This is a complete summary of MNM2604
Business to Business Marketing 3rd Edition
CHAPTER 2 from the prescribed textbook. This
can be used for assignments, examinations or
while you are waiting for your textbook.
Undergrad2024
BUSINESS TO
BUSINESS
MARKETING
CHAPTER 2 SUMMARY
, Business to Business Marketing. 3rd Edition
Summary Chapter 2
What is B2B buying?
All types of businesses, as well as businesses of different sizes, engage in B2B buying. Organisational
buyers buy different types of products for different purposes as well as from many different suppliers.
Businesses also spend large sums of money (sometimes billions of rands) when buying.
Suppliers of raw materials sell to manufacturers, who buy raw materials to produce other goods. These
manufacturers may also buy goods and services such as computers and office furniture for operational
use and open bank accounts to conduct business transactions. After producing goods, manufacturers
might sell their goods through distributors to the trade wholesalers or retailers or directly to the trade
retailers and wholesalers. Distributors and retailers or wholesalers buy to resell. However, they also buy
other goods for operational purposes, such as chairs, desks, delivery trucks, shelves for displaying
products and so forth.
The strategic importance of B2B buying
• Profitability: The amount of money a business spends on buying goods and services has an
impact on the profit that it will make. For example, if a business buys goods and services at high
prices, it will have to set high prices for its customers in order to recover the buying costs. This
might or might not be feasible, and it might negatively affect the profits.
• Quality of goods and services: The quality of the goods and services that an organisation buys
from its suppliers affects the quality of the products that it can produce. An organisation may find
it difficult to turn a low-quality raw material into a product that is of high quality. Therefore the
ability of a buying organisation to source high-quality products will affect its ability to supply
quality products in the market.
Page 1 of 11
Business to Business Marketing 3rd Edition
CHAPTER 2 from the prescribed textbook. This
can be used for assignments, examinations or
while you are waiting for your textbook.
Undergrad2024
BUSINESS TO
BUSINESS
MARKETING
CHAPTER 2 SUMMARY
, Business to Business Marketing. 3rd Edition
Summary Chapter 2
What is B2B buying?
All types of businesses, as well as businesses of different sizes, engage in B2B buying. Organisational
buyers buy different types of products for different purposes as well as from many different suppliers.
Businesses also spend large sums of money (sometimes billions of rands) when buying.
Suppliers of raw materials sell to manufacturers, who buy raw materials to produce other goods. These
manufacturers may also buy goods and services such as computers and office furniture for operational
use and open bank accounts to conduct business transactions. After producing goods, manufacturers
might sell their goods through distributors to the trade wholesalers or retailers or directly to the trade
retailers and wholesalers. Distributors and retailers or wholesalers buy to resell. However, they also buy
other goods for operational purposes, such as chairs, desks, delivery trucks, shelves for displaying
products and so forth.
The strategic importance of B2B buying
• Profitability: The amount of money a business spends on buying goods and services has an
impact on the profit that it will make. For example, if a business buys goods and services at high
prices, it will have to set high prices for its customers in order to recover the buying costs. This
might or might not be feasible, and it might negatively affect the profits.
• Quality of goods and services: The quality of the goods and services that an organisation buys
from its suppliers affects the quality of the products that it can produce. An organisation may find
it difficult to turn a low-quality raw material into a product that is of high quality. Therefore the
ability of a buying organisation to source high-quality products will affect its ability to supply
quality products in the market.
Page 1 of 11
