable suppliers
straight rebuy
where product specifications, price, delivery schedule, or supplier change but the item is the same
modified rebuy
where firm is a first-time buyer or a product involves a larger buying group
new buy
purchase involves greater potential risk and is more complex
new buy
places consumers into groups that have common needs and respond similarly to marketing programs
consumer marketing segmentation
the concept that businesses need to focus on offering experiences to customers
B2B
online trading communities that bring together buyers and supplier orgs
e-marketplaces
most important advantage to e-marketplace
access to an already engaged audience
focus on specific p/s, act as a neutral third party, and charges a fee for their services
e-marketplace
large companies favour ______ that link them to their network of qualified suppliers and customers
private exchanges
buyers communicate a need for g/s and potential suppliers bid in comp with each other
reverse auction
