y Company manufacturing and marketing precision steel tubes to bicycle manufacturer is doing business marketing. Maruti y MRF to EICHER. GM etc . TATA. Atlas Cycles y Nerolac to TATA. HONDA. MAHINDRA. Hero Cycles.INTRODUCTION: Marketing of goods and service to business organization Ex«. MAHINDRA.

Areas Difference between Industrial and Consumer Consumer Industrial Geographically Concentrated Few Buyers Tech. Timely Delivery and availability important Involvement of both parties Purchase decision made on rational basis Tech. Expertise Stable relationship More direct Few Intermediate Emphasis On personal selling Competitive bidding and negotiating price List price for Std. Disbursed Mass Market Standardized Some what important Market Characteristics Product Characteristics Service Characteristic Buyer Behavior Channel Characteristic Consumer mkt Purchase decision made by psychological and social needs Less technical expertise Non personal relationship Indirect Multiple layer of Intermediate Emphasis on Advertising Promotional Characteristic Price Characteristic Least Price MRP . Product Tender. Quotation etc Geo. Complex Custom Service.

Distribution channel in industrial and consumer mkt Manufacturer Manufacturer Company Sales Force Representative Agency Company Sales Force Representative Agency Distributor Wholesaler Wholesaler Retailer Customer Customer Retailer Retailer Retailer Industrial Market customer Consumer Market .

Scooters and furniture¶s etc. .. y Ex« Demand for precision steel tubes does not exit itself. Motorcycles. It¶s demanded on the basis of Bicycles. Depend on the demand of the consumer goods and services.Industrial Demand y Derived Demand: Industrial consumer buys goods and service for producing other goods and service.

by change in Price.y Joint Demand: When industrial product is useful if other products also exists. For Ex« Door and Window frames : y Wood y Steel y Plastic y Aluminum y Cross Elasticity Demand: Change in demand . y Ex« Pump Set can¶t be used for pumping water without Electric Motor.

Xerox machine. MRF c. Mfg Units : Maharashtra Sugar Cooperative Society b. Government Customers: a. Users: Drilling machine. Non Manufacturing Units: Cooperative banks. 2. Prisons b. Industrial Dealer: Purchase industrial goods and resell to industrial customers b. Fax etc. Public Sector Unit : BHEL. Press machine. Industrial Customers : a. Bajaj. Hospital. Cooperative Customers: a. Maruti Udyog b. Housing societies . State Electricity Board. Public Institutions : Govt. Colleges 4. Commercial Customer: a.Industrial Customer 1. Undertaking : Indian Railway. OEM [Original Equipment Manufacturer] ex« Telco. Private Institutions: Schools. Govt. Defense Unit 3.

Dies etc Heavy Equipment: Furnace. TV Tubes. y c. . y d. Plant. y b. Light Equipment: Hand tools. y b. Warehouse. Steel. Crude Oil. y c. Vegetable Manufactured Material: Acids. Fuel Oil. Raw material: Iron ore. Tyres etc Subassembly: Silencer in motor cycle.Industrial Product y 1. Material and Parts : y a. Capital Item: y a. Chemicals Component Parts: Bearing. Capacitor in Motor y 2. Turbines etc Plant and building: Office.

select supplier and issue P. negotiate. 5. Follow up with supplier for time delivery PROD. 4.Purchase Practice in Industry 1 Purchasing in Manufacturing Industry: As per following steps: Responsibility 1. 3.O. User [Production] department raise the MATERIAL REQUISITION 2. Identify potential supplier. get quotation. issued if no Forwarded to Purchase Dept.R&D Stores Purchase Supplier Purchase . If material available yes.. Supplier acknowledge the P.O.

Receive material against delivery challan and P.6. to account Purchase 10 Check above document with P. transporter Supplier 7. Dispatch material and inform details about lorry receipt.R. [Inspection Report] 9.R.[Material Receipt Report] with I. invoice.O and issue payment to supplier Account Quality . Check quality of material make I.R.R. Issue M.O Stores 8.

have own procurement department with standard terms and conditions fulfilled by suppliers.Purchasing in Govt. authority submit in sealed envelope with authorized signatory. Sealed cover open on specific date and time in present of representative of suppliers i.e. Closed Tender : Tender enquiry send to limited supplier who are registered with government. 2. For standard products and services tender notice are advertised in national newspaper Based on which supplier procure tender paper from govt. Order release on the basis of lowest price[after adding basic price. Offer made by supplier is kept secret. Units Govt. tender opening. y y y Name of company and product registered with government units. excise duty. tax and octroi charges] y y y .

Foreword Integration: Control on it¶s own distribution system. Horizontal Integration: Control and ownership on it¶s competitor.Strategic Planning Backward Integration: Control on it¶s own supply system. .

Finance etc Customer Micro Supplier Environment External Political Macro Economic Social Technological . R&D facility.Ecological/physical Air. HR.Water Pollution. Solid waste disposal Internal Company Location.

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