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BUSINESS-TO-BUSINESS B2B Marketing 1 Business - to - Business Marketing Marketing of products/services to businesses that buy for purposes other than personal consumption Resale Use in producing other products Use in daily business operations 2 B2B Decision Making Process Problem recognition Information search Alternative evaluation Purchase decision Post-purchase evaluation 3 B2B vs B2C Market Characteristics Product/Service Characteristics Buying Product Characteristics Marketing Mix Characteristics 4 B2B Market Characteristics Fewer customers exist Larger purchase quantities, more frequent replenishing Derived demand Driven by predicted demand for consumer products/services 5 Derived Demand for Forestry Products Demand for Education Derived demand for Textbooks Derived demand for Paper Derived demand for Pulp Derived demand for Forestry Products 6 Product Characteristics Often more technical in nature Bought based on specs Purchased raw or semi-finished Augmented product characteristics are key Delivery capabilities Customer, Technical service Pre and post-sale 7 Buying Process Characteristics Longer sales cycle Professional buyers who are very well informed Purchase using pre-determined policies and procedures Multiple buying influences Many people involved in decision Decision-makers, influencers, users More rigid or complex objectives ROI Max profit Increased efficiency Regulatory requirements 8 Buying Process Characteristics Negotiations are common Long-term agreements Decisions more rational but personal goals still influence decisions Advancement Financial rewards Safety/security 9