Organizations face B2B buying challenges that are very different from what a
consumer grapples with when buying something for personal consumption. Thus,
when you get replacement tires for your car you consider factors like brand
name, price, installation service, free rotations/balancing, warranty etc.. For
those consumers who have the expertise and tools to replace tires, a whole new
set of options like buying tires online can open up. On the other hand a car
manufacturer wanting to buy the same brand of tires for OEM (Original Equipment
Manufacturer) will have considerations that are different than an individual
customer.
While the auto manufacturer will look for some evidence of consumer
awareness of the tire brand, it will not be the overwhelming decider. So long
as the car buyers don't react with “never heard of this tire brand,"
the consumer brand power is not as useful in B2B markets. Instead things like:
what safety record does the tire have? Will the tire supplier be willing to
provide tires on a Just-In-Time (JIT) basis to the assembly line? Will the tire
supplier be willing to take payments in 90-180 days? Will the supplier be
willing to develop innovative new tires for the new SUV the automaker is
planning and which has specific tire requirements? Will there be an assurance
of quality and supply time?
Once the tire supplier gets to be an OEM to an auto company and does a good
job… the chances of getting fired is low. This because over time the auto maker,
its distributors and even final customers develop relationships, processes, routines
and preferences for a particular tire brand. Somewhat like the
"Intel" chip which seems to be an important consideration in deciding
which computer to buy despite tech expert assurances that the "AMD"
chip is as good and AMD chip computers are less expensive than comparable Intel
chip ones.
This lock in process in B2B markets makes it hard for new suppliers
to enter these markets. Unless the marketer is able to frame the “buy task” of
the buying organization as a "new
task." If for example a new SUV is being planned and a new tire
supplier gets a chance to come up with ideas … it the best chance of getting
in to be a supplier. Contact StratoServe.