7 Business Marketing

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7Business Marketing

• Professor Close

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Business Marketing

• Organization market is larger than consumer
  market (B2B marketing/industrial marketing)
• Easy to define need do not have the less
  rational needs of consumers (fewer customers)
• Organizations purchase for
• Resale
• Use in business
• Or to produce other items
• B2B internet marketing is huge (disintermediation)

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Internet B2B Trends
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Relationship Marketing

• Decrease in costs changes in traditional
  relationship (long-term interaction, not just 1
  transaction)
• Cooperation (strategic alliances)
• Mutual goals (still difficult why Japanese
  experience during troubled times)
• Info. Sharing
• Provide data to enhance decisions (web Dell)
• Potential for abuse (GM sends specs to others)
• Keiretsu

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Relationship Commitment

• Adaptations
• Make changes for one customer (NUMMI McDonalds
  China potatoes)
• May hedge bets with multiple suppliers
• Operational linkages (outsourcing train other
  jobs IBM)
• Ties with internal processes (place people in
  plants)
• Allows better coordination (Mark _at_ VSU,
  windshields, Rubbermaid)

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McDonalds in Saudi Arabia
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Legal Bonds

• Firestone-Ford, Maytag-Hoover, B2C, over 150, 2
  round trip tickets 200,000)
• Formalized? But locked in
• Hand shake allows flexibility (other risks)

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Business Customers

• Producers
• Resellers
• Governments
• Institutions

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NAICS

• North American Industry Classification System
• Utility maximization
• Personal selling customized, large orders
• Purchasing specs precise description of what
  firm wants
• Demand derived, inelastic, or joint
• More volume
• B2B geographically concentrated

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Buying Center

• Roles auto parts
• Users work with product, often generate specs
  (line workers)
• Influencers can modify outcome dev. Specs,
  evaluate alternatives (engineers)
• Buyers complete transaction, negotiate
  (purchasing manager)
• Deciders select or approve (upper/middle
  management may be same as buyer)
• Gatekeepers control info. Within buying center
  (secretary)

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Buying Situations (1)

• Buying process 3 types (goes with individual as
  well)
• Straight rebuy
• Small, recurring items like office supplies
• Little buyers time, little info needed
• Reminder ads, automate process
• Purchasing manager and no one else

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Buying Situations (2)

• Modified rebuy (contract with dining hall ends)
• Some review
• Dissatisfy look for opportunity
• Comparison ads your product
• Your client protect, attention to changing needs
• New task buying (plant overseas)
• Unique situation
• Lots of information, effort, and time
• Develop product and vendor specs
• Many influences

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Dell Commercial
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Summary

• Types of business products, negotiations
• B2B and the internet
• Buying situations
• Multiple influences roles
• Relationship marketing
• NAICS
• Buying center
• Any questions?