Business

Buying
Behavior (B2B)
B2B market is many times
bigger than B2C – every
transaction of B2C has
multiple in B2B
Some of the world’s most valuable brands
belong to business marketers:

 ABB,
 Caterpillar,
 DuPont,
 FedEx,
 GE,
 Hewlett-Packard,
 IBM, Intel,
 Siemens,
 to name a few.

 Many principles of basic marketing also apply to

business marketers. . But they also face some
unique considerations in selling to other businesses
The major industries making up the business market are

 agriculture,
 forestry
 fisheries
 mining
 manufacturing
 construction
 transportation
 communication
 public utilities
 banking
 finance
 insurance
 distribution
 services.
 Chapter Highlights
 What is the business market, and how does it differ from the

consumer market?

 What buying situations do organizational buyers face?

 Who participates in the business-to-business buying process?

 How do business buyers make their decisions?

 How can companies build strong relationships with business

customers?

 How do institutional buyers and government agencies do their

buying?
Characteristics of Business
Markets
 Fewer buyers

 much larger buyers

 Close supplier-customer relationships

 Professional purchasing

 Many buying influences : Buying committees

consisting of technical experts and even senior

management

 Multiple sales calls

Characteristics of Business
Markets
 Derived demand : demand for business goods is ultimately

derived from the demand for consumer goods

 Inelastic demand

 Fluctuating demand

 Geographically concentrated buyers

 Direct purchasing

 importance and power of the larger customers, suppliers are

frequently expected to customize their offerings

 items that are technically complex or expensive such as

mainframes or aircraft.
 Buying Situation
1. Straight Re-buy
2. Modified re-buy – prices, terms, product specs
3. New-task situation – buying product or service
for first time.
4. System buying – buy a packaged solution rather
than buying components and putting it together
 The Buying Center
All members of the organization who play the following roles in the
purchase decision process

 Initiators

 Users

 Influencers : by helping define specifications and providing

information

 Deciders : decide on product requirements or on suppliers

 Approvers : authorize the proposed actions of deciders or buyers

 Buyers : selecting vendors and negotiating

 Gatekeepers : have the power to prevent sellers or information from

reaching the buying center

 Stages in the Buying Process:
Buy phases

 Problem recognition
 General need description
 Product specification
 Supplier search
 Proposal solicitation
 Supplier selection
 Order-routine specification
 Performance review
Buygrid Framework