Banach B2B Marketing

The process of buying and selling goods to be used in the production of other goods and services, for consumption by the buying organization, and for resale by wholesalers and retailers.

B2B Marlets

B2B Buying Process

Factors Affecting the Buying Process

The Buying Center

Organizational Culture

Buying Situations

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.