In: Operations Management
MAKRKETING Problem
Identify one B2B company or organization that fits each of the following descriptions and describe why each belongs in the category:
Producer
Reseller
Government
Nonprofit
Identify one B2B company or organization that fits each of the following descriptions and describe why each belongs in the category:
Producers:
Companies purchasing goods and services for their own use to produce other goods or services are known as manufacturers or producers. There are plenty of examples of such companies like Dell, General Motors, McDonald's etc. Every company that is producing goods or providing services may require some goods as well as raw materials for itself.
For instance, General Electric requires steel, iron, or other metals as raw materials to manufacture cars and various spare parts. companies need chemicals to produce medicines. So for this, they have to deal with other business firms in the form of B2B marketing. Pharmaceutical
Reseller:
Companies that sell goods and services produced by other firms without any physical exchange are known as resellers. Every company that is part of the supply chain can be a reseller, be it a distributor, wholesaler or retailer. We can distribute our products on a large scale with the help of the reseller and can increase our sales as well. The big example of reseller is Walmart.
“The whole visit to Wal-Mart’s headquarters is a great experience,” said Wier (CEO of the company that produces Snapper-brand mowers and snowblowers) about his trip. “It’s so crowded, you have to drive around, waiting for a parking space. You have to follow someone who is leaving, walking back to their car, and get their spot. Then you go inside this building, you register for your appointment, they give you a badge, and then you wait in the pews with the rest of the peddlers, the guy with the bras draped over his shoulder.” Eventually, would-be suppliers were taken into small cubicles where they had thirty minutes to make their case (Fishman, 2007). “It’s a little like going to see the principal, really,” he said.
Government:
Most of the times, government organizations have bought goods and services from other businesses which come under B2B or B2G marketing. They almost purchase every good like computers, machines, papers, vehicles etc. and in the same way, the government sells their old products to other business firms by bidding. In U.S government, NASA is the organization which purchases most of the products from other businesses and it includes toilet papers, machines, electronic components etc.
Nonprofit:
This includes non-profit organizations such as the American Red Cross, churches, hospitals, charitable organizations, private colleges, civic clubs. Non Profit Organizations also buy a large number of products from other businesses. Holding costs are particularly important to them. The lower their cost, the more people they can provide their services.
For example, the American red cross don't need Tanks and Fighter jets because they have no use of them. But they can buy products from a company that makes napkins, toilet paper, etc. Every business need products which are not for their manufacturing use but they still need them for other purposes. McDonald's bags, napkins and utensils are needed to serve customers.