Top-Rated Free Essay
Preview

Difference Between B2B and Customer Buying Process

Good Essays
1204 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Difference Between B2B and Customer Buying Process
Business buying behavior refers to the buying behavior involved in a business ,that is,organizations that buy goods and service for use in the production of other products and services that are sold,rented or supplied by others. in the business buying process , business buyers determine which products and services their organization need to purchase,and then find, evaluate and choose among alternative suppliers and brands.

Business to business marketers ,also know as B2B,must do their best to understand business markets and business buyer behavior. In some ways, business markets are similar to consumer markets,this is because both involve people who assume buying roles and make purchase decisions to satisfy needs. However, business markets may differ in many ways from consumer buying. The main differences which may result from a business market to a customer market are in the market structure,demand, the nature of the buying unit, the types of decisions and the decision process involved.

The first difference may be the fact that in a business decision making,there are more decision participants and a more professional purchasing effort. Often,business buying is done by trained purchasing agents who spend their working lives learning how to buy better. Their professional approach and greater ability to evaluate technical information leads to more cost effecting buying.Then there are different buying roles which are the initiation, influencer, users, buyer, decision maker and the gatekeeper. The initiation is that person/s in an organization who will recognize there is a problem or need. The influencer is then the one which with his opinions or says will influence a purchase rather than another, the influencers are generally also found in consumer buying process. We also have the decision maker which of course is the one who will evaluate the alternatives,take in consideration quality,value and supplier and will be the one taking the final decision. Then we have the users and buyers, the users being the people which will benefit of the use of the product and the buyer being it the one who pays for it. Finally we have the gatekeeper, this might be any person in an organization who controls access to the buying process unit. This might be done voluntary or involuntary, which means a person might just had forgotten about it or else he has an interest in not passing the information through.

The business market tend to deal with fewer but larger buyers than in consumer markets. Even in large business markets, a few buyers often account for most of the purchasing. For example: Bosh sells its power tools and outdoor equipment to tens of millions of consumers worldwide,however,it must sell these products through huge retail customers such as Castorama, Asda and Wal mart-which combined account for a huge proportion of their sales.Also a business market tend to buy in bulk as to get advantage of discounts,and might wait for other products to be needed as to buy at one go.

A business demand is most of the time a derived demand -this is when a company is demanding material to produce a product demanded by consumers. whilst consumers are buying what they need , the business is buying what the consumer needs,that is why it is called derived. If the demand for these consumer goods reduces,so will the demand for all business goods entering their production. For example if a sum of consumers decide to became vegetarians or vegans the restaurateur will have to increase supplies of soya ,vegetables and so on to satisfy his customers, and most probably decrease in meat supply.This is why business marketers need to make sure they closely monitor the buying patterns of consumers. The dependence on derived demand encourages business to business marketers to sometimes promote their products directly to final consumers, as to increase business demand. For example INVISTA promotes DuPont Teflon directly to final customers as a key branded ingredient in stain-repellent and wrinkle-free fabrics and leathers. You can find teflon fabric protector tags on Nautica and Tommy Hilfiger clothes and also on home furnishing brands such as Kravet. By making teflon familiar and attractive to final buyers, INVISTA also makes the products containing it more attractive,so in this way it can raise consumer demand.

A lot of the business markets then, have inelastic demand that means the total demand for many business products is not affected much by price changes , especially in the short run. For instance,a drop in the price of leather will not cause shoe manufactures to buy much more leather unless it results in lower shoe prices that, in turn will increase consumer demand for shoes. Demand is especially inelastic in the short term because producers cannot make quick changes in their production methods. it is also inelastic for business goods that represent a small percentage of the product's total cost-producers might switch to other suppliers in response to price difference possible in the medium term.
Business markets may also have more fluctuating demand,which means that the demand for business services or products tend to change more and faster than the demand for consumer goods. A small percentage increase in consumer demand can cause large increases in business demand. Sometimes a rise of only 10% in consumer goods demand can cause as much as a 200% rise in business demand during the next period. In the same way ,a small decrease in one consumer demand,can cause business demand to collapse. Because of demand being volatile , it has led many business marketers to diversify their products and markets to achieve more balanced sales over the business cycle.

Business buyers usually face more complex buying decisions than do consumer buyers. Business purchases often involve large sums of money,complex technical and economic considerations and as said before interactions among many people at many levels of the buyer's organization. Because of the purchases being more complex ,business buyers may also take longer to make their decisions. Business buying process tend to be more formalized and large business usually call for detailed product specifications,written purchase orders ,careful supplier searches and formal approval. At last one can observe that in the business buying process relationships between buyer and supplier are much closer, whilst consumer marketers are often at a distance from their customers.In contrast B2B marketers may roll up their sleeves and work closely with their customers during all stages of the buying process. Business marketers will help business buyers to define problems, to finding solutions and to supporting after-sale operations. In the short run,sales go to suppliers who meet buyers' immediate product and service needs although in the long run ,B2B marketers keep a customer's sales by meeting current needs and by partnering with customers to help them solve their problems.

What we can conclude here is that the process of a buying decision for a business and a consumer have mainly the same stages such as problem or need recognition, information search, evaluation of alternatives, purchase decisions and post purchase behaviour, however, in many cases there might be differences which sometimes might also lead to a different buying decision.

You May Also Find These Documents Helpful

  • Powerful Essays

    unit 3 assignment 4

    • 4187 Words
    • 14 Pages

    It is not only individuals in the consumer marketplace that have the potential to buy, as buyers also exist in the business to business market. B2B markets are individuals that have the responsibility of purchasing on behalf of the business. Cadbury have both individual and business to business consumers. They trade with all major supermarkets and superstores, but also sell to local and private shops. This way they can broaden their distribution and reach customers and consumers everywhere.…

    • 4187 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Marketing 301 essay

    • 931 Words
    • 3 Pages

    In a business buying center there are five different roles. The first role are the users. These are the people who will be use the good or product. They influence the buying decisions because ultimately they will be the ones using the product. The second role are the gatekeepers. These personnel are the ones that give product data. They control what information the members of the buying center will review. The third role are the influencers. They are usually specialized staff that break down what the “pros” and “cons” are for a product. The fourth role are the deciders. These aren’t necessarily the ones that have the formal authority about what product is going to get bought. The last member is the buyer. This is the one that has the formal authority to buy a product.…

    • 931 Words
    • 3 Pages
    Good Essays
  • Good Essays

    P2 Unit 4 Business

    • 130 Words
    • 1 Page

    What is buyer behavior? It is comprised of the inner and outer elements that clarify why shoppers purchase and utilize certain items from Pull and Bear. This kind of conduct can influence the marketing strategy that Pull and Bear utilizes to advance its items, and when this conduct is broke down, it can direct a business toward better promoting techniques and strategies that it won't not have initially utilized.…

    • 130 Words
    • 1 Page
    Good Essays
  • Better Essays

    The analysis of the consumer behavior and purchase patterns is extremely important for producing and selling customized products to targeted consumers. Likewise, decision making processes and business purchasing processes are equally important within business organizations. In these processes, the most important element is to identify the factors influencing the main decision-maker in order to customize marketing activities according to decision-makers needs.…

    • 914 Words
    • 4 Pages
    Better Essays
  • Good Essays

    B2B’s audience and clients are not individual people as compared to B2C websites. These individuals are members of a company. When conducting business you need to be aware who has authority, for example, for signing a non-disclosure agreement or placing an order on behalf of a company. Because the relationship is more extensive, every time you exchange information issues like identity theft are increasing in numbers, because sites are not secured enough. Data has to be carefully tracked and labeled as general business or confidential as appropriate. As with ethics, the proper behaviors of participants are typically set forth in regulatory codes developed by trade associations, commercial standard groups and the…

    • 643 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Decision Making and Page Ref

    • 9300 Words
    • 38 Pages

    3) Business buying behavior refers to the buying behavior of organizations that buy all of the following EXCEPT ________.…

    • 9300 Words
    • 38 Pages
    Powerful Essays
  • Satisfactory Essays

    Think of the expanding power of the internet. Consider the unique behavior of B2B buyers. Put them together for……

    • 3922 Words
    • 16 Pages
    Satisfactory Essays
  • Better Essays

    Adventure Works

    • 843 Words
    • 3 Pages

    The Internet has been making organizations life easier in many aspects. The business can be done from anywhere, by anyone, at anytime. Business-to-business or B2B is type of e-commerce where transactions happen with both seller and the buyers are business organizations. Business-to-business is one of the fastest growing segments of e-commerce. B2B e-commerce will benefit Adventure Works by cutting costs and improving efficiency. This will allow our business to buy, sell, auction, barter, and distribute products.…

    • 843 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    course outline mkt 620

    • 745 Words
    • 13 Pages

    PO5 Test Group Presentation Group Project Individual Project Paper ∕ ∕ ∕ 2.0 Understanding Business Market 2.1 The Business Market Environment 2.2 Government Influence on the Business Environment 2.3 Business Market Customers 2.4 Classifying Industrial Market 4 CO1 ,CO2 CO3 PO1 , PO4 , PO5 Test Group Presentation Group Project Individual Project Paper ∕ ∕ ∕ 3.0…

    • 745 Words
    • 13 Pages
    Satisfactory Essays
  • Good Essays

    In two distinct e-commerce business types, Business-to-business (B2B) and Business-to-Consumer (B2C), there are many differences in the way they operate. Specifically in marketing, differences include how the marketing is driven and the values of the strategies, the size of the target market and length of the sales cycle, and even the buying patterns of the target consumers. Each of these differences will be better defined and explained in the following paragraphs.…

    • 1085 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Implementation of a successful business in a market environment requires consideration of individual preferences of different categories of buyers. That is the basis of market segmentation. With the segmentation of the total number of potential consumers choose certain types (market segments), to present a more or less uniform requirements for the product. Market segments should primarily target the production and sale of goods.…

    • 1003 Words
    • 5 Pages
    Good Essays
  • Good Essays

    There are many reasons that a consumer chooses a certain product. It may be that it is environmentally friendly, a great design or it might be as simple as the price of the product. As a business organization we must be able to conduct our research and decipher what is most important to our target market. The consumer buying decision process is a systematic way of looking at how a consumer makes the decision to purchase a product (any product) in a product category. In our restaurant we will determine what products they want and develop a successful strategy on how to market our products and services.…

    • 813 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    14. The business buying process is influenced by environmental, organizational, and individual factors. True (moderate) p. 107…

    • 23854 Words
    • 96 Pages
    Powerful Essays
  • Powerful Essays

    Mia Wallace

    • 4101 Words
    • 19 Pages

    Business Markets: Companies selling business goods and services face well trained and well informed professional buyers. They buy goods for their utility or to make or resell a product to others.…

    • 4101 Words
    • 19 Pages
    Powerful Essays
  • Good Essays

    Interestingly, an important aspect of buyers is ignored, i.e that they too use the marketing ,sales and production concept. Buyer and marketer are roles played by individuals and their behavior in exchange relationship determines whether they are adopting the marketing, sales or production concept .For example, the buyer’s side in a marketing exchange gathers information about current and potential exchange partner. Then the buyer’s side tailors offerings like product, price or even point of purchase, mentioned above, but aggressively purchase exchange through other elements of the marketing mix, like word of mouth of publicity ,sales talk, etc. This has been termed as the buying concept, as it is the buyer’s form of the sales concept. Likewise ,when the buyer is passive in his buying behavior, accepting or rejecting whatever that has been offered to him and not actively seeking an exchange ,it has been termed as the offering concept as it corresponds to the production concept.…

    • 843 Words
    • 3 Pages
    Good Essays