978-1259709074 Chapter 7 Part 2

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Chapter 7 – Business-to-Business Marketing Marketing 6th

McGraw-Hill Education.

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–

The Buying Center

Click & Drag

B2B Customers

Click & Drag

Toyota and the B2B Buying Process

Click & Drag

B2B Relationships: Ford and Firestone

Case Analysis

B2B – Featuring Dole

Video Case

B2B – GE Healthcare

Video Case

B2B Vendor Analysis: Quality Software Vendors

MC Worksheet

B2B Vendor Analysis: Fast-Paced Travel

MC Worksheet

B2B Vendor Analysis: Catering to Quality

MC Worksheet

Staples: The Big Box Retailer that’s Really a B2B

Powerhouse

Case Analysis

ISeeIt Video Case: B2B Buying Process

Video Case

The Buying Center

▪ Activity Type: Click & Drag

▪ Learning Objectives: 07–03

Chapter 7 – Business-to-Business Marketing Marketing 6th

McGraw-Hill Education.

▪ 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

McGraw-Hill Education.

▪ 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

McGraw-Hill Education.

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

McGraw-Hill Education.

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

McGraw-Hill Education.

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

McGraw-Hill Education.

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

McGraw-Hill Education.

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.