Business to Business Marketing

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Business to Business Marketing

• Professor Lawrence Feick
• University of Pittsburgh

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Organizational markets compared to consumer
markets

• Fewer buyers
• Larger purchases
• Derived demand

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Organizational markets compared to consumer
markets (continued)

• Differences in the purchasing process
• professional buying
• the buying center
• buyclass

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Organizational Buying Process
Obtain Feedback and Evaluate Performance
Select Order Routine
Evaluate Proposals and Select Supplier
Acquire and Analyze Proposals
Search for and Qualify Sources
Describe Characteristics and Quantity
Determine Characteristics and Quantity
Recognize Problem and General Solution
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The Buying Center

• Participants in an organizations buying decision

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The Buying Center
BUYERS
G A T E K E E P E R S
DECIDERS
INFLUENCERS
USERS
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Organizational buyclasses

• Straight rebuy
• Modified rebuy
• New task purchase

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Figure 9.9a
Chryslers Vendor Analysis Form
Supplier Rating Chart Commodity__________ Supp
lier Name__________ Annual Sales
Dollars__________ Shipping Location__________
5 4 3 2 1 0 Ex. Good Sat. Fair Poor N/A
Quality 40 Supplier defect rates ___ ___ ___ ___
___ ___ SQA program conformance ___ ___ ___ ___ _
__ ___ Sample approval performance ___ ___ ___ ___
___ ___ Responsiveness to quality
problems ___ ___ ___ ___ ___ ___ Overall quality
rating ___ ___ ___ ___ ___ ___ Delivery
25 Avoidance of late or overshipments ___ ___ ___
___ ___ ___ Ability to expand production
capacity ___ ___ ___ ___ ___ ___ Engineering
sample delivery performance ___ ___ ___ ___ ___ __
_ Response to fluctuating supply
demands ___ ___ ___ ___ ___ ___ Overall delivery
rating ___ ___ ___ ___ ___ ___
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Figure 9.9b
Chryslers Vendor Analysis Form
5 4 3 2 1 0 Ex. Good Sat. Fair Poor N
/A Price 25 Price competitiveness ___ ___ ___ ___
___ ___ Absorption of economic price
increases ___ ___ ___ ___ ___ ___ Submission of
cost savings plans ___ ___ ___ ___ ___ ___ Payment
terms ___ ___ ___ ___ ___ ___ Overall price
rating ___ ___ ___ ___ ___ ___ Technology
10 State-of-the-art component technology ___ ___
___ ___ ___ ___ Sharing research development
capability ___ ___ ___ ___ ___ ___ Capable and
willing to provide circuit design
services ___ ___ ___ ___ ___ ___ Responsiveness
to engineering problems ___ ___ ___ ___ ___ ___ O
verall technology rating ___ ___ ___ ___ ___ ___
Buyer__________ Date__________ Comments______
_________________________________________________
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Summary comparing business to business marketing
and consumer marketing (text Table 9.2)
Business-to-Business Marketing
Consumer-Goods Marketing
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Summary comparing business to business marketing
and consumer marketing (continued)
Business-to-Business Marketing
Consumer-Goods Marketing
Source Based on Michael Hutt and Thomas Speh,
Business Marketing Management, 5th ed. (Fort
Worth, Tex The Dryden Press, 1995), pp. 11-13.
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Implications

• Importance of relationships
• Importance of personal selling
• Understanding our customers customers
• Affecting final consumer demand
• Solving our customers business problems