The Nature of

Industrial
Marketing
Presented By :
Gazal Kohli Md. Kazim Siddiqui
Manu Agrawal Kapil Saxena
 Index

 Introduction to Business marketing

 Customer value preposition

 Distribution Channel

 Characteristics of Industrial marketing

Wednesday, December 08, 2

 Industrial Marketing

 Also called as B 2 B Marketing or

Organizational Marketing

 Definition : Industrial Marketing is the

marketing of products & services to
business organizations.

 Customer can be a manufacturing company,

govt. agency, hospitals, private players or
distributors.
Things to be kept in mind

 Create value for the buying

organization
 Buyer’s need
 Resources
 Govt. policies
 Buying procedures
 Customer Value
Value – “the economic, technical, service, and social
benefits received by a customer firm in exchange for
the price paid for a product or service offering”

Estimating Customer Value

1. Focus Group:
 Shows product
 Discusses the offerings
 Expectation of benefits and price

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 Customer Value (Cont…)
2. Customer Interview
• Detailed information of benefits and cost
• Calculation of value based on the data

3. Internal Test
• Technical people conduct lab test to get value
• Suppliers knowledge about product use is must

4. Conjoint Analysis
• Participants in personal interview evaluate offerings
• Researchers uses regression analysis for estimation

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 Customer Value Proposition
 Three benefits why CVP is used
1. Many Benefits listed
• Business firms listed more than four benefits
• Customers were not aware of these benefits
• Question- “why we should but your product”

2. Few Benefits Meeting Customer Expectation

• Purchase manager prefer business with supplier firm
• Demonstrate superior value that shows complete
understanding of customers firm

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Customer Value Proposition (Cont…)
3. Few Benefits Compared
• Business firms listed three or four benefits
• Compare benefits to competitors value
proposition
• No detailed information – no estimation of value

Ex: Intel core processor supplied to its business

customers – its competitor: AMD.
CVP – superior quality, lower price, service
offerings, complete range. etc

Wednesday, December 08, 8

Distribution Channel
Confusion ????

Please ask Sir……