INDUSTRIAL

MARKETING
Himali Natekar
 Industrial Marketing
Industrial marketing is the marketing of goods and services
from one business to another. The word "industrial" has
connotations of heavy machinery, mining, construction etc.
but "industrial marketing" is not confined to these types
business activities only.Warehousing,transport etc also
form parts of business markets.
Who are Industrial Customers ? ?
Commercial Enterprises
• Industrial distributors or dealers
• OEM’s
• Users eg.
Government Customers

• Public Sector
• Government undertakings
Institutional Customers

• Public Institutions
• Private Institutions
Cooperative Socities

• Manufacturing
• NonManufacturing
Classification of Industrial Goods

• Materials and Parts

• Capital Goods
• Supplies and Business Services
Materials and Parts are divided into :
• Raw Materials (Farm Products and
Natural Products)
• Manufactured materials and parts
(Component Materials and Component
parts)
Capital Items are divided into :
• Installations
• Equipment
Supplies and Business Services are
divided into :
• Maintainence and Repair items
• Operating Supplies
Distinguishing Characteristics of
Industrial Marketing :

• Markets are geographically concentrated

• Fewer customers,shorter channels
• Customers well informed
• Buying organisations highly organised
• Service very important
• Buying process rational
• Emphasis on personal selling
• Competitive bidding and negociation
• Buyer behaviour – technical and in
groups
Channels of Distribution
Geographical Distribution
Channel Size
Characteristics of Intermediaries
Channels of Distribution

Direct
Company ----------- Organisation
Indirect
Company------------
DirectRep’s/Brokers/Commission
agents/VAR’s