This document discusses business-to-business (B2B) marketing. It begins by outlining the key learning objectives which are to describe B2B market segmentation, the B2B buying process, roles in the buying center, organizational cultures, and buying situations. The document then provides an overview of the various B2B markets including resellers, institutions, government, and manufacturers/service providers. It also outlines the stages of the B2B buying process and factors that influence it.

1. 7-1
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CHAPTER
Business-to-
Business Marketing
7
McGraw-Hill/Irwin Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.

2. 7-2
L E A R N I N G O B J E C T I V E S
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Describe the ways in which business-to-
business (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.
Business-to-Business Marketing
LO1
LO2
LO3
LO4
LO5

3. 7-3
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
B2B Markets
B2B
Markets
Resellers
Institutions
Government
Manufacturers/
Service providers
U.S. Census Website

4. 7-4
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Manufacturers and Service Providers
Buy raw materials,
components or parts
Manufacture their own
goods
Gear Expo News Clip
Car Culture/Getty Images

5. 7-5
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Resellers
Manufacturer
Reseller
Retailer
Courtesy Eastman Chemical Company

6. 7-6
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Institutions
Schools, Museums
and Religious
Organizations
Annie Reynolds/PhotoLink/Getty Images
Royalty-Free/CORBIS
Royalty-Free/CORBIS

7. 7-7
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Government
 US Government spends
$2.1 trillion procuring
goods
 State and local
governments also make
significant purchases
 Firms specialize in
selling to government
GettyImagesHishamFIbrahim/GettyImages

8. 7-8
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1. What are the various B2B markets?
Check Yourself

9. 7-9
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
B2B Buying Process
Need recognition
Product specification
RFP
process
Proposal analysis and
supplier selection
Order specification
Vendor/ performance
assessment using metrics

10. 7-10
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Stage 1: Need Recognition
 Can be generated
internally or externally
 Sources for
recognizing new
needs:
 Suppliers
 Salespeople
 Competitors
TimesPhotobyToniL
Sandys/Newscom
SylvainGrandadam/TheImage
Bank/GettyImages

11. 7-11
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Stage 2: Product Specifications
 Used by Suppliers to
develop proposals
 Can be done
collaboratively with
suppliers
Royalty-Free/CORBIS

12. 7-12
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Federal Business Opportunities Website
Stage 3: RFP Process
(Request for Proposal)
©Toyota Motor Engineering & Manufacturing North America, Inc.

13. 7-13
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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
Courtesy The Goodyear Tire & Rubber Company

14. 7-14
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Step 5: Order Specification
 Firm places the order
 The exact details of
the purchase are
specified
 All terms are detailed
including payment
Digital Vision/Getty Images

15. 7-15
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Step 6: Vendor Analysis
(1) Key Issues
(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 4.2

16. 7-16
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1. Identify the stages in the B2B buying process.
2. How do you perform a vendor analysis?
Check Yourself

17. 7-17
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Buying Center
Buying center
Influencer
User
Buyer
Decider
Gatekeeper
Initiator

18. 7-18
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Organizational Culture
Buying
culture
Democratic
Consultative
Consensus
Autocratic

19. 7-19
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Buying Situations
Buying
situations
New buy
Straight
rebuy
Modified
rebuy

20. 7-20
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CHECK YOURSELF
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?

21. 7-21
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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.
Glossary

22. 7-24
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Resellers are marketing intermediaries that resell
manufactured products without significantly
altering their form.
Glossary