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Ch 5 : Consumer behaviour (2) + B2B Marketing - Coggle Diagram
Ch 5 : Consumer behaviour (2) + B2B Marketing
Definitions
B2B marketing :
marketing of goods and services that businesses and other organisations buy for purposes other than personal consumption
Intranets
: international corporate computer network that uses internet technology to link company departments, employees and databases
Extranets
: allow certain suppliers, customers and other OUTSIDE the organisation to access a company's internal system
Private exchanges :
systems that link a specially invited group of suppliers and partners over the web
Firewalls
: combo of hardware + software that ensures that only authorised individuals gain entry into a computer system
Encryption
: scrambling a message so that only another individual has the right 'key' for descriphering it can scramble it
Characteristics that make a difference in business markets
Large buyers
No of customers
Size of purchases (quantity and price)
Geographic conentration
B2B demand
Derived demand :
demand comes directly/indirectly from consumer demand (must be alert for consumer trends changing)
Inelastic demand
: Doesn't matter if the price of the B2B product goes up/down, customers will buy the same quantity
Fluctuating demand
: Small changes in customer demand can create large increases/decreases in business demand
Joint demand
: 2+ goods are necessary to create a product
Type of B2B markets
Producers
: purchase products for the production of other goods/services that they in turn sell to make a profit
Resellers
: buy finished goods for the purpose of reselling, renting or leasing
Organisations
: governments may be the only customers for certain products
The standard industry classification systems :
numerical coding system whereby companies that operate within specific industrial sectors can be identified
The nature of business buying
Straight re-buy
: the routine purchase of items that a B2B customer regularly needs (Eg: coffee beans at a coffee shop)
Modified re-buy
: occurs when a firm wants to shop around for suppliers with better prices, quality or delivery times
New-task buy
: a first time purchase
The business buying decision process
Step 1 : Problem recognition
Step 2 : Information search
Step 3 : Evaluation of options
Step 4 : Product and supplier selection
Step 5 : Post-purchase evaluation
B2B e-commerce :
online exchange between 2+ businesses or organisations
Exchange of info, products, services and payment
Allows business marketers to link directly with suppliers, factories, distributors, customers
Reduces time necessary to order+deliver goods, track sales and obtain customer feedback
Saving significant amounts through obtaining supplies over the internet