MKT 100 Chapter Notes - Chapter 6: English Auction, North American Industry Classification System, Business Marketing
28 Jun 2018
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MKT Chapter 6 - Business-to-Business Marketing
B2B Marketing - the process of buying and selling G or S to be used in the
production of other G and S, for consumption by the buying organization, or resale
by wholesalers/retailers
Difference between B2B and B2C is the ultimate purchaser
Some of the biggest B2B buyers are manufacturers and producers
oRarely disclose their purchase decisions
Resellers - marketing intermediaries that resell manufactured products
without significantly altering their form
Institutions (hospitals, schools, prisons, etc.) also purchase G and S for the
people they serve
oRarely disclose their purchase decisions
The central government tends to be one of the largest purchasers of G and S
oConsider a wide range of factors (may not always choose the lowest
price)
Three key challenges to successful B2B marketing:
1. Identify the right persons or decision makers within the organizations who
can authorize/influence purchases
2. Marketers must understand the buying process of each of its potential clients
3. Identify the factors that influence the buying process of potential clients
Difference between B2B and B2C
Marketing
oB2C customers buy goods to satisfy their own needs
oDerived demand - the linkage between consumer’s demand for a
company’s output and its purchase of necessary inputs to
manufacture or assemble that particular output
oThe number of business buyers is substantially fewer for B2B
oOrder sizes are much larger for B2B
Product Characteristics
oB2B products are mostly raw materials
oProducts are delivered on dates agreed on by both buyer and seller
Buying Process Characteristics
oFor routine or small purchases only one or a few individuals will be
responsible for the buying process
oLarge purchases have a structured buying process
oMost companies have policies and procedures to the buying process
oB2B has more negotiations
oSome firms may engage in reciprocal buying arrangements
Marketing Mix characteristics
oMost B2C FMG (fast moving goods) don't have sales people
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Document Summary
B2b marketing - the process of buying and selling g or s to be used in the production of other g and s, for consumption by the buying organization, or resale by wholesalers/retailers. Difference between b2b and b2c is the ultimate purchaser. Some of the biggest b2b buyers are manufacturers and producers: rarely disclose their purchase decisions. Resellers - marketing intermediaries that resell manufactured products without significantly altering their form. Institutions (hospitals, schools, prisons, etc. ) also purchase g and s for the people they serve: rarely disclose their purchase decisions. The central government tends to be one of the largest purchasers of g and s: consider a wide range of factors (may not always choose the lowest price) Identify the right persons or decision makers within the organizations who can authorize/influence purchases: marketers must understand the buying process of each of its potential clients. Identify the factors that influence the buying process of potential clients.
