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Business-to-Business Marketing
The Business Buying Decision Process
Marketing Textbooks Boundless Marketing Business-to-Business Marketing The Business Buying Decision Process
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Concept Version 9
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Buying Situations

B2B buying situations vary from B2C buying situations, so B2B marketers must develop different capabilities.

Learning Objective

  • Differentiate between the B2B and B2C buying decision process


Key Points

    • Buyers go though three stages (education, solution, and vendor selection) during their buying process and it is important that sellers engage them throughout the cycle. Understanding the buying cycle and the key needs buyers have at each point can help marketers and sales reps.
    • Since there are more people involved in the decision-making process and technical details may have to be discussed in length, the decision-making process for B2B products is usually much longer than in B2C.
    • In B2B there are usually committees of people in an organization and each member may have different attitudes toward any brand.

Terms

  • new buy

    A purchasing situation requiring the purchase of a product for the very first time.

  • modified re-buy

    A purchasing situation where the buyer's revisions to the order require additional analysis or research

  • straight re-buy

    A purchasing situation where the buyer reorders the same products without researching or considering other suppliers

  • B2B

    Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

  • B2C

    The sale of goods and services from individuals or businesses to the end-user.


Full Text

Buying Situations (B2B)

Some characteristics of organizational buying and selling behavior include:

  • For consumer brands, the buyer is an individual. In B2B there are usually committees of people in an organization and each member may have different attitudes toward any brand.
  • Since there are more people involved in the decision-making process and technical details may have to be discussed in length, the decision-making process for B2B products is usually much longer than in B2C.
  • Companies seek long-term relationships as any experiment with a different brand will have an impact on the entire business. Brand loyalty is therefore much higher than in the consumer goods market. Branding will reflect on the retailer's positioning strategy. For example, when you thinks of Craftsman tools , Sears immediately comes to mind as the primary place where you can buy them.
  • While consumer goods usually cost little in comparison to B2B goods, the selling process of B2B goods involves high costs and a longer cycle. Not only is the seller required to meet the buyer numerous times, but the buyer may ask for prototypes, samples, and mock-ups. Such detailed assessment eliminates the risk of buying the wrong product or service.

Buyers go though three stages of the buying process, which include:

  • Stage one: education
  • Stage two: solution
  • Stage three: vendor selection

Buyers move in and out of each stage. Firms need to be prepared to engage buyers throughout the cycle. The problem is that marketers have to face the realities of the B2B buying cycle, which include:

  • The company controls less
  • The company sees less
  • The sales resources of a company will often be in reactive mode

Organizations have to become better at determining what need and what questions buyers have when they decide to engage in the sales process. Understanding the buying cycle and the key needs buyers have at each point can help marketers and sales reps to create a knowledge base with relevant content that a sales team can leverage during the sales cycle. Like B2C businesses there are similar buying types in B2B sales activities that include new buys, straight re-buys and modified re-buys.

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