Business-to-Business Markets: How and Why Organizations Buy
Chapter Objectives • business-to-business (B 2 B)markets ØDefine & explain • business demand Øexplain • classifying business or organizational markets 2
Chapter Objectives • • • buying situation buyers buying center buying decision process growing role of B 2 B e-commerce 3
Business Markets: Buying and Selling When Stakes Are High • Business-to-business marketing: • the marketing of goods & services Øthat businesses & other organizations buy • for purposes Øother than personal consumption 4
Business Markets: Buying and Selling When Stakes Are High • B 2 B (organizational) markets include: • • manufacturers, wholesalers, retailers, other organizations 5
B 2 B Characteristics • • Multiple buyers Number of customers Size of purchases Geographic concentration Eaton Video 6
Business-to-Business Demand • Derived demand: • Caused by demand for consumer goods or services. Figure 6. 2 7
Business-to-Business Demand • Inelastic demand: • Occurs when changes in price • have little or no effect • on the amount demanded. Figure 6. 2 8
Business-to-Business Demand (cont’d) • Fluctuating demand: • Small changes in consumer demand • create large increases or decreases in business demand; • life expectancy of product can cause fluctuating demand 9
Business-to-Business Demand (cont’d) • Joint demand: • demand for two or more goods • used together • to create a product 10
Types of B 2 B Markets • Producers: Øfor production of other goods and services • Resellers: Øfor reselling, renting or leasing • Organizations Ø Government markets Ø Not-for-profit institutions FEDBIZOPPS. GOV 11
Figure 6. 3: The Business Marketplace 12
North American Industry Classification System • NAICS: • a numerical coding of industries • in the United States, Canada, and Mexico • Replaced SIC codes NAICS 13
Figure 6. 4: NAICS 14
The Buying Situation • “Buy” class framework: • identifies degree of effort firm needs • to collect information and • make a purchase decision 15
The re-Buying Situation • Straight rebuy: ØRoutine purchases that require minimal decision-making • Modified rebuy: ØPrevious purchases that require some change and limited decision-making. • New-task buy: ØNew and complex or risky purchases that require extensive decision-making. 16
The Professional Buyer • Trained professional buyers • carry out buying in B 2 B markets: Purchasing agents Ø Procurement officers Ø Directors of materials management Ø 17
The Buying Center • The group of people in an organization who participate in a purchasing decision Ø Initiator Ø User Ø Gatekeeper Ø Influencer Ø Decider Ø Buyer 18
Figure 6. 5: Roles in the Buying Center 19
The Business Buying Decision Process Figure 6. 6 20
Step 1: Problem Recognition • Someone sees that a purchase can solve a problem 21
Step 2: Information Search • Buying center Ø searches for information about products & suppliers • Develops product specifications – Ø a written description Ø of quality, size, weight, color, etc. • Identifies potential suppliers • obtains proposals 22
Step 3: Evaluation of Alternatives • Buying center assesses proposals • Evaluations include Ødiscount policies, Øreturned-goods policies, Øcost of repair, Ø terms of maintenance, Øcost of financing, etc. 23
Step 4: Product and Supplier Selection • Single sourcing: Ørelying on a single supplier. • Multiple sourcing: Øbuying from several different suppliers. • Reciprocity: Ø“I’ll buy from you, and Øyou’ll buy from me. ” 24
Step 4: Product and Supplier Selection (cont’d) • Outsourcing: Øfirms obtain outside vendors Øto provide goods/services Øthat might otherwise be supplied inhouse 25
Step 4: Product and Supplier Selection (cont’d) • Crowd sourcing: Øfirms use expertise Øfrom around the globe Øto solve a problem 26
Step 4: Product and Supplier Selection • Reverse marketing: Øbuyers try to find capable suppliers Øand “sell” their purchase to the suppliers Ø? ? Divertive buying? ? ? 27
Step 5: Postpurchase Evaluation • Assess whether the performance of the product • and the supplier • is living up to expectations 28
Business-to-Business E-Commerce • Internet exchanges between 2+ businesses • Include exchanges of information, products, services, and payments Ø EDI, JIT… • Going on much longer than B 2 C 29
Intranets, Extranets, and Private Exchanges • • Intranets link employees in a private corporate computer network. 30
Intranets, Extranets, and Private Exchanges • • Extranets allow authorized suppliers, customers, & other outsiders to access the firm’s intranet. 31
Intranets, Extranets, and Private Exchanges • • Private exchanges link an invited group of suppliers and partners over the Web. 32
Security Threats • Security threats • come from hackers and • well-meaning employees • who give out passwords CREDITCARDS. COM 33
Security Threats • Firewall: ØHardware and software Øthat ensures only authorized individuals Øgain entry to a computer system CREDITCARDS. COM 34
Security Threats • Encryption: ØSoftware that scrambles a message Øso only another individual (or computer) Øwith the right key Øcan unscramble it CREDITCARDS. COM 35
The end 36
Discussion/Individual Activity • You’re the marketing manager for a small securities firm (a firm that sells stocks and bonds) whose customers are primarily businesses and other organizations. Your company is considering using the Internet to provide information and service to its customers. • Outline the pros and cons of this move, the risks your firm would face, and your recommendations. 37
Real People, Real Choices • PPG Industries (Vicki Holt) • Vicki chose Option 3: continue with Intercept brand IGU, but invest directly in IGU manufacturing to provide an alternative to Cardinal • The move has been well received by all except the large independent IGU manufacturer 38
Marketing Plan Exercise • Pick a product you often buy in the grocery store Ø What key elements of the organizational market (the grocer) must the product’s manufacturer plan for, to market to the grocer successfully? Ø How do the elements you identified in question 1 differ from those the store uses in marketing to you as an end user? Ø Which market for the product is more important (the grocer or you), and why? 39
Marketing in Action Case: You Make the Call • What is the decision facing Airbus? • What factors are important in understanding this decision situation? • What are the alternatives? • What decision(s) do you recommend? • What are some ways to implement your recommendation? 40
Keeping It Real: Fast Forward to Next Class Decision Time at Reebok • Meet Que Gaskins, VP of global marketing for the RBK division of Reebok • Allen Iverson’s endorsement changed Reebok’s image, but it was still number 2. • The decision: How could Reebok capture the pulse of youth culture in the long run? 41
Real People, Real Choices • PPG Industries (Vicki Holt) • How to react to competitor Cardinal’s strategy? Ø Option 1: continue with current strategy Ø Option 2: acquire an independent IGU manufacturer Ø Option 3: continue with Intercept brand IGU, invest in IGU manufacturing PPG INDUSTRIES 42
Discussion • As director of purchasing for a motorcycle manufacturer, you’ve been notified that the price of an important part used in the manufacture of the bikes has nearly doubled…you see your company having three choices: Ø Pass the cost on to the customer Ø Absorb the increase in cost Ø Buy a lower-priced part • Discuss the pros and cons of each 43
Discussion • Many critics of government say strict engineering and other manufacturing requirements for products governments purchase increase prices unreasonably, and taxpayers end up paying too much because of such policies Ø What are the advantages and disadvantages of such purchase restrictions? Ø Should governments loosen restrictions on their purchases? 44
Discussion • The gatekeeper determines which possible sellers are heard and which are not Ø Does the gatekeeper have too much power? Ø What policies might the firm implement to make sure all possible sellers are treated fairly? 45
Discussion • Should companies always give their business to the lowest bidder? Ø Why or why not? 46
Group Activity • Some critics complain that outsourcing sends much-needed jobs to competitors overseas while depriving U. S. workers of opportunities. Ø Break into small groups and take a side in this controversial argument. Present your arguments in a debate format 47
Скачать презентацию Business-to-Business Markets How and Why Organizations Buy
01b77df32dded2b1916ddaaa611737ce.ppt