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B2B-Markets-Week-2-Lecture

The document outlines the Week 2 content for MKTG6020 B2B Marketing at the University of Sydney, focusing on the differences between consumer and business marketing. Key topics include influences on business buying behavior, purchase orientation, the purchase process, and the decision-making unit (DMU) in the buying process. The takeaway emphasizes the importance of relationships in business marketing and the increasing similarities between business and consumer marketing.

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Prayaschita Wayan
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© © All Rights Reserved
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5 views

B2B-Markets-Week-2-Lecture

The document outlines the Week 2 content for MKTG6020 B2B Marketing at the University of Sydney, focusing on the differences between consumer and business marketing. Key topics include influences on business buying behavior, purchase orientation, the purchase process, and the decision-making unit (DMU) in the buying process. The takeaway emphasizes the importance of relationships in business marketing and the increasing similarities between business and consumer marketing.

Uploaded by

Prayaschita Wayan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Week 2 of MKTG6020

B2B Marketing
Thursday's at 9am to 10am
Business School ABS Lecture Theatre B2010
(H70.B2.B2010)

Presented by
Jodie McGann
Lecturer & Tutor for MKTG6020
Discipline of Marketing

The University of Sydney Page 1


We recognise and pay respect to the Elders and communities – past,
present, and emerging – of the lands that the University of Sydney's
campuses stand on. For thousands of years they have shared and
exchanged knowledges across innumerable generations for the benefit
of all.
LAST WEEK…
Differences between consumer and business marketing

 3 different viewpoints of B2B Marketing


 Market Structure Differences
 Buying behaviour
 Marketing Practices
 Business Market Classification
 A solution to a problem
 How companies and Consumer buy

The University of Sydney Page 3


INFLUENCES ON BUSINESS BUYING

Personal
Factors

Buying
Business Buying Teams
Behaviour
Organisational
Factors

Environmental
Forces

The University of Sydney Page 4


PURCHASE ORIENTATION

Philosophy that…

• Guides managers making purchasing related


decisions
• Delineates domain and span of influence
• Varies between customers
• Varies within a single organisation
• Matched with specific product category

The University of Sydney Page 5


PURCHASE ORIENTATION

Buying: Lower total spend year-on-year

• Buyer want to…


• Obtain the best deal
• Maximise power
• Avoid risk

• This leave least scope for business marketer to


create and share value with customer

The University of Sydney Page 6


PURCHASE ORIENTATION

Procurement: Maximise Productivity


• Buyer wants…
• Quality improvement
• Reduced total cost of ownership
• Supplier cooperation

• Offer ‘total solution’ rather than price, quality


and availability

• Scope for business marketer to contribute to


customer’s productivity focus

The University of Sydney Page 7


PURCHASE ORIENTATION

Supply Management: Maximise Value Along Supply Chain

• Fate of buying organisation linked to other


companies in value network
• Integration and coordination of purchasing
with other functions and other firms
• Firm efforts focused on delivering value to
end customers
• Sourcing strategy centred around firm’s core
competencies and capabilities
• Supply network that efficiently completes
required business processes
• Sustain highly collaborative relationships with
select supplier and sub-suppliers

The University of Sydney Page 8


PURCHASE PROCESS

• Need/Problem recognition
• Determining product specification
• Supplier and product search
• Evaluation of proposals and supplier selection
• Specification of order routine
• Performance feedback and evaluation

The University of Sydney Page 9


BUNN (1993)

• Buying decision approaches:


• Casual, routine low priority, simple
modified rebuy, judgmental new task,
complex modified rebuy, strategic new task

Vary according to…

• Situational characteristics:
• Purchase importance, task uncertainty,
extensiveness of choice set, buyer power

• Buying activities:
• Search for information, use of analysis
techniques, proactive focus, procedural
control

The University of Sydney Page 10


DECISION MAKING UNIT (BUYING CENTRE)

Purchase Roles

User : Influence decision, may be part of DMU

Influencer : Affect final decision ref. needs, product and vendors

Decider : Makes final decision (may be more than one)

Buyer : Makes purchase; administers decision

Gatekeeper : Control information in/out of buying group can affect decisions

The University of Sydney Page 11


DECISION MAKING UNIT

ORGANISATIONAL PURCHASE
FUNCTIONS ROLES

Purchasing User

Operating Influencer

Engineering Decider

Finance Buyer

R&D Gatekeeper

Marketing

The University of Sydney Page 12


WHAT MARKETERS NEED TO KNOW ABOUT DMU IN BUYING PROCESS

• What happens to DMU structure during


different phases of process?
• Number of participants in DMU
• Number of functional areas/departments
represented
• Number of hierarchical levels involved in
purchase

• Changes likely to affect…


• Communication and influence patterns in
DMU
• Information needs at any given point in
time

The University of Sydney Page 13


KNOWLEDGE ABOUT DMU IN BUYING PROCESS
VALUE TO MARKETERS

• Effective marketing hinges on

• Identifying
• Key DMU members concerns/needs
• Crafting solution to
• Satisfy individual DMU member
needs
• Minimise perceived risk
• Early involvement to
• Reach and influence DMU
participants before key decisions
are made that will determine
vendor choice

Ghingold and Wilson. 1998

The University of Sydney Page 14


TAKEAWAY

• One company is only part of the network that provides a final


consumer offering
• Business marketing occurs between two active companies
• Each business purchase is part of a relationship
• Each relationship is part of a portfolio and a wider network
• Business marketing is a similar activity to business purchasing
• Relationships are major assets for both suppliers and customers
• Similarities between business and consumer marketing are increasing

The University of Sydney Page 15

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