Description
Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C) and business-to-government (B2G). B2B branding is a term used in marketing.
B2B Marketing
• Up to now, we have been concerned with business to consumer marketing (businesses selling goods and services to consumers for end consumption by the consumer). • However, there is also business to business marketing (organizations selling goods and services to other organizations for manufacture into other products, for resale, or for their own end use).
Derived Demand
• Consumer demand for goods and services is affected by price and availability, and by consumers’ personal tastes and discretionary income. • By comparison, industrial demand is derived (meaning that demand for industrial goods and services is derived, or driven by, demand for consumer goods and services).
Organizational Decision Making Versus Consumer Decision Making
• Factors that distinguish organizational purchase decisions from individual decisions:
– Purchase decisions frequently involve many people – Products are often bought according to precise technical specifications that require a lot of product category knowledge – Impulse buying is rare – Decisions are often risky – The dollar volume of the purchase is substantial – More emphasis on personal selling than advertising – Negotiations may be very lengthy and the development of long-term contracts and supply partnerships is common
Key characteristics of organizational buying behavior
Comparing consumer and organizational purchases
The Buying Center
• One important way in which organizational buying differs from individual buying is in the existence of the buying center. • A buying center is a cross-functional group of people within the organization who make the more complex purchase decisions (routine purchases do not require action by the buying center).
Buying Center Roles
• The five possible roles:
– Initiator: The person who brings up the idea or need. – Gatekeeper: The person who conducts the information search and controls the flow of information available to a group. – Influencer: The person who tries to sway the outcome of the decision. – Buyer: The person who actually makes the purchase. – User: The person who winds up using the product or service.
Organizational Buying Decision Types
doc_116259882.ppt
Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C) and business-to-government (B2G). B2B branding is a term used in marketing.
B2B Marketing
• Up to now, we have been concerned with business to consumer marketing (businesses selling goods and services to consumers for end consumption by the consumer). • However, there is also business to business marketing (organizations selling goods and services to other organizations for manufacture into other products, for resale, or for their own end use).
Derived Demand
• Consumer demand for goods and services is affected by price and availability, and by consumers’ personal tastes and discretionary income. • By comparison, industrial demand is derived (meaning that demand for industrial goods and services is derived, or driven by, demand for consumer goods and services).
Organizational Decision Making Versus Consumer Decision Making
• Factors that distinguish organizational purchase decisions from individual decisions:
– Purchase decisions frequently involve many people – Products are often bought according to precise technical specifications that require a lot of product category knowledge – Impulse buying is rare – Decisions are often risky – The dollar volume of the purchase is substantial – More emphasis on personal selling than advertising – Negotiations may be very lengthy and the development of long-term contracts and supply partnerships is common
Key characteristics of organizational buying behavior
Comparing consumer and organizational purchases
The Buying Center
• One important way in which organizational buying differs from individual buying is in the existence of the buying center. • A buying center is a cross-functional group of people within the organization who make the more complex purchase decisions (routine purchases do not require action by the buying center).
Buying Center Roles
• The five possible roles:
– Initiator: The person who brings up the idea or need. – Gatekeeper: The person who conducts the information search and controls the flow of information available to a group. – Influencer: The person who tries to sway the outcome of the decision. – Buyer: The person who actually makes the purchase. – User: The person who winds up using the product or service.
Organizational Buying Decision Types
doc_116259882.ppt