CHAPTER 7
BUSINESS-TOBUSINESS
MARKETING
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
7-1
Business-to-Business Marketing
LEARNING OBJECTIVES
LO1
LO2
LO3
LO4
LO5
Describe the ways in which business-tobusiness (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.
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General Electric
ZUMA Press, Inc./Alamy
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B2B Marketing
C Squared Studios/Getty Images
©1998 EyeWire, Inc
Who is the end user?
7-4
B2B Markets
Resellers
Manufacturers/
Service
providers
B2B
Markets
Institutions
Government
U.S.
Census
7-5
Manufacturers and Service Providers
Buy raw materials,
components or parts
Manufacture their own
goods
Car Culture/Getty Images
Gear Expo
News Clip
7-6
Resellers
Manufacturer
Reseller
Retailer
Courtesy Eastman Chemical Company
7-7
In what kind of
publication
might this appear?
Courtesy Pepsi-Cola Company
7-8
Chipwich Teaches Business”
7-9
Institutions
Schools, Museums
and Religious
Organizations
Royalty-Free/CORBIS
Annie Reynolds/PhotoLink/Getty Images
Royalty-Free/CORBIS
7-10
 State and local
governments also make
significant purchases
 Firms specialize in
selling to government
Hisham F Ibrahim/Getty Images
 US Government spends
$2.1 trillion procuring
goods
Getty Images
Government
7-11
Adding Value: Paris Runways
Photo by Eric Ryan/Getty Images
7-12
Check Yourself
1. What are the various B2B markets?
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B2B Buying Process
Need recognition
Product specification
RFP
process
Proposal analysis and
supplier selection
Order specification
Vendor/ performance
assessment using metrics
7-14
Stage 1: Need Recognition
 Sources for
recognizing new
needs:
Times Photo by Toni L
Sandys/Newscom
 Can be generated
internally or externally
 Salespeople
 Competitors
Sylvain Grandadam/The Image
Bank/Getty Images
 Suppliers
7-15
Stage 2: Product Specifications
Royalty-Free/CORBIS
 Used by Suppliers to
develop proposals
 Can be done
collaboratively with
suppliers
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Stage 3: RFP Process
(Request for Proposal)
©Toyota Motor Engineering & Manufacturing North America, Inc.
Federal Business
Opportunities Website
7-17
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
7-18
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
7-19
Step 6: Vendor Performance Assessment
Using Metrics
(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
(1) Key Issues
4.2
7-20
Check Yourself
1. Identify the stages in the B2B buying process.
2. How do you perform a vendor analysis?
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The Buying Center
Influencer
Initiator
Decider
Buying
center
Gatekeeper
Buyer
User
7-22
Wine Entrepreneur
7-23
Organizational Culture
Democratic
Autocratic
Buying
culture
Consultative
Consensus
7-24
Buying Situations
New
buy
Buying
situations
Modified
rebuy
Straight
rebuy
7-25
New Buy
•
Purchasing for the
first time
•
Likely to be quite
involved
•
The buying center will
probably use all six
steps in the buying
process
dynamicgrapics/Jupiterimages
7-26
Modified Rebuy
 Purchasing a similar
product but changing
specifications
 Current vendors have
an advantage
RubberBall Productions
7-27
Straight Rebuys
 Buying additional
units or products that
have been previously
purchased
 Most B2B purchases
fall into this category
Ryan McVay/Getty Images
7-28
Identify the Buying Situations
The manager for a Kroger supermarket considers reordering items for his store. He will negotiate price
concession and quality improvements. The manager
is engaging in a(n) __________ situation.
New buy
Denise is sharing with coworkers, “This customer just
make a another big order, and they just keep on
coming." Denise is likely selling to a customer in what
kind of buying situation?
Modified
rebuy
Benjamin, the new sales manager for Burns &
Company, was alarmed that the representatives used
paper to track customer information. He made a
decision to upgrade to a CRM system. For Benjamin,
this represented a(n) __________ situation.
Straight
rebuy
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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?
7-30