Ch 7. B-B marketing - I took my own notes and added what the professor said was important during class. It PDF

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I took my own notes and added what the professor said was important during class.
It helped me to get an A in the class....

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business-to-business (B2B) marketing - the process of buying and selling goods or services to be used in the production of ot her goods and services for consumption by the buying organization and/or resale by wholesalers and retailers - two distinctions between a B2B and B2C transaction a. the ultimate user of the product or service b. B2B transactions tend to be more complex and involve multiple members of b oth the buying organization and the selling organization, whereas B2C often e ntails a simple transaction between the retailer and the individual consumer. - derived demand a. the linkage between consumers’ demand for a company’s output and its purc hase of necessary inputs to manufacture or assemble that particular output B2B markets - manufacturers and service providers a. Manufacturers buy raw materials, components, and parts that allow them to m ake and market their own goods and ancillary services. - resellers a. marketing intermediary that resells manufactured products without significantl y altering their form b. wholesaler i. firm engaged in buying, taking title to, often storing, and physically han dling goods in large quantities, then reselling the goods (usually in sm aller quantities) to retailers or industrial or business users c. distributor i. a type or reseller or marketing intermediary that resells manufactured products without significantly altering their form; often buy from manuf acturers and sell to other businesses like retailers in a B2B transaction - institutions - government B2B buying process - B2B buyers specify their needs in writing and ask potential suppliers to submit formal proposals, whereas B2C buying decisions are usually made by individuals or families and do not need formal proposals. - need recognition - product specification - RFP process a. request for proposals (RFP) i. a process through which buying organizations invite alternative suppli ers to bid on supplying their required components b. web portal i. an Internet site whose purpose is to be a major starting point for users when they connect to the web (usually smaller companies that lack th e ability to attract broad attention to their requests) - proposal analysis and supplier selection - order specification - vendor performance assessment using metrics

a. b. c. d.

delivery (based on promised delivery date) quality customer service issue resolution

The Buying Center - the group of people typically responsible for the buying decisions in large organizatio ns - 6 buying center roles a. initiator i. the buying center participant who first suggests buying the particular p roduct or service b. influencer i. the buying center participant whose views influence other members of the buying center in making the final decision c. decider i. the buying center participant who ultimately determines any part or the entire buying decision - whether to buy, what to buy, how to buy, or wh ere to buy d. buyer i. the buyer center participant who handles the paperwork of the actual p urchase e. user i. the person who consumes or uses the product or service purchased b y the buying center f. gatekeeper i. the buying center participant who controls information or access to de cision makers and influencers organizational culture - reflects the set of values, traditions, and customs that guide a firm’s employees’ beha vior - 4 types of organizational buying culture a. autocratic buying center i. a buying center in which one person makes the decision alone, though there may be multiple participants b. democratic buying center i. a buying center in which the majority rules in making decisions c. consultative buying center i. a buying center in which one person makes the decision but he or she solicits input from others before doing so d. consensus buying center i. a buying center in which all members of the team must reach a collecti ve agreement that they can support a particular purchase white papers - a promotional technique used by B2B sellers to provide information about a product o r service in an educational context, thereby not appearing like a promotion or propag anda

Buying Situation - three types a. new buy i. in a B2B setting, a purchase of a good or service for the first time; the buying decision is likely to be quite involved because the buyer or the buying organization does not have any experience with the item b. modified rebuy i. in a B2B setting, refers to when the buyer has purchased a similar pro duct in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, options, and so forth c. straight rebuy i. in a B2B setting, refers to when the buyer or buying organization simpl y buys additional units of products that have previously been purchase d...