Business to Business MarketingProfessor Lawrence FeickUniversity of Pittsburgh

Organizational markets compared to consumer markets Fewer buyersLarger purchasesDerived demand

Organizational markets compared to consumer markets (continued)Differences in the purchasing processprofessional buyingthe buying centerbuyclass

Organizational Buying ProcessObtain Feedback and Evaluate PerformanceSelect Order RoutineEvaluate Proposals and Select SupplierAcquire and Analyze ProposalsSearch for and Qualify SourcesDescribe Characteristics and QuantityDetermine Characteristics and QuantityRecognize Problem and General Solution

The Buying CenterParticipants in an organizations buying decision

The Buying CenterUSERSBUYERSDECIDERSINFLUENCERSGATEKEEPERS

Organizational buyclassesStraight rebuyModified rebuyNew task purchase

Figure 9.9aChryslers Vendor Analysis FormSupplier Rating Chart:Commodity:__________Supplier Name:__________Annual Sales Dollars:__________Shipping Location:__________ 5 4 3 2 1 0Ex.GoodSat.FairPoorN/AQuality 40%Supplier defect rates__________________SQA program conformance__________________Sample approval performance__________________Responsiveness to quality problems__________________Overall quality rating__________________

Delivery 25%Avoidance of late or overshipments__________________Ability to expand production capacity__________________Engineering sample delivery performance__________________Response to fluctuating supply demands__________________Overall delivery rating__________________

Figure 9.9bChryslers Vendor Analysis Form 5 4 3 2 1 0Ex.GoodSat.FairPoorN/APrice 25%Price competitiveness__________________Absorption of economic price increases__________________Submission of cost savings plans__________________Payment terms__________________Overall price rating__________________

Technology 10%State-of-the-art component technology__________________Sharing research development capability__________________Capable and willing to provide circuit design services__________________Responsiveness to engineering problems__________________Overall technology rating__________________

Buyer:__________ Date:__________

Comments:_______________________________________________________

Summary: comparing business to business marketing and consumer marketing (text: Table 9.2) Business-to-Business MarketingConsumer-Goods Marketing

Summary: comparing business to business marketing and consumer marketing (continued)Business-to-Business MarketingConsumer-Goods MarketingSource: Based on Michael Hutt and Thomas Speh, Business Marketing Management, 5th ed. (Fort Worth, Tex: The Dryden Press, 1995), pp. 11-13.

Implications Importance of relationshipsImportance of personal sellingUnderstanding our customers customersAffecting final consumer demandSolving our customers business problems