This document discusses key characteristics of business-to-business (B2B) marketing. It outlines the complex buying process organizations go through, which involves multiple participants with different roles who are all influenced by internal and external factors. The buying process consists of 8 stages: problem recognition, general need description, product specification, supplier research, proposal solution, supplier selection, order-routine specification, and performance review. It notes that in B2B markets, buyers often have significant power over sellers to customize products, negotiate prices, and influence other marketing decisions. The relationship between buyers and sellers is also important. The document provides an example of LG targeting 5-star hotels by offering customized security televisions at a better negotiated price with quick serv

1. I
Neha - Sheenam – Jagmohan – Sompal - Deepa

2. Characteristics of B2B marketing
1. Derived demand
2. Complexity of buying process
3. Buyer power
4. Buyer-seller relationship
5. Payment system
B2B MARKETING

3. HOW B2B IS DIFFERENT?

4. The 5-star hotel need the LCD Television to give aesthetic look and with the
updated technology.
• Lobby
• Reception
• Coffee Bars
• Security Rooms
• Hotel Rooms
DERIVED DEMAND

5. Unexpected
Situational
Factors
Attitudes
of
Others
PARTICIPANTS IN THE ORGANIZATIONAL BUYING PROCESS
Ethical
Decision-
Making Unit
of a Buying
Organization
is Called
Its Buying
Center.
Users Influencers
Buyers
Gatekeepers
Roles Include
Deciders
Approvers

6. MAJOR INFLUENCES ON
ORGANIZATIONAL BUYERS

7. ORGANIZATIONAL BUYING DECISIONS
1. Problem Recognition
2. General Need
Description
3. Product Specification
4. Supplier Research
5. Proposal Solution
6. Supplier Selection
7. Order-Routine
Specification
8. Performance Review

8. PROBLEM RECOGNITION
Problem recognition is when someone in a company
recognizes a problem or need that can be met by acquiring a
good or a service
Problem recognition can occur because of internal and
external stimuli

9. GENERAL NEED DESCRIPTION
General need description is when a company describes the
general characteristics and quantity of a needed item
What are some items that would be included in a general
needs description for a training meeting?

10. PRODUCT SPECIFICATION
Product specification is when the buying organization
decides on and specifies the best technical product
characteristics for a needed item
What are some items that would be included in a product
specification description for a training meeting?

11. SUPPLIER SEARCH
Supplier search is when a buyer tries to find the best vendor
What are the best ways for buyers to identify suppliers?

12. PROPOSAL SOLUTION
Proposal solution is when qualified suppliers are invited to
submit proposals
What are some important tools for writing and researching a
proposal?

13. SUPPLIER SELECTION
Supplier selection is when a buyer receives proposals and
selects a supplier or suppliers
What are the six attributes that meeting planners consider
when selecting a location

14. ORDER-ROUTINE SPECIFICATION
Order-routine specification
when a buyer writes the final
order with the chosen
supplier(s), listing the technical
specifications, quantity needed,
expected time of delivery, return
policies, warranties, and so on

15. PERFORMANCE REVIEW
Performance review is when a buyer rates its satisfaction
with suppliers, deciding whether to continue, modify, or drop
the relationship

16. Since the buyer are limited the LG shortlists a couple of 5-five star hotels to
target .The buyers have the power to customise the product and negotiate for
the better price .
In the B2B market the buyer has the power to decide the product ( Derived
Demand ) better service ( buyer seller relationship ).
The influence the product , place and price for the seller to agree upon the
purchase.
BUYER POWER

17. Converting the 4P’s into the 6B’s
Product Buyer need
Price Buyer cost
Promotion Buyer information & communication
Place Buyer convenience
- Buying process
- Buyer management
BUYER-SELLER RELATIONSHIP

18. • Customized features for the security purpose television
• Better price
• Servicing at zero response time
LG OFFERS TO THE HOTEL

19. THANK YOU
Jagmohan Sompal Neha Sheenam Deepa