Business to Business (B2B) Marketing & Buying Behaviour

Presented By Dr. Kevin Lance Jones

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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.
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Flows within a B2B market

Differences between B2B and consumer marketing (1 of 3)

Differences between B2B and consumer marketing (2 of 3)

Differences between B2B and consumer marketing (3 of 3)

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.
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Characteristics of B2B markets

Nature of demand - derived, joint, inelastic. Structure of demand - industrial and geographic concentration. Buying process complexity. Buyer-seller relationships.
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Influences on a B2B purchasing chain

Sourcing strategies - advantages and disadvantages (1 of 2)

Source: Adapted from Treleven (1987).

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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.

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Models of organisational buying decision making

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

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

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

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

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Mass production model of buyer-seller contact in B2B markets

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

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Buying centres - comparison between consumer and B2B markets (1 of 2)

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

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