Contemporary Marketing: Principles of

Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 6
Business-to-Business (B2B)
Marketing
CHAPTER 6 Business-to-Business (B2B) Marketing
Chapter Objectives
1. Explain each of the components of the businessto-business (B2B) market.
2. Describe the major approaches to segmenting
business-to-business (B2B) markets.
3. Identify the major characteristics of the business
market and its demand.
4. Discuss the decision to make, buy, or lease.
5. Describe the major influences on business
buying behavior.
Copyright 2012 by South Western, a division of Cengage Learning. All rights reserved.
Chapter Objectives
6. Outline the steps in the organizational buying
process.
7. Classify organizational buying situations.
8. Explain the buying center concept.
9. Discuss the challenges of and strategies for
marketing to government, institutional, and
international buyers.
Nature of the Business Market

o Companies buy services, too
o Influences in B2B markets:
o Environmental
o Organizational
o Interpersonal
o An organizations goals must be

considered in the B2B buying process
Components of the Business Market

o Commercial market - Individuals and
firms that acquire products to support,
directly or indirectly, production of other
goods and services
o Trade industries - Retailers or
wholesalers that purchase products for
resale to others
o Government
o Public and private institutions
Segmenting B2B Markets

o Segmentation helps marketers develop the
most appropriate strategy
o Segmentation by demographic
characteristics
o Segmentation by customer type
o Segmentation by end-use application
o Segmentation by purchase categories
Characteristics of the B2B Market

o Geographic market concentration
o The sizes and numbers of buyers
o The purchase decision process
o Buyerseller relationships
Evaluating International Business

Markets
o Business purchasing patterns differ from
country to country
o Global sourcing - Purchasing goods and
services from suppliers worldwide
o Can bring significant cost savings but
requires adjustments
The Make, Buy, or Lease Decision

o Firms acquiring finished goods have three
options:
o Make the good or provide the service inhouse
o Purchase it from another organization
o Lease it from another organization
The Rise of Offshoring and

Outsourcing
o Offshoring - Movement of high-wage jobs
from one country to lower-cost overseas
locations
o Nearshoring - Moving jobs to vendors in
countries close to the businesss home
country
o Outsourcing - Using outside vendors to
provide goods and services formerly
produced in-house
Influences on Purchase Decisions

o Environmental factors
o Organizational factors
o Interpersonal influences
o Merchandisers Trade sector buyers who
secure needed products at the best
possible prices
o Category advisor - Trade industry vendor
who develops a comprehensive
procurement plan for a retail buyer
Classifying Business Buying

Situations
o Straight rebuy
o Modified rebuy
o New-task rebuy
o Reciprocity
Analysis Tools
o Value analysis
o Systematic study of the components of a
purchase to determine the most costeffective approach
o Vendor analysis
o Assessment of supplier performance such
as price, back orders, timely delivery, and
attention to special requests
The Buying Center Concept

o Buying center - Participants in an
organizational buying action
o Buying center roles
o Users
o Gatekeepers
o Influencers
o Deciders
o Buyers
Challenges of Government Markets

o Purchases typically involve dozens of
interested parties
o Purchases are influenced by social goals
o Contractual guidelines are an important
influence in selling to government markets
Challenges of Institutional Markets

o Institutional buyers - Schools, hospitals,
libraries, foundations, clinics, churches,
and not-for-profit agencies
o Widely diverse buying practices
o Multiple buying influences can affect
buying decisions
o Group purchasing is an important factor
Challenges of International Markets

o Marketers must consider buyers attitudes
and cultural patterns
o Local industries, economic conditions,
geographic characteristics, and legal
restrictions must be considered
o Remanufacturing Efforts to restore
older products to like-new condition
o Foreign governments are an important
business market

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Principles of

CHAPTER 6 Business-to-Business (B2B) Marketing

CHAPTER 6 Business-to-Business (B2B) Marketing

CHAPTER 6 Business-to-Business (B2B) Marketing

CHAPTER 6 Business-to-Business (B2B) Marketing

Nature of the Business Market

o An organizations goals must be

CHAPTER 6 Business-to-Business (B2B) Marketing

Components of the Business Market

CHAPTER 6 Business-to-Business (B2B) Marketing

Segmenting B2B Markets

CHAPTER 6 Business-to-Business (B2B) Marketing

Characteristics of the B2B Market

CHAPTER 6 Business-to-Business (B2B) Marketing

Evaluating International Business

CHAPTER 6 Business-to-Business (B2B) Marketing

CHAPTER 6 Business-to-Business (B2B) Marketing

The Make, Buy, or Lease Decision

CHAPTER 6 Business-to-Business (B2B) Marketing

The Rise of Offshoring and

CHAPTER 6 Business-to-Business (B2B) Marketing

Influences on Purchase Decisions

CHAPTER 6 Business-to-Business (B2B) Marketing

CHAPTER 6 Business-to-Business (B2B) Marketing

Classifying Business Buying

CHAPTER 6 Business-to-Business (B2B) Marketing

CHAPTER 6 Business-to-Business (B2B) Marketing

The Buying Center Concept

CHAPTER 6 Business-to-Business (B2B) Marketing

Challenges of Government Markets

CHAPTER 6 Business-to-Business (B2B) Marketing

Challenges of Institutional Markets

CHAPTER 6 Business-to-Business (B2B) Marketing

Challenges of International Markets

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