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T3: B2B Marketing (Ch7) (Contrast characteristics with consumer markets (p…
T3: B2B Marketing (Ch7)
Contrast characteristics with consumer markets (p.216)
Multiple sales calls - due to the decision process, the process can take a long time involved many visits
Derived demand - demand is driven by the consumer market, so B2B marketers must closely monitor consumer demand in their ultimate supply chain
Multiple buying influences - Multiple skilled and trained people involved in the decision making, sale people must be prepared for this
Inelastic demand - not so price dependant due to the difficulty of change the production processes in the short-term
Professional purchasers - trained purchasing managers with company policies and procedures to follow
Fluctuating demand - small % changes in consumer demand can have an 'accelerated effect' (much larger) on the related business demand
Close supplier-customer relationships - customisation and reciprocal business often form part of the relationship
Geographically concentrated buyers - e.g. cities, wine country, etc
Fewer, larger buyers - a few major clients can make or break your business
Direct purchasing from manufacturers, rather than through intermediaries
Buying situations (p.217)
Modified rebuy
New task
Straight rebuy
The Buying Centre (p.218)
Deciders
Approvers
Influencers
Buyers
Users
Gatekeepers
Initiators
People can hold multiply roles and each role could be multiple people. It can also include people outside the org.
Ultimately, individuals make the decision and will be motivated by both the orgs needs and their own
Marketers need to ensure their tactics are hitting the right touch points with appropriate tactics
Purchasing developments (p.220)
In the past purchasing was an administrative function, but is now being elevated to a far more strategic position.
Large companies can see huge efficiency improvements if they work with suppliers to benefit the overall supply chain processes, especially in the area of technological advances
Buyphases (p.221)
Problem recognition
General need description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order-routine specification
Performance review
See p.230-1 for a brief list of etiquette for B2B in Asian countries