Industrial Customers

8/7/2019 Industrial Customers

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INDUSTRIAL CUSTOMERS

yTo develop an effective marketing plan, anindustrial marketer needs to understandindustrial markets.

yThe industrial market is characterized by wonderful diversity both in customers servedand products sold.

y Industrial distributors or dealers sell a variety of products to industrial customers ,commercial businesses, government, and

institutions customers.



TYPES OF INDUSTRIAL CUSTOMERS

Industrial customers are normally classified into four groups:

(i) Commercial Enterprises

(ii) Governmental Agencies

(iii) Institutions(iv) Co-operative Societies.





y Commercial enterprises are private sector, profit-seeking organizations such as IBM, General

Motors, Computer Land, and Raven Company.y Commercial enterprises consisting of

(i) Industrial distributors or dealers

(ii) original equipment manufacturers (OEMs)(iii) users.

COMMERCIAL ENTERPRISES



INDUSTRIAL DISTRIBUTORS & DEALERS

y They purchase industrial goods and resell them in thesame form to other industrial customers such ascommercial enterprises, government and institutional

customers.y They are intermediaries or middlemen in an industrial

market.

y The intermediaries not only serve the consumer

market but also they serve other business enterprises,government agencies, or private and publicinstitutions.



ORIGINAL EQUIPMENT MANUFACTURER

y These industrial customers purchase industrial goodsto incorporate OEMs into the products they produce.

y For instance, a tyre manufacturer (say, MRF), who sellstyres to a truck manufacturer (say, TELCO), wouldconsider the truck manufacturer as an OEM. Thus, theproduct of the industrial marketer (MRF) becomes a

part of the customers (TELCOS) product.



USERS

y An industrial customer, who purchases industrialproducts or services, to support its manufacturingprocess or to facilitate the business operations is

referred as a user.y For example, drilling machines, press, winding

machines, and so on are the products which supportmanufacturing process, whereas the products which

facilitate the operations of business like computers, faxmachines, telephones, and others.



GOVERNMENT CUSTOMERSy In India, the largest purchasers of industrial products

are Central and State Government departments,undertakings, and agencies, such as railways,department of telecommunication, defense, DirectorGeneral of Supplies and Disposal (DGS&D), statetransport undertakings, state electricity boards, and soon.

y These Government units purchase almost all kind of industrial products and services and they represent ahuge market.



INSTITUTIONS

y Public and private institutions such as hospitals,schools, colleges, and universities are termed asinstitutional customers.

y Some of these institutions have rigid purchasingrules and others have more flexible rules.

y An industrial marketing person needs to

understand the purchasing practice of eachinstitute so as to be effective in marketing theproducts or services.



COOPERATIVE SOCIETIES

An association of persons forms a cooperativesociety. It can be:

Manufacturing units (e.g. Cooperative SugarMills)

Non-manufacturing organizations (e.g.Cooperative Banks, Cooperative HousingSocieties).



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Industrial Customers