o Manufacturers wholesalers distributors retailers What are the characteristics

O manufacturers wholesalers distributors retailers

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o Manufacturers, wholesalers, distributors, retailers What are the characteristics of organizational buying and, if applicable, how do these characteristics compare to consumer buying? o Demand characteristics Consumer demand vs. derived demand Derived demand = link between consumer’s demand for a company’s output and the company’s purchase of necessary inputs to manufacture or assemble that particular output Ex) if more customers want to buy staplers (B2C), a company that makes them must purchase more metal from its supplier to make more staplers (B2B) o Size of the order/purchase B2B markets have much larger purchases than B2C purchases o Number of potential buyers Fewer buyers in B2C market B2B transactions tend to be more complex and involve multiple members of both the buying organization and selling organization, while B2C is simple and between the retailer and the individual customer o Organizational buying objectives Increase cost, revenue, sales
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Efficiency What are the four classifications of B2B markets? What are their roles? o Manufacturers, Producers, or Service Providers Buy raw materials, components, and parts that allow them to make and market their own goods and ancillary services o Reseller Marketing intermediaries that resell manufactured products without significantly altering their form Wholesalers, distributors Buy manufactured products then sell them to retailers o Institutions Hospitals, educational organizations, religious organizations, etc. purchase goods and services Ex) school buys text books, construction, equipment, supplies, food, janitorial services o Government One of the largest purchasers of goods/services in most countries What is the Business-to-Business Buying Process? What are the steps and what is entailed in each step? How is it similar and dissimilar to the B2C Buying Process? o Stage 1: Need Recognition Same as consumer need recognition Recognizes unfulfilled need, internally or externally o Stage 2: Product Specifications Potential specifications Details of what you want Idea: help suppliers create their bids o
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  • Spring '13
  • James Gaubert
  • Marketing, Buying Center, Business-to-business, Consultative Buying Center, center participant

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