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Chapter OverviewChapter Overview

1.1. Categories of B-to-B buyers.Categories of B-to-B buyers.

2.2. Business buying center.Business buying center.

3.3. B-to-B purchasing process.B-to-B purchasing process.

4.4. Factors and issues in B-to-B Factors and issues in B-to-B communications.communications.

Business-to-Business Buyer Behavior4

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IntelIntel

1.1. How many manufacturers How many manufacturers of microprocessors can of microprocessors can you identify?you identify?

2.2. Why is the Intel name so Why is the Intel name so well-known?well-known?

3.3. To create a strong brand To create a strong brand name, how important is the name, how important is the business-to-business business-to-business marketing communication marketing communication component of the IMC component of the IMC plan?plan?

Discussion Question

4

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Types of ProductsTypes of Products

• Major equipmentMajor equipment• Accessory equipmentAccessory equipment• Fabricated and component partsFabricated and component parts• Process materialsProcess materials• Maintenance or repair partsMaintenance or repair parts• Operating suppliesOperating supplies• Raw materialsRaw materials• Operating servicesOperating services• Professional servicesProfessional services• Products for resaleProducts for resale

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An example of an advertisement for accessory equipment.

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SubmitOrder.com provides Internet B-to-B services.

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• Http://www.eastman.com • Http://www.moruzzi.com • Http://www.racemark.com • Http://www.delhi-industries.com • Http://www.fkusa.com • Http://www.dolch.com

What type of products do the following companies sell?

What types of businesses might purchase the products?

INTEGRATED LEARNING EXPERIENCESTOP

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Types of Customers

• ManufacturersManufacturers• Government agenciesGovernment agencies• InstitutionsInstitutions• Wholesalers and distributorsWholesalers and distributors• RetailersRetailers• International firmsInternational firms

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T A B L E 6 . 1 The Buying Center

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INTEGRATED LEARNING EXPERIENCESTOP

United Raw Material Solutions, Inc.

1. Which members of the buying center would use this Web site?

2. How would sellers utilize this Web site?

3. What advantage and disadvantages do you see for both the buyer and seller?

Http://www.urms.com

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Factors Affecting Members of the Buying Centers

• Organizational influences• Individual factors• Cultural factors• Social factors

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This ad for Ceco Building Systems emphasizes a personal touch, providing the phone numbers of the heads of the company’s three plants.

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Organizational Influences on Buying Center

• Organizational goals• Operating environment• Organizational resources• Organizational structure• Decision heuristics

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F I G U R E 4 . 2Individual Factors Affecting the Behaviors ofBuying Center Members

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Types of Business-to-Business Sales

• Straight rebuy

• Modified rebuy

• New task

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Business-to-Business Buying Process

• Identification of a need.Identification of a need.• Derived demand

• Acceleration principle

• Joint demand

• Establishment of specifications.Establishment of specifications.• Identification of alternatives.Identification of alternatives.• Identification of vendors.Identification of vendors.• Evaluation of vendors.Evaluation of vendors.• Selection of vendors.Selection of vendors.• Negotiate purchase terms.Negotiate purchase terms.

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Typical Items ExaminedDuring a Vendor Audit

• Production capability.Production capability.• Quality control mechanisms and Quality control mechanisms and

processes.processes.• Type and age of equipment used.Type and age of equipment used.• Telecommunication and EDI capabilities.Telecommunication and EDI capabilities.• Capacity to handle fluctuations in orders.Capacity to handle fluctuations in orders.• Financial stability of the firm.Financial stability of the firm.• Number of competitors that purchase from Number of competitors that purchase from

the firm.the firm.

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Selecting an EDI VendorSample Vendor Selection Criteria

• Fast deployment capability (minimize down time in installation)

• Full-service (hardware and software)• Upgrade capability (for future growth)• System architecture (compatibility with supplier

systems)• Cost (acquisition plus ongoing support)• Dependability (of system)• Availability (of support personnel after installation)

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Building a B-to-B Brand

• Brand parity exists in most markets.Brand parity exists in most markets.• Internet makes vendor searches easier.Internet makes vendor searches easier.• Seek a clear, unified brand.Seek a clear, unified brand.• Strip away anything that may be confusing Strip away anything that may be confusing

about the brand.about the brand.• Articulate a meaningful difference to buyers.Articulate a meaningful difference to buyers.• Invest in the brand for the future.Invest in the brand for the future.

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Marketing to the Buyer

• New trends in media selection.New trends in media selection.• Greater use of the Internet by buyers.Greater use of the Internet by buyers.• Three categories of buyersThree categories of buyers

• CEOsCEOs• Top managementTop management• C-level managementC-level management

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Dual Channel Marketing

• Consumer and B-to-B marketsConsumer and B-to-B markets• Spin-off salesSpin-off sales• Image concernsImage concerns• Dual strategyDual strategy

• Different communication messagesDifferent communication messages• Create different brandsCreate different brands• Use multiple or different channelsUse multiple or different channels

• Single strategySingle strategy• Integrate communication messageIntegrate communication message• Sell same brand in both marketsSell same brand in both markets• Scan both markets for dual opportunitiesScan both markets for dual opportunities

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80%61%

34%

3%

4%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Percentage Indicating Important Source

Business Associations

Seminars

Business Ow ners

Perodicals

New spapers

Sources of Information for Small Business Owners

The Buying Community

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Business-to-Business TrendsBusiness-to-Business Trends

• Accountability.Accountability.• Web sites and Internet marketing.Web sites and Internet marketing.• Global branding.Global branding.• Database mining.Database mining.• Alternative communication methods.Alternative communication methods.• Internal marketing communications.Internal marketing communications.

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• Identify the type of good or service.Identify the type of good or service.• Identify retail outlets to sell your product.Identify retail outlets to sell your product.• Identify wholesalers or distributors for your product.Identify wholesalers or distributors for your product.• What types of businesses would be interested in What types of businesses would be interested in

purchasing your product directly?purchasing your product directly?• Relate the buying center concept to your product.Relate the buying center concept to your product.• Identify vendors you will need to produce your Identify vendors you will need to produce your

product.product.

Building Your IMC Campaign