Marketing Chapter 7

Front 1

What is B2B marketing and what are the B2B markets?

Back 1

- B2B marketing: the process of buying and selling G/S to be used in the production of other goods and services, for consumption by the buying org or for resale
-B2B markets: manufacturers, resellers, institutions, government

Front 2

Elaborate on the manufacturers or producers market in B2B marketing.

Back 2

- some of the biggest B2B buyers
- use other company's products to create theirs

Front 3

Elaborate on the resellers market in B2B marketing.

Back 3

- resellers are marketing intermediaries that resell manufactured products without significantly altering their form
- buy something wholesale, the bump up the price

Front 4

Elaborate on the institutions market in B2B marketing.

Back 4

- Institutions like hospitals, schools, prisons, religious organizations, and NPO's buy G/S for the people they serve

Front 5

Elaborate on the government market in B2B marketing.

Back 5

- tends to be the largest purchaser of G/S
- large purchaser of Public Works

Front 6

What is the B2B classification system and segmentation?

Back 6

- NAICS: North American Industry Classification System categorizes all firms into six digit codes

Front 7

What are the differences between B2B and B2C markets?

Back 7

- Market Characteristics
- Product Characteristics
- Buying Process Characteristics
- Marketing Mix Characteristics

Front 8

What are the differences in market characteristics in B2B marketing?

Back 8

- In B2C, consumers buy goods to satisfy their needs while in B2B demand is derived from B2C demand
- fewer customers, more geographically concentrated, orders are larger
- Demand is more inelastic, more fluctuations

Front 9

What are the differences in product characteristics in B2B marketing?

Back 9

- products are technical in nature and purchased based on specs
- mainly raw and semi-finished
- emphasis on delivery time, tech assistance, after sale service, financing assistance

Front 10

What are the differences in buying process characteristics in B2B marketing?

Back 10

- buying decision is more complex
- may involve bidding, negotiated pricing and complex financial arrangements
- qualified, professional buyers
- buying criteria and objectives are specified
- many people with varied interests participate in purchase decision
- reciprocal arrangements exist and negotiations are common
- buyer and seller usually work for a LTR
- online buying is common

Front 11

What are the differences in marketing mix characteristics in B2B marketing?

Back 11

- direct selling is the primary form of selling and physical dist. is often essential
- ads are technical in nature
- price is often negotiated

Front 12

What is the B2B buying process?

Back 12

1. Need recognition
2. Product specifications
3. RFP process
4. Proposal analysis, vendor negotiations, supplier selection
5. Order specifications
6. Vendor analysis

Front 13

Elaborate on Step 1 of the B2B buying process.

Back 13

Need Recognition:
- Firm recognizes through internal or external sources that it has an unfilled need

Front 14

Elaborate on Step 2 of the B2B buying process.

Back 14

Product Specifications:
- consider alternative solutions and come up with potential specs that suppliers might use to develop their proposals to supply the product

Front 15

Elaborate on Step 3 of the B2B buying process.

Back 15

RFP Process:
- Request For Proposals: buying orgs invite alternative suppliers to bid on supplying their required components

Front 16

Elaborate on Step 4 of the B2B buying process.

Back 16

Proposal Analysis. Vendor Negotiations, and Supplier Selection:
- evaluate the proposals and narrow the choice down
- some firms keep a policy to maintain negotiations with several firms to keep the firms on their toes

Front 17

Elaborate on Step 5 of the B2B buying process.

Back 17

Order Specifications:
- place an order with the preferred supplier that will include a detailed description of the goods, prices, delivery dates and penalties

Front 18

Elaborate on Step 6 of the B2B buying process.

Back 18

Vendor Analysis:
- analyze the vendor's performance so they can make decisions about their future purchases

Front 19

What are the factors affecting the buying process?

Back 19

- The buying centre
- Organizational culture
- Buying situations

Front 20

Elaborate on the buying centre and its influence on the buying process.

Back 20

- Buying centre: the group of people typically responsible for the buying decisions in large organizations
- There are six different roles: initiator (first suggests product X); influencer (views influence other members in making the final choice); decider (who ultimately decides); buyer (who handles the paperwork); user (who consumes it) and; gatekeeper (who controls info or access to the decision makers)

Front 21

Elaborate on organization culture and its influence on the buying process.

Back 21

- There are four types of cultural buying centres
- Autocratic: one person makes the decision alone
- Democratic: majority rules
- Consultative: one person makes the decision but he or she solicits input from others
- Consensus: all members agree

Front 22

Elaborate on buying situations and their influence on the buying process.

Back 22

- New buys: purchase for the first time; more likely to go through all six steps
- Modified rebuys: change some specs of a previously purchased product; current vendors have advantage as long as the rebuy is unrelated to dissatisfaction
- Straight rebuy: buy additional units that had previously been purchased

Front 23

What is the impact of the Internet in B2B marketing?

Back 23

- sales are much quicker
- makes private exchanges easier
- easy set up of auctions