1. Chapter 6 Business-to-Business (B2B) Marketing
Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 6 Business-to-Business (B2B) Marketing

2. Chapter Objectives
Explain each of the components of the business-to-business (B2B) market.
Describe the major approaches to segmenting business-to- business (B2B) markets.
Identify the major characteristics of the business market and its demand.
Discuss the decision to make, buy, or lease.
Describe the major influences on business buying behavior.
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3. Chapter Objectives
Outline the steps in the organizational buying process.
Classify organizational buying situations.
Explain the buying center concept.
Discuss the challenges of and strategies for marketing to government, institutional, and international buyers.
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5. Nature of the Business Market
Companies buy services, too
Influences in B2B markets:
Environmental
Organizational
Interpersonal
An organization’s goals must be considered in the B2B buying process
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6. Components of the Business Market
Commercial market - Individuals and firms that acquire products to support, directly or indirectly, production of other goods and services
Trade industries - Retailers or wholesalers that purchase products for resale to others
Government
Public and private institutions
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7. Segmenting B2B Markets
Segmentation helps marketers develop the most appropriate strategy
Segmentation by demographic characteristics
Segmentation by customer type
Segmentation by end-use application
Segmentation by purchase categories
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8. Characteristics of the B2B Market
Geographic market concentration
The sizes and numbers of buyers
The purchase decision process
Buyer–seller relationships
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9. Evaluating International Business Markets
Business purchasing patterns differ from country to country
Global sourcing - Purchasing goods and services from suppliers worldwide
Can bring significant cost savings but requires adjustments
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11. The Make, Buy, or Lease Decision
Firms acquiring finished goods have three options:
Make the good or provide the service in-house
Purchase it from another organization
Lease it from another organization
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12. The Rise of Offshoring and Outsourcing
Offshoring - Movement of high-wage jobs from one country to lower-cost overseas locations
Nearshoring - Moving jobs to vendors in countries close to the business’s home country
Outsourcing - Using outside vendors to provide goods and services formerly produced in-house
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13. Influences on Purchase Decisions
Environmental factors
Organizational factors
Interpersonal influences
Merchandisers – Trade sector buyers who secure needed products at the best possible prices
Category advisor - Trade industry vendor who develops a comprehensive procurement plan for a retail buyer
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15. Classifying Business Buying Situations
Straight rebuy
Modified rebuy
New-task rebuy
Reciprocity
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16. Analysis Tools Value analysis Vendor analysis
Systematic study of the components of a purchase to determine the most cost-effective approach
Vendor analysis
Assessment of supplier performance such as price, back orders, timely delivery, and attention to special requests
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17. The Buying Center Concept
Buying center - Participants in an organizational buying action
Buying center roles
Users
Gatekeepers
Influencers
Deciders
Buyers
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18. Challenges of Government Markets
Purchases typically involve dozens of interested parties
Purchases are influenced by social goals
Contractual guidelines are an important influence in selling to government markets
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19. Challenges of Institutional Markets
Institutional buyers - Schools, hospitals, libraries, foundations, clinics, churches, and not-for-profit agencies
Widely diverse buying practices
Multiple buying influences can affect buying decisions
Group purchasing is an important factor
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20. Challenges of International Markets
Marketers must consider buyers’ attitudes and cultural patterns
Local industries, economic conditions, geographic characteristics, and legal restrictions must be considered
Remanufacturing – Efforts to restore older products to like-new condition
Foreign governments are an important business market
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