This document outlines key aspects of business-to-business marketing compared to consumer marketing. It discusses the stages of adoption that business buyers go through when evaluating new products and services. It also identifies factors like relative advantage and compatibility that influence business adoption decisions. Additionally, it notes that business purchases typically involve multiple buyers and decision makers within buying centers, and that relationships between buyers and sellers tend to be close and long term.
6. Market Structure & demand
Fewer but larger buyers
Derived demand
More inelastic market (to price changes)
Fluctuates more (demand)
Nature of buying unit
Involves more buyers
More professional purchasing effort
7. Types of decisions & decision process
Biz buyers usually face more complex buying
decisions
Buying process is more formalized
Buyers & sellers work closely together & buid
close long term relationships
8. These are individuals within an organization who
participate in making a given purchase decision.
These often function as buying centers
The final purchase decision is made determined
in part by individual power, expertise, the degree
of influence each functional area possesses
DMUs are largest in Product Introduction stage
and become smaller as the stages progress.
14. Buying on the internet
Reverse auctions
Trading exchanges
Company buying sites ( ex GE )
B-to-B marketers
Advantages
Cost effective
Time saving
Frees purchasing people to focus on more
strategic issues
15. Schools, nursing homes, hospitals, etc that
provide services and goods to people in their
care.
16. Federal, state and local – Govt units that
purchase or rent goods & services for carrying
out the main functions of the Govt
Some like Tata Motors, Kodak and Goodyear
have established separate govt marketing
departments
Editor's Notes
Compatibility: - the degree to which the innovation fits the values & experiences of potential consumers HDTV for example is highly compatible with the lifestyles of the TV watching public.Divisibility: the degree to which the innovation may be tried on a limited basis. Beginning usually the high prices slow the rate of adoption The degree to which the innovation can be observed or described to others
Usually buyers are often the deciders as well or approvers at the least Gatekeepers control the flow of information…purchasing agents hide users data from salespersons. Other examples.. secretaries, technical personnel