Business to Business (B2B)

Marketing & Buying

Behaviour

1
 B2B Defined

• The management process responsible for

the facilitation of exchange between
producers of goods and services and their
organisational customers.
• B2B marketing and purchasing is a
complex and risky business involving a
number of different parties.

2
Flows within a B2B market

3
Differences between B2B and
consumer marketing (1 of 3)

4
Differences between B2B and
consumer marketing (2 of 3)

5
Differences between B2B and
consumer marketing (3 of 3)

6
 B2B customers
• Commercial enterprises - profit making
organisations that produce and/or resell goods
and services for a profit. Can be subdivided into
users, original equipment manufacturers
(OEMs), resellers.
• Government bodies.
• Institutions - largely non-profit making
organisations, e.g. universities, churches, etc.

7
 Characteristics of B2B markets
• Nature of demand - derived, joint,
inelastic.
• Structure of demand - industrial and
geographic concentration.
• Buying process complexity.
• Buyer-seller relationships.

8
Influences on a B2B purchasing chain

9
 Sourcing strategies - advantages
and disadvantages (1 of 2)

Source: Adapted from Treleven (1987).

10
 Sourcing strategies - advantages
and disadvantages (2 of 2)

Source: Adapted from Hahn (1986) and Ramsey and Wilson (1990). Reprinted by permission of MCB University Press Ltd.

11
Models of organisational
buying decision making

12
Decision problems in B2B purchasing
decision making process (1 of 2)

13
Decision problems in B2B purchasing
decision making process (2 of 2)

14
 Roles in the buying process
• Purchasing - handle relationships with suppliers.
• Production/operations - meeting targets for the
end product in both quantity and quality terms.
• Engineering - the specification and design.
• R&D.
• Finance - devolve budgets to appropriate
managers.
• Marketing - outputs of the production process.

15
 Unit production model of
buyer-seller contact in B2B markets

Source: Adapted from Johanson (1982), copyright 1982 © John Wiley & Sons Limited. Reporoduced with permission.

16
 Mass production model of
buyer-seller contact in B2B markets

Source: Adapted from Johanson (1982), copyright 1982 © John Wiley & Sons Limited. Reproduced with permission.
17
Buying centres - comparison between
consumer and B2B markets (1 of 2)

18
Buying centres - comparison between
consumer and B2B markets (2 of 2)

19