1. chapter business-to-business marketing seven Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. 7-2 LEARNING OBJECTIVES LO 7-1Describe the ways in which business-to- business (B2B) firms segment their markets. LO 7-2List the steps in the B2B buying process. LO 7-3Identify the roles within the buying center. LO 7-4Describe the different types of organizational cultures. LO 7-5Detail different buying situations.

3. 7-3 B2B Marketing Who is the end user? ©1998 EyeWire, Inc C Squared Studios/Getty Images

4. 7-4 B2B Markets Resellers Institutions Government Manufacturers/ Service providers U.S. Census Website

5. 7-5 Manufacturers and Service Providers Buy raw materials, components or parts Manufacture their own goods Gear Expo News Clip Car Culture/Getty Images

6. 7-6 Resellers ManufacturerResellerRetailer Courtesy Eastman Chemical Company

7. 7-7 Institutions Schools, Museums and Religious Organizations Annie Reynolds/PhotoLink/Getty Images Royalty-Free/CORBIS

8. 7-8 Government US Government spends $2.1 trillion procuring goods State and local governments also make significant purchases Firms specialize in selling to government Getty Images Hisham F Ibrahim/Getty Images

9. check yourself 7-9 1.What are the various B2B markets?

10. 7-10 B2B Buying Process Need recognition Product specification RFP process Proposal analysis and supplier selection Order specification Vendor/ performance assessment using metrics

11. 7-11 Stage 1: Need Recognition Can be generated internally or externally Sources for recognizing new needs: – Suppliers – Salespeople – Competitors Times Photo by Toni L Sandys/Newscom Sylvain Grandadam/The Image Bank/Getty Images

12. 7-12 Stage 2: Product Specifications Used by Suppliers to develop proposals Can be done collaboratively with suppliers Royalty-Free/CORBIS

13. 7-13 Stage 3: RFP Process (Request for Proposal)Request for Proposal ©Toyota Motor Engineering & Manufacturing North America, Inc. Federal Business Opportunities Website

14. 7-14 Step 4: Proposal Analysis, Vendor Negotiation and Selection Often several vendors are negotiating against each other Considerations other than price play a role in final selection Courtesy The Goodyear Tire & Rubber Company

15. 7-15 Step 5: Order Specification Firm places the order The exact details of the purchase are specified All terms are detailed including payment Digital Vision/Getty Images

16. 7-16 Step 6: Vendor Analysis

17. check yourself 7-17 1.Identify the stages in the B2B buying process. 2.How do you perform a vendor analysis?

18. 7-18 The Buying Center Buying Center InitiatorInfluencerDeciderBuyerUserGatekeeper The person who first suggests buying the particular product or service The person whose views influence other members of the buying center in making the final decision The person who ultimately determines any part of or the entire buying decision The person who handles the paperwork of the actual purchase The person who consumes or uses the product or service The person who controls information or access, or both, to decision makers and influencers

19. 7-19 Organizational Culture Buying culture DemocraticConsultativeConsensusAutocratic The majority rules May be multiple participants, one person makes the decision alone One person to make a decision but solicit input from others before doing so All members of the team must reach a collective agreement that they can support a particular purchase

20. 7-20 Buying Situations Buying situations New buy Straight rebuy Modified rebuy

21. 7-21 New Buy Purchasing for the first time Likely to be quite involved The buying center will probably use all six steps in the buying process dynamicgrapics/Jupiterimages

22. 7-22 Modified Rebuy Purchasing a similar product but changing specifications Current vendors have an advantage RubberBall Productions

23. 7-23 Straight Rebuys Buying additional units or products that have been previously purchased Most B2B purchases fall into this category Ryan McVay/Getty Images

24. check yourself 7-24 1.What factors affect the B2B buying process? 2.What are the six different buying roles? 3.What is the difference between new buy, rebuy, and modified rebuy?

25. Return to slide 7-25 Business-to-business (B2B) marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, and/or for resale by wholesalers and retailers. Glossary

26. Return to slide 7-26 Buying center participants are people responsible for the buying decisions. Glossary

27. Return to slide 7-27 The request for proposals (RFP) is a process through which buying organizations invite alternative suppliers to bid on supplying their required components. Glossary

28. Return to slide 7-28 Resellers are marketing intermediaries that resell manufactured products without significantly altering their form. Glossary