Transcript chapter 12 - Cengage Learning

1
CHAPTER
12
BUSINESS-TO-BUSINESS
MARKETING
12-1 Business-to-Business Exchanges
12-2 Making Business Purchase
Decisions
12-3 Business Purchasing Procedures
12-4 Retail Purchasing
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COURTESY, NORILSK NICKEL
Focus Questions:
 After reviewing the
advertisement, what types of
products do you believe
Norilsk Nickel sells?
 Who might be some of its
customers?
 Why would a company that
sells to other businesses
benefit from advertising?
 If you were a business
customer, would the ad
interest you in Norilsk
Nickel? Why or why not?
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12-1
BUSINESS-TO-BUSINESS
EXCHANGES
GOALS
Explain the reasons businesses buy
things from other businesses.
Define the five major classifications of
business consumers.
Describe the common characteristics
typical of business markets.
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Reasons for
Business Purchases
Reasons for purchasing
 Purchase products to be incorporated into
a production or manufacturing process
 Purchase products for direct resale to other
customers
 Purchase products to operate a business
Purchasing as a marketing activity
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Categories of the Business Product
Classification System
Capital
Goods
The building and major equipment of business
Operating
Equipment
Equipment used in the daily operation of the business
Supplies
Consumable materials used in the operation of the
business
Raw
Materials
Unprocessed materials that are incorporated into the
products by the business
Component
Parts
Partially or completely processed items that become a part
of the products produced by the business
Services
Tasks performed in the operation of the business or to
support the production, sale, or maintenance of the
business’s products and services
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Types of Business Purchasers
Business Customer Classifications
 Producers
 Resellers
 Service businesses
 Government
 Nonprofit organizations
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Characteristics of
Business Markets
Derived demand
Purchase volume
Similar purchases
Number of businesses
Buyer/seller relationship
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12-2
MAKING BUSINESS
PURCHASE DECISIONS
GOALS
 Describe how businesses make new
purchase, modified purchase, and repeat
purchase decisions.
 Explain the roles played by purchasing
specialists.
 Identify issues that often arise in international
purchasing.
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The Buying Decision
Make or buy
Types of purchases
 New purchase
 Modified purchase
 Repeat purchase
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Purchasing Requires Specialists
Buyer
Product manager
Merchandise manager
Purchasing agent
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International Purchasing
Supplier qualifications
Pricing considerations
Reciprocal trading
Financing
Transportation
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12-3 BUSINESS PURCHASING
PROCEDURES
GOALS
 Identify the steps in the business purchasing
process.
 Explain why purchasing decisions need to
take into consideration more than just the
direct cost of products and services.
 Describe the importance of keeping accurate
inventory and purchasing records.
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Steps in the
Purchasing Process
Identify needs
Determine alternatives
Search for vendors
Select appropriate a vendor
Negotiate a purchase
Make a decision
Evaluate the purchase
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Purchasing by Final Consumers
and Business Consumers
Final Consumers
1. Identify needs
2. Gather information
3. Evaluate alternatives
4. Make purchase
decision
5. Evaluate decision
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Business Consumers
1. Identify purchasing needs
2. Determine alternatives
3. Search for vendors
4. Select appropriate vendors
5. Negotiate a purchase
6. Make purchase decision
7. Evaluate purchase
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Improving Purchasing Procedures
Improved performance
Supply chain management
 Just-in-time
 Total quality management (TQM)
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Processing Purchases
Inventory Records
 Inventory
 Physical inventory
 Perpetual inventory
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Purchasing Records
 Purchase order
 Packing list
 Invoice
 Receiving record
 Inventory records
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12-4
RETAIL PURCHASING
GOALS
Describe how retailers identify customer
needs and how to satisfy them.
Identify the ways retailers locate the
products they need to satisfy their
customers.
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Planning to Satisfy
Customer Needs
Determining customer needs
Tracking product sales
Developing a purchasing plan
 Merchandise plan
 Basic stock list
 Model stock list
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Obtaining the Needed Products
 Selling to retail businesses
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


Salespeople
Manufacturer showrooms
Trade shows
Catalogs and web sites
 Completing the purchase process
 Determine source of supply
 Place order
 Ship and receive
Chapter 12
MARKETING
© 2009 South-Western, Cengage Learning