Definitions
Business Marketing is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations. Also known as industrial marketing, business marketing is also called business-to-business marketing, or B2B marketing, for short.
“Business buying processes is the decision making process by which business buyers establish the need for purchased products and services, and identify, evaluate and choose among alternative brands and suppliers.”(Kotler et al, 2008)
“A business market is all the organizations that buy goods and services to use in the production of other products and services, or for the purpose of reselling or renting them to others at a profit.”(Kotler et al, 2008)
Business-to-business marketing is currently one of the fastest-growing areas of marketing. As technology brings more businesses together, companies are beginning to interact with each other far more aggressively. (eSSORTMENT, Online)
B-2-B
There are three types of organisation that use business to business marketing, these are:
1. Government organisations
• Health
• Environmental protection
• Education
• Policing
• Transport
• National defence and security
2. Institutional organisations
• Not-for-profit
• Community-based organisations
3. Commercial organisations
• Distributors
• Original equipment
manufacturers
• Users
• Retailers
In some ways, business markets are similar to that of consumer markets. Both invloce two people who have buying roles and both make purchase decisions which will hopefully satisfy all the required needs of each individual. There are however some differences in market structure and demand, the nature of the buying unit and also the types of decisions and the decision process involved.
I found this part of our lecture quite difficult to comprehend. For this reason, I have inserted the characteristics of business markets below which I felt help me grasp the concept of ‘B-2-B’ Marketing. (Taken from Kotler et al)
Market structure and demand
Business markets contain fewer but larger buyers
Business consumers are more geographically concentrated
Business buyer demand is derived from final consumer demand.
Demand in many business markets is more inelastic- not affected as much in the short run by price changes.
Demand in business markets fluctuates more, and more quickly.
Nature of the buying unit
Business purchases involve more buyers.
Business buying involves a more professional purchasing effort.
Types of decisions and the decision process
Business buyers usually face more complex buying decisions.
The business buying process is more formalized.
In business buying, buyers and sellers work closely together and build long term relationships.
Business Marketing is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations. Also known as industrial marketing, business marketing is also called business-to-business marketing, or B2B marketing, for short.
“Business buying processes is the decision making process by which business buyers establish the need for purchased products and services, and identify, evaluate and choose among alternative brands and suppliers.”(Kotler et al, 2008)
“A business market is all the organizations that buy goods and services to use in the production of other products and services, or for the purpose of reselling or renting them to others at a profit.”(Kotler et al, 2008)
Business-to-business marketing is currently one of the fastest-growing areas of marketing. As technology brings more businesses together, companies are beginning to interact with each other far more aggressively. (eSSORTMENT, Online)
B-2-B
There are three types of organisation that use business to business marketing, these are:
1. Government organisations
• Health
• Environmental protection
• Education
• Policing
• Transport
• National defence and security
2. Institutional organisations
• Not-for-profit
• Community-based organisations
3. Commercial organisations
• Distributors
• Original equipment
manufacturers
• Users
• Retailers
In some ways, business markets are similar to that of consumer markets. Both invloce two people who have buying roles and both make purchase decisions which will hopefully satisfy all the required needs of each individual. There are however some differences in market structure and demand, the nature of the buying unit and also the types of decisions and the decision process involved.
I found this part of our lecture quite difficult to comprehend. For this reason, I have inserted the characteristics of business markets below which I felt help me grasp the concept of ‘B-2-B’ Marketing. (Taken from Kotler et al)
Market structure and demand
Business markets contain fewer but larger buyers
Business consumers are more geographically concentrated
Business buyer demand is derived from final consumer demand.
Demand in many business markets is more inelastic- not affected as much in the short run by price changes.
Demand in business markets fluctuates more, and more quickly.
Nature of the buying unit
Business purchases involve more buyers.
Business buying involves a more professional purchasing effort.
Types of decisions and the decision process
Business buyers usually face more complex buying decisions.
The business buying process is more formalized.
In business buying, buyers and sellers work closely together and build long term relationships.
Posts
No comments:
Post a Comment