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23 Cards in this Set
- Front
- Back
What is B2B marketing and what are the B2B markets?
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- B2B marketing: the process of buying and selling G/S to be used in the production of other goods and services, for consumption by the buying org or for resale
-B2B markets: manufacturers, resellers, institutions, government |
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Elaborate on the manufacturers or producers market in B2B marketing.
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- some of the biggest B2B buyers
- use other company's products to create theirs |
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Elaborate on the resellers market in B2B marketing.
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- resellers are marketing intermediaries that resell manufactured products without significantly altering their form
- buy something wholesale, the bump up the price |
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Elaborate on the institutions market in B2B marketing.
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- Institutions like hospitals, schools, prisons, religious organizations, and NPO's buy G/S for the people they serve
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Elaborate on the government market in B2B marketing.
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- tends to be the largest purchaser of G/S
- large purchaser of Public Works |
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What is the B2B classification system and segmentation?
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- NAICS: North American Industry Classification System categorizes all firms into six digit codes
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What are the differences between B2B and B2C markets?
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- Market Characteristics
- Product Characteristics - Buying Process Characteristics - Marketing Mix Characteristics |
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What are the differences in market characteristics in B2B marketing?
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- In B2C, consumers buy goods to satisfy their needs while in B2B demand is derived from B2C demand
- fewer customers, more geographically concentrated, orders are larger - Demand is more inelastic, more fluctuations |
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What are the differences in product characteristics in B2B marketing?
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- products are technical in nature and purchased based on specs
- mainly raw and semi-finished - emphasis on delivery time, tech assistance, after sale service, financing assistance |
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What are the differences in buying process characteristics in B2B marketing?
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- buying decision is more complex
- may involve bidding, negotiated pricing and complex financial arrangements - qualified, professional buyers - buying criteria and objectives are specified - many people with varied interests participate in purchase decision - reciprocal arrangements exist and negotiations are common - buyer and seller usually work for a LTR - online buying is common |
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What are the differences in marketing mix characteristics in B2B marketing?
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- direct selling is the primary form of selling and physical dist. is often essential
- ads are technical in nature - price is often negotiated |
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What is the B2B buying process?
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1. Need recognition
2. Product specifications 3. RFP process 4. Proposal analysis, vendor negotiations, supplier selection 5. Order specifications 6. Vendor analysis |
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Elaborate on Step 1 of the B2B buying process.
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Need Recognition:
- Firm recognizes through internal or external sources that it has an unfilled need |
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Elaborate on Step 2 of the B2B buying process.
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Product Specifications:
- consider alternative solutions and come up with potential specs that suppliers might use to develop their proposals to supply the product |
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Elaborate on Step 3 of the B2B buying process.
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RFP Process:
- Request For Proposals: buying orgs invite alternative suppliers to bid on supplying their required components |
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Elaborate on Step 4 of the B2B buying process.
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Proposal Analysis. Vendor Negotiations, and Supplier Selection:
- evaluate the proposals and narrow the choice down - some firms keep a policy to maintain negotiations with several firms to keep the firms on their toes |
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Elaborate on Step 5 of the B2B buying process.
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Order Specifications:
- place an order with the preferred supplier that will include a detailed description of the goods, prices, delivery dates and penalties |
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Elaborate on Step 6 of the B2B buying process.
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Vendor Analysis:
- analyze the vendor's performance so they can make decisions about their future purchases |
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What are the factors affecting the buying process?
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- The buying centre
- Organizational culture - Buying situations |
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Elaborate on the buying centre and its influence on the buying process.
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- Buying centre: the group of people typically responsible for the buying decisions in large organizations
- There are six different roles: initiator (first suggests product X); influencer (views influence other members in making the final choice); decider (who ultimately decides); buyer (who handles the paperwork); user (who consumes it) and; gatekeeper (who controls info or access to the decision makers) |
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Elaborate on organization culture and its influence on the buying process.
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- There are four types of cultural buying centres
- Autocratic: one person makes the decision alone - Democratic: majority rules - Consultative: one person makes the decision but he or she solicits input from others - Consensus: all members agree |
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Elaborate on buying situations and their influence on the buying process.
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- New buys: purchase for the first time; more likely to go through all six steps
- Modified rebuys: change some specs of a previously purchased product; current vendors have advantage as long as the rebuy is unrelated to dissatisfaction - Straight rebuy: buy additional units that had previously been purchased |
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What is the impact of the Internet in B2B marketing?
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- sales are much quicker
- makes private exchanges easier - easy set up of auctions |