1. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Learning Objectives
LEARNING OBJECTIVES
 How do B2B firms segment their markets?
 How does B2B buying differ from consumer
buying behavior?
 What factors influence the B2B buying process?
 How has the Internet changed B2B marketing?
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-2

3. B2B Marketing
Who is the end user?
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-3

4. B2B Markets
U.S. Census Website
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-4

5. Manufacturers or Producers
Gear Expo News Clip
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-5

6. Resellers
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-6

7. How is this B2B ad
similar to B2C ads?

8. In what kind of
publication might
this appear?

9. Institutions
Schools,
Schools,
Museums and
Museums and
Religious
Religious
Organizations
Organizations
London Museum News Clip
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-9

10. Government
 US Government spends
$2.1 trillion procuring
goods
 State and local
governments also make
significant purchases
 Firms specialize in
selling to government
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-10

11. Adding Value: Paris Runways
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-11

12. B2B Buying Process
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-12

13. Stage 1: Need Recognition
 Can be generated
internally or externally
 Sources for
recognizing new
needs:
− Suppliers
− Salespeople
− Competitors
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-13

14. Stage 2: Product Specifications
 Used by Suppliers to
develop proposals
 Can be done
collaboratively with
suppliers
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-14

15. Stage 3: RFP Process
(Request for Proposal)
Federal Business Opportunities Website
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-15

16. Step 4: Proposal Analysis, Vendor
Negotiation and Selection
 Often several vendors
are negotiating against
each other
 Considerations other
than price play a role in
final selection
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-16

17. Step 5: Order Specification
 Firm places the order
 The exact details of the
purchase are specified
 All terms are detailed
including payment
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-17

18. Step 6: Vendor Analysis
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-18

19. Factors Affecting the Buying Process
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-19

20. The Buying Center
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-20

21. Organizational Culture
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22. Buying Situations
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23. New Buy
• Purchasing for the first
time
• Likely to be quite
involved
• The buying center will
probably use all six
steps in the buying
process
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-23

24. Modified Rebuy
 Purchasing a similar
product but changing
specifications
 Current vendors have
an advantage
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-24

25. Straight Rebuys
 Buying additional units
or products that have
been previously
purchased
 Most B2B purchases
fall into this category
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-25

26. Power of the Internet
Putting Volkswagen Together
 Realigned purchasing
 Introduced iPAD
(internal purchasing
agent desk)
 Cut time per order
from 60 to 20 minutes
 Online connection to
suppliers
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-26

27. Role of the Internet in
Business-to-Business Marketing
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-27

28. How is this ad B2B
How is this ad B2B
and B2C?
and B2C?

29. Check Yourself
1. Identify the various types of B2B markets.
2. What are NAICS codes and how are they
used?
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-29

30. Check Yourself
1. Identify the stages in the B2B buying
process.
2. How do you do a vendor analysis?
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-30

31. Check Yourself
1. What factors affect the B2B buying
process?
2. What are the six different buying roles?
3. What is the difference between new buy,
rebuy, and modified rebuy?
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-31

32. Glossary
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.
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© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-32

33. Glossary
Buying center participants are people responsible
for the buying decisions.
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© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-33

34. Glossary
A private exchange occurs when a specific firm
(either buyer or seller) invites others to
participate in online information exchanges and
transactions.
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© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-34

35. Glossary
The request for proposals (RFP) is a process
through which buying organizations invite
alternative suppliers to bid on supplying their
required components.
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© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-35

36. Glossary
Resellers are marketing intermediaries that resell
manufactured products without significantly
altering their form.
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© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6-36