CHAPTER Day 9 BUS 222

Ch 1 -2 Agenda Questions Assignment 2 Corrected – 5 A’s, 5 B’s, 4 C’s, 2 D’s, & 1 F Quiz 1 corrected – 2 A+, 2 A’s, 3 B’s, 3 C’s, 2 D’s, 5 F’s – Quiz 2 – Mar 8 (change from syllabus) – Chaps 5, 6, 7 15 M/C 45 min. – Same format as before Assignment 3 Posted – Due March 8.. We will discuss it next class. Discuss Business to Business marketing

CHAPTER BUSINESS-TO- BUSINESS MARKETING 06 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING OBJECTIVES Business-to-Business Marketing LO1Describe the different types of buyers and sellers that participate in business-to-business (B2B) markets. LO2List the steps in the B2B buying process. LO3Identify the different roles within the buying center. LO4Describe the different types of organizational cultures. LO5Detail different buying situations.

B2B Marketing Who is the end user? ©1998 EyeWire, Inc C Squared Studios/Getty Images

B2B Markets U.S. Census Website

Manufacturers or Producers Gear Expo News Clip Buy raw materials, components or parts Manufacture their own goods Car Culture/Getty Images

Resellers ManufacturerResellerRetailer Courtesy Eastman Chemical Company

How is this B2B ad similar to B2C ads? Source:

In what kind of publication might this appear? Courtesy Pepsi-Cola Company

Institutions Schools, Museums and Religious Organizations London Museum News Clip Annie Reynolds/PhotoLink/Getty Images Royalty-Free/CORBIS

Government US Government spends $2.1 trillion procuring goods State and local governments also make significant purchases Firms specialize in selling to government Getty Images Hisham F Ibrahim/Getty Images

Adding Value: Paris Runways Photo by Eric Ryan/Getty Images

B2B Buying Process B2C Buying Process

Stage 1: Need Recognition Can be generated internally or externally Sources for recognizing new needs: – Suppliers – Salespeople – Competitors Times Photo by Toni L Sandys/Newscom Sylvain Grandadam/The Image Bank/Getty Images

Stage 2: Product Specifications Used by Suppliers to develop proposals Can be done collaboratively with suppliers Royalty-Free/CORBIS

Federal Business Opportunities Website Stage 3: RFP Process (Request for Proposal)Request for Proposal ©Toyota Motor Engineering & Manufacturing North America, Inc.

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

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

Step 6: Vendor Analysis

1. Identify the stages in the B2B buying process. 2. How do you do a vendor analysis? Check Yourself

Factors Affecting the B2B buying process B2B Buying Organizational Culture Buying Center Purchase Situation

Organizational Culture

The Buying Center

Wine Entrepreneur

Buying Situations

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

Modified Rebuy Purchasing a similar product but changing specifications Current vendors have an advantage RubberBall Productions

Straight Rebuys Buying additional units or products that have been previously purchased Most B2B purchases fall into this category Ryan McVay/Getty Images

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?

Return to slide Business-to-business (B2B) marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, and/or for resale by wholesalers and retailers. Glossary

Return to slide Buying center participants are people responsible for the buying decisions. Glossary

Return to slide The request for proposals (RFP) is a process through which buying organizations invite alternative suppliers to bid on supplying their required components. Glossary

Return to slide Resellers are marketing intermediaries that resell manufactured products without significantly altering their form. Glossary