Chapter 6.docx

3 Pages
114 Views
Unlock Document

Department
Business Administration
Course
Business Administration 3301K
Professor
John White
Semester
Fall

Description
Chapter 6 • Business to business B2B marketing: buying or selling goods to be used in the production of other goods for consumption by the buying company • B2B vs b2C isn’t classified by the product but by the user of the product. If the buyer is using it for business purposes then its b2b. B2B MARKETS Manufacturers and producers • One the biggest B2B occurrences is when a company buys raw materials Resellers • Resellers resell manufactured products without altering the products form • Eg. Wholesale distributor buy jeans from a jeans company, who then sell it to retailers (b2b), then retailers sell it to consumers (b2c) Institutions • Hospitals, schools, churchs, jails, buy all kinds of goods and use it for their services, meaning they use it for business purposes so its B2B Differences Between B2b and B2c markets • Market Characteristics - In B2C, consumers buy products to meet their needs - B2B demand is fueled by the demand of B2C - This is known as derived demand: the link between the consumers demand for a product...and the purchasing of inputs by the company to the make the good that the consumer demands - If market demand changes, so does the B2B demand - Demand in B2B markets are inelastic, doesn’t change much if the price changes in the short run - There are less B2B businesses than B2C, and B2B orders are larger and focus in big populated areas • Product characterisitic - B2B goods are raw materials and unfinished, very technical and have to pass alot of testing to make sure the foundation of the product is correct - B2C products are finished goods you get off the shelf • Buying process characteristic - In the cases of B2B buying is very complex and my require knowledgeable individuals - Involves, bidding, negotiating, reciprocal business may be involved - Buying process is very formal and strict - Buyers and sellers like to build a long term business relationship B2B buying process • B2b and b2c have similar need recognition, but b2b has a more formal information search and alternative evaluation process Step 1 : Need recognition • Company recognizes it has an unfilled need. • Toyota realizes it needs to equip cars with better tires Step 2: Product Specification • They now come up with the e
More Less

Related notes for Business Administration 3301K

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit