What is B2B
Business marketing aka business to business marketing
Marketing to companies. Governments. Not for profit organizations
Organizational buyers
Manufacturers. Wholesalers. Retailers. Etc. That guy goods and services
4 different markets
-industrial
-reseller
-government
-not for profit
Why are business markets different
Fewer and larger buyers
Geographic concerns of buyers
More complex decisions
More ppl involved for approvals
More professional and formal
Industrial markets
Reprocess a product or services before selling it again
-buy wheat from farmer turn to flour then sell to baker
Reseller market
Buy products then resell them without and reprocessing
-Canadian tire
Government market
Governments have budgets to spend on specialized purchase needs
Roadway maintenance. Military. Products for public’s spaces. Etc.
Non profit market
Works closest with other businesses and provide services to enhance and support communities
Market research in B2B different how
Understand clients industry. Not necessarily your own
In NA industries follow a shared classification system
NAICS Codes
Used to help marketers begin a research process that will help them determine what certain markets are like for specific industries
B2B is the birth of
Content marketing
Creating specific kinds of content that highlight the features of a product or brand important to other industries. Business owners. Or retailers
-helpful info to support the sales process for the other business
-identify opportunities for partnerships of exclusive arrangements
Not just and advertisement
-blogs. White papers. Product demos. Etc
B2B demand is different
Derived
-driven by demand for a consumer products and services
Inelastic
-a change in price doesn’t equal a change in demand
Fluctuating
-demand will fluctuate based on issues such as availability of parts rather than consumer demands
B2B buying and buyers
Less buyers but size of purchases is way larger
Usually take longer to purchase cus more ppl involved in decision
B2B buying for business firms
Wanna Increase profits by reducing costs
Or increase sales without increasing costs
B2B buying for government or non profit
Wanna meet their organization objectives to better serve communities
B2B building relationships
Reverse marketing
Reverse marketing
-client comes to you in order to build a relationship that helps them achieve their goals
B2B relationships
Reciprocity
When 2 pegs agree to purchase each others products or services
B2B relationships
Supply partnership
When buyer and supplier adopt mutually beneficial objectives. Policies. And procedures to the purpose of lowering costs and or increasing sales value of products that go to the end user
Things to consider when contemplating a supply relationship with another firm
Price
Ability to meet quality specifications required
Ability to meet required delivery schedules
Technical capabilities
Warranties and claims policies
Past performance on previous contracts
Production facilities and capacity
B2B buying decisions
Similar to consumer decision making process
There are some subtle differences
Ex. Purchase decisions usually require two parties to negotiate
Problem recognition-> info search -> evaluate alternatives -> purchase decisions -> post purchase behaviour
The buying center
Consists of ppl in the rig that participates in the buying process and share common goals risk and knowledge important to purchase decisions (aka procurement)
-the ppl understand the business inside and out
-often fall within the firms marketing department (could be all the marketing department does)
Buying center roles
Users
-ppl in the organization who use the product or service
-city park worker using shovel
Influencers
-affect buying decisions
-city manager. City Councillor
Buyers
-ppl who elect suppliers and negotiate contract
-procurement ppl
Deciders
-select or approve the supplier that receives contract
-procurement ppl
Gatekeepers
-control flow of info in the buying center
-administrative staff, supply partners. Etc
Buying situations
Straight rebuy
Reprdering an existing product or service from a list of acceptable suppliers
Buying situations
Modified rebuy
Parts of purchase change
Price. Delivery schedules supplier change
Product purchased is largely the same
Buying situations
New buy
Firm is a first time buyer of products and I loves a larger buying group if the order is substantial
