Want to learn more about business to business marketing? Watch my powerpoint!

1. Business to
Business
Marketing
By: Kathy Collier

2. What is Business to Business Marketing?
Business to Business marketing deals with
organizational skills and purchases of goods and
services to support production of other products, to
facilitate daily company operations or for resale.

3. Business to Business Marketing (B2B)
In business to business marketing (B2B) the product is relatively
technical in nature, it emphasises on personal selling and the
distribution process is relatively short and have direct channels to
market. A diverse group of members makes the decision making
process relatively fair so everyone has an opinion, and competitive
bidding for unique items drives the price range up.

4. Ask yourself these questions...
Who is buying the good or service?
We purchase items for our own use
and enjoyment and not for resale.
By contrast B2B purchases are
made by businesses, government
and marketing intermediaries to be
resold.
Why is the purchase being made?
B2B marketing buys items to be
resold, to create a finished product
for resale or to be used up in an
organization.

5. There are four
components of the
business to business
market

6. 1. Commercial Market
The commercial market is the largest segment of
the business market. It includes all individuals and
firms that acquire products to support, directly or
indirectly, production of other goods and services.

7. 2. Trade Industries
Trade Industries include retailers and wholesalers
who operate in this sector. Most products are
finished goods that buyers sell to final consumers.
Trade industries on the other hand buy computers,
shelves and other products needed to operate their
business.

8. 3. Government
This important market segment makes a wide
variety of purchases and the main motivation of
government purchasing is to provide some form of
public benefit.

9. 4. Institutions
Some institutions must follow standardized
purchasing procedures but others have less formal
buying practices. B2B marketers often benefit by
setting up seperate divisions to sell to institutional
buyers.

10. Characteristics of the
B2B Market

11. 1. Geographic market concentration
2. The sizes and number of buyers
3. The purchase decisions process
4. Buyer-Seller Relationships

12. Conclusion
B2B buying behavior tends to be more complex than individual
consumer behavior. More people and time are involved and buyers
often seek several alternative supply sources. Major organizational
purchases may need longer decision making processes and
purchasing decisions typically depend on contributions of factors like
price, service and product efficiency.