Introduction Prof.

Shashank Rashinkar

y The basic rules of the game of Consumer Marketing is equally applicable to industrial markets. but the 4 Ps have a different perspective in industrial marketing.Commercial Organizations 2.Government Agencies 3. y There are three major participants of Industrial marketing: 1.Non-profit Organizations & Charitable Institutions .Nature of Industrial Marketing y Industrial Marketing constitutes one of the largest markets and accounts for well over half of our economic activity.

Industrial versus Consumer Marketing Management y The Industrial Markets are relatively concentrated y The channels of Distribution are shorter y Buyers are well informed y Highly organized buyers y Sophisticated in purchasing techniques y Multiple influencers y General management responsibility .

Technical expertise. delivery and availability very important Functional Involvement.Industrial versus Consumer Marketing Areas of Differences Characteristics Market Structure Industrial Markets Geographically concentrated. Service. Customized Service. observable stages Shorter. Interpersonal relationships. more direct. Mass markets. and availability somewhat important Family involvement. Nonpersonal relationships Unobservable. . fewer linkages Competitive bidding. multiple linkages Products Buyer behaviour Decision making Channels Promotion Emphasis on personal selling Emphasis on advertising Price List prices. List prices on standard items Consumer Markets Geographically dispersed. delivery. Reciprocity Distinct. Few buyers. Oligopolistic Technical complexity. negotiating on complex purchases. Stable relations. Less technical expertise. mental stages Indirect. Social/psychological motives pre-dominate. Rational/task motives predominate. Monopolistic Standardized.

. .Definition of Industrial Marketing Industrial Marketing consists of all activities involved in the marketing of products and services to organizations(i.e. and to facilitate the operation of their enterprises. government agencies and resellers) that use products and services in the production of consumer or industrial goods and services. profit and not-for-profit institutions. commercial enterprises.

Subassemblies) y Capital Items.Classification of Industrial Products & Services The main method of classification is based on how products or services enter the production process and their relative costs.Support the operations(Supplies. y Materials & Parts.Used in production process(Light equipment or accessories. Component parts. Services) .These good enter the product directly(Raw materials. Installations or heavy equipment. Plant & Building) y Supplies and Services. Manufactured materials.

Exchange Process in Industrial Market y Product or Service Exchange-Success depends on the identification of the buyer s needs and the product s potential y Information Exchange-Query Handling related to Technical. Economic & pre and post sale maintenance y Financial Exchange-Granting of Credit. Currency exchange y Social Exchange-Reducing uncertainties .

social. political and legal downturn y Direct Demand-Consumers buy for their personal use or satisfaction(Not for commercial purpose or profit motive) y Derived Demand-Demand for the industrial goods is derived from the ultimate demand for consumer goods and services. .Economics of Industrial demand y Demand is the volume of a specific product that industrial buyers purchase during a specific period y The demand fluctuates due to any economic.