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Chapter 7 - Business-to-Business Marketing M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
1
Instructor’s Manual: Implementation
Guide
This improved Instructor’s Manual (IM) contains more than just summaries of key concepts and features from the
sixth edition of M: Marketing that can be used as springboards for class discussion; it also provides best practices for
how to utilize the full product suite (from the textbook to SmartBook® to Connect®). In addition, this manual
includes a variety of supplemental teaching resources to enhance your ability to create an engaging learning
experience for your students. Regardless of whether you teach in face-to-face traditional classrooms, blended
(flipped) classrooms, online environments, or hybrid formats, you’ll find everything you need in this improved
resource.
The IM follows the order of the textbook outline for each chapter and is divided into sections for each learning
objective. To ease your class preparation time, we’ve included references to relevant PowerPoint slides that can be
shown during class. Note that you can adjust slides as needed to ensure your students stay actively engaged
throughout each session.
AVAILABLE INSTRUCTOR RESOURCES
Within the Instructor Resources Tab, located in the Connect® Library, you will find the following Instructor
Resources:
▪ Instructor’s Manual
▪ PowerPoint Presentations (Accessible)
▪ Test Bank
▪ Author Newsletter Blog
▪ Video Library
▪ Connect Content Matrix
Instructor’s Manual
This Instructor’s Manual is posted by chapter. Within each section of the IM you will find an assortment of feature
summaries, examples, exercises, and Connect® Integration assignments intended to enhance your students’ learning
and engagement.
Chapter 7 - Business-to-Business Marketing M: Marketing 6th
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PowerPoint Presentations
A set of ADA-accessible PowerPoints is available with each chapter and covers:
▪ Chapter Learning Objectives
▪ Key examples
▪ Key exhibits
▪ Key concepts and frameworks
▪ Progress checks
▪ Glossary terms
Some slides include teaching notes to guide your discussion of the content that appears on each slide.
Test Bank
Test Bank questions are posted by chapter. You will find a variety of question types within the test bank such as
Matching, Ranking, Multiple Choice, Select-All-That-Apply, True/False, Short Answer, and Essay to test student
mastery across Bloom’s Taxonomy (i.e., Understand, Apply, and Analyze). Due to the evolving needs around
generating high-quality print test experiences, McGraw-Hill Education provides a free copy of the industry-leading
test generation software TestGen® to users (more details can be found within the Instructor Resources tab under
“Test Bank”). Furthermore, due to its limitations to function with the latest browsers and operating systems,
McGraw-Hill Education has discontinued EZ-Test Online. Some of the robust new features present in TestGen®,
include:
▪ Cross-platform software compatibility with Windows and Mac
▪ Multiple LMS export formats, including Blackboard, Moodle, Desire2Learn, and Sakai
▪ Highly customizable formatting and editing option
Video Library
The Video Library provides links to all the assignable videos in Connect®, as well as legacy videos that are no
longer available as assignments, but that remain available as an additional resource. These videos can be directly
streamed from within the library that is located in the Instructor’s Resource tab. Accompanying each video is a brief
video guide that summarizes the key concepts of the video.
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Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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Connect Content Matrix
The Connect Content Matrix provides a brief overview of all the application exercises available in the course. It
lists the Learning Objectives, topic tags, Bloom’s levels, and difficulty levels associated with each exercise.
Connect®, McGraw-Hill’s online assignment and assessment system, offers a wealth of content for both students
and instructors. Assignable activities include the following:
USING SMARTBOOK® TO ENHANCE STUDENTS’
PERFORMANCE
The LearnSmart®-powered SmartBook® is assignable through Connect. One of the first fully adaptive and
individualized study tools designed for students, it creates for them a personalized learning experience, giving them
the opportunity to practice and challenge their understanding of core marketing concepts. The reporting tools within
SmartBook® show where students are struggling to understand specific concepts.
Typically, SmartBook® is assigned by module (chapter), and you can set which learning objectives to cover as well
as the number of probes the student will see for each assignment. You can also set the number of points a
SmartBook® module is worth in the course. Usually, applying a minimal number of points for completion of each
module is enough to encourage students to read the chapter. Many instructors assign these modules to be completed
before the class or online session.
SmartBook® provides several diagnostic tools for you to gauge which concepts your students struggle to understand.
Below is the set of adaptive assignment reports available in SmartBook®:
▪ Progress Overview: View student progress broken down by module
▪ Student Details: View student progress details plus completion level breakdown for each module
▪ Module Details: View information on how your class performed on each section of their assigned modules
▪ Practice Quiz: This gives you a quick overview of the quizzes results for your students
▪ Missed Questions
▪ Metacognitive Skills
The Module Details report shows you the results for the students in the class overall. These details reveal where in
the chapters students might be struggling. The module gives the chapter section, average time spent, average
questions per student correct/total, and the percentage of correctness (based in number of assigned items).
Information about the most challenging sections for students can help you refine the focus of the next face-to-face,
hybrid, or online session.
The Metacognitive Skills report captures students’ confidence in their competency of the materials. Below you will
find a recreation of the Metacognitive Skills report. In it, you can see that the second student is confident and mostly
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2) Case Analyses and Video Cases each feature real-world firms and industries different than those discussed
3) Click-and-Drag exercises help students actively demonstrate their understanding of the associated learning
objectives. Some require students to match examples to concepts, to place series of steps in the correct
sequence, or to group examples together under their correct categories.
Application Exercises can be assigned as preparatory exercises due before class (this is especially good for flipped
classrooms), or after class as concept comprehension checks. Consider assigning two or three Application Exercises
per chapter.
Applications Exercises will generally be assigned as homework or practice as part of the overall class grade. A
general rule of thumb would be to make application exercises worth 5 to 10 points each, since these require more
time and thought than a test bank question might.
To find the Applications in Connect®, go to “Add Assignment” and select “Question Bank.” Within this question
bank will find a drop-down menu of all the book-level assignments and chapter-level assignments. You can then
select the ones you wish to assign.
Chapter-level quizzes and full chapter test banks are also found in the Question Bank’s drop-down menu. Apply a
relatively low value to each question—for example, 1 or 2 points each—since numerous questions are typically
assigned for each chapter. You can decide when to surface the feedback to students. Selecting to display feedback
after the assignment due date helps to prevent cheating; that is, it keeps students from sharing the correct answers
with other students while the questions are still open and available. For this reason, it is suggested that no feedback
to quizzes and test bank exams be made available until after the assignment is due.
ASSIGNING EXERCISES AND GRADING POLICIES: BEST
PRACTICES
More detailed information on SmartBook® and Connect® is available through several resources at McGraw-Hill. A
good starting point is your local Learning Technology Representative, who can be found here:
http://www.mheducation.com/highered/platforms/connect/features-educators.html
Connect® gives instructors a wide array of flexibility in making assignments and creating grading policies.
Instructors may choose to:
• assign as many assignments as appropriate given the level and time commitment expected for the class,
• determine point values for each question/application that works within the total course percentages,
• make available multiple attempts per assignment with options of accepting the highest score or averaging all the
Chapter 7 - Business-to-Business Marketing M: Marketing 6th
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attempts together (several attempts are particularly good for homework assignments),
• deduct points for late assignment submissions (percentage deduction per hour/day/week/etc.) or create hard
deadlines thus accepting no late submissions,
• show feedback on application/questions immediately upon submission or at the time the assignment is due for
the whole class, create new assignments or questions from scratch, or edited versions from a variety of provided
resources.
Throughout the IM for each chapter, we integrate materials from the PowerPoint slides and provide summaries for
each of the Connect® Application Exercises at the end of each chapter. These summaries are intended to give you a
sense of the learning goal behind each exercise. We hope this integration of resources will help you to convey core
Chapter 7 - Business-to-Business Marketing M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
7
Chapter 7
Business-to-Business Marketing
Tools for Instructors
• Chapter Overview
• Brief Chapter Outline
• Learning Objectives
• Extended Chapter Outline
• PowerPoint Slides
• Additional Resources
• Connect Application Exercises
Chapter Overview
This chapter exposes students to business-to-business markets, the buying process for B2B, and factors
affecting the buying process unique to B2B transactions. Students also learn the various buying center
roles.
Brief Chapter Outline
B2B Markets
The Business-to-Business Buying Process
The Buying Center
The Buying Situation
Learning Objectives
LO7-1 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 therefore might appreciate products or services geared especially toward them. On a broad level,
LO7-2 List the steps in the B2B buying process.
Similar to the B2C buying process, the B2B process consists of several stages: need recognition; product
LO7-3 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,
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LO7-4 Describe the different types of organizational cultures.
Firm culture consists of unspoken guidelines that employees share through various work situations. They
LO7-5 Detail different buying situations.
Extended Chapter Outline
Ethical & Societal Dilemma 7.1: To Block or Not to Block: The Competing and Compelling
Interests of Advertisers, Users, and Facebook details what happens when participants in B2B
transactions come in conflict. Ask students if they would pay to use a version of Facebook without ads.
I. B2B Markets (PPT 7-4)
A. Manufacturers and Service Providers (PPT 7-5)
B. Resellers (PPT 7-6)
Adding Value 7.1: The “Alfonso Versant” Fashion Show: Creating Excitement for a New Xerox
Printer explains how Xerox is promoting its HD printer technology to enhance its value, its commercial
customers’ value, and in the end, the consumers’ value.
C. Institutions (PPT 7-8)
D. Government (PPT 7-9)
✓
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What are the various B2B markets?
II. The Business-to-Business Buying Process (PPT 7-11)
A. Stage 1: Need Recognition (PPT 7-12)
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Adding Value 7.2: What Isn’t Intel Inside? describes how Intel partnered with Lady Gaga to extend
problem recognition and extend its brand beyond “Intel Inside” slogan. How does the modification of
Intel’s tagline from “Intel Inside” to “experience what’s inside” change Intel’s branding strategy?
B. Stage 2: Product Specification (PPT 7-13)
C. Stage 3: RFP Process (PPT 7-14)
D. Stage 4: Proposal Analysis, Vendor Negotiation, and Selection (PPT 7-15)
E. Stage 5: Order Specification (PPT 7-16)
F. Stage 6: Vendor Performance Assessment Using Metrics (PPT 7-17)
✓
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. Identify the stages in the B2B buying process.
2. How do you perform a vendor analysis?
III. The Buying Center (PPT 7-19, 7-20)
2. The Influencer—The Medical Device Supplier, the Pharmacy
4. The Buyer
6. The Gatekeeper—The Insurance Company
A. Organizational Culture (PPT 7-21)
B. Building B2B Relationships (PPT 7-22)
Social & Mobile Marketing 7.1: Snapchat as an Advertising and Content Platform: The Latest
Experiments in Television demonstrates how Snapchat is providing new opportunities for B2B
marketers. Were students aware of AMC’s Preacher marketing campaign on Snapchat? How do they
view the effectiveness of this type of marketing on Snapchat?
1. What are the six buying roles?
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2. What are the types of cultures that exist in buying centers?
IV. The Buying Situation (PPT 7-24, 7-25, 7-26, 7-27)
1. How do new buy, straight rebuy, and modified rebuy differ?
Additional Resources
While students are quite familiar with business-to-consumer markets, most are unfamiliar with
business-to-business markets. Students may find it difficult to understand the buying process. Students
may have not heard the term “RFP” and may not know how detailed order specifications are and how
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.
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Connect Application Exercises
This section summarizes each Application Exercise available with this chapter. Each summary comprises
an introduction to the exercise, concept review, and follow-up activity. Associated details related to the
learning objectives, activity type, AASCB category, and difficulty levels are also included. These
summaries are intended to guide your course planning; perhaps you want to assign these exercises as
homework or practice, before or after class. For best practices on how and when to assign these
exercises, see the IM Implementation Guide at the beginning of this chapter.
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
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
▪ 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.
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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.
▪ 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.
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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.
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.
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▪ 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
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.
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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.
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.
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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.
