B2B markets involve complex buying situations with various types of . , , and all make purchases to support their operations, each with unique needs and processes.
B2B buying situations range from new tasks to straight rebuys, with different levels of risk and decision-making involved. Multiple roles contribute to the purchasing process, including , , , , buyers, and .
Types of Buyers and Buying Situations in B2B Markets
Types of B2B buyers
Top images from around the web for Types of B2B buyers
External Forces That Shape Business Activities | Introduction to Business View original
Is this image relevant?
Understanding the Business Environment | OpenStax Intro to Business View original
Is this image relevant?
Reading: The Organizational Buying Process | Principles of Marketing View original
Is this image relevant?
External Forces That Shape Business Activities | Introduction to Business View original
Is this image relevant?
Understanding the Business Environment | OpenStax Intro to Business View original
Is this image relevant?
1 of 3
Top images from around the web for Types of B2B buyers
External Forces That Shape Business Activities | Introduction to Business View original
Is this image relevant?
Understanding the Business Environment | OpenStax Intro to Business View original
Is this image relevant?
Reading: The Organizational Buying Process | Principles of Marketing View original
Is this image relevant?
External Forces That Shape Business Activities | Introduction to Business View original
Is this image relevant?
Understanding the Business Environment | OpenStax Intro to Business View original
Is this image relevant?
1 of 3
Commercial enterprises purchase goods and services to support their business operations
transform raw materials into finished products (General Motors, Boeing)
provide intangible offerings to customers (banks, consulting firms)
sell products directly to end consumers (Walmart, Target)
distribute goods to other businesses for resale (Sysco, McKesson)
Government agencies procure goods and services to carry out public functions at various levels
Federal agencies operate at the national level (Department of Defense, NASA)
State agencies serve the needs of individual states (California Department of Transportation)
Local agencies focus on city or county-level requirements (New York City Department of Education)
Institutions are organizations that serve specific societal needs
Hospitals provide healthcare services to patients (Mayo Clinic, Johns Hopkins Hospital)
Schools educate students at various levels (Harvard University, public school districts)
Non-profit organizations pursue missions that benefit society (American Red Cross, Habitat for Humanity)
B2B buying situations
involves a first-time purchase of a product or service
Requires extensive problem-solving and information gathering to evaluate options
Perceived risk is high due to lack of prior experience (selecting a new ERP system)
occurs when a routine purchase requires minor modifications
Involves moderate problem-solving and information gathering to assess changes
Perceived risk is moderate as the buyer has some familiarity with the purchase (upgrading office computers)
is a routine, recurring purchase with minimal changes
Requires little problem-solving and information gathering as the need is well-defined
Perceived risk is low due to the buyer's extensive experience with the purchase (restocking office supplies)
Roles in B2B purchasing
Initiators identify a problem or need and request a product or service to address it
May be end-users, managers, or other stakeholders (production manager requesting new equipment)
Users are the individuals or groups who will actually use the purchased product or service
Provide valuable feedback and input on requirements and specifications (factory workers using a new machine)
Influencers provide information, advice, and recommendations to guide the purchasing decision
Help define specifications, evaluate options, and assess potential suppliers (engineering department)
Deciders have the authority to make the final decision and choose the supplier
Consider input from other participants and align the decision with organizational goals (purchasing manager)
Buyers are responsible for formally selecting suppliers and negotiating terms and conditions
Work with deciders to execute the purchase and establish contractual agreements (procurement specialist)
Gatekeepers control the flow of information and manage access to decision-makers
May screen communications, filter information, and facilitate or hinder the purchasing process (executive assistant)
Organizational Buying Process
The , consisting of various roles mentioned above, collaborates throughout the
Steps in the process often include:
Identifying needs and creating specifications
Conducting to assess potential suppliers
Issuing a to solicit detailed offers from vendors
Negotiating terms and selecting a supplier
is influenced by various factors, including company policies, budget constraints, and industry norms
Effective ensures smooth coordination between buyers and suppliers throughout the purchasing process