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INDUSTRIAL MARKETING

Prakash Sathaye

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WHAT IS INDUSTRIAL OR

BUSINESS MARKETING?

Marketing to Business Markets

Products required by Business Markets

B2B Marketing Products, Services and Solutions used for

manufacturing other Products and

Services. Users are Corporate, Government and

Institutions

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KEY DIFFERENCES OF

INDUSTRIAL AND CONSUMER

MARKETS The decision making unit is far more complex inbusiness-to-business markets than in consumermarkets

Business-to-business products and their

applications are more complex than consumerproducts

Business-to-business marketers address a muchsmaller number of customers who are very much

larger in their consumption of products than isthe case in consumer markets

Personal relationships are of critical importancein business-to-business markets.

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PRODUCT CLASSIFICATION

Entering Goods

Raw Material

Parts

Foundation Goods Installation

Accessory

Facilitating Goods Supplies

Services

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PRODUCT CHARACTERISTIC

Complexities

Design

Standards

Inspection

Approvals

Volumes

Customization

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BUYER BEHAVIOUR

DMU

Buyer Seller Relationships

Concentration of Buyers Complex Buying Process

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COMMUNICATION PROCESS

Personal Selling

Relationship Marketing

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ENVIRONMENT

Technology

Customers

Competition Regulatory

Socio Economic

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PRICING ENVIRONMENT

Relationship

Buyer

Seller

Competitor

Attributes

Product

Company

Sales Person

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PRICE PERSPECTIVE

Seller

Cost + Mark up

Buyer

Target Cost

Competitive

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PRICING PROCESS

Objective

Cost Benefit Analysis

Benchmarking Attributes Technical

Commercial

Demand Corporate Strategy

Legality

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MARKETING INTELLIGENCE

SYSTEM

Development

Stakeholders Feedback

Media Information

In-house Market Research Report Expert Agencies

Improvement

Training & Motivation Better Internal Communication

Marketing Research and Intelligence

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DEMAND

Derived

Source of Demand

New

Replacement

Elasticity

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DEMAND CHARACTERISTICS

Derived Demand

Joint Demand

Fluctuating Demand Simulation of Demand

Price Sensitivity

Oligopsony

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FACTORS INFLUENCING

INDUSTRIAL DEMAND

End User

Business Conditions

Financial Condition Demand Curves

Marketing Efforts

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ROLE OF INDUSTRIAL

MARKETING MANAGER

Relationships with Intra Company

Management Functions

Planning

Coordination & Execution

Control

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ROLE OF A MARKETER

Link between Buyer and Seller

Provides Customers view point

Represents Company to Client and vice-versa

Manages Self, Client and Competition

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MANAGING SELF

Product Knowledge

Awareness of Macro & Micro Environment

Awareness of SWOT Clarity of Negotiations

Leadership & Motivation skills

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MANAGING CLIENT

Understand Buyer Behaviour

Communication Process

Satisfy Consumer Needs & Wants

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MANAGING COMPETITION

Generate Information on Competitors

Benchmarking

Develop Information Sources