The use of the Internet to facilitate the exchange of goods, services, and information between organizations.
1. In 1995, there were few commercial Web sites, and those that did exist were static. Today, B-to-B sites look more like consumer sites with social media, valuable content, and community building applications.
2. A recent study found that, in 2012, 32 percent of marketers were "very" or "fully" engaged in marketing through social channels, compared with 21 percent in 2011.
3. Content marketing is becoming more and more important to B-to-B marketing.
- Keiretsu relationships are highly integrated:
- Companies have executives sitting on each others' boards
- Maintain dedicated trade efforts
- Joint development, finance, and marketing.
The concept of strategic alliances has been used in foreign cultures, such as Mexico, China, Japan, Korea, and much of Europe for a long time.
For example, in Japan the basis of exchange between firms is personal relationships that are developed through indulgent dependency. Relationships between companies can develop into a keiretsu—a network of interlocking corporate affiliates.
Members of a keiretsu trade with each other and often engage in joint product development, finance, and marketing activity.
Many American firms have found the best way to compete in Asian countries is to form relationships with Asian firms.
The basic philosophy and practice of marketing are the same whether the customer is a business organization or a consumer.
Purchase volume: Business customers buy in larger quantities than consumers.
Number of customers: Business marketers have fewer customers than consumer marketers. An advantage is that it is easier to identify buyers, monitor customer needs, and build personal relationships. A disadvantage is that each customer becomes crucial, especially for those manufacturers who have only one customer.
Location of buyers: Business customers are more geographically concentrated than consumers.
Distribution structure: Business products typically have shorter channels of distribution, and direct channels are common. On the other hand, consumer products pass through a distribution system that may include the producer, the wholesaler(s), and the retailers.
Nature of buying: More people are involved in a business market purchase decision than in a consumer purchase. Representatives from quality control, marketing, finance, and purchasing may be grouped in a buying center.
Nature of buying influence: Typically, more people are involved in a single business purchase decision than in a consumer purchase.
Type of negotiations: Negotiation is more common in business marketing decisions and may take months to work out the final contracts.
Use of reciprocity: Business purchasers often choose to buy from their own customers. It is not unethical or illegal unless the exchange is coerced.
Use of leasing: Businesses commonly lease expensive equipment to reduce capital outflow, keep state of the art products, and gain tax advantages.
Primary promotional method: Business marketers emphasize personal selling, especially for expensive, custom-designed products.
1. Major Equipment
2. Accessory Equipment -less expensive and shorter lived than major equipment, fax machines, personal computers, power tools. Usually not depreciated. Standardized and purchased by more customers.
3. Raw Materials -Unprocessed products, such as minerals, timber, wheat, corn, fish. Become part of finished products. Personal selling is the marketing mix component used, distribution channels usually direct from producer to business user.
4. Component Parts-Finished items ready for assembly or that need very little processing. Two important markets for component parts: original equipment manufacturer (OEM) and replacement market.
5. Processed Materials- Used directly in manufacturing other products. Sheet metals, chemicals, and lumber. Do not retain their identity in final products. Price and service are important factors in choosing a supplier
6. Supplies-Consumable items that do not become part of the final product. Short lives and inexpensive. Generally fall into categories of maintenance, repair, or operating supplies (MRO).
7. Business Services-Expense items that do not become part of the final product. This includes janitorial, advertising, legal, management consulting, marketing research, and maintenance services.