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08 UNDERSTANDING CUSTOMERS: BUSINESS TO BUSINESS MARKETS Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin
LEARNING OBJECTIVES Recognize the importance of b-to-b marketing Understand the differences between b-to-c and b-to-b markets Understand the critical role of the buying center and each participant in the b-to-b process Learn the b-to-b purchase decision process and different buying situations Comprehend the role of technology in business markets 8-2
DIFFERENCES BETWEEN BUSINESS AND CONSUMER MARKETS 8-3
Differences between Business and Consumer Markets Exhibit 8.2 8-4
DIFFERENCES BETWEEN BUSINESS AND CONSUMER MARKETS Demand for Products and Services is Different in a Business Market Product Demand Derived Demand Fluctuating Demand Acceleration Effect Inelastic Demand 8-5
Examples of Elastic and Inelastic Demand EXHIBIT 8.4 8-6
BUYING SITUATIONS Business buying decisions vary widely based on the: Nature of the purchase Number of people involved in the decision Understanding of the product being purchased Time frame for the decision 8-7
BUYING SITUATIONS 8-8
BUYING CENTERS A number of individuals with a stake in the purchase decision come together to form a buying center that manages the purchase decision process and ultimately makes the decision. 8-9
Buying Center Participants Exhibit 8.6 Users Actual consumer of the product Decider Person(s) responsible for making final decision Initiator Could be user or executive who starts the process Buying Center Gatekeeper Controls access to key participants in the process Influencer Individuals in and out of company that affect decision 8-10
Marketing Challenges in Buying Centers Exhibit 8.7  Who is part of the buying center? Who are the most significant influencers? What are the decision criteria for evaluating the various product options? Target Market 8-11
THE PLAYERS IN BUSINESS TO BUSINESS MARKETS The North American Industrial Classification System (NAICS) Manufacturers Original Equipment Manufacturer (OEM) purchases End User purchases Capital Equipment  Materials, Repairs and Operational (MRO) 8-12
THE PLAYERS IN BUSINESS TO BUSINESS MARKETS Resellers Government Institutions 8-13
Model of Business Market Consumer Decision Process EXHIBIT 8.9 Problem Recognition Define the Need and Product Specifications Search for Suppliers Seek Sales Proposals -  Response to RFP Making the Purchase Decision Post- Purchase Evaluate of Product and Vendor 8-14
THE BUSINESS MARKET PURCHASE DECISION PROCESS Problem Recognition Define the Need and Product Specifications Request for Proposal (RFP) Seek Sales Proposals in Response to RFP 8-15
THE BUSINESS MARKET PURCHASE DECISION PROCESS Making the Purchase Decision 8-16
THE BUSINESS MARKET PURCHASE DECISION PROCESS Making the Purchase Decision Supplier Choice Reliability  Personal and Organizational Factors 8-17
THE BUSINESS MARKET PURCHASE DECISION PROCESS Post-Purchase Evaluation of Product and Supplier Assess product performance Consider the level of support provided by seller  Expect follow up after sale 8-18
THE ROLE OF TECHNOLOGY IN BUSINESS MARKETS Electronic Data Interchange (EDI) E-Procurement 8-19
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Chap008

  • 1. 08 UNDERSTANDING CUSTOMERS: BUSINESS TO BUSINESS MARKETS Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin
  • 2. LEARNING OBJECTIVES Recognize the importance of b-to-b marketing Understand the differences between b-to-c and b-to-b markets Understand the critical role of the buying center and each participant in the b-to-b process Learn the b-to-b purchase decision process and different buying situations Comprehend the role of technology in business markets 8-2
  • 3. DIFFERENCES BETWEEN BUSINESS AND CONSUMER MARKETS 8-3
  • 4. Differences between Business and Consumer Markets Exhibit 8.2 8-4
  • 5. DIFFERENCES BETWEEN BUSINESS AND CONSUMER MARKETS Demand for Products and Services is Different in a Business Market Product Demand Derived Demand Fluctuating Demand Acceleration Effect Inelastic Demand 8-5
  • 6. Examples of Elastic and Inelastic Demand EXHIBIT 8.4 8-6
  • 7. BUYING SITUATIONS Business buying decisions vary widely based on the: Nature of the purchase Number of people involved in the decision Understanding of the product being purchased Time frame for the decision 8-7
  • 9. BUYING CENTERS A number of individuals with a stake in the purchase decision come together to form a buying center that manages the purchase decision process and ultimately makes the decision. 8-9
  • 10. Buying Center Participants Exhibit 8.6 Users Actual consumer of the product Decider Person(s) responsible for making final decision Initiator Could be user or executive who starts the process Buying Center Gatekeeper Controls access to key participants in the process Influencer Individuals in and out of company that affect decision 8-10
  • 11. Marketing Challenges in Buying Centers Exhibit 8.7 Who is part of the buying center? Who are the most significant influencers? What are the decision criteria for evaluating the various product options? Target Market 8-11
  • 12. THE PLAYERS IN BUSINESS TO BUSINESS MARKETS The North American Industrial Classification System (NAICS) Manufacturers Original Equipment Manufacturer (OEM) purchases End User purchases Capital Equipment Materials, Repairs and Operational (MRO) 8-12
  • 13. THE PLAYERS IN BUSINESS TO BUSINESS MARKETS Resellers Government Institutions 8-13
  • 14. Model of Business Market Consumer Decision Process EXHIBIT 8.9 Problem Recognition Define the Need and Product Specifications Search for Suppliers Seek Sales Proposals - Response to RFP Making the Purchase Decision Post- Purchase Evaluate of Product and Vendor 8-14
  • 15. THE BUSINESS MARKET PURCHASE DECISION PROCESS Problem Recognition Define the Need and Product Specifications Request for Proposal (RFP) Seek Sales Proposals in Response to RFP 8-15
  • 16. THE BUSINESS MARKET PURCHASE DECISION PROCESS Making the Purchase Decision 8-16
  • 17. THE BUSINESS MARKET PURCHASE DECISION PROCESS Making the Purchase Decision Supplier Choice Reliability Personal and Organizational Factors 8-17
  • 18. THE BUSINESS MARKET PURCHASE DECISION PROCESS Post-Purchase Evaluation of Product and Supplier Assess product performance Consider the level of support provided by seller  Expect follow up after sale 8-18
  • 19. THE ROLE OF TECHNOLOGY IN BUSINESS MARKETS Electronic Data Interchange (EDI) E-Procurement 8-19
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