MKTG 303 - Chapter 7 & 8 – Business-to-Business (B2B) Marketing ; Global Marketing

What is B2B marketing?

The process of businesses buying and selling goods/services for production, resale, or organizational use.

What are the four types of B2B markets?

Manufacturers, resellers, institutions, government.

How do manufacturers operate in B2B markets?

Buy raw materials, components, or parts to produce finished goods.

What do resellers do?

Buy products and resell them without altering their form (e.g., wholesalers, retailers).

What types of institutions participate in B2B markets?

Hospitals, schools, religious organizations purchasing goods/services.

Why is the government a key B2B market?

It is one of the largest buyers of goods and services (e.g., military contracts).

What are the six steps in the B2B buying process?

Need Recognition, Product Specification, RFP Process, Proposal Analysis & Supplier Selection, Order Specification, Vendor Performance Assessment.

What is the RFP (Request for Proposal) process?

Companies invite vendors to bid for supplying products/services.

What happens during vendor performance assessment?

Firms review supplier performance based on metrics like quality, price, and service.

What is a buying center?

A group of people involved in a company’s purchasing decision.

What are the six roles in the buying center?

Initiator, Influencer, Decider, Buyer, User, Gatekeeper.

What are the four types of organizational buying cultures?

Autocratic, Democratic, Consultative, Consensus.

What are the three types of buying situations?

New buy, modified rebuy, straight rebuy.

What is a new buy?

First-time purchase that is most complex, requiring all six steps in the buying process.

What is a modified rebuy?

Purchasing similar product but with changes (price, quality, vendor).

What is a straight rebuy?

Routine purchase of the same product.

How do B2B firms build relationships?

Using social media to build awareness and educate clients, and white papers to provide industry insights.

What is globalization?

The process of goods, services, capital, and ideas flowing across national borders.

What are the four key factors in assessing a global market?

Economic Analysis, Infrastructure & Technology, Government Actions, Sociocultural Factors.

What are tariffs and quotas?

Tariff is a tax on imports that raises price and reduces demand; quota limits the number of imports.

What are the BRIC countries?

Brazil, Russia, India, China – high growth potential for global business.

Why is India an attractive market?

Young population, growing tech industry, expanding middle class.

What are the five global market entry strategies?

Exporting, Franchising, Strategic Alliance, Joint Venture, Direct Investment.

Which market entry strategy has the least risk?

Exporting.

Which market entry strategy has the most risk?

Direct Investment.

Why is segmentation, targeting, and positioning (STP) harder globally?

Cultural differences, language barriers, different consumer behaviors.

What are the three global product strategies?

Same product globally, glocalization, completely new product for specific markets.

What challenges exist for global pricing strategies?

Currency exchange rates, tariffs & import taxes, Bottom of the Pyramid Pricing.

Why is global distribution challenging?

Distribution networks vary and there are infrastructure differences.

What factors affect global communication strategies?

Language differences, literacy levels, cultural and religious sensitivities.