Principles of Marketing

Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 6
Business-to-Business (B2B) Marketing
CHAPTER 6 Business-to-Business (B2B) Marketing
Chapter Objectives
1. Explain each of the components of the business-to-business

(B2B) market.
2. Describe the major approaches to segmenting business-to-
business (B2B) markets.
3. Identify the major characteristics of the business market and
its demand.
4. Discuss the decision to make, buy, or lease.
5. Describe the major influences on business buying behavior.
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Chapter Objectives
6. Outline the steps in the organizational buying process.

7. Classify organizational buying situations.
8. Explain the buying center concept.
9. Discuss the challenges of and strategies for marketing to
government, institutional, and international buyers.
Nature of the Business Market
o Companies buy services, too

o Influences in B2B markets:
o Environmental
o Organizational
o Interpersonal
o An organization’s goals must be considered in the
B2B buying process
Components of the Business Market
o Commercial market - Individuals and firms that

acquire products to support, directly or indirectly,
production of other goods and services
o Trade industries - Retailers or wholesalers that
purchase products for resale to others
o Government
o Public and private institutions
Segmenting B2B Markets
o Segmentation helps marketers develop the most

appropriate strategy
o Segmentation by demographic characteristics
o Segmentation by customer type
o Segmentation by end-use application
o Segmentation by purchase categories
Characteristics of the B2B Market
o Geographic market concentration

o The sizes and numbers of buyers
o The purchase decision process
o Buyer–seller relationships
Evaluating International Business Markets
o Business purchasing patterns differ from country to

country
o Global sourcing - Purchasing goods and services
from suppliers worldwide
o Can bring significant cost savings but requires
adjustments
The Make, Buy, or Lease Decision
o Firms acquiring finished goods have three options:

o Make the good or provide the service in-house
o Purchase it from another organization
o Lease it from another organization
The Rise of Offshoring and Outsourcing
o Offshoring - Movement of high-wage jobs from one

country to lower-cost overseas locations
o Nearshoring - Moving jobs to vendors in countries
close to the business’s home country
o Outsourcing - Using outside vendors to provide
goods and services formerly produced in-house
Influences on Purchase Decisions
o Environmental factors
o Organizational factors
o Interpersonal influences
o Merchandisers – Trade sector buyers who secure
needed products at the best possible prices
o Category advisor - Trade industry vendor who
develops a comprehensive procurement plan for a
retail buyer
Classifying Business Buying Situations
o Straight rebuy
o Modified rebuy
o New-task rebuy
o Reciprocity
Analysis Tools
o Value analysis
o Systematic study of the components of a purchase to
determine the most cost-effective approach
o Vendor analysis
o Assessment of supplier performance such as price,
back orders, timely delivery, and attention to special
requests
The Buying Center Concept
o Buying center - Participants in an organizational

buying action
o Buying center roles
o Users
o Gatekeepers
o Influencers
o Deciders
o Buyers
Challenges of Government Markets
o Purchases typically involve dozens of interested

parties
o Purchases are influenced by social goals
o Contractual guidelines are an important influence in
selling to government markets
Challenges of Institutional Markets
o Institutional buyers - Schools, hospitals, libraries,

foundations, clinics, churches, and not-for-profit
agencies
o Widely diverse buying practices
o Multiple buying influences can affect buying
decisions
o Group purchasing is an important factor
Challenges of International Markets
o Marketers must consider buyers’ attitudes and

cultural patterns
o Local industries, economic conditions, geographic
characteristics, and legal restrictions must be
considered
o Remanufacturing – Efforts to restore older products
to like-new condition
o Foreign governments are an important business
market

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Principles of

1. Explain each of the components of the business-to-business

6. Outline the steps in the organizational buying process.

Nature of the Business Market

o Companies buy services, too

Components of the Business Market

o Commercial market - Individuals and firms that

Segmenting B2B Markets

o Segmentation helps marketers develop the most

Characteristics of the B2B Market

o Geographic market concentration

Evaluating International Business Markets

o Business purchasing patterns differ from country to

The Make, Buy, or Lease Decision

o Firms acquiring finished goods have three options:

The Rise of Offshoring and Outsourcing

o Offshoring - Movement of high-wage jobs from one

Influences on Purchase Decisions

Classifying Business Buying Situations

The Buying Center Concept

o Buying center - Participants in an organizational

Challenges of Government Markets

o Purchases typically involve dozens of interested

Challenges of Institutional Markets

o Institutional buyers - Schools, hospitals, libraries,

Challenges of International Markets

o Marketers must consider buyers’ attitudes and

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