Business to Business

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MARKETING MANAGEMENT
Analyzing Business Markets

In this chapter, we will address the following questions :
1.What is the business market, and how does it differ from the consumer market?
2.What buying situations do organizational buyers face?
3.Who participates in the business-to-business buying process? 4.How do business buyers make their decisions?
5.How can companies build strong relationships with business customers? 6.How do institutional buyers and government agencies do their buying?

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What is Organizational Buying?

……”the decision making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands”……frederick webster, jerry wind

Decision
Making

Need
Identify

Evaluate Choose
Purchase
What is Organizational Buying? 
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Business Market Vs Consumer Market
The business market consists of all the organizations that acquire goods and services used in the production of the other products or services that are sold, rented, or supplied to others.
B

B B

C

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Business Market Vs Consumer Market

Close relationship
• deals with far fewer, much larger buyer

Professional purchasing Fewer, large buyers
• Suppliers are expected to customize offerings to business customer needs due to smaller customer base and power of large customers

• Purchasing is done by trained agents

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Business Market Vs Consumer Market
Multiple sales calls • more people typically influences business buying decisions Derive demand Multiple buying

influences

• due to more people are involves in the selling process, it take multiple sales calls to win most business order • demand for business goods are derive by demand of consumer goods UKAMi
Business Market Vs Consumer