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Chapter 7
Business-to-Business Marketing
1.1.1.1.1.1.1.1 Tools For Instructors
Brief Chapter Outline
Learning Objectives
Chapter Overview (“Summing Up”)
Extended Chapter Outline with Teaching Tips
PowerPoint Slides with Teaching Notes
Answers to End of Chapter Learning Aids
Chapter Case Study
Additional Teaching Tips
1.1.1.1.1.1.1.2 Brief Chapter Outline
B2B Markets
The Business-to-Business Buying Process
The Buying Center
The Buying Situation
Summing Up
End of Chapter Learning Aids
Chapter Case Study: Levi Strauss, Cotton Farmers, and International Production
1.1.1.1.1.1.1.3 Learning Objectives
LO1 Describe the ways in which business-to-business (B2B) firms segment their markets.
LO2 List the steps in the B2B buying process.
LO3 Identify the roles within the buying center.
LO4 Describe the different types of organizational cultures.
LO5 Detail different buying situations.
1.1.1.1.1.1.1.4 Chapter Overview (“Summing Up”)
LO1 Describe the ways in which business-to-business (B2B) firms segment their markets.
All firms want to divide the market into groups of customers with different needs, wants, or
characteristics who there-fore might appreciate products or services geared especially toward
them. On a broad level, B2B firms divide the market into four types: manufacturers or service
providers, resellers, institutions, and government. Manufacturers and service providers purchase
materials to make their products and components and offer expertise to help run their businesses,
such as computer and telephone systems. Resellers are primarily wholesalers, distributors, or
retailers that sell the unchanged products. Institutions include nonprofit organizations such as
hospitals, schools, or churches. Finally, governments purchase all types of goods and services,
but in the United States, defense is among the largest
expenditures.
LO2 List the steps in the B2B buying process.
Similar to the B2C buying process, the B2B process consists of several stages: need recognition;
product specification; the RFP process; proposal analysis, vendor negotiation, and selection;
order specification; and vendor performance assessment using metrics. The B2B process tends to
be more formalized and structured than the customer buying process.
LO3 Identify the roles within the buying center.
The initiator first suggests the purchase. The influencer affects important people’s perceptions
and final decisions. The decider ultimately determines at least some of the buying decision—
whether, what, how, or where to buy. The buyer handles the details of the actual purchase. The
user consumes or employs the product or service. The gate-keeper controls information and
access to decision makers and influencers. In B2B situations, it is likely that several people,
organized into a buying center, will be involved in making the purchase decision. The vendor
must understand the relationships among the participants of the buying center to be effective. A
firm’s organizational culture can also influence the decision process. For instance, if a firm is
trying to sell to a young, high-tech computer component manufacturer, it might be well advised
to send sales people who are fluent in technology-speak and can easily relate to the customer.
LO4 Describe the different types of organizational cultures.
Firm culture consists of unspoken guidelines that employees share through various work
situations. They generally can be classified as autocratic, such that one person makes most
decisions; democratic, where the majority rules; consultative, in which one person makes
decisions based on the input of others; or consensus, which requires all members of the team to
reach collective agreement.
LO5 Detail different buying situations.
The buying process depends to a great extent on the situation. If a firm is purchasing a product or
service for the first time (i.e., new buy), the process is much more involved than if it is engaging
in a straight rebuy of the same item again. A modified rebuy falls somewhere in the middle, such
that the buyer wants essentially the same thing but with slightly different terms or features.
1.1.1.1.1.1.1.5 Extended Chapter Outline With Teaching Tips
2 B2B Markets (PPT slide 7-5)
3 Manufacturers or Producers (PPT slide 7-6)
4 Resellers (PPT slide 7-7)
5 Institutions (PPT slide 7-10)
6 Government (PPT slide 7-11)
7 B2B Classification System
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 7-13)
1. What are the various B2B markets?
Answer: Resellers, Institutions, Government, Manufacturers/Service providers.
8 The Business-To-Business Buying Process (PPT slide 7-14)
9 Stage 1: Need Recognition (PPT slide 7-15)
10 Stage 2: Product Specifications (PPT slide 7-16)
11 Stage 3: RFP Process (PPT slide 7-17)
12 Stage 4: Proposal Analysis, Vendor Negotiation, and Selection (PPT slide
7-18)
13 Stage 5: Order Specification (PPT slide 7-19)
14 Stage 6: Vendor Performance Assessment Using Metrics (PPT slide 7-20)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 7-21)
1. Identify the stages in the B2B buying process.
Answer: The five stages in the B2B buying process include need recognition; product
2. How do you do a vendor analysis?
Answer: In a vendor analysis, a buying team develops a list of issues that it believes are
important to consider in the evaluation of the vendor. They then assign each issue an
15 Factors Affecting The Buying Process
16 The Buying Center (PPT slide 7-22)
17 The Initiator – Your Doctor
18 The Influencer – The Medical Device Supplier, the Pharmacy
19 The Decider – The Hospital
20 The Buyer
21 The User – The Patient
22 The Gatekeeper – The Insurance Company
23 Organizational Culture (PPT slide 7-24)
24 Buying Situations (PPT slide 7-25)
New Buy (PPT slide 7-26)
25 Modified Rebuy (PPT slide 7-27)
26 Straight Rebuys (PPT slide 7-28)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 7-30)
1. What factors affect the B2B buying process?
Answer: In B2B situations, it is likely that several people, organized into a buying center,
will be involved in making the purchase decision. The vendor must understand the
relationships among the participants of the buying center to be effective. A firm’s
2. What are the six different buying roles?
Answer: The six different buying roles are the initiator, the influencer, the decider, the
buyer, the user, and the gatekeeper.
3. What is the difference between new buy, rebuy, and modified rebuy?
Answer: A new buy is a situation in which a customer purchases a good or service for the
first time, therefore likely being a more involved buying decision. In a rebuy, a buyer
