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25 Cards in this Set
- Front
- Back
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Different parts/ segments of b2b |
1. Manufacturers/service providers 2. Resellers 3. Institutions 4. Government |
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Manufacturers and service providers |
- buy raw materials, components and parts -owns and distributes products - purchasing agents can use VWSupplyGroup to communicate with suppliers - purchasing agents receive product descriptions from suppliers online - IBM provides consulting services |
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Resellers |
Marketing intermediaries that recall manufactured products without simnifically altering their form -Wholesalers and Distributors buy Xerox products and sell them to retailers (B2B) -then retailers resell those xerox products to ultimate consumer ( B2C) -Retailers can also buy products directly from Xerox |
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Wholesalers , distributors, retailers |
Are all resellers; - retailers represent resellers and engage in B2B when they buy fixtures, capital investments, leasing locations, financing operations, merchandise for their stores |
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Institutions |
Hospitals, educated organizations, religious organizations - public institutions engage in B2B for capital construction, equipment , supplies, food and janitorial services |
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Governement |
Us gov spends $3.7 trillion annually on procuring goods and services - purchasing methods vary with the range of options being pursued - 5 billion a year for airspace |
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Government buyers |
1. Federal gov 2. State gov 3. Local units/gov
Pentagon Aerospace and Defense ( A&D) suppliers are pentagon 's suppliers |
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B2B buying process |
1. Need recognition 2. Product specifications 3. Request for proposals (RFP) 4. Proposal analysis and supplier selection 5. Order specification 6. Vendor performance assessment using metrics |
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B2B buying process vs B2C |
Both start with need recognition - different in info search and alternative evaluation steps-more formal in B2B - b2b buyers specify needs in writing - ask potential suppliers to submit formal proposals - requisition forms - accept bids from manufacturers - obtain approval for the expenditure -final decision rests with a committee...demands a great deal of consideration -formal performance evaluation of the vendor and product |
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B2C buying process |
Decisions are made by individuals and families - dont need formal proposals - customers evaluate their purchase decision and experience post purchase cognitive dissonance - no formal performance evaluations of the vendor and the products |
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Request for proposals |
Process thru which buying organizations invite alternative suppliers to bid on supplying their required components or specifications. - company can post its RFP needs on its website thru B2B web portals or directly |
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Request for proposals |
Process thru which buying organizations invite alternative suppliers to bid on supplying their required components or specifications. - company can post its RFP needs on its website thru B2B web portals or directly |
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Product specifications |
Screen size, battery life, processor speed, delivery date, how device connects to the internet |
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Web portal |
Internet site whose purpose is to be a major starting point for users when they connect to the web - yahoo,MSN -cost saving : no paperwork and periodic negotiations
When company too small to attract rfp |
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Web portal |
Internet site whose purpose is to be a major starting point for users when they connect to the web - yahoo,MSN -cost saving : no paperwork and periodic negotiations, form a supply chain Guru- site for medium sized companies looking for skilled service
When company too small to attract rfp |
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B2B partners connect to |
Specialized niche or portals to participate in online info exchanges and transactions |
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Proposal analysis, vendor neg, selection |
With critical decision makers, buyer evaluates all the proposals it receives - board of directors, representatives, member of a student gov. - more attention to suppliers with whom they already have relationships - depends on how much experience the supplier has (reliable and flexible) -supplier's financial condition matters -relevant and meet specifications |
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Order specification |
Place order with a supplier. - order includes detailed description of goods, prices, delivery date, and maybe penalties for noncompliance -supplier sends acknowledgement that he received it and fills it by specified date |
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Vendor performance assessment |
It is formal in B2B Metrics: 1. Delivery 2. Quality 3. Customer service 4. Issue resolution |
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Buying center roles ( in decision making process) |
Buying center - group of people responsible for the buying decisions in large organizations 1. Initiator- suggests buying product or service that will best address 2. Influencer- whose views influence other members of the buying center in making the final decision 3. Decider- determines any part of or the entire buying decision- to buy, what to buy, how to buy, where to buy 4. Buyer- handles the paperwork of the actual purchase 5. User - consumes and uses the product or service 6 z Gatekeeper- controls info or access or both, to decision makers and influencers |
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Buying center roles ( in decision making process) |
Buying center - group of people responsible for the buying decisions in large organizations 1. Initiator- suggests buying product or service that will best address 2. Influencer- whose views influence other members of the buying center in making the final decision 3. Decider- determines any part of or the entire buying decision- to buy, what to buy, how to buy, where to buy 4. Buyer- handles the paperwork of the actual purchase 5. User - consumes and uses the product or service 6 z Gatekeeper- controls info or access or both, to decision makers and influencers . Insurance company |
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Organizational culture |
Comprises a set of unspoken guidelines that employees share with one another thru various work situations |
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Organizational culture |
Comprises a set of unspoken guidelines that employees share with one another thru various work situations |
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Organizational Buying Culture |
1. Democratic - majority rules in making decisions 2. Autocratic-buying center -one person makes the decision alone, but can be multiple participants 3. Consensus - all members of the team must reach a collective agreement 4. Consultative- one person makes the decision but he or she solicits input from others before doing so |
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Culture |
Act like living, breathing entities that change and grow , just as organizations do. Culture may vary by geography, division, functional department. Important to understand culture bc saves time. Understand roles of key players bc it makes u avoid alienating real decision maker. |
