lecture recording on 04 February 2025 at 18.50.20 PM

Types of B2B Buyers

Producers

• Producers are companies that purchase goods and services to transform them into other products.

• Example companies: Ford, GM, Verizon, Nestlé, AT&T.

• They buy raw materials or components to manufacture their final products.

• Producers focus on creating finished goods from purchased items.

Resellers

• Resellers are businesses that buy products from producers and sell them to others without significant changes.

• They serve as intermediaries or middlemen.

• Major examples include Walmart and Target.

• They essentially stock and sell goods that others produce, without altering them.

Governments

• Government buyers operate under regulations and laws limiting certain purchases.

• They must ensure vendors are reputable and compliant with legal requirements.

• Government contracts are often subject to competitive bidding and evaluation based on public interest.

Institutions

• Institutions refer to non-profit organizations that purchase products in large quantities.

• Examples include educational institutions and charities.

• They often have specific requirements for purchasing and may focus on securing funding or donations for acquisitions.

Major Technical Buying Situations in B2B Markets

Straight Rebuy

• A routine purchase of a standard product or services.

• Typically involves reordering from the same supplier due to established relationships (e.g., office supplies).

• Reliable and low-risk purchasing behavior.

Modified Rebuy

• Involves purchasing a similar product with modifications from previous orders.

• Changes can be minor, like color or specifications (e.g., changing ink color).

• Reflects adaptability in purchasing strategies based on new needs or preferences.

New Task

• Represents a purchase of a product or service for the first time.

• Involves a detailed evaluation process due to unfamiliarity with the product (e.g., new software or equipment).

• Requires a more involved purchase process, often seeking comprehensive solutions to organizational needs.

Systems Selling

• Involves purchasing comprehensive solutions rather than just individual products.

• Focuses on addressing specific organizational challenges by integrating various product components.

Participants in the Purchasing Process

Influencers

• Individuals who provide information and recommendations that impact the purchasing decision.

• They help evaluate options and determine the best fit for the organization.

Gatekeepers

• These are people who control the flow of information to decision-makers.

• Often involved in screening vendors and managing communications before final decisions are made.

Buyers

• Individuals with the authority to make purchases and sign contracts.

• They negotiate and oversee procurement processes, ensuring that purchases align with organizational needs.

Users

• The end-users of products or services within the organization.

• Their feedback and experience are critical in determining satisfaction and future purchases.

Initiators

• Individuals who recognize the need for a product and start the purchasing process.

• They define the problem that needs to be solved through procurement.

Major Influences on Buyer Decisions

External Factors

• Include political, legal, competitive, and social environments impacting purchasing decisions.

• Organizations must adapt to these external changes to stay relevant and compliant.

Internal Factors

• Organizational attitudes, individual influences, and staff capabilities can affect buying choices.

• Changes in personnel or organizational structure may lead to different purchasing decisions.

Conditional Factors

• Financial conditions and availability of products influence purchase timing and choices.

• Companies must assess their budgets and financial health before committing to purchases.

Marketing Strategies in B2B

Personal Selling

• A critical component of B2B marketing where personal interactions drive the sales process.

• Tailored communication is vital; understanding the audience leads to successful engagements.

Brand Messaging

• Consistency in brand messaging is essential across different departments and communications.

• Businesses must maintain their core message while adjusting the delivery method to fit the audience.

Importance of Relationships

• Building relationships with different stakeholders within organizations can enhance sales opportunities.

• Effective communication and understanding of organizational needs lead to better sales outcomes.