OHT 4.1

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B2B buying behaviour

OHT 4.2

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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.

OHT 4.3

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Flows within a B2B market

Figure 4.1

OHT 4.4

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Differences between B2B and consumer marketing (1 of 3)

Table 4.1

OHT 4.5

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Differences between B2B and consumer marketing (2 of 3)

Table 4.1 cont.

OHT 4.6

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Differences between B2B andconsumer marketing (3 of 3)

Table 4.1 cont.

OHT 4.7

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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.

OHT 4.8

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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.

OHT 4.9

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Influences on a B2B purchasing chain

Figure 4.3

OHT 4.10

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Sourcing strategies - advantagesand disadvantages (1 of 2)

Table 4.2(a)Source: Adapted from Treleven (1987).

OHT 4.11

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Sourcing strategies - advantagesand disadvantages (2 of 2)

Table 4.2(b) Source: Adapted from Hahn et al. (1986) and Ramsey and Wilson (1990). Reprinted by kind permission of MCB University Press Ltd.

OHT 4.12

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Models of organisationalbuying decision making

Figure 4.5

OHT 4.13

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Decision problems in B2B purchasingdecision making process (1 of 2)

Table 4.4

OHT 4.14

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Decision problems in B2B purchasingdecision making process (2 of 2)

Table 4.4 cont.

OHT 4.15

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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.

OHT 4.16

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Unit production model of buyer-seller contact in B2B markets

Figure 4.6(a)Source: Adapted from Johanson (1982), copyright 1982 © John Wiley & Sons Limited. Reporoduced with permission.

OHT 4.17

© Pearson Education Limited 2003Brassington and Pettitt: Principles of Marketing, 3rd Edition

Mass production model of buyer-seller contact in B2B markets

Figure 4.6(b)Source: Adapted from Johanson (1982), copyright 1982 © John Wiley & Sons Limited. Reporoduced with permission.

OHT 4.18

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

Table 4.5

OHT 4.19

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Buying centres - comparison betweenconsumer and B2B markets (2 of 2)

Table 4.5 cont