B2B E-Commerce

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallDescribe the major types of B2B models.Discuss the characteristics of the sell-side & buy-side marketplace, including auctions.Define exchanges and describe their major types.Describe B2B portals & third-party exchanges.Describe partner relationship management (PRM).Describe how B2B can benefit from social networking and Web 2.0.Describe Internet marketing in B2B, including organizational buyer behavior.

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hallbusiness-to-business e-commerce (B2B EC)

Transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks; also known as eB2B (electronic B2B) or just B2BTHE BASIC TYPES OF B2B TRANSACTIONS AND ACTIVITIESSell-sideBuy-sideExchangesSupply chain improvements and collaborative commerce

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallTHE BASIC TYPES OF B2B E-MARKETPLACES AND SERVICESOne-to-Many and Many-to-One: Private E-Marketplacescompany-centric EC

E-commerce that focuses on a single companys buying needs (many-to-one, or buy-side) or selling needs (one-to-many, or sell-side)5-*

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallMany-to-Many: Exchangesexchanges (trading communities or trading exchanges)

Many-to-many e-marketplaces, usually owned and run by a third party or a consortium, in which many buyers and many sellers meet electronically to trade with each otherpublic e-marketplaces

Third-party exchanges open to all interested parties (sellers and buyers)Supply Chain Improvers and Collaborative Commerce

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallB2B CHARACTERISTICSParties to the Transaction: Sellers, Buyers, and Intermediariesonline intermediary

An online third party that brokers a transaction online between a buyer and a seller; may be virtual or click-and-mortar5-*

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallTypes of Transactionsspot buying

The purchase of goods and services as they are needed, usually at prevailing market pricesstrategic (systematic) sourcing

Purchases involving long-term contracts that usually are based on private negotiations between sellers and buyers5-*

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallTypes of Materials Tradeddirect materials

Materials used in the production of a product (e.g., steel in a car or paper in a book)indirect materials

Materials used to support production (e.g., office supplies or light bulbs)MRO (maintenance, repair, and operation)

Indirect materials used in activities that support production5-*

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallThe Direction of the Tradesvertical marketplaces

Markets that deal with one industry or industry segment (e.g., steel, chemicals)horizontal marketplaces

Markets that concentrate on a service, material, or a product that is used in all types of industries (e.g., office supplies, PCs)SUPPLY CHAIN RELATIONSHIPS IN B2BSERVICE INDUSTRIES ONLINE IN B2B

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallTHE BENEFITS AND LIMITATIONS OF B2BBenefits: sellers (S), buyers (B), both (J)

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall5-*

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hallsell-side e-marketplace

A Web-based marketplace in which one company sells to many business buyers from e-catalogs or auctions, frequently over an extranetB2B SellersCustomer ServiceSALES FROM CATALOGSConfiguration and CustomizationBenefits and Limitations of Online Sales from Catalogs

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall5-*

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallUSING AUCTIONS ON THE SELL SIDEForward auctions offer the following benefits to B2B sellers:Revenue generationCost savingsIncreased stickinessMember acquisition and retentionAUCTIONING FROM THE COMPANYS OWN SITEUSING INTERMEDIARIES IN AUCTIONSEXAMPLES OF B2B FORWARD AUCTIONS

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hallbuy-side e-marketplace

A corporate-based acquisition site that uses reverse auctions, negotiations, group purchasing, or any other e-procurement method5-*

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hallrequest for quote (RFQ)

The invitation to participate in a tendering (bidding) systemCONDUCTING REVERSE AUCTIONSE-Tendering by GovernmentsGROUP REVERSE AUCTIONS

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallFUNCTIONS OF EXCHANGESMatching buyers and sellersFacilitating transactionsMaintaining exchange policies and infrastructure

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Halldynamic pricing

A rapid movement of prices over time and possibly across customers, as a result of supply and demand matchingRevenue ModelsTransaction feesService feesMembership feesAdvertising feesOther revenue sources

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallB2B portals

Information portals for businessesvortals

B2B portals that focus on a single industry or industry segment; vertical portalsOWNERSHIP OF B2B MARKETPLACESconsortium trading exchange (CTE)

An exchange formed and operated by a group of major companies in an industry to provide industry-wide transaction services5-*

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall5-*

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hallpartner relationship management (PRM)

Business strategy that focuses on providing comprehensive quality service to business partnersE-COMMUNITIES AND PRM

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallTHE OPPORTUNITIESDiscover new business partnersImprove recruitmentEnhance ability to learn about new technologies, competitors, etc.Find sales prospectsImprove participation in industry association activities

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallTHE USE OF WEB 2.0 TOOLS IN B2BSOCIAL NETWORKS IN THE B2B MARKETPLACEEXAMPLES OF OTHER ACTIVITIES OF B2B SOCIAL NETWORKSSTRATEGY FOR B2B SOCIAL NETWORKINGParticipateMonitorUse existing applicationsThe Future of Social Networking

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallORGANIZATIONAL BUYER BEHAVIORA Behavioral Model of Organizational BuyersTHE MARKETING AND ADVERTISING PROCESSES IN B2BMETHODS FOR B2B ONLINE MARKETINGTargeting CustomersElectronic WholesalersAFFILIATE PROGRAMS, INFOMEDIARIES, AND DATA MINING

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