Marketing 6Marketing 6

Business-to-Business (B2B) Business-to-Business (B2B) MarketingMarketing

6.1

B2B Marketing - 6 B2B Marketing - 6 • Business to Business Markets (B2B)Business to Business Markets (B2B)

– Types of business customersTypes of business customers– Contrast B2B with Consumer behaviorContrast B2B with Consumer behavior– Business Buying BehaviorBusiness Buying Behavior– Trends in B2B marketingTrends in B2B marketing

6.2

Business Customers Business Customers • ProducersProducers

• ResellersResellers

• GovernmentsGovernments

• InstitutionsInstitutions

North American Industrial North American Industrial Classification SystemClassification System

• http://factfinder.census.gov/servlet/SAFFEcohttp://factfinder.census.gov/servlet/SAFFEconFacts?_submenuId=business_0&_sse=onnFacts?_submenuId=business_0&_sse=on

• Businesses are grouped by similaritiesBusinesses are grouped by similarities• Digits 1 & 2: major economic sector Digits 1 & 2: major economic sector (ag, mfr)(ag, mfr)• Digit 3: economic sub-sector Digit 3: economic sub-sector (crop (crop

production/apparel mfr)production/apparel mfr)• Digit 4: industry group Digit 4: industry group (grain farming/fiber, yarn, (grain farming/fiber, yarn,

thread mill)thread mill)• Digit 5: industry Digit 5: industry (wheat farming/broadwoven fabric (wheat farming/broadwoven fabric

mills)mills)• Digit 6: subdivisions of user needsDigit 6: subdivisions of user needs

6.3

Organizational Markets IOrganizational Markets IVS. Consumer MarketsVS. Consumer Markets• DemandDemand

– DerivedDerived– InelasticInelastic– JointJoint– Fluctuating (ripple/multiplier effect)Fluctuating (ripple/multiplier effect)

• Big VolumeBig Volume• Fewer, but Concentrated CustomersFewer, but Concentrated Customers

6.3

Organizational Markets Organizational Markets IIII

• PromotionPromotion– Heavier reliance on personal sellingHeavier reliance on personal selling– Advertising limited and focusedAdvertising limited and focused– Advertising and Marketing Promotions Advertising and Marketing Promotions

support Salessupport Sales

6.3

Organizational Markets Organizational Markets IIIIII

• Nature of BuyingNature of Buying– FormalFormal– ComplexComplex– LengthyLengthy– Multiple parties in buying centerMultiple parties in buying center– Bids/ProposalsBids/Proposals– Buyers are professionalBuyers are professional

6.3

Organizational Markets Organizational Markets IVIV

• Products / ServicesProducts / Services1.1. Major EquipmentMajor Equipment2.2. Accessory EquipmentAccessory Equipment3.3. Raw MaterialsRaw Materials4.4. Component PartsComponent Parts5.5. Processed MaterialsProcessed Materials6.6. SuppliesSupplies7.7. ServicesServices

1

2

4

3

6

7

5

6.3

Organizational Markets Organizational Markets VV

• NegotiationsNegotiations

• DistributionDistribution

• ReciprocityReciprocity

• Leasing Leasing

6.5

B2B. Buying Decision B2B. Buying Decision ProcessProcess

• Recognize the problemRecognize the problem

• Form buying centerForm buying center

• Develop product specsDevelop product specs

• Supplier searchSupplier search

• Product / vendor solicitationProduct / vendor solicitation

• Supplier selection and orderSupplier selection and order

• Performance reviewPerformance review

6.6

BUSINESS BUYING BUSINESS BUYING BEHAVIORBEHAVIOR

• Buying CentersBuying Centers– InitiatorInitiator– Influencers / EvaluatorsInfluencers / Evaluators– GatekeepersGatekeepers– DeciderDecider– PurchaserPurchaser– UserUser

6.4

Types of Buying Types of Buying DecisionsDecisions

• Straight rebuyStraight rebuy

• Modified rebuyModified rebuy

• New taskNew task

6.7

TRENDS in B2B TRENDS in B2B MARKETING MARKETING

• B2B Internet MarketingB2B Internet Marketing– Vast majority of Internet Sales are B2BVast majority of Internet Sales are B2B– Offers:Offers:

• lower price / costlower price / cost• greater selection of product/ vendorsgreater selection of product/ vendors• around the clock ordering and customer around the clock ordering and customer

serviceservice

• Strategic AlliancesStrategic Alliances