MKTG 350 (Chapter 7 - B2B Marketing)

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Business-to-business (B2B)

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Terms in this set (16)

Business-to-business (B2B)

Applies to businesses buying from and selling to each other over the internet

Resellers, institutions, government, manufacturers/service providers

Buys raw materials, components, own parts and manufacture their own goods

marketing intermediaries that resell manufactured products without significantly altering their form

B2B Buying Process

1. need recognition
2. product specification
3. RFP process
4. proposal analysis and supplier selection
5. order specification
6. vendor/performance assessment using metrics

Step 1: Need Recognition

internally or externally; recognizing needs and considering alt. solutions

Step 2: Product Specification

creates a list of specs; used by vendors to develop product

Step 3: RFP Process

"Request for Proposal" vendors are invited to bid on supplying resources

Step 4: Proposal Analysis, Vendor Negotiation and Selection

organization evaluates all proposals; vendors negotiate against each other

Step 5: Order Specification

Firm places the order w/ the exact details of the purchase are specified. All terms are detailed including payment