Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

B2B Marketing: Understanding Components, Segmentation, Characteristics, and Buying Process, Study notes of Principles of Marketing

The components of b2b marketing, major approaches to segmenting b2b markets, characteristics of business markets and demand, decision-making processes, and influences on business buying behavior. It also covers topics like global sourcing, joint demand, outsourcing, organizational buying process, and buying center concept.

Typology: Study notes

Pre 2010

Uploaded on 12/10/2009

terrorist
terrorist 🇺🇸

47 documents

1 / 3

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
Ch6 Concepts
1. Explain each of the components of the B2B market
a. Define B2B marketing
i. Business to business. Selling your product/service to another business
b. What is the commercial market?
i. Using purchased product as an input good (directly/indirectly) into your
product.
2. Describe the major approaches to segmenting B2B markets
a. What are the four major ways marketers’ segment business markets?
i. Demographic characteristic- ex. by size (sales/employees)
ii. Customer type- ex. Servicer/provider Ex. Industry
iii. End-use application- how the prod will be used. Ex. printer for bicycle
manufacturer or FBI
iv. Purchase categories- ex. accounting department vs. human resource
department.
b. What is the NAICS?
i. North American Industry Classification System- Classification system that NAFTA
uses to categorize the marketplace into detailed market segments.
c. Why segment?
i. To use our marketing dollars more effectively
3. Identify the major characteristics of the business market and its demand
a. Why is geographic segmentation important in the B2B market?
i. Manufacturers converge in certain regions
b. In what ways is the buyer-seller relationship important in B2B marketing?
i. Must provide advantages no other vendor can provide
c. What is global sourcing?
i. Purchasing goods/services from suppliers worldwide.
d. How does derived demand create volatile demand?
i. If people want the output, but the input is limited, there’s a problem.
e. Give an example of joint demand
i. Ex. lumber and concrete for housing. If lumber supplies fall, the drop in housing
construction will cause concrete demand to fall too.
f. How might JIT II strengthen marketing relationships?
i. If you have the Jack’s wood representative there with you while you’re making
the product, you build a better relationship with Jack’s Wood Co and work out
supplier problems quickly.
4. Discuss the decision to make, buy, or lease
a. Identify two potential benefits of outsourcing
i. Allows firm to focus on their core business
ii. Allows specialized talents
b. Identify two potential problems with outsourcing
pf3

Partial preview of the text

Download B2B Marketing: Understanding Components, Segmentation, Characteristics, and Buying Process and more Study notes Principles of Marketing in PDF only on Docsity!

Ch6 Concepts

  1. Explain each of the components of the B2B market a. Define B2B marketing i. Business to business. Selling your product/service to another business b. What is the commercial market? i. Using purchased product as an input good (directly/indirectly) into your product.
  2. Describe the major approaches to segmenting B2B markets a. What are the four major ways marketers’ segment business markets? i. Demographic characteristic- ex. by size (sales/employees) ii. Customer type- ex. Servicer/provider Ex. Industry iii. End-use application- how the prod will be used. Ex. printer for bicycle manufacturer or FBI iv. Purchase categories- ex. accounting department vs. human resource department. b. What is the NAICS? i. North American Industry Classification System- Classification system that NAFTA uses to categorize the marketplace into detailed market segments. c. Why segment? i. To use our marketing dollars more effectively
  3. Identify the major characteristics of the business market and its demand a. Why is geographic segmentation important in the B2B market? i. Manufacturers converge in certain regions b. In what ways is the buyer-seller relationship important in B2B marketing? i. Must provide advantages no other vendor can provide c. What is global sourcing? i. Purchasing goods/services from suppliers worldwide. d. How does derived demand create volatile demand? i. If people want the output, but the input is limited, there’s a problem. e. Give an example of joint demand i. Ex. lumber and concrete for housing. If lumber supplies fall, the drop in housing construction will cause concrete demand to fall too. f. How might JIT II strengthen marketing relationships? i. If you have the Jack’s wood representative there with you while you’re making the product, you build a better relationship with Jack’s Wood Co and work out supplier problems quickly.
  4. Discuss the decision to make, buy, or lease a. Identify two potential benefits of outsourcing i. Allows firm to focus on their core business ii. Allows specialized talents b. Identify two potential problems with outsourcing

i. Reduce ability to respond quickly to marketplace ii. Negative impact on employee morale/loyalty

  1. Describe the major influences on business buying behavior a. Identify the three major factors that influence purchase decisions i. Environmental-econ/pol/regul/competitive/tech ii. Organizational- structure/policy/purchasing system/ how many suppliers? iii. Interpersonal- know who to know, know your product b. What are the advantages and disadvantages of multiple sourcing? i. Consolidating suppliers may save money ii. Relying on only a few suppliers is dangerous
  2. Outline the steps in the organizational buying process a. Why does the organizational buying process contain more steps than the consumer buying process? i. Because business purchases introduces new complexities that do not affect consumers b. List the steps in the organizational buying process i. Recognize problem and general solution ii. Determine characteristics and quantity iii. Describe characteristics and quantity iv. Search for and qualify sources v. Acquire and analyze proposals vi. Evaluate proposals and select suppliers vii. Select order routine viii. Obtain feedback and evaluate performance
  3. Classify organizational buying situations a. What are the four classifications of business buying situations? i. Straight rebuying 1. Reorders what worked in the past ii. Modified rebuying
  4. Willing to reevaluate available options iii. New-task buying
  5. First-time or unique buying situation iv. Reciprocity
  6. Buying from suppliers that are also customers b. Differentiate between value analysis and vendor analysis i. Value analysis-Examines each component of a purchase in attempt to either delete the item or replace it with a more cost-effective substitute ii. Vendor analysis-carries out ongoing evaluation of a supplier’s performance in categories such as price, EDI capability, back orders, deliver times, liability insurance, and attention to special requests.
  7. Explain the buying center concept a. Identify the five roles of people in a buying center decision