Topic 5 - B2B Flashcards
What are the types of B2B?
- Trade
- Industrial
- Professional influencers/opinion leaders
Key factors involved in organisational buying?
- Longer buying processes
- Fewer buyers - stronger relationships
- More rational transaction
- reciprocal buying e.g Negotiations based on helping each other
What is the DMU?
- decision making unit
- in b2b markets its very rare for an individual to make all the decisions
What are the 6 parts involved in the DMU?
Initiator User Influencer Decider Buyer Gatekeeper
What is an initiator?
Someone who begins the purchase process and makes the first initial contact
What is a user?
People who use the end product. May trigger purchasing process through reporting a need
What is an influencer?
- Affects the outcome of the decision making process through their influence on others
What is a decider?
Have the formal or informal authority to make the decision
What is the buyer?
They have the authority to select and negotiate with suppliers
What is a gatekeeper?
Control flow into the next stages
What is joint demand?
- Demand for one product is tightly coupled with demand for other
What are the three types of B2B buying?
- New task purchase e.g customer goes to you because they have a new problem
- Straight re-buy e.g routine purchasing of same product
- Modified re-buy - Existing customers come back but want new things/have new needs
What is CRM?
Customer relationship management is a process where firms gather info about the wants and needs of its customers to allow offers to fit their needs
