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Chapter 7 - Business-to-Business Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
9
they serve as a benchmark for RFP award. Instructors should spend some time fully reviewing the
segmentation categories.
An in-class exercise is to divide the class into groups and assign them a business (pet shop, a fast-food
franchise, computer manufacturer, DVD store).
Have each group outline what would be included in each step of the business-to-business buying
process. Students can outline a few product specifications and write a brief RFP.
They can also list what they would seek in obtaining a supplier and use critical thinking skills to develop
two or three vendor/performance assessment points. Each group then could present their business-to-
business buying process to the class for discussion.
Online Tip: Use this exercise in a team setting where teams are assigned a business and have them
post their business-to-business buying process to the class on a public forum (post or docShare). Have
the other teams comment.
Instructors may want to go online to: http://www.census.gov/eos/www/naics/ and demonstrate how this
classification system is used as benchmarks when evaluating other businesses as potential buying
clients.
An in-class activity that students might find fun would be to divide the class into groups and have them
prepare a skit that demonstrates the various Buying Center roles. Students should include all six roles in
the skit that is presented to the class. Ask the “audience” to keep track on a piece of paper who played
the various roles. Have students jot down some marketing strategies that may work in influencing the
people in these various roles. This will provide active learning as the students learn to recognize the
various roles as their fellow students present their respective group skits.
Connect Activities
Activity
Type
Learning Objectives 07-
01
02
03
04
05
The Buying Center
Click & Drag
X
B2B Customers
Click & Drag
X
Toyota and the B2B Buying Process
Click & Drag
X
B2B Relationships: Ford and Firestone
Case Analysis
X
X
B2B - Featuring Dole
Video Case
X
X
B2B - GE Healthcare
Video Case
X
X
X
B2B Vendor Analysis: Quality Software Vendors
MC Worksheet
X
B2B Vendor Analysis: Fast-Paced Travel
MC Worksheet
X
B2B Vendor Analysis: Catering to Quality
MC Worksheet
X
Staples: The Big Box Retailer that’s Really a B2B
Powerhouse
Case Analysis
X
X
X
X
X
ISeeIt Video Case: B2B Buying Process
Video Case
X
X
X
The Buying Center
▪ Activity Type: Click & Drag
▪ Learning Objectives: 07-03
Chapter 7 - Business-to-Business Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
10
▪ Difficulty: Medium
▪ Activity Summary: The student classifies buying center roles in the context of a medical services
example.
Activity
▪ Introduction: Jared Harless shattered his elbow in a snowboarding accident and decided to visit a
doctor at Smith Union Hospital for treatment.
▪ Concept Review: In most large organizations, several people are responsible for the buying
decisions. These buying center participants can include employees who have a formal role in
purchasing decisions (i.e., the purchasing or procurement department), members of the design team
for a new product, top managers, and employees who will be using the item being purchased. These
employees are likely to play different roles in the buying process. Vendors must understand these
roles and adapt the marketing process appropriately for different individuals and for the buying center
as a whole.
When the student moves his/her mouse over each of the ten rectangles presented, more information is
provided.
Follow-Up Activity
Buying center roles can to some extent be applied to consumer decisions made by more than one
person. For example, suppose that in a family of four (two parents, two kids), the parents are purchasing
a car for their eighteen-year-old son to drive to college. Discuss the “buying center” for this purchase—
what role(s) will the various family members most likely fill?
There are multiple correct answers, of course, depending on how the family makes decisions. The
initiator might be either the college-bound student or the parents. The college student will be the user. In
most cases, one or both parents will be the decider, though some parents might allow the child to choose.
The parents will fill the buyer role. The college-bound child (and possibly the younger child as well) will
certainly be an influencer even if he is not the decider. One or both parents might serve as a gatekeeper,
limiting the budget or brands of cars that can be considered.
B2B Customers
▪ Activity Type: Click & Drag
▪ Learning Objectives: 07-01
▪ Difficulty: Medium
▪ Activity Summary: The student is presented with 12 examples of B2B customers and asked to
classify them as manufacturers, resellers, institutions, or government.
Activity
▪ Introduction: B2B markets differ from B2C markets in that business customers are making purchase
decisions for their organization rather than for personal consumption. B2B customers purchase goods
for use in production of their own products or to resell to other customers.
Chapter 7 - Business-to-Business Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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▪ Concept Review: Business-to-business (B2B) marketing involves the process of buying and selling
goods or services to be used in the production of other goods or services. In B2B marketing, there
are multiple markets that firms can buy or sell to. Just like in B2C marketing, B2B marketers focus
their efforts on meeting the needs of their customers and creating value for those customers.
Follow-Up Activity
Discuss: How would you expect the process of marketing and selling to these different categories of
customers to differ? For example:
• Manufacturers will purchase from many, many suppliers of smaller parts and raw materials, and
must deal with issues related to derived demand, as explained in the text.
• Resellers, since they are purchasing products for resale, may be more concerned about the
difference between their cost and the price at which they can sell products than with their actual
cost.
• Institutions often have limited budgets and may, in the case of nonprofits, hope for discounts or
donations.
• Government organizations are likely to have lots of red tape and regulations governing
purchasing.
Toyota and the B2B Buying Process
▪ Activity Type: Click & Drag
▪ Learning Objectives: 07-02
▪ Difficulty: Hard
▪ Activity Summary: Students organize a set of activities to be performed by Toyota when choosing a
tire vendor, ordering them according to the steps of the B2B buying process.
Activity
▪ Introduction: The buying team at Toyota has recently selected an alternative supplier for off-road
tires, after identifying a need to increase performance. Read about Toyota's purchasing experience
and then assemble the business-to-business buying process timeline as instructed.
▪ Concept Review: The business-to-business (B2B) buying process parallels the consumer decision
process, though it differs in many ways. Both start with need recognition, but the information search
and alternative evaluation steps are more formal and structured in the business buying process.
Typically, business buyers specify their needs in writing and ask potential suppliers to submit formal
proposals, whereas consumer buying decisions are frequently unplanned or impulsive. In consumer
buying situations, customers evaluate their purchase decision and sometimes experience
postpurchase dissonance, without formal performance evaluations of the vendor as would occur in a
business setting.
Students are provided with descriptions of six different activities Toyota might perform when choosing a
vendor for tires, and are asked to associate each with the correct step of the B2B buying process.
Chapter 7 - Business-to-Business Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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Follow-Up Activity
In small groups, have students describe activities at each step of the consumer decision process for a
consumer purchasing replacement tires for his/her car. Then compare the two processes. Where are they
most similar? Where are they most different?
B2B Relationships: Ford and Firestone
▪ Activity Type: Case Analysis
▪ Learning Objectives: 07-01, 07-02
▪ Difficulty: Hard
▪ Activity Summary: Students read a short case about the relationship between Ford and Firestone,
and answer questions applying chapter concepts to the case.
Activity
▪ Introduction: Ford and Firestone had a B2B relationship that dated back 100 years. In 2000,
Bridgestone/Firestone recalled almost 6.5 million tires, predominantly original equipment on Ford
Explorers. The ensuing backlash had negative implications for both companies.
▪ Concept Review: Business-to-business (B2B) marketing refers to the process of buying and selling
goods or services to be used in the production of other goods or services. Just like business-to-
consumer (B2C) transactions, B2B firms focus on serving customer needs, building customer
relationships, and creating customer value. In the B2B context, demand is often derived through the
supply chain by consumers’ changing needs and behaviors. B2B relationships are strongly affected
on the consumer's belief about the organizations.
B2B: Featuring Dole
▪ Activity Type: Video Case
▪ Learning Objectives: 07-02, 07-05
▪ Difficulty: Medium
▪ Activity Summary: This video case explains how Dole manages its B2B buying process. After the
video ends, students are asked questions about the video and related course concepts.
Activity
▪ Introduction: Dole is the world's largest producer of fruits and vegetables. The Dole label is seen on
both fresh and packaged produce around the world. For Dole to manage such large-scale operations,
it must contract with vendors from many countries, forging B2B relationships on a global scale.
▪ Concept Review: The business-to-business (B2B) buying process looks similar to the consumer
process: It starts with need recognition and ends with an evaluation of the product's performance. But
it is different, primarily because of its formality. For instance, in the second stage, product
Chapter 7 - Business-to-Business Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
13
specification, the buying group spells out specific requirements for the products it wants to purchase.
Then, in the RFP process (the third stage), the buying firm announces its need and solicits formal
proposals. In the fourth stage, buyers analyze the various proposals and negotiate a deal. Unlike the
consumer process, the fifth stage (in which the firm places the order) is formal and spells out every
detail of the sales contract. Finally, in the sixth stage, buyers assess vendor performance.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
GE Healthcare: Innovative B2B Marketing
▪ Activity Type: Video Case
▪ Learning Objectives: 07-01, 07-03, 07-04
▪ Difficulty: Medium
▪ Activity Summary: This video case discusses the B2B marketing efforts of General Electric’s
Healthcare unit. After the video ends, students are asked questions about the video and related
course concepts.
Activity
▪ Introduction: Most people know GE for its consumer products, ranging from light bulbs to
appliances. But GE also engages in business-to-business (B2B) marketing. For example, GE sells jet
engines to Boeing and lighting systems to museums. One very successful GE division is GE
Healthcare, which sells a wide variety of products and services to hospitals and other health care
providers. GE is known for innovation, and GE Healthcare is no exception to this. As the following
video illustrates, GE Healthcare has very successfully innovated in its B2B marketing efforts.
▪ Concept Review: Business-to-business (B2B) marketing refers to the process of buying and selling
goods or services to be used in the production of other goods and services, for consumption by the
buying organization, and/or resale by wholesalers and retailers. B2B markets include manufacturers
and service providers, institutions, resellers, and governments. The B2B buying process is typically
more formalized and structured than the B2C process. In large organizations, several people are
usually involved in purchase decisions. These stakeholders can fill six roles in the buying center:
initiator, influencer, decider, buyer, user, and gatekeeper. The organizational culture can also affect
how the buying decision is made. Finally, technology is affecting the B2B marketing and B2B
relationships as social media, blogs, and other methods are changing the way buyers and sellers
interact.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activities
Suppose that a small company that provides secretarial services to other small businesses needs to buy
or lease a copier. In small groups, have the students identify individuals in the company who would
probably fill various roles in the buying center for that decision.
Chapter 7 - Business-to-Business Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
14
B2B Vendor Analysis: Quality Software Vendors
▪ Activity Type: MC Worksheet
▪ Learning Objectives: 07-02
▪ Difficulty: Hard
▪ Activity Summary: This activity asks the student to perform a simple vendor analysis involving two
potential software vendors by answering a series of questions.
Activity
▪ Introduction: Just as in the consumer buying process, companies assess vendor performance to
determine how to make future buying decisions. In a B2B setting, this analysis is more objective and
formal, often entailing key and specific metrics/issues that could affect the company’s overall
performance. But not all issues are of equal weight to the company. Even though they are key, some
are more key than others. In the following exercise, you will evaluate software vendors using the
vendor analysis process outlined in your textbook.
▪ Instructions: Read the fictional scenario below, reviewing the criteria that Marcus, a young
entrepreneur, will use to purchase online marketing software for his startup company, selecting from
one of two vendors. Then answer twenty multiple-choice questions. The first thirteen questions ask
about the importance weights and performance levels of different evaluative criteria, after which you
will identify Marcus’s preferred vendor. In questions 14-20, you will further analyze his decision
making; you will answer only five of these seven questions.
B2B Vendor Analysis: Fast-Paced Travel
▪ Activity Type: MC Worksheet
▪ Learning Objectives: 07-02
▪ Difficulty: Hard
▪ Activity Summary: This activity asks the student to perform a simple vendor analysis involving two
potential travel agencies by answering a series of questions.
Activity
▪ Introduction: Just as in the consumer buying process, companies assess vendor performance to
determine how to make future buying decisions. In a B2B setting, this analysis is more objective and
formal, often entailing key and specific metrics/issues that could affect the company’s overall
performance. But not all issues are of equal weight to the company. Even though they are key, some
are more key than others. In the following exercise, you will evaluate travel agencies using the vendor
analysis process outlined in your textbook.
▪ Instructions: Read the fictional scenario below, reviewing the criteria that Huma, a young food and
restaurant critic, will use to evaluate two travel agencies. Then answer twenty multiple-choice
questions. The first thirteen questions ask about the importance weights and performance levels of
different evaluative criteria, after which you will identify Huma’s preferred vendor. In questions 14-20,
you will further analyze her decision making; you will answer only five of these seven questions.
Chapter 7 - Business-to-Business Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
15
B2B Vendor Analysis: Catering to Quality
▪ Activity Type: MC Worksheet
▪ Learning Objectives: 07-02
▪ Difficulty: Hard
▪ Activity Summary: This activity asks the student to perform a simple vendor analysis involving two
potential caterers by answering a series of questions.
Activity
▪ Introduction: Just as in the consumer buying process, companies assess vendor performance to
determine how to make future buying decisions. In a B2B setting, this analysis is more objective
and formal, often entailing key and specific metrics/issues that could affect the company’s overall
performance. But not all issues are of equal weight to the company. Even though they are key,
some are more key than others. In the following exercise, you will evaluate caterers using the
vendor analysis process outlined in your textbook.
▪ Instructions: Read the fictional scenario below, reviewing the criteria that Jacob, a wedding
planner, will use to evaluate two catering companies for a client. Then answer twenty multiple-
choice questions. The first thirteen questions ask about the importance weights and performance
levels of different evaluative criteria, after which you will identify Jacob’s preferred vendor. In
questions 14-20, you will further analyze his decision making; you will answer only five of these
seven questions.
Staples: The Big Box Retailer That’s Really a B2B Powerhouse
▪ Activity Type: Case Analysis
▪ Learning Objectives: 07-01, 07-02, 07-03, 07-04, 07-05
▪ Difficulty: Medium
▪ Activity Summary: Students read a case discussing the importance of B2B marketing at Staples,
and then answer questions applying chapter concepts to the case.
Activity
▪ Introduction: Most of us think of Staples as a retail chain selling office supplies to consumers;
however, as the case explains, the company also caters to business customers. This activity is
important because so much of the marketing activity in the business would take place in a B2B
context.
Follow-up Activity
Visit the Staples Advantage website (http://www.staplesadvantage.com) and learn more about the
programs Staples offers for its business customers.
Chapter 7 - Business-to-Business Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
16
ISeeIt Video Case: B2B Buying Process
▪ Activity Type: Video Case
▪ Learning Objectives: 07-02, 07-03, 07-05
▪ Difficulty: Easy
▪ Activity Summary: This video case walks through a B2B purchasing example
Activity
▪ Introduction: Organizations who purchase goods and services are significantly different from
individuals and understanding these organizational buying behaviors is an important consideration of
effective business marketing. The differences between business marketing and consumer marketing
directly relate to the process that organizational buyers must go through. Take Hope Springs for
example and its need to purchase 500 new tablet computers. When Brian, the purchasing manager,
is tasked to identify the right vendor from which to purchase the tablets, he must go through an
extensive process that is substantially different than the B2C buying process. From issuing a request
for proposal (RFP) to evaluating each proposal with upper management, Brian must work with
members of the buying center to execute this purchase. Even after the purchase is made by accounts
payable, Brian must follow a detailed post-purchase process to evaluate the vendor’s performance
and ensure the vendor has met expectations.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
