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‡ Marketing of goods and services that

businesses and organizations buy for
purposes other than personal consumption
‡ Also called organizational markets

‡ Generally, the same principles are true for

business and consumer customers
‡ There are characteristics that make B2B
buying more complex
± Multiple buyers
± Number of customers
± Size of purchases
± Geographic concentration
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‡ Derived Demand
‡ Inelastic Demand
‡ Fluctuating Demand (accelerated effect)
‡ Joint Demand
‡ Direct purchasing
‡ Several buying influences

‡ B2B demand is derived demand because a

business¶s demand for goods and services
comes either directly or indirectly from
consumers¶ demands

Demand for education

Derived demand - textbooks

Derived demand - paper

Derived demand - pulp

Derived demand -
forestry products

‡ Inelastic demand means that business

customers buy the same quantity whether
the price goes up or down
‡ Example: A BMW Z3 Roadster 2.5i has a
list price starting at just over $30,000. If the
price of tires, batteries, or stereos goes up or
down, BMW still must buy enough to meet
consumer demand for the Z3.

‡ Small changes in consumer demand can

create large increases or decreases in
business demand
‡ Acceleration principles (multiplier effect)
means that changes in consumer behavior
has a ripple effect through several related

‡ Joint demand occurs when two or more

goods are necessary to create a product
‡ Companies try to avoid dependence on
specific suppliers by dealing with multiple
suppliers whenever possible

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‡ Producers
‡ Resellers
‡ Governments
± Government contracts often require
competitive bids
± Requests for proposals (RFPs) are posted
in the Commerce Business Daily
‡ Not-for-profit organizations

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‡ The Buying Situation

‡ The Professional Buyer
‡ The Buying Center

‡ A buying situation framework identifies the

degree of effort required of the firm¶s
personnel to collect information and make a
purchase decision
‡ Straight rebuy
‡ Modified rebuy
‡ New task buying
‡ Titles: purchasing agents, procurement
officers, director of materials management
‡ Focus on economic factors beyond the
initial price of a product including
transportation and delivery charges,
accessory products or supplies,
maintenance, disposal costs, etc.
‡ Large firms practice centralized purchasing
- one department does all buying

‡ The group of people in the organization

who participate in the decision-making
‡ May include production workers,
supervisors, engineers, secretaries, shipping
clerks, and financial officers
‡ Ä  begins the buying process
‡  needs the product
  controls the flow of information
to other members
‡ Ä   dispenses advice or shares
‡ makes the final decision
‡  executes the purchase
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