LO 7-1 Describe the ways in which business-to-business (B2B) firms segment their markets.
LO 7-2 List the steps in the B2B buying process.
LO 7-3 Identify the roles within the buying center.
LO 7-4 Describe the different types of organizational cultures.
LO 7-5 Detail different buying situations.
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business-to-business marketingsevenCopyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.LEARNING OBJECTIVESLO 7-1 Describe the ways in which business-to-business (B2B) firms segment their markets.LO 7-2 List the steps in the B2B buying process.LO 7-3 Identify the roles within the buying center.LO 7-4 Describe the different types of organizational cultures.LO 7-5 Detail different buying situations.B2B MarketingWho is the end user?©1998 EyeWire, IncC Squared Studios/Getty ImagesB2B MarketsB2B MarketsResellersInstitutionsGovernment Manufacturers/Service providersU.S. Census WebsiteManufacturers and Service ProvidersGear Expo News ClipCar Culture/Getty ImagesResellersCourtesy Eastman Chemical CompanyInstitutionsSchools, Museums and Religious OrganizationsAnnie Reynolds/PhotoLink/Getty ImagesRoyalty-Free/CORBISRoyalty-Free/CORBISGovernmentUS Government spends $2.1 trillion procuring goodsState and local governments also make significant purchasesFirms specialize in selling to governmentGetty ImagesHisham F Ibrahim/Getty ImagesWhat are the various B2B markets?B2B Buying ProcessNeed recognitionProduct specificationRFPprocessProposal analysis and supplier selectionOrder specificationVendor/ performance assessment using metricsStage 1: Need RecognitionCan be generated internally or externallySources for recognizing new needs:SuppliersSalespeopleCompetitorsTimes Photo by Toni L Sandys/NewscomSylvain Grandadam/The Image Bank/Getty ImagesStage 2: Product SpecificationsUsed by Suppliers to develop proposalsCan be done collaboratively with suppliersRoyalty-Free/CORBISStage 3: RFP Process (Request for Proposal)©Toyota Motor Engineering & Manufacturing North America, Inc.Federal Business Opportunities WebsiteStep 4: Proposal Analysis, Vendor Negotiation and SelectionOften several vendors are negotiating against each otherConsiderations other than price play a role in final selectionCourtesy The Goodyear Tire & Rubber CompanyStep 5: Order SpecificationFirm places the orderThe exact details of the purchase are specifiedAll terms are detailed including paymentDigital Vision/Getty ImagesStep 6: Vendor Analysis(1) Key Issues(2) Importance Score(3) Vendor’s Performance(4) Importance x Performance(2) x (3)Customer Service.4052.0Issue Resolution.2040.8Delivery.1050.5Quality.3030.9Total1.004.2Identify the stages in the B2B buying process.How do you perform a vendor analysis?The Buying CenterThe person who first suggests buying the particular product or serviceThe person whose views influence other members of the buying center in making the final decisionThe person who ultimately determines any part of or the entire buying decisionThe person who handles the paperwork of the actual purchaseThe person who consumes or uses the product or serviceThe person who controls information or access, or both, to decision makers and influencersOrganizational CultureThe majority rulesMay be multiple participants, one person makes the decision aloneOne person to make a decision but solicit input from others before doing soAll members of the team must reach a collective agreement that they can support a particular purchaseBuying SituationsNew BuyPurchasing for the first timeLikely to be quite involvedThe buying center will probably use all six steps in the buying processdynamicgrapics/JupiterimagesModified RebuyPurchasing a similar product but changing specificationsCurrent vendors have an advantageRubberBall ProductionsStraight RebuysBuying additional units or products that have been previously purchasedMost B2B purchases fall into this categoryRyan McVay/Getty ImagesWhat factors affect the B2B buying process?What are the six different buying roles?What is the difference between new buy, rebuy, and modified rebuy?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.GlossaryBuying center participants are people responsible for the buying decisions.GlossaryThe request for proposals (RFP) is a process through which buying organizations invite alternative suppliers to bid on supplying their required components.GlossaryResellers are marketing intermediaries that resell manufactured products without significantly altering their form.Glossary