Management and Organizational Studies 2320A/B Lecture Notes - Lecture 6: Business Marketing, Retail
16 Sep 2016
School
Department
Professor
MOS 2320 Lecture 6
June 2, 2016
VS CASE
Microenvironment
Chapter 5 Business to Business Marketing
➢ B2B Marketing
➢ Market Characteristics
o What are some of the difference between B2C and B2B?
➢ Product Characteristics
o Products technical in nature
o Purchased based on specifications
o Mainly raw and semi-finished goods
o Heavy emphasis on delivery time
o Technical assistance, after sale service
o Financing
➢ Buying process characteristics
o Buying decisions more complex
o Competitive bidding, negotiated pricing, complex financial arrangements
o Qualified, professional buyers - more formalised buying process
o Buying criteria and objective specified
o Multiple participants in purchase decisions
o Reciprocal arrangements common
o Close long-term relationships
o Online buying common
o B2B Marketing Mix characteristics
➢ B2B Process characteristics
1. Need recognition
▪ Internal – External
▪ Suppliers
▪ Salespeople
▪ Competitors
2. Product specification
▪ Suppliers use to develop proposals
▪ Can be done collaboratively with suppliers
3. Request for Proposal (rfp) Process
▪ The purchaser may do a supplier search
4. Proposal analysis & supplier selection
▪ Often several vendors are negotiating against each other
▪ Considerations other than price play a role in final selection
5. Order Specification Assessment
▪ Firm places the order
▪ The exact details of the purchase are specified
▪ All terms are detailed including payment
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