Business-to-Business (B2B) vs Consumer Markets
Resellers = distributors, wholesalers, brick-and-mortar and online retailers.
Not a reseller: agriculture industry (producers, not resellers).
B2B vs Consumer Marketing:
B2B often involves competitive bidding and price negotiations.
B2C relies more on advertising, impulse buying, and individual consumers.
B2B = Organizational markets (producers, resellers, governments, institutions).
Largest U.S. market = government markets (federal, state, local).
Business Buying Process
Buying center = group of roles (users, influencers, buyers, deciders, gatekeepers) involved in purchase decisions.
Buying centers often form during the information search stage for complex purchases.
Supplier selection:
Reciprocity = buyer and seller agree to buy each other’s goods/services.
Single sourcing = ensures consistent quality but increases dependency on one supplier.
Demand in Business Markets
Joint demand = two or more goods needed together (e.g., printers + ink, cars + tires).
Inelastic demand = demand that doesn’t change much when price changes.
Consumer Decision-Making
Stages of Purchase Decision:
Problem recognition – identifying a need (e.g., Donna realizing she needed a warmer coat).
Information search – looking for options.
Evaluation of alternatives – comparing options.
Decision & purchase.
Types of decisions:
Habitual decision making = routine, low involvement (e.g., buying cereal).
Limited problem solving = occasional extra thought.
Extensive problem solving = high involvement (expensive/complex purchases).
Attitudes, Learning & Consumer Psychology
Attitude components:
Cognition = beliefs/knowledge about a product.
Affect = feelings/emotions.
Behavior = actions or intentions.
Classical conditioning = pairing a product with a desirable image (e.g., fit people in treadmill ads).
Observational learning = learning from others’ behaviors.
Perception = process of selecting, organizing, and interpreting outside information.
Consumer Behavior Influences
Social class = group with similar income, education, values, tastes, beliefs.
Subculture = smaller group within society sharing distinctive traits/beliefs.
Gender roles = shifting breadwinner roles reflect changing consumer behavior.
Lifestyle analysis (AIO) = people described by Activities, Interests, Opinions.
Technology in Marketing
Shopbot = online tool that compares prices across retailers.
Encryption = scrambles sensitive data (e.g., credit card info online) so intercepted information looks meaningless.
Resellers = distributors, wholesalers, brick-and-mortar and online retailers.
Not a reseller: agriculture industry (producers, not resellers).
B2B vs Consumer Marketing:
B2B often involves competitive bidding and price negotiations.
B2C relies more on advertising, impulse buying, and individual consumers.
B2B = Organizational markets (producers, resellers, governments, institutions).
Largest U.S. market = government markets (federal, state, local).
Business Buying Process
Buying center = group of roles (users, influencers, buyers, deciders, gatekeepers) involved in purchase decisions.
Buying centers often form during the information search stage for complex purchases.
Supplier selection:
Reciprocity = buyer and seller agree to buy each other’s goods/services.
Single sourcing = ensures consistent quality but increases dependency on one supplier.
Demand in Business Markets
Joint demand = two or more goods needed together (e.g., printers + ink, cars + tires).
Inelastic demand = demand that doesn’t change much when price changes.
Consumer Decision-Making
Stages of Purchase Decision:
Problem recognition – identifying a need (e.g., Donna realizing she needed a warmer coat).
Information search – looking for options.
Evaluation of alternatives – comparing options.
Decision & purchase.
Types of decisions:
Habitual decision making = routine, low involvement (e.g., buying cereal).
Limited problem solving = occasional extra thought.
Extensive problem solving = high involvement (expensive/complex purchases).
Attitudes, Learning & Consumer Psychology
Attitude components:
Cognition = beliefs/knowledge about a product.
Affect = feelings/emotions.
Behavior = actions or intentions.
Classical conditioning = pairing a product with a desirable image (e.g., fit people in treadmill ads).
Observational learning = learning from others’ behaviors.
Perception = process of selecting, organizing, and interpreting outside information.
Consumer Behavior Influences
Social class = group with similar income, education, values, tastes, beliefs.
Subculture = smaller group within society sharing distinctive traits/beliefs.
Gender roles = shifting breadwinner roles reflect changing consumer behavior.
Lifestyle analysis (AIO) = people described by Activities, Interests, Opinions.
Technology in Marketing
Shopbot = online tool that compares prices across retailers.
Encryption = scrambles sensitive data (e.g., credit card info online) so intercepted information looks meaningless.
