B2B MARKETS

B2B MARKETS

1. Manufacturers and Service Providers

   • Buy raw materials, components

2. Manufacturers and Service Providers

   • Buy raw materials, components
   • Manufacture their own goods and ancillary services.

3. RESELLERS

   • MANUFACTURES
     • Wholesalers and Distributors
       • RETAILERS

4. INSTITUTIONS

   • EXAMPLES OF PURCHASE:
     • TEXTBOOKS
     • CAPITAL CONSTRUCTION
       • EQUIPMENT
         • SUPPLIES
           • FOOD
       • JANITORIAL SERVICES

5. Government

   • LOCAL
   • STATE
   • FEDERAL
   • LASRGEST PURCHASES OF GOODS
     • APROX 4 TRILLIONS ANNUALLY

6. THE B2B BUYING PROCESS

   • NEED RECOGNITION
     • PRODUCT SPECIFICATION
       • RFP PROCESS
         • PROPOSAL ANALYSIS, VENDOR NEGOTIATION, AND SELECTION
           • ORDER SPECIFICATION
             • VENDOR PERFORMANCE ASSESSMENT USING METRICS

7. NEED RECOGNITION

   • Can be generated internally or externally.

8. Product Specification

   • Used by suppliers
   • vendors to develop proposals

9. NEED RECOGNITION

   • Can be generated
     • internally
     • externally

10. Product Specification

    • Used by
      • suppliers
      • vendors to develop proposals

11. RFP Process

    • Request for Proposal

12. Proposal Analysis

    • Vendor Negotiation
      • Often several vendors are negotiating against each other
    • Selection
      • Considerations other than price play a role in final selection
    • The buying organization evaluates all the proposals received in response to an RFP.

13. Order Specification

    • All terms are detailed including payment

14. The Buying Center

    • INITIATOR
      • INFLUENCER
        • DECIDER
          • BUYER
            • GATEKEEPER
              • USER

15. Organizational Culture

    • DEMOCRATIC
      • CONSULTATIVE
        • AUTOCRATIC
          • CONSENSUS

16. Building B2B Relationships

    • • Build awareness
    • Provide search engine results
    • Educate clients about products and services
    • “Warm up” a seemingly cold corporate culture

17. Buying Situations

    • NEW BUY
      • Most likely when purchasing for the first time
      • Usually quite involved.
      • The buying center will probably use all six steps
    • STRAIGHT REBUY
    • MODIFIED REBUY

18. Modified Rebuy

    • price
    • quality level
    • options
    • customer service level

19. Straight Rebuys

    • Most B2B purchases fall into this category.