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BMGT 205: Pricipals
of Marketing
Chapter 7: Business to Business Marketing
Learning Objectives

LO1

LO2

LO3

LO4

Describe the ways in which business-tobusiness (B2B) firms segment their markets....
Business-to-business (B2B)
marketing

refers to the process of buying and selling goods or
services to be used in the prod...
http://www.youtube.com/watch?v=p-mvUsj3-Lk
Consumer	

Business

Heinz
PNC
Google

Pittsburgh Business Examples
Resellers

Manufacturers/

Service providers

B2B
Markets

Government

B2B Markets

Institutions
Manufacturers and Service
Providers

Buy raw materials,
components or parts

Manufacture their own
goods
Resellers

Manufacturer

Reseller

Retailer

http://www.youtube.com/watch?v=TcO-plO4lro
Institutions

Schools, Museums and
Religious Organizations
Government

US Government spends $2.1
trillion procuring goods
State and local governments
also make significant purchases
...
Lockeed Martin F-35
$150 Million Per Plan (Estimated Cost), Total Program Cost over 1 Trillion Dollars
Chapter Check In

1.

What are the various B2B markets?
Heinz - Examples of B2B
Markets
Heinz B2B Markets
Resellers
Institutions
Government
Manufactuers/Service Providers

B2B Ex...
B2B Buying Process
Need recognition

Product specification
RFP

process
Proposal analysis and
supplier selection
Order spe...
Stage 1: Need Recognition

Can be generated internally or
externally
Sources for recognizing new
needs:
Suppliers
Salespeo...
Stage 2: Product
Specifications

Used by Suppliers to develop
proposals
Can be done collaboratively
with suppliers
Stage 3: RFP Process 

(Request for Proposal)
Step 4: Proposal Analysis, Vendor
Negotiation and Selection

Often several vendors are
negotiating against each other
Cons...
Step 5: Order Specification

Firm places the order
The exact details of the
purchase are specified
All terms are detailed i...
Step 6: Vendor Analysis

(2) Importance Score

(3) Vendor’s Performance

(4) Importance x
Performance
(2) x (3)

Customer ...
Chapter Check In

1.

Identify the stages in the B2B buying process.

2.

How do you perform a vendor analysis?
The Buying Center
Influencer

Initiator

User

Buying center
Gatekeeper

Buyer
Decider
Organizational Culture
Buying

culture

Democratic Consultative Consensus

Autocratic
Buying Situations
Buying situations

New buy

Straight rebuy

Modified
rebuy
1.

What factors affect the B2B buying process?

2.

What are the six different buying roles?

3.

What is the difference ...
Key Terms
Buying center participants are people responsible for
the buying decisions.
The request for proposals (RFP) is a...
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Transcript of "Bmgt 205 chapter_7"

  1. 1. BMGT 205: Pricipals of Marketing Chapter 7: Business to Business Marketing
  2. 2. Learning Objectives LO1 LO2 LO3 LO4 Describe the ways in which business-tobusiness (B2B) firms segment their markets. List the steps in the B2B buying process. Identify the different roles within the buying center. Describe the different types of organizational cultures. Detail different buying situations. LO5
  3. 3. Business-to-business (B2B) marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, and/or for resale by wholesalers and retailers.
  4. 4. http://www.youtube.com/watch?v=p-mvUsj3-Lk
  5. 5. Consumer Business Heinz PNC Google Pittsburgh Business Examples
  6. 6. Resellers Manufacturers/
 Service providers B2B Markets Government B2B Markets Institutions
  7. 7. Manufacturers and Service Providers Buy raw materials, components or parts Manufacture their own goods
  8. 8. Resellers Manufacturer Reseller Retailer http://www.youtube.com/watch?v=TcO-plO4lro
  9. 9. Institutions Schools, Museums and Religious Organizations
  10. 10. Government US Government spends $2.1 trillion procuring goods State and local governments also make significant purchases Firms specialize in selling to government
  11. 11. Lockeed Martin F-35 $150 Million Per Plan (Estimated Cost), Total Program Cost over 1 Trillion Dollars
  12. 12. Chapter Check In 1. What are the various B2B markets?
  13. 13. Heinz - Examples of B2B Markets Heinz B2B Markets Resellers Institutions Government Manufactuers/Service Providers B2B Examples
  14. 14. B2B Buying Process Need recognition Product specification RFP
 process Proposal analysis and supplier selection Order specification Vendor/ performance assessment using metrics
  15. 15. Stage 1: Need Recognition Can be generated internally or externally Sources for recognizing new needs: Suppliers Salespeople Competitors
  16. 16. Stage 2: Product Specifications Used by Suppliers to develop proposals Can be done collaboratively with suppliers
  17. 17. Stage 3: RFP Process 
 (Request for Proposal)
  18. 18. Step 4: Proposal Analysis, Vendor Negotiation and Selection Often several vendors are negotiating against each other Considerations other than price play a role in final selection
  19. 19. Step 5: Order Specification Firm places the order The exact details of the purchase are specified All terms are detailed including payment
  20. 20. Step 6: Vendor Analysis (2) Importance Score (3) Vendor’s Performance (4) Importance x Performance (2) x (3) Customer Service .40 5 2.0 Issue Resolution .20 4 0.8 Delivery .10 5 0.5 Quality .30 3 0.9 Total 1.00 (1) Key Issues 4.2
  21. 21. Chapter Check In 1. Identify the stages in the B2B buying process. 2. How do you perform a vendor analysis?
  22. 22. The Buying Center Influencer Initiator User Buying center Gatekeeper Buyer Decider
  23. 23. Organizational Culture Buying
 culture Democratic Consultative Consensus Autocratic
  24. 24. Buying Situations Buying situations New buy Straight rebuy Modified rebuy
  25. 25. 1. What factors affect the B2B buying process? 2. What are the six different buying roles? 3. What is the difference between new buy, rebuy, and modified rebuy?
  26. 26. Key Terms Buying center participants are people responsible for the buying decisions. The request for proposals (RFP) is a process through which buying organizations invite alternative suppliers to bid on supplying their required components. Resellers are marketing intermediaries that resell manufactured products without significantly altering their form.
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