B2B BUSINESS

Principles of Marketing
1. DR. MARIA GOMEZ ALBRECHT, UNIVERSITY OF TEXAS AT DALLAS
2. DR. MARK GREEN, SIMPSON COLLEGE
3. LINDA HOFFMAN, IVY TECH COMMUNITY COLLEGE
 CHAPTER 4
4.1 The Business-to-Business (B2B) Market
4.2 Buyers and Buying Situations in a B2B Market
4.3 Major Influences on B2B Buyer Behavior
4.4 Stages in the B2B Buying Process
4.5 Ethical Issues in B2B Marketing
 THE BUSINESS-TO-BUSINESS (B2B)
MARKET

Business-to-business (B2B) is a marketing

transaction or business conducted between
businesses
Many businesses have both B2B and B2C
components
CHARACTERISTICS OF THE B2B
MARKET
 BUYERS AND BUYING SITUATIONS
IN A B2B MARKET

The B2B marketplace is populated by many

different types of buyers, each with their own
requirements, policies, and procedures.
TYPES OF BUYERS IN THE B2B
MARKET
 MAJOR TYPES OF BUYING
SITUATIONS IN THE B2B MARKET

The same is true in the B2B market. Buy classes

refer to buying situations that are differentiated
in terms of four characteristics
TYPES OF BUY CLASSES IN B2B
 PARTICIPANTS IN THE B2B
PURCHASE PROCESS

The decision-making unit of a buying organization is

referred to as the buying center, sometimes called a
decision-making unit.
Buying centers are comprised of all of the different
people in the organization who have a stake in the B2B
buying decision and have some degree of influence in
the purchasing decision
BUYING CENTER IN B2B
 MAJOR INFLUENCES ON B2B BUYER
BEHAVIOR

They are influenced by a number of different factors

throughout the B2B buying process, just as consumers
are influenced in making purchases for their own
consumption
INFLUENCES ON B2B BEHAVIOR
 EXTERNAL FACTORS

1 2
POLITICAL AND LEGAL
ECONOMIC FACTORS
FACTORS

3 4
COMPETITION SOCIAL ENVIRONMENT
 INTERNAL FACTORS

1 2
BUSINESS OBJECTIVES TECHNOLOGY
AND GOALS

3
WORKFORCE SKILLS
 INDIVIDUAL FACTORS

1 2
AGE EDUCATION

3 4
JOB POSITION PERSONALITY
 INTERPERSONAL FACTORS

1 2
COLLECTIVE AND
TECHNOLOGY
FOLLOW PROCEDURES

3
WORKFORCE SKILLS
 CONDITIONAL FACTORS

1 2
PRESENT FINANCIAL AVAILABILITY OF THE
CONDITION PRODUCT OR SERVICE
STAGES IN THE B2B BUYING PROCESS
 CHALLENGES OF SEGMENTING B2B
MARKETS

1 Challenge #1: Dealing

2 Challenge #2: Dealing
with Highly Complex with More Rational
B2B Markets Buyers

3
Challenge #3:
Complexity of B2B
Products
METHODS OF SEGMENTING B2B
MARKETS
 FIRMOGRAPHICS
Industry
What are the organization’s primary
activities?
Location
3 number of employees
A city, state, country or even a
continent, depending on the line of
business
Performance
such as market share, quarterly or
annual sales figures, and growth
and/or losses (both in employees
and revenue)
1
Size
2
Firmographic size typically involves
two components: revenue and
4 Legal Structure
5 Is the organization a sole
proprietorship, a limited liability
company, a corporation, or a
nonprofit firm? Is it an independent
business, a parent company, or a
subsidiary of another business?
METHODS OF SEGMENTING
INTERNATIONAL MARKETS
THANK YOU