Banach B2B Marketing

Manufacturers or Producers

- They buy raw
materials, components, and parts that allow them to manufacture their own goods. 

Resellers

- Buy goods from manufacturer and resell manufactured products.

Institutions

- Hospitals
- Schools
- Religious organizations

Government

- One of the largest purchasers of goods and
services

Stage 1: Need Recognition

- Can be generatet internally or externally (Suppliers, Salepeople, Competitors)

Stage 2: Product Specifications

- Suppliers use to develop proposals (Can be done with Suppliers)

Stage 3: Request for Proposals (RFP) Process

- Buyers  invite suppliers to bid on supplying needed components. 

Stage 4: Proposal Analysis, Vendor Negotiation, and Selection

- Several vendors negotiate against each other.

- Considerations other than price play a role in final selection.

Stage 5: Order Specification

- The firm places its order

- The exact details of the purchase are specified

- All Terms are Detailed including Payment

Stage 6: Vendor Analysis 

- After purchase, the buyer conducts a vendor analysis to see if they will buy from supplier again.

The Buying Center 

Organizational Culture

Buying Situations

Gatekeeper

-Controlls Information or access to deciders ind influencers

Initiator

- First suggest buying the particular product or service

Influencer

- His view influences other members of the buying center in making the final decision

Decider

- Determines any part of or the entire buying decision: whether, what, how, or where to buy

Buyer 

- Handles the paperwork of the actual purchase

User

- Consumes or uses the product or service purchased by buying center

Autocratic: One person makes the decision alone

Democratic: Majority rules in making decision

Consultative: One person to make a decision but gets input from others

Consensus: All members must reach a collective decision on a purchase

New Buys

- For the first time

- Likely to be quite involved 

- The buying will probably use all steps in the buying process.

Modified Rebuys

- Purchasing a similar product but changing Specifications . 

- Current vendors have an advantage

Straight rebuys

- Buying additional units of products that had previously been purchased.

- Most B2B purchases fall in the straight rebuy category.