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)

  1. Problem recognition
  1. General need description
  1. Product specification
  1. Supplier search
  1. Proposal solicitation
  1. Supplier selection
  1. Order-routine specification
  1. Performance review

See p.230-1 for a brief list of etiquette for B2B in Asian countries