2. Business to Business Buying
Marketing
Also called B2B, is a form of transaction
between businesses, such as one
involving a manufacturer and
wholesaler, or a wholesaler and a
retailer.
3. B2B Targeted Customers
Instead of marketing to individuals or
customers, who would purchase the
product, B2B business strategically
target other businesses.
4. There are six basic sets in the
B2B buying process
• Need recognition
• Product specification
• RFP process
• Proposal analysis, vendor negotiation, and selection
• Order specification
• Vendor performance assessment using metrics
5. B2B Buying Process
Need recognition Product specification RFP process
Proposal analysis,
vendor negotiation,
and selection
Order specification
Vendorperformance
assessment using
metrics
6. Need Recognition
•The buying organization recognizes
there is an unfilled need
•Seeking information to help recognize
a need through internal and external
sources
7. Product Specification
•The organization considers alterbative
solutions
•It determines potential specifications
that suppliers might use to develop
their proposals to supply the produce
8. RFP (request for proposal)
•A common process through which
buying organizations invite alternate
suppliers to bid on supplying their
required components or specifications
•Organizations can also post RFP on its
website or contact potential suplliers
directly
9. Proposal Analysis, Vendor
Negotiation, Supplier Selection
• The buying organization evaluate the proposals
received from RFP
• They work on narrowing down the suppliers,
usually one with existing relationships
• They discuss key terms of sale, price, quality,
delivery, and financing
• May go through several negotiations before making
any final choices
10. Order Specifications
•Organization places its order with the
preferred vendor they have chosen
•Order often includes detailed description
of the goods, prices, delivery
dates, penalties for late order
•The vendor acknowledges order request
and fills the ordered by the specific date
11. Vendor Analysis
•The organization analysis the vendor's
performance so they can make decisions
about their future purchases
•They develop a list of issues that it believes
are important when evaluating the
vendor's performance
12. Evaluating a Vendor's
Performance
Key Issues
Importance
Score
Vendor's
Performance
Importance X
Performance
Customer Service 0.40 5 2.0
Issue Resolution 0.20 4 0.8
Delivery 0.10 5 0.5
Quality 0.30 3 0.9
Total 1.0 42
Example of an evaluation assessment