1. 4 Business to Business Buyer Behavior Chapter Overview
Business Markets/ Customers
Types of Business Markets
Business Buying Centers
Factors to choose Business Buying Centers
Business Sales
Business to Business Buying Process

2. What Is Business Marketing?
The marketing of goods and services to individuals and organizations for purposes other than personal consumption.

3. Producers/ Manufacturers
T A B L E
Major Categories of Business Customers
Business Customers
Producers/ Manufacturers
Resellers
Governments
Institutions
OEMs
Wholesalers Retailers
Federal Municipal Local
Schools Hospitals Colleges Churches Unions Fraternal groups Civic Clubs Foundations Nonbusiness organizations
2. Philosophies of Gates affects views of Microsoft
3. Country – perception of Japan effects views of Sony

4. Original Equipment Manufacturers
Producers
Original Equipment Manufacturers
OEMs Individuals and organizations that buy business goods and incorporate them into the products that they produce for eventual sale to other producers or to consumers.
C – assurance concerning purchases
B – risk reduction
Company – can charge higher prices

5. Business versus Consumer Markets
Characteristic
Demand
Volume
# of Customers
Location
Distribution
Nature of Buy
Buy Influence
Negotiations
Reciprocity
Leasing
Promotion
Business Market
Organizational
Larger
Fewer
Concentrated
More Direct
More Professional
Multiple
More Complex
Yes
Greater
Personal Selling
Consumer Market
Individual
Smaller
Many
Dispersed
More Indirect
More Personal
Single
Simpler No
Lesser
Advertising

6. Buying Centers Buying Center
All those persons in an organization who become involved in the purchase decision.
Ford – quality is job one
Family branding – e.g., Delmonte – advantages and disadvantages?

7. Five Roles in Buying Center
Users are those that will use the product or service Influencers help define specifications and provide information for evaluating alternatives Buyers have formal authority to select the supplier and arrange terms of purchase Deciders have formal or informal power to select and approve final suppliers Gatekeepers control the flow of information

8. Factors affecting Business Buying Centers
Organizational factors
Individual factors
Cultural
Social
“gourmet” “natural” “premium”

9. Business Sales New Buy Modified Rebuy Straight
A situation requiring the purchase of a product for the first time.
Modified
Rebuy
A situation where the purchaser wants some change in the original good or service.
Straight
A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.
Should be consistent with image and brand, but is it always?
Use Doug’s exercise

10. Business to Business Buying Process
Domination – consumer’s belief that the brand is #1

11. Business Buying Process: Eight Stages
Stage 1: Problem Recognition
Stage 2: General Need Description
Stage 3: Product Specification
Value analysis helps to reduce costs
Stage 4: Supplier Search
Supplier development
Domination – consumer’s belief that the brand is #1

12. Business Buying Process: Eight Stages
Stage 5: Proposal Solicitation
Stage 6: Supplier Selection
Stage 7: Order-Routine Specification
Blanket contracts are often used for maintenance, repair and operating items.
Stage 8: Performance Review
Domination – consumer’s belief that the brand is #1