Riassunto esame Marketing, Prof. Massara Francesco, libro consigliato Marketing , Roger A. Kerin

UNDERSTANDING ORGANIZATIONS AS CUSTOMERS—>

11/03/2024

CHAPTER 6

Business-to-business marketing is the marketing of products and services to

companies, governments, or not-for-profit organizations for use in the creation of

products and services that they can produce and market to other

Organizational buyers are those manufacturers, wholesalers, retailers, service

companies, not-for-profit organizations, and government agencies that buy products

and services for their own use or for resale Organizational buyers include all buyers



in a nation except ultimate consumers. These organizational buyers purchase and

lease large volumes of capital equipment, raw materials, manufactured parts,

supplies, and business services

ORGANIZATIONAL MARKETS there are 3 markets: industrial, reseller and

government

1 industrial firms in some way reprocess a product or service they buy before selling it

again to the next buyer.

2 Wholesalers and retailers that buy physical products and resell them again without

any reprocessing are resellers.

3 Government units are the federal, state, and local agencies that buy goods and

services for the constituents they serve

Measuring Organizational Markets The measurement of industrial, reseller, and

government markets is an important first step for a firm interested in gauging the size

of one, two, or all three of these markets in the United States and around the world.

This task has been made easier with the North American Industry Classification

System (NAICS). The NAICS provides common industry definitions for Canada, Mexico,

and the United States.

Trade Marketing

1. Special case of the supplier–retailer relationship

– A B2B relationship but... in fact treated as B2C

Supplier -> Retailer -> Individual consumers

– Question: who buys the product? The consumer!

– No transformation of the offer: retailers are intermediaries

– Only the retailer’s purchasing department is involved in the negotiation

– Both the supplier and the retailer focus on the consumer (market surveys, panels,

etc.)

– The sales positions in the supplier & the retailer organizations are B2C

-> Trade marketing is the professional dimension of B2C

Activity classification

Many ways to classify B2B activities but the most common is the following:

– Entering goods: incorporated into the end-product

– Facilitating goods: contributing to the corporate operations, consumables or

industrial services

-Foundation goods: equipment used in the production process

KEY CHARACTERISTICS AND DIMENSIONS OF

ORGANIZATIONAL BUYING BEHAVIOR

DERIVED DEMAND

industrial demand is derived. Derived demand means that the demand for industrial

products and services is driven by, or derived from, demand for consumer products

and services

The demand for the product or service depends on the demand for the final product...

... into which “ours” will be:

2. Incorporated: ingredients and raw materials...

3. Assembled: components and spare parts...

... or in whose production it will be:

4. Used: vehicles, machines, machine tools, office equipment...

5. Consumed: lubricants, energy…

-> Two consequences:

- Dependence

- Need for action and control at several levels

Objectivethe buying objective is usually to increase profits through reducing costs or

increasing revenues

Organizational buying criteria

In making a purchase, the buying organization must weigh key buying criteria that

apply to the potential supplier and what it wants to sell. Organizational buying criteria

are the objective attributes of the supplier’s products and services and the capabilities

of the supplier itself. These criteria serve the same purpose as the evaluative criteria

used by consumers and described in Chapter 5. The most commonly used criteria are

(1) price, (2) ability to meet the quality specifications required for the item, (3) ability

to meet required delivery schedules, (4) technical capability, (5) warranties and claim

policies in the event of poor performance, (6) past performance on previous contracts,

and (7) production facilities and capacity. supplier development, involves the

deliberate effort by organizational buyers to build relationships that shape suppliers’

products, services, and capabilities to fit a buyer’s needs and those of its customers

Inelasticity of B2B demand

• B2B demand is inelastic because of derived demand of industrial goods:

ORGANIZATIONAL BUYING FUNCTION, PROCESS, AND THE BUYING CENTER

Organizational buying behavior Organizational buying behavior is the decision-

making process that organizations use to establish the need for products and services

and identify, evaluate, and choose among alternative brands and suppliers.

Buying function The buying function involves gathering and screening information

about products and services, prices, and suppliers, called vendors

in an organization is responsible for:

• Selection and purchase of products & services

• For the organization’s use or resale

6. Formal solicitation of bids from suplliers (vendors)

7. Purchasing contract awards

Individuals responsible for the selection and purchase of goods and services are



typically called purchasing managers or agents, procurement managers, or sourcing

managers

Process:

+

e. In many instances, however, several people in the organization participate in the

buying process. The individuals in this group, called a buying center, share common

goals, risks, and knowledge important to a purchase decision

the buying center is highly formalized and is called a buying committees in the buying

center:

• Users

• Influencers

• Buyers

• Deciders

• Gatekeepers

Buy Classes researchers who have studied organizational buying identify three types

of buying situations, called buy classes. These buy classes vary from the routine

reorder, or straight rebuy, to the completely new purchase, termed new buy. In

between these extremes is the modified rebuy.

New buy. Here the organization is a first-time buyer of the product or service. This

involves greater potential risks in the purchase, so the buying center is enlarged to

include all those who have a stake in the new buy. BMW’s recent purchase of a

multimilliondollar cloud-based data management system from IBM represents a new

buy.

· Straight rebuy. Here the buyer or purchasing manager reorders an existing product or

service from the list of acceptable suppliers, probably without even checking with

users or influencers from the engineering, production, or quality control departments.

Office supplies and maintenance services are usually obtained as straight rebuys.

· Modified rebuy. In this buying situation the users, influencers, or deciders in the

buying center want to change the product specifications, price, delivery schedule, or

supplier. Although the item purchased is largely the same as with the straight rebuy,

the changes usually necessitate enlarging the buying center to include people outside

the purchasing department

how buy classes affect buying center tendencies in different way:

ORGANIZATIONAL BUYING PROCESS AND THE BUYING CENTER

Buying center: A buying center consists of the group of people in an organization who

participate in the buying process and share common goals, risks, and knowledge

important to a purchase decision

Buying committee

Roles in the buying center: • Users

• Influencers

• Buyers

• Deciders

• Gatekeepers

Buy Classes Buy classes consist of three types of organizational buying situations:

straight rebuy, new buy, and modified rebuy

COMPARING THE STAGES IN A CONSUMER AND

ORGANIZATIONAL PURCHASE DECISION PROCESS

3 types of purchasing situations called purchasing scenarios

1 - Anticipating and recognising the need

2 - Defining the features & volumes of the purchase

1. Listing the specifications if new task

• By the functional technical departments for a complex product: R&D, engineering,

maintenance

• By the departments using the product for common items, they list their needs

2. Summing up all the volumes required

• Over a period of time

8. If several plants are concerned

3 - Identifying and qualifying potential suppliers

1. Listing the different potential suppliers (in & out)

2. Including other suppliers using alternative technologies

3. Taking advantage of the messages sent by potential suppliers

– On trade shows

– In the professional press

– Through direct marketing

– During events: open days...

– On websites: portals, platforms...

4 - Collecting & analysing suppliers' proposalsselecting

1. With no “a priori” if possible (previous experiences)

2. A grading grid is applied to different proposals,weighted by

• Quality & cost criteria

• Degree of necessity

3. For equipment goods,negotiations can last for months

• Proposals & counter-proposals between the company & the suppliers

9. Priority often given to suppliers offering tailor-made solutions

4. at this stagee decision made: MAKE internal production or BUY external sourcing

selecting the supplier

4 - Assessing a supplier

Different methods can be used.

1. Compensatory model: suppliers’ features are ranked based on their importance

(deadline, reliability, quality, price, after sale service...). The purchase weighs

each attribute à total score of each supplier = aggregation

2. Disjunctive model: shortlisting only the top performing suppliers on one of the

attributes. Selection among those

3. Conjunctive model: shortlisting the suppliers performing above a minimum defined

score on each attribute

4. Sequential model: ranking the attributes depending on their importance. Assessing

the suppliers on the most important attribute. If tie assessing them on the second

most important attribute...

5 - Selecting an order process

1. Depending on how the company’s production process is organised

• Just-in-time?

2. Depending on the company’s supplier logistics

• Distance to the production site, breakdown platform?

3. Possible renegotiation if order features are changing

• Grouped deliveries, scheduling partial deliveries

6 - Information feedback & performance assessment

1. Imperative to have the purchasing process comprehensively assessed (if entering

goods):

• By the production department, first one to possibly identify a problem or

• By the marketing/ sales department: vital in communicating the customers’

reactions: satisfaction, criticisms (depending on the type of product)...

2. Rigor of assessment procedures impacts the variability in the purchasing process

ONLINE BUYING IN BUSINESS-TO-BU