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B2B Point Notes

B2B marketing involves marketing goods and services to businesses for use in production or operations rather than direct sale to consumers. It is characterized by larger sales and purchase volumes, fewer but larger buyers, and closer buyer-seller relationships than B2C marketing. The major uses of B2B products are as components of other products, in business operations, and for resale. The buying process involves problem recognition, need description, supplier search and selection, order and performance review. Key roles in the buying center are users, influencers, buyers, deciders, and gatekeepers.

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154 views3 pages

B2B Point Notes

B2B marketing involves marketing goods and services to businesses for use in production or operations rather than direct sale to consumers. It is characterized by larger sales and purchase volumes, fewer but larger buyers, and closer buyer-seller relationships than B2C marketing. The major uses of B2B products are as components of other products, in business operations, and for resale. The buying process involves problem recognition, need description, supplier search and selection, order and performance review. Key roles in the buying center are users, influencers, buyers, deciders, and gatekeepers.

Uploaded by

Bhavin Mehta
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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B2B Marketing Point Notes

 Introduction to B2B Marketing:


Definition:
B2B Marketing is marketing of products to businesses or other organizations for use in
production of goods, for use in general business operations (Such as office supplies) or resale to
other consumers, such as wholesaler selling to retailer.
OR
It is a marketing of goods and services to…
- Companies
- Government bodies
- Institutions ( i.e.: Hospitals)
- Non-Profit Organizations (i.e.: Red Cross)
For
- Use in producing their products and to facilitate their operations.

B2B v/s B2C Marketing:


Characteristic B2B B2C
1. Sales Volume Greater Smaller
2. Purchase Volume Greater Smaller
3. Number of Buyers Fewer Many
4. Size of Individual Larger Smaller
5. Location of Buyer Concentrated Diffuse
6. Buyer and seller relationship Closer More Impersonal
7. Nature of Channel More Direct Less Direct
8. Buying Influences Multiple Single/Multiple
9. Type of Negotiation More Complex Simpler
10. Use of Reciprocity Yes No
11. Use of leasing Greater Less
12. Key Promotion Method Personal Selling Advertisement

 Major Use of B2B Products:


1. For Additional Products: Components are combined into sub-assemblies ans become a
part of the finish products.
2. For Use in Operations; but not part of the finished products.
3. For Resale:

 Classification of Business Goods and Services:

1. Entering Goods: (Raw Material, Mfg. parts, and Material)


2. Foundation Goods: (Installations, Accessory equipment’s)
3. Facilitating Goods: (Supplies and Services)

 Characteristics of B2B Marketing:

1. Derived Demand: (Most Demand comes from consumers)


2. Joint Demand: Two Products are used to gather and demanded to gather – both
products are consumed at the same time.
3. Inelastic Demand:
4. Fluctuating Demand:

The Buying Process:


1. Problem Recognition
2. General Need Description
3. Detailed description of problem specification
4. Supplier Search
5. Acquisition and analysis of proposals
6. Supplier Selection
7. Selection of order routine
8. Performance Review

Buying Situations:
1. Straight Rebuy
2. Modify Rebuy
3. New Buy

Buying Centre Roles:


 User
 Influencer
 Buyer
 Decider
 Gatekeeper

Major Bottlenecks and Problems:


 Supplier or Brand specification
 Inadequate supplier selection
 Insufficient Contracting Expertise
 Too much emphasis on price
 Administrative organization

Organizational markets of India:

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