2.Industrial Marketing

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Understanding IndustrialUnderstanding Industrial

MarketingMarketing

Role of Products & Services


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Consumer Goods and Services

- are for consumers, the final customer

Industrial Goods and Services

- are used in making consumer goods and services

Consumer Vs Industrial Goods and Services


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Individuals and organizations that acquire goods and

services to be used, directly or indirectly, in the

production of other goods and services or to be

resold.

Industrial Market / BUSINESS PRODUCTS


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Various Classes of ConsumerVarious Classes of Consumer

and Industrial Goodsand Industrial Goods andand

ServicesServices

eg. newspaper

eg. Mac's Milk

Convenience Goods

eg. groceries

eg. clothing

Shopping Goods

Consumer Goods

eg. travel

eg. banking

Specialty Services

eg. fast foods

Convenience Services

Consumer Services

raw material

grain, steel

eg. wiring

harness

eg. circuit board

component

parts

materials

nuts, bolts

Production Goods

Industrial Goods

accessory equipment

tools, computers

eg. buildings

installations

Support Services

Industrial Services

Goods and Services


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Industrial vs Consumer marketIndustrial vs Consumer market

Industrial market Consumer marketMarket Size Fewer Buyers Mass market

Products Technical Complexity Standardized

Buyer Behavior Rational/Task motives Social/Psychologicalmotives

Decision making Complexed & shared Simple may beindivualized

Channels Shorter, more direct Multiple linkage,indirect

Promotion Mostly personal selling Mostly advertising

Price competitive Competitive toexorbitant


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- producers and manufacturers- trade industries (wholesalers and retailers)

- governments


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A. producers and manufacturers

Those who transform goods and services,through production, into other goods andservices

manufacturing firms (eg. Auto parts, computers)

farms

mining and forest industries

construction and building companies

service companies (trucking, air, rail)

public utilities, banks, insurance companies


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B. Trade Industries

Organizations such as wholesalers and retailers

that buy things for resale to customers

examples - lumber dealers, fabric wholesalers, building

materials

metal and electrical products


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C. Governments

1. Federal Ministries ,

2. Provincial Ministries and

3. Municipal governments and agencies.

examples:

Sindh Police buying Corollas from Toyota .

Security Printing Press buying printing ink from

SIPCA for stamps and bank notes.


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1. Derived Demandmeans the demand is derived (or caused by, or

linked to) demand for a consumer item

Example:

Demand for baking soda is derived from the

demand for bread and bakery items.


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2. Joint Demandmeans the demand is related to the demand for

other industrial things

Example:

The demand for printer cartridges is linked to the

demand for printer paper


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1. Installations

-major assets, factories, heavymachinery

2. Accessory Equipment - used in production- short-lived items eg. tools

3. Raw Materials

4. Component Parts and Materials - finished unitswhich, when assembled, make the complete product

5. Maintenance, Supplies

- maintenance,- cleaning fluids

6. Professional Services

- accounting firms, law firms

Classifying Industrial Products


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1. Capital Itemsthings that last a long time, and

become less and less in value over

time

e.g , machinery and equipment

2. Expense Items

- things that are used within a short

period of time

e.g , parts for the machinery

3. Supplies & Services

Categories of Industrial Products


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Purchases in commercialPurchases in commercial

EnterprisesEnterprisesMultiple influencers :management, consultants

Technical sophistication : Use of forecasting &

planning techniques.

Value Analysis : Systemized techniques for

reducing costs & improving the performance

value of materials,components andmanufacturing process.


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Purchases in GovernmentPurchases in GovernmentWidely dispersed markets: spread over many

Tehsils & municipalities

Complicated procurement Laws : Based on legalrequirements that establish the guidelines for

contractual requirements.

Government selling is complexed & timeconsuming


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5 Areas of competitive5 Areas of competitive

AdvantageAdvantage1. Business Processes

2. Branding

3. Building profit after sale

4. Create front end differentiation

5. Build relationships around

Documents

2.Industrial Marketing