1.1.1.1.1.1.1.1 Powerpoint Slides With
Teaching Notes
Power Point Slide Teaching Notes
7-1: Business-to-Business Marketing
7-2: Learning Objectives These are the learning objectives for this chapter.
7-3: Levi’s General Electric is the largest U.S. manufacturing
firm and is seeking to become the most prolific
user of innovative 3D printing.
Ask students How do they think manufacturers
would use industrial 3D printers?
7-4: B2B Marketing Students must understand the distinction between
B2B and B2C.
If the women in the picture purchase lemons to
make lemonade for themselves, they are engaging
in a B2C transaction.
If the boy buys them to make lemonade to sell to
others, it is a B2B transaction.
7-5: B2B Markets A wide range of businesses participate in B2B
transactions.
This weblink is to the census page which contains
all the details on the North American Industry
Classification System – the government’s method
of classifying business activity.
7-6: Manufacturers or Producers When a company like Burt’s Bees buys raw
materials to make their products, it is a B2B
purchase.
When they sell the products to the retailer it is
B2B, when the retailer sells to the end consumer
it is B2C.
This YouTube link (always check before class) is
to a video clip previewing a gear tradeshow.
Tradeshows are common for B2B selling and
allows manufacturers to see new raw materials
and for resellers to see new products.
Ask students if they have attended any B2B
tradeshows?
If so, what typically happens, what is the
environment, what did they learn at the show?
7-7: Resellers Resellers perform an essential service:
They aggregate goods from manufacturers and
sell them to retailers or, in the case of retailers,
they sell them to consumers.
Thus, one reseller can represent many different
manufacturers, which save the manufacturers the
trouble of finding retailers or consumers and
gives retailers or consumers the ability to buy
only the desired quantity from the reseller.
7-8: This type of ad would be in a trade magazine for
institutional food buyers, restaurants or a
convenience store trade publication
7-9: Chipwich Teaches Business” Ask students: How are they representing the
manufacturer?
Are they resellers?
Who are the retailers?
Would you want to do this job?
Note: Please make sure that the video file is
located in the same folder as the PowerPoint
slides.
7-10: Institutions Group activity: Have students consider their
university as a purchasing institution.
What types of products and services must
universities purchase?
This YouTube video (check links before class)
talks about a London museum buying Rolling
Stones artwork.
7-11: Government Many firms sell exclusively to government
entities and therefore are adept at meeting the
unique needs of governmental buyers.
For example, firms in the defense industry
generally sell exclusively to governments.
7-12: Adding Value: Paris Runways Ask Students: How do runway shows create
value?
For the wholesale buyers, they get a preview of
fashion trends.
For the designer, they get to create buzz for their
products with the end consumers.
7-13: Check Yourself 1. Resellers, Institutions, Government,
Manufacturers/Service providers
7-14: B2B Buying Process Although B2B and B2C buying processes are
similar, this chapter highlights some key
differences.
7-15: Stage 1: Need Recognition Just like the consumer buying process, the B2B
process begins with need recognition.
Needs arise from a variety of sources.
For example, a salesperson from firm A attends a
trade show and visits firm B’s booth, which
features a demonstration of a new sorting
process.
Although firm A had been looking for ways to
improve its efficiency, it had not yet considered
the possibility of sorting efficiencies.
7-16: Stage 2: Product Specifications Not only do RFPs enable the buyer to solicit
pricing and other information from a variety of
suppliers, but they also allow suppliers to learn
about the buyer and its specific needs.
7-17: Stage 3: RFP Process (Request for
Proposal)
RFPs enable the buyer to solicit pricing and other
information from a variety of suppliers and they
also allow suppliers to learn about the buyer and
its specific needs.
The web link on this page brings you to Fed
BizOps site exists for any firm that wishes to bid
on government contracts.
Potential suppliers can view the products/services
being sought.
7-18: Step 4: Proposal Analysis, Vendor
Negotiation and Selection
Firms apply different strategies for vendor
selection:
Some always choose the lowest price, whereas
others apply more complicated selection criteria.
The government uses preferred contractor
programs, designed to offer small and
minority-owned firms greater opportunity.
7-19: Step 5: Order Specification After a vendor is chosen, terms of the contract
still need to be negotiated.
When these terms have been agreed upon, the
contract can be signed.
7-20: Step 6: Vendor Analysis After the vendor has performed the service or
delivered the order, the buyer conducts a vendor
analysis to judge whether the vendor should
provide future purchases.
7-21: Check Yourself 1. Need recognition, Product specification,
RFP process, Proposal analysis and supplier
selection, Orders specification,
Vendor/performance assessment using metrics
2. Vendor Analysis
The buying team develops a list of issues that
it believes are important to consider in the
evaluation of the vendor.
To determine how important each of these
issues (in column 1) is, the buying team
assigns an importance score to each (column
2). The more important the issue, the higher a
score it will receive, but the importance
scores must add up to.
In the third column, the buying team assigns
numbers that reflect its judgments about how
well the vendor performs.
To get the overall performance of the vendor,
in the fourth column, the team combines the
importance of each issue and the vendor’s
performance scores by multiplying them
together.
7-22: The Buying Center Group activity: Have the students diagram a
purchase situation that involves all of these roles.
The book uses the example of a doctor/patient
relationship, but many similar examples also
exist.
7-23: Wine Entrepreneur Ask students how they might sell their product
for distribution in Costco? Who might be in the
buying center at Costco?
Note: Please make sure that the video file is
located in the same folder as the PowerPoint
slides.
7-24: Organizational Culture Different firms assign different ultimate
responsibility for purchase decisions.
Even within a firm, different buying groups have
unique buying styles.
Marketers must understand the dynamics of the
buying center to succeed.
Ask students: Assume your family or the
household in which you live is a buying center.
Is it an autocratic, consultative, or consensus
when making group buying decisions such as
planning a vacation or shopping for groceries.
7-25: Buying Situations As in B2C, different B2B buying situations
require different levels of effort and the
involvement of various parties. The effort
required by each situation varies.
Ask Students: Suppose you represented a
private label manufacturer of women’s apparel
that was selling to Target.
Think about the differences in the three buying
situation?
Which would be the easiest option for the apparel
salesperson to accomplish?
Which would be the hardest? Why?
7-26: New Buy In a new buy situation, a customer purchases a
good or service for the first time, which means
the buying decision is likely to be quite involved
because the buyer or the buying organization
does not have any experience with the item.
7-27: Modified Rebuy In a modified rebuy, the buyer has purchased a
similar product in the past but has decided to
change some specifications, such as the desired
price, quality level, customer service level,
options, or so forth.
7-28: Straight Rebuys Straight rebuys occur when the buyer or buying
organization simply buys additional units of
products that had previously been purchased.
7-29: Identify the Buying Situations
7-30: Check Yourself 1. The buying center, the buying
organization’s philosophy or corporate
culture, and the buying situation.
2. Buying roles include:
a. initiator, the person who first suggests
buying the particular product or service
b. influencer, person whose views influence
other members of the buying center in
making the final decision;
c. decider, the person who ultimately
determines any part of or the entire
buying decision—whether to buy, what to
buy, how to buy, or where to buy; (4)
buyer, the person who handles the
paperwork of the actual purchase;
d. user, the persons who consumes or uses
the product or service; and
e. gatekeeper, the persons who controls
information or access, or both, to decision
makers and influencers.”
3. In a new buy situation, a customer
purchases a good or service for the first time,
the buying decision is likely to be quite
involved The buying center is likely to
proceed through all six steps in the buying
process and involve many people in the
buying decision. In a modified rebuy, the
buyer has purchased a similar product in the
past but has decided to change some
specifications, such as the desired price,
quality level, customer service level, options,
or so forth. Straight rebuys occur when the
buyer or buying organization simply buys
additional units of products that had
previously been purchased.