marketing 3

B2B Marketing Mixes - Competing effectively in a B2B marketplace still requires coordinating the four pieces of the Marketing Mix. However, there are some characteristics to Products, Prices, Places, and Promotions when dealing with business customers. B2B Products - Products in the B2B marketplace are the things (good/services) that are used to make products, are made into products, or are used in the running of the business. They tend to be more specific, more supported, and more technical in nature. o They need to be exactly what they are What are the common B2B product classifications? - Capital Items o bought infrequently, expensive - Parts and Materials o Bought frequently - Supplies and Services o Used in operation of business, pens paper, not to make product but for a company to function o Business solutions center is a place that western orders from o Example of supplies: purchasing is frequent, in smaller volume B2B Price - Price in B2B markets is more often a negotiated thing. Even where it is not, we are more likely to see trade promotions, quantity discounts, or other price adjustments in place. o There are sales and discounts, but the notion that we will negotiate is not really a thing, except in B2B B2B Place - Place in B2B marketplaces can often be more complicated with set terms for delivery and strict scheduling commonplace features in the distribution of products. o Set schedule, a lot of targets B2B Promotion

Buying Cultures - Organizational cultures will spill over into the buying process, influencing priorities and shaping how the various members of the Buying Centre will work together to make a purchase decision. o Organization have both formal and informal structures/hierarchy o Informal strucytres do a lot of shaping about how the organization fucntions, expectations, roles, how purchase deicisison get made o Autocratic buying cultures:  Someone in chargemakes the decisiso n, the decision is only up to them, like one boss o Consultative:  Decision making authrotiy is still located n one place, buthow that place operates,t he expecations, are such that the decision will only be made after consulting other stakeholder,s they want to hear other opinions, they want to receive info from others o Democratic:  Decision making authroiting is invested in the group  Everyone has a say and a vote  A situation where the majortuy gets the say

- Having recognized a need, the purchasing organization (sometimes with help) will then develop a general description of what might satisfy that need before refining it to a set of specifications that can properly satisfy it. o Moving in the direction and finding the thing that will solve out problem o Collaborative exercise, people who help us can be potential suppliers o We don’t mislead or lie, but we influence RFP Process - What a bid/proposal looks like will vary but typically will outline basic details about price, timeframes, delivery, quality levels, post-purchase service, and so on. o Depends on request and who we are, larger request get a more tylored bid o Smaller organizations making smaller bid, are less worth - At this stage, the purchasing organization will solicit proposals form potential suppliers. This invitation can be more targeted, the results of a supplier search, but some organizations will cast a wide net Analysis & Selection - Here the purchasing organization will evaluate each proposal received to determine which supplier(s) to purchase from. How this process works will vary from organization to organization. - Evaluative criteria used will also vary. Costs, quality, and delivery times are common ones, but what else might be considered here? o What criteria is used to decide what bids are good vs not o Look at supplier reputation o Personal selling is very important leading up to this process o We want to know that while this is going on, we can still influence, proposal is an offer, but not a final offer, its busiens,s very cutthroat Order Spec - Having selected a supplier, the two organizations will then negotiate the exact details of purchase, including product attributes, timelines for delivery, and payment schedules. o At this poin, the selling stops, because we arrive at the purchase o This could be a discrete pruchas,e buying a cetian amt of product at a certain date o Sometimes bnanket cots, we plan something over a time frame rather than a specific cost, and than by then we can try to re-nogotiate things Assessing Vendors - The final step in this process is for the purchasing organization to evaluate the outcomes of their decision, assessing the performance of their supplier(s) and providing needed feedback.

- Their big comepetirs are Tyson, JBS, and toher meat companies - Qhat “publics” should impossible be thinking about? o Media o Advocacy o Govenremnt o Financial - Invators 2.5% - Early adopters 13.5% - Early majority 34% - Late majority 34% - Laggards 15%? Does America have a carnivore culture? Does the hamburger have symbolic meaning? - What does a hamburger mean and represent, what symbolic power does it have o America, iconic, comfort, convenience, familiarity o Not ground beef, but specifically we call it a hamburger, because the word has meaning Social - What other socio-cultural trends might be relevant here? o Environmental awareness o Health consciousness  Impossible burger is sold as being better for you o Animals rights/welfare  Increased concern for the abuse and exploitation in the meat processing industry - Facts: o 60% of consumers were worried about climate change o 77% consumers are trying to be more sustainable o 27% are trying to eat less meat o 48% have issues with the meat industry - Research suggest that 46% of consumers believe that plant based proteins are healthier and more sustainable - Where does all of this intersect? Vegans, vegetarians and ‘flexitarians’ o The flexitarian is a diet trend of trying to reduce meat consumption, opting for alternatives while not altogether swearing off tradition options  This sugfest we have an oppuunity to move past a niche market place, and trying to disrupt the meat system, we need the mainstream market’ Demographics - Some research suggest that vegan, veggies and flex diets are more likely among consumers who are more educated and more affluent - Income, education - Demo and sociocultural trends

A new kind of meatless meat - Veggie burgers have been sold since the 90’s, however they were targeted to vegetarians who make up 5% of US adults - Impossible burger did not target people who were already meatless, they targeted meat lovers - The issue is humans are genetically drawn to meat - More than 1500 consumers couldn’t tell the difference between the two burgers From Silicon Valley conference tables to Momofuku to Burger King - Launched in 2016, after five years of research - First the company targeted foodies, chefs and celebrities The Impossible Burger shortage of 2019 - There were not enough employees to keep up with the demand, until they joined forces with a major manufacturing operator The Impossible Burger hits households - Launched its first raw patty in grocery stores for people to cook at home Beyond or Impossible? - Beyond meat o Beyond meat and impossible foods have risen to the top of the plant-based meat industry o Focused on getting into grocery stores - Impossible o Impossible is private, while beyond made an IPO to resounding interest o Focused on restaurants Heat from big Meat – and environmentalists - A petition with the US department of agriculture called for narrowing definitions of meat and beef that would ban plant based meat companies from using the terms in product names Protein is Pricey - Real dirty meat is cheap, plant based is much more expensive - Impossible plans to match, and then undercut real meat prices Fish, meat and beyond - Millennials could be creating a generation of meat-free children Reading 2 : Matless meat is becoming mainstream – and its sparking a backlash - The coverage of impossible burger when it was launched was mostly positive, “the future of meat”

o in the production of other goods & services, o for consumption by the buying firm, or o for resale by wholesalers & retailers - B2B marketing involves manufactures selling to wholesalers that in turn sell products to retails - B2B transactions can also involve service firms that market their services to other business but not to the ultimate consumer - Distinction between B2B & Business to Consumer (B2C): o Who is the ultimate purchaser & user of the product or service?  The distinction is not the product or service itself, rather the ultimate purchaser and user of that product Learning goal 1 B2B Markets - B2B firms focus their efforts on serving specific types of customer markets to create value for those customers - Manufactures, resellers, institutions and governments are all involved in B2B transactions Test your Knowledge B2B firms focus their efforts on serving _______________ to create value for those customers. A) new markets B) wholesalers and distributors C) resellers D) specific target markets Manufactures or Producers - Buy raw materials, components or parts - Manufacture their own goods - B2B companies are demanding, as a condition for doing business, that suppliers demonstrate social responsibility by instituting policies and practices to reduce their carbon foot print

Stage 1: need recognition - Can be generated internally or externally - Sources for recognizing new needs: o Suppliers o Salespeople o Competitors Stage 2: Product Specification - Suppliers use to develop proposals - Can be done collaboratively with suppliers Step 3: Request for Proposal process (REP) - Buying organizations invite alternative suppliers to bid on supplying their required components or specifications Step 4: proposal analysis and supplier selection - Often several vendors are negotiating against each other - Considerations other than price play a role in final selection Test your knowledge When dealing with RFPs, some firms have a policy that requires them to _______________, particularly if the product or service represents a critical component or aspect of the business. A) negotiate with several suppliers B) hold out for the lowest price C) only work with a preferred vendor D) follow a ten step plan Stage 5: order Specification (Purchase) - Firm places the order - The exact details of the purchase are specified - All terms are detailed including payment Stag 6: Vendor Performance Assessment Using Metrics - Firms analyze their vendors performance so they can make decision about their future purchases

o The buying team develops a list of issues important to consider in the vendor evaluation o To determine importance of each issue, the buying team assigns an importance score to each o Buying team assigns number that reflect its judgements about how well the vendors performs o Multiply each columns scores Learning goal 4 The Buying Centre - B2B buying process is influenced by three factors: o The Buying Centre o Corporate Culture o Buying Situations - Six roles within a buying center: o Initiator  The person who first suggest buyer the particular product or service o Influencer  The person whose views influence other members of the buying centre in making the final decision o Decider  The person who ultimately determines any part of or the enter buying decision – whether to buy, what to buy, who to buy, where to buy o Buyer  The person who handles the paper work of the actual purchase o User  The person who consumers or uses the product or service o Gatekeeper  The person who controls information or access, or both to decision makers and influences

Test you knowledge In most large organizations, who is typically responsible for buying decisions? A) the CFO B) the procurement manager C) several people D) the vice-president Organizational culture - A firms organizational culture reflects the set of values traditions and customs that guides its managers, and employees behaviour o The firms culture often comprises a set of unspoken guidelines that employees share with one another through various work situations - Four types of culture: o Autocratic buy center  One person makes the decision alone o Democratic buying center  Majority rules o Consultative buying center  Uses one person to make a decision, but they solici input from other members first o Consensus buying centre  All members of the team must reach a collective agreement through which they can support a particular purchase

Learning goal 5 Buying Situations - Straight Buy o Buying additional units or products that have been previously purchased o Most B2B purchases fall into this category - Modified Buy o Purchasing a similar product but changing specifications o Current vendors have an advantage - New Buy o Purchasing for the first time o Likely to be quite involved o The buying centre will probably use all six steps in the buying process Test your knowledge In what type of buying situation is the decision likely to be the most involved?

A) modified rebuy B) straight rebuy C) Internet purchase D) new buy