Chapter 6: B2B Markets

Marketing g/s that bus + org buy for purposes other than personal consumption; some firms resell g/s to make a profit; others use g/s to produce other g/s

(organizational markets) - manufacturers, wholesalers, retailers, organizations

B2B Markets

Ø a business’ demand for g/s comes directly or indirectly from consumers’ demand for what it produces
-The success of one company may depend on another company in a different industry

Changes in price have little or no effect on the quantity demanded

Two or more goods are necessary to create a product
-Supply of one of these parts decreases, manufacturer will be unable to produce as many products, and will not buy as many of the other items either

§ Changes in consumer demand can create large increases or decreases in business demand § A product’s life expectancy – bus consumers tend to purchase some g/s infrequently

Purchase products for use in the production of other g/s (to sell and make a profit)
- Customers for products from raw materials to goods that other producers manufacture

purchase finished goods for reselling, renting, leasing to others to make a profit
-Provide customers with time, place, possession utility

- fed, state, county, local gov’ts that buy g/s to carry out public objectives § Make up largest single business and organizational market in the US

Organizations with charitable, educational, community, other public service goals that buy g/s to support their functions and attract/serve their members

Numerical coding system (that US, Canada, MX) used to classify firms into detailed categories according to their bus. activities

Characterizes the degree of time and effort required to make a decision

Bus buyers make routine purchases that require minimal decision making

Bus buyers shop around for suppliers with better prices, quality, delivery