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Chapter 5

MKT100 Chapter 5: Marketing Notes Chapter 5


Department
Marketing
Course Code
MKT 100
Professor
Fathima Saleem
Chapter
5

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Learning Objectives:
Describe the nature and composition of B2B markets
1.
Explain the key differences between B2B buying and B2C buying
2.
Explain the ways B2B firms classify and segment their markets
3.
Describe the B2B buying process
4.
Identify the roles within the buying centre
5.
Detail different buying situations
6.
Business to business (B2B) marketing
-
B2B marketing involves
-
B2B firms focus their efforts on serving specific types of customer markets to create value for
those customers
-
Basically, manufacturers, resellers, institutions and governments are all involved in B2B
transactions.
-
B2B Markets
Basically buy raw materials and turn them into finished goods
Manufacturers buy raw materials, components and parts that allow them to manufacture
their own foods.
-
Today, many B2B companies are demanding as a condition for doing business that suppliers
demonstrate social responsibility by putting in place policies and practices to reduce their
carbon footprint.
-
Manufacturers or Producers
Resellers are marketing intermediaries that resell manufactured products without significantly
altering their form.
-
Resellers
Ex. Canadian federal government spends about $240 billion annually on procuring goods
and services
In most countries, the central government tends to be one of the largest purchasers of goods
and services
-
Government
Key Challenges
Marketing Notes Chapter 5
February-21-16
5:21 PM
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Is to identify the right persons or decision makers within the organizations who
can authorize or influence purchases.
1st Challenge:
Marketers must understand the buying process of each potential client.
2nd Challenge:
Is to identify the factors that influence the buying process of potential clients.
3rd Challenge:
3 Key challenges for marketers to be effective and successful at B2B marketing.
-
Key Challenges
Differences Between B2B and B2C Markets
Market Characteristics
Consumers buy goods to satisfy their own individual or household needs and are heavily
influenced by price, personal tastes, brand reputation or personal recommendations of
friends and family
In B2C markets
-
Derived Demand: the linkage between consumers demand for company's output
and its purchase of necessary inputs to manufacture or assemble that particular
output
demands for goods and services is often derived from B2C sales in the same supply chain
In B2B markets
-
Characteristics of B2B Buying as Compared with B2C Buying
In B2B markets
-
Consumers buy finished goods for their person consumption
In B2C markets
-
Product Characteristics
Another major differences between B2B and B2C buying lies in the nature of the relationship
between the firm and its suppliers
-
Buyers and sellers strive to develop close relationships with each other and so will often
provide help or advice to ensure a win-win situation for both parties
In B2B markets
-
Buying Process Characteristics
Marketing Mix Characteristics
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