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Lecture 2

INDUSTRIAL MARKETING

By Prof. V.S. Bhakre

Industrial Marketing
Current Market Scenario

Shift from the Sellers Market to Buyers Market. As a sequel production demand need for more service; product differentiation and Innovation Marketing Intelligence need of the day including Market Research Increased use of Formal Marketing Planning Continuous up gradation of Technology

Marketing involvement in R & D identify new application areas if necessary diversification

Organization

Past

Diversification Motor Cycles, Shock Absorbers and Railway coupling Equipments Mopeds, Railway Signal Equipments

Escorts

Manufacturer of Tractors Automobile Ancillaries Air Brake System

Sundaram Clayton

Videocon

Reliance

ITC

Oil Drilling, Petroleum Refining, Banking Tele Communications Oil Exploration, Textiles and Petrochemicals, Man-made Fibres Retail, Tele Communications Hotels, Financial Services; Cigarettes Paper Rural Mktg. and FMCG, Paper Boards Biotechnology Insurance Consumer Electronics

Concept of Decision Making Unit (DMU)


Buyer Behaviour

Task
Economic (Task) i) Source Searching ii) Vendor Evaluation iii) Product Cost Management iv) Purchase Price Analysis

Non-Task
Emotional (Non-Task) i) Ego Enhancement

ii) Personal Risk Reduction


iii) Previous Experience iv) Inter. Personal Relationships

D. M. U

Users
Strong Influence on Buying Decisions

Gate Keepers
Control information From other DMU members

Influencers
Tech personnel R&D, Quality Assurance

Deciders
M.D; V.P; High Cost Items

Buyers
Formal Authority

Individual & Organizational Goals


I - Individual Goals I M O O - Organizational Goals M Goals of Mutuality
The area of Mutuality Decides Hence appeal to emotions

Paretos Rule : 80:20 Wide Application In Industrial Market


80% Sale from 20% Customers

Decision Making Unit (D. M. U)

Memebers Involved Vs Type of Purchase


Purchasing Stage Change in Supplier Repeat Purchase

New Purchase

Recognition of Need Board/Gen Management To Purchase Determination of Product Specs. Search for Suppliers Assessing Qualification of vendor Evaluation Of Proposals Selection of Supplier Selection of Order Routine Performance Feed back & Evaluation Tech.Personnel Tech.Personnel Tech.Personnel Tech.Personnel

Buyer

Stock Control System


As Specified Approved Supplier Approved Supplier Purchase Staff Purchase Staff Purchase Staff Buyer (System)

As Specified new Source Buyer Tech. & Buyer Buyer Buyer Buyer Buyer Formal

Tech. /Buyer Gen Mgt.


Buyer Tech / Buyer Informal