1. B2B versus B2C Marketing
B2C=Business-to-Consumer Market= businesses sell products and services to consumers for household or personal use
B2B=Business-to-Business Market= businesses sell products and services to other businesses for use in their daily operations or for making other products and services

2. B2C versus B2B Marketing
The B2B market is 5X as large as the B2C market in the USA.

3. Sectors of the B2B Market
Producers
Middlemen
Government Units
Nonprofits

4. Sectors of the B2B Market
Producers – includes all manufacturers and service providers; buy goods to use in making other goods or services
Middlemen – buy goods for resale; includes all retailers and wholesalers (distributors, vendors)
Government – includes all federal, state, and local governments and govt. agencies
Nonprofit – includes charities, schools and universities, museums, etc.

5. B2B Marketing is Different!
There are fewer customers and they require dependable relationships and a high level of service.
Marketing tends to be done by personal selling ( one-on-one) calls to the customer.
Specialized media such as trade journals, sales brochures, web sites, trade shows are used rather than traditional mass media.

6. Emotional or Rational Buyers? (Considerations of B2B Buyers)
Buyers must purchase according to a set of purchasing specifications
Focus on Quality (including ISO 9000 certification)
Total costs to purchase and use
Reliability
Value in use
Savings possible via e-commerce

7. What is ISO 9000?
A very detailed process for documenting quality according to internationally recognized standards.
Some international companies won’t buy from you if you aren’t ISO 9000 compliant.

8. Three Kinds of Organizational Purchases
Straight rebuy
a routine repurchase that may have been made many times before
Modified rebuy
the in-between process where some review of the buying situation is done—though not as much as in new-task buying
New-task buy
a firm has a new need and the buyer wants a great deal of information

9. Purchasing Climbing Gear

10. The “Buying Center”
Business purchases often involve multiple influence
"Buying center"—all people who participate in or influence a particular purchase
Buying center varies from purchase to purchase
Does not appear on the "organizational chart"
Structure may be formal or informal

11. Multiple Roles in the Buying Center
Buyers
Users
Influencers
Buying
Center
Gatekeepers
Deciders

12. Alcoa Aluminum—Three Products

13. U.S. Manufacturing There are about 366,000 factories in the U.S.
Over half (51.3%) have fewer than 10 workers.
Only 4% of plants have more than 250 workers; they produce 61% of the value-added by manufacturing

14. North American Industry Classification System (NAICS)
NAICS—a system of number codes that groups firms in similar lines of business
Most government data is now organized by NAICS codes
Replacing the older Standard Industrial Classification (SIC) codes
SIC codes are still prominent in most published government reports because of lag times in publication
Much detail is available
Two digit codes are the most general
Additional digits add more details (i.e., six digit codes are the most detailed)

15. NAICS Code Breakdown for Apparel Manufacturers

16. The Government Market Government units Federal government
State governments
Local governments
Foreign countries

17. Government Purchasing
Usually done by using a bidding process
Many layers of approval are required (bureaucratic “red tape”)
Specifications are developed prior to releasing the request for bids
Many govt. agencies must accept the low bid
Routine purchases can be made from an “approved suppliers” list.

18. Foreign Corrupt Practices Act
Passed in 1977 – prohibits U.S. firms from paying bribes to foreign officials
Amended in 1988 – allows small “grease money” payments if they are customary in a local culture
Does this act put U.S. businesses at a disadvantage against foreign competitors not governed by our laws?

19. Retailers and wholesalers buy for their customers
Buyers Watch Computer Output Closely
Resident Buyers May Help
Reorders Are Straight Rebuys

20. Types of E-Commerce Sites
Bot Search Tool Sites
Collaboration Hubs
Exchanges
Communities
Procurement Hubs
Seller’s Sites (provide info and take orders)
Catalog Sites

21. What is a search “bot?”
A special software package that looks at all the sights on the Internet and finds where a specific product is mentioned
The bot may compile information and prices or do comparisons between products.
Gives buyers a better understanding of what alternatives exist.