Business-to-business (B2B) transactions involve manufacturers and service providers selling goods and services to other businesses. There are six stages in the B2B buying process: need recognition, product specification, request for proposal, proposal analysis and selection, order specification, and performance assessment. The buying center within an organization consists of six roles: initiator, influencer, decider, buyer, user, and gatekeeper. These roles collaborate through different decision-making structures like autocratic, democratic, consultative, or consensus. Purchases can be new buys, modified rebuys, or straight rebuys.
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Marketing Concepts PDF.pdf
1. Marketing
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Business to Business
2. Business-to-Business Markets
Business to Business transactions are those in which
manufacturers and service providers sell to other
businesses. These transactions can take place between:
• Resellers
• Institutions
• Government
• Manufacturers/Service
Providers
B2B Market
Resellers
Institutions
Government
Manufacturers/
Service Provider
3. B2B Market
Resellers
Institutions
Government
Manufacturers/
Service Provider
Resellers are marketing intermediaries that resell manufactured products without
significantly altering their form.
Institutions such as hospitals, educational organizations, and religious
organizations also purchase all kinds of goods and services
Government is one of the largest purchasers of goods and services in
most countries
Manufacturers buy raw materials, components and parts that allow them
to make and market their own goods and ancillary services
4. The B2B buying process is the journey buyers and buying groups take to complete a purchase from a B2B
vendor that includes a series of actionable steps.
Business-to-Business Buying Process
B2B Market
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6
Need
Recognition
Product
Specification
REP
Process
Proposal
Analysis,
Vendor
Negotiation
and Selection
Order
Specification
Vendor
Performance
Assessment
using
Metrics
The Business-to-business buying process has six stages that lead to an actionable purchase outcome.
5. The B2B buying process is the journey buyers and buying groups take to complete a purchase from a B2B
vendor that includes a series of actionable steps.
‘
B2B Market
1.Need Recognition
2.Product Specification
3.REP Process
4.Proposal Analysis, Vendor Negotiation & Selection
5.Order Specification
6.Vendor Performance Assessment using Metrics
The buying organization recognizes, through
either internal or external sources, that it has
an unfilled need
After recognizing the need and considering
alternative solutions, the organization writes a
list of specifications for the specific need
The request for proposals is the process
which organizations invite alternative
vendors or suppliers to bid on supply with
the required components
An order is placed with its preferred
supplier or suppliers
In conjunction with critical decision makers,
evaluates all proposals it receives in
response to RFP and discuss terms of sale,
price, quality, delivery, and financing
A Business-to-Business analysis to their
vendors’ performance for future
purchases in the future.
7. o
Buying
Center
Influencer
Decider
Initiator
Components within the Buying Center
1.One who initiates the buying process by determining the
products and or services that will best address the need
2.The influence of those that are familiar with the products within
the need and can effectively influence their superior product with
those of competitors
3.The decider in the person within the buyer center who ultimately
makes the final decision weather the need is being meet with the
right product and the right cost in involved
8. the product/inventory
Buying
Center
Buyer
User
Gatekeeper
4. The buyer is in charge with buying and maintaining the
inventory/product for the most cost-effective manner.
5. The user of the inventory or product
6.The final purchase decision maker must take into
consideration every buying center participant
9. o
Buying
Center
Organizational Buying Culture
The organizational
culture that perimeters
around a business,
reflect a set of values,
traditions and customs
that guide its
employees' behaviors
and actions. Corporate
buying centers can be
divided into four
general types:
autocratic, democratic,
consultative and
consensus
Buying Center
Autocratic
Democratic
Consultative
Consensus
10. o
Buying
Center
Buying Center
Autocratic Democratic Consultative Consensus
A single
person
making
decision
Majority
rules
making
decisions
Consult
others for
input but one
person makes
final decision
All members
of the team
must reach a
collective
agreement
together
11. o
Buying
Center
The Buying Situation
Lastly, most business-to-business
transactions can be categorized into three
types:
New Buy- when purchasing a product or
service for the first time
Modified Buy – Returning customer but
has decided to change some
specifications to the product.
Straight Rebuy- a returning customer that
will simply buy additional units of
products that had previously been
purchased
New Buy
Modified Buy
Straight Buy