Chapter 5 - B2B Marketing and Organizational Buying Behaviour

B2B Markets

- Governments, Manufacturers, Institutions, Professions, and Wholesalers

-  Short Direct channels due to need for personal selling and High dollar value and purchases less frequently, mass advertising, rational due to formality of purchase

Organizational Buying behaviour

- # of buyers

- Location of the buyers

- Demand of Characteristics

• Derived Demand - is demand for products sold in the b2b market that is actually driven by consumer demand.  Wholesalers sell more to retails because of customer demand.
• Joint Demand- when the marketing and production of One product is dependant on another

- Buying criteria is practical rationally pursued with  1. Price 2. Quality 3. Service offered 4. Continuity of Supply

B2B Buying process is

Buying Committees (Formal)

Buying Centres (informal purchasing group) which include the 5 roles:
Users - use the product
Influencers
Buyers, Deciders, and Gatekeepers - control flow of info in to others in centre

with Centralized purchasing, Personal Characteristics, and Relationships are sought, Partnership marketing

Decision Buying Process:

Problem --> a stage in which you decide you might need something
Need --> general characteristics
Product Description --> specifications of the product
Suppliers Search --> 
Proposal --> a Closed Bid and an Open Bid
Supplier Selection --> 
Order Routine -->
Performance Review -->