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Joint demand
Focus on possible tie-ins to other sales
When game consoles sell, so do games
New chips = more salsa sales
Buying Centers
Groups* of people that make buying decisions
Can be a committee, can be an individual
Buying Centers
Other players
Users- people and groups that use the products
Without users input, its difficult to know what to buy
Buying Centers
Interpersonal and personal dynamics
Sometimes it is simply a matter of being cordial
Sweaty newbie versus smooth veteran example
Reps across the board
International B2B
Most of the time, businesses cluster
Advertising firms in New York (though this is
changing a little)
Consumable goods in Arkansas
Tech in Seattle, Austin, and the Silicon Valley
B2B E-Commerce
E-Commerce is making this clustering less
restrictive and opening many avenues for
people all over the world.
Now the benefits and issues are shifted.
Distribution restrictions, production restriction,
etc. are more imposing than the now nonexistent
demand issues
B2B E-Commerce
Making the process simpler as well
Buying something routine can be done online now
for the ease of everyone involved
B2B E-Commerce
Sell-Side Site- single seller sells products to
many different buyers Fastenal.com
Buy-Side Site- buyer buys products from
multiple sellers (some government agencies)
B2B Exchanges- (Alibaba)
B2B Auctions- web-based auctions between
firms (equipmentone.com)
Assets or products being sold to get rid of inventory
(surplus, overstock)
B2B E-Commerce
Pricing
Since pricing information is almost perfect, pricing
is a difficult game* to play B2B, especially in a
commoditized product line
Ethics in B2B
Ethical question:
As a sales rep, is it ok to take a potential buyer out
to dinner?
As a manufacturer, if someone does a straightrebuy, but the product has changed, is it legitimate
to not tell them the change was made?
As a buyer, can you tell a representative what you
will pay for a good?