Chapter 7: Business-to-Business Marketing
Business-to-Business marketing is the process of buying and selling goods or services to be used in
the production of other goods and services. For consumption by the buying organization or resale by
wholesalers and retailers.
Manufacturers or Producers
some of the biggest b2b buyers are manufacturer and producers.
reseller manufactured goods without significantly altering their form
hospitals, educational organizations, prisons, religious
the largest purchaser of goods and services. The overall procurement and contracting policies of
the government are establish by the treasury board, which requires the stand of public scrutiny,
increase access, encourage competition, fairness, and comply with trade agreements. MERX*
B2B Classification System and Segmentation
North American Industry Classification System (NAICS), can be useful for analyzing market
shares, demand for goods and services, import competition into the Canadian market, and for
segmenting targeting markets. You survey which companies might want you shit, then you do a
search on NAICS and find the companies.
Differences between B2B and B2C Markets
B2C, consumers buy goods to satisfy their own individual needs and are heavily influenced by
price, personal taste, brand reputation, or personal recommendations.
B2B, demand for goods and derived from B2C sales in the same supply chain. However market
is inelastic in short run. Up in price of raw materials, will not affect the demand instantaneously.
B2B, some industries require rigorous testing (medical, aerospace, defense), the delivery
date must be agreed apon. And lastly, its common for vendor financing.
Buying Process Characteristics