Description
It explains the Industrial Marketing Basics. It covers the concepts, aspects, products, scenarios etc of Industrial Marketing.
•
Marketing of goods and services to industrial and institutional customers (B 2 B
Marketing also called Organizational Marketing)
•
The institutional customers use purchased goods and services in their own production of goods and services
•
Book’s Definition: The creation and management of mutually beneficial relationships between organizational suppliers and organizational customers
• •
Customer can be private firm, public agency, or non-profit organization It involves the process of providing goods and services to industrial market intermediaries , as opposed to ultimate (final) consumers
? ? ?
More complex Functional vs. Symbolic Attributes Custom/Tailored
?
?
Various Stages from raw material to finished goods.
Foundation, Entering, Facilitating Goods
?
Raw Materials – These are products destined to become part of another product, subject to further processing.
?
Fabricated Materials – In contrast to raw materials, these have already been processed but may require further processing.
?
Installations – Major equipment with long lives such as buildings and
major equipment.
?
Accessory Equipment – Such equipment is used to aid and implement production and includes office machines as well as machine tools.
?
Operating Supplies – Materials used in producing goods & services (are
similar to convenience goods in that they are consumable)
•
They are often more complex than consumer goods and services
•
They can be categorized as:
• • • • •
Construction Heavy equipment Light equipment Components and subassemblies Integrated system, e.g., production line, power generator
•
• •
Raw material
Processed material Maintenance, Repair and Operating supplies and services
•
Identify customer needs
•
• • • • • • • •
Research customer behaviour
Divide market into manageable segments Develop new products/services
Establish/negotiate prices
Deliver, install, service products Ensure adequate and timely supply of products at correct place Allocate resources across product lines Communicate with customers Evaluate/control marketing programs
?
Cummins manufacture engines for the auto assembling firms & that too on the specifications demanded by the customers (auto assembling firms) &
companies like Cummins market their product on the technical expertise
they have & the quality standard they have maintained
?
Similarly, on the derived demand from computer manufacturers, chipset manufacturer Intel creates product & market them to the end user so that at
the end of day the demand for the product should be created at the end user
level
?
Heavy Machinery & Equipment manufacturer like BHEL manufactures its product on the basis of requirements suggested by the customer firm Market Research firms like AC Nielsen or IMRB market their product on the functional expertise they posses & so their customers do buy their services accordingly
?
?
Additional needs • Industrial Marketing have additional needs, for example, the making of profits and legal obligations to their customers Different decision-making procedures • More people involved in purchasing decisions • Administrative paperwork associated with the purchasing activity, such as order forms and purchase contract Derived demand • Ultimately depends on what the buyers are producing • Marketers need to pay attention to the markets served by their customers • Can play a proactive role in stimulating derived demand by advertising their product directly to final consumers; Eg: Intel which markets its computer chips direct to consumers in the hope that, due to consumer demand, computer manufacturers will buy Intel chips rather than Motorola or nonbranded chips
?
?
? Professional Buyers
• Purchasing activity is undertaken by professionals who have access to more information than do consumers. This means that marketing to businesses may be more reliant on technical specifications and the salespeople themselves may need to be more technically aware • In contrast, such elements of the marketing mix as packaging may play less of a role
?
Communication Process • Personal selling more important than mass paid advertising • Support sales with other promotional activities: advertising in trade journals, catalogs, trade shows, direct mail, internet • Message focused on technical, factual, and descriptive content. • Multiple audience members
Thank you
doc_404102002.pptx
It explains the Industrial Marketing Basics. It covers the concepts, aspects, products, scenarios etc of Industrial Marketing.
•
Marketing of goods and services to industrial and institutional customers (B 2 B
Marketing also called Organizational Marketing)
•
The institutional customers use purchased goods and services in their own production of goods and services
•
Book’s Definition: The creation and management of mutually beneficial relationships between organizational suppliers and organizational customers
• •
Customer can be private firm, public agency, or non-profit organization It involves the process of providing goods and services to industrial market intermediaries , as opposed to ultimate (final) consumers
? ? ?
More complex Functional vs. Symbolic Attributes Custom/Tailored
?
?
Various Stages from raw material to finished goods.
Foundation, Entering, Facilitating Goods
?
Raw Materials – These are products destined to become part of another product, subject to further processing.
?
Fabricated Materials – In contrast to raw materials, these have already been processed but may require further processing.
?
Installations – Major equipment with long lives such as buildings and
major equipment.
?
Accessory Equipment – Such equipment is used to aid and implement production and includes office machines as well as machine tools.
?
Operating Supplies – Materials used in producing goods & services (are
similar to convenience goods in that they are consumable)
•
They are often more complex than consumer goods and services
•
They can be categorized as:
• • • • •
Construction Heavy equipment Light equipment Components and subassemblies Integrated system, e.g., production line, power generator
•
• •
Raw material
Processed material Maintenance, Repair and Operating supplies and services
•
Identify customer needs
•
• • • • • • • •
Research customer behaviour
Divide market into manageable segments Develop new products/services
Establish/negotiate prices
Deliver, install, service products Ensure adequate and timely supply of products at correct place Allocate resources across product lines Communicate with customers Evaluate/control marketing programs
?
Cummins manufacture engines for the auto assembling firms & that too on the specifications demanded by the customers (auto assembling firms) &
companies like Cummins market their product on the technical expertise
they have & the quality standard they have maintained
?
Similarly, on the derived demand from computer manufacturers, chipset manufacturer Intel creates product & market them to the end user so that at
the end of day the demand for the product should be created at the end user
level
?
Heavy Machinery & Equipment manufacturer like BHEL manufactures its product on the basis of requirements suggested by the customer firm Market Research firms like AC Nielsen or IMRB market their product on the functional expertise they posses & so their customers do buy their services accordingly
?
?
Additional needs • Industrial Marketing have additional needs, for example, the making of profits and legal obligations to their customers Different decision-making procedures • More people involved in purchasing decisions • Administrative paperwork associated with the purchasing activity, such as order forms and purchase contract Derived demand • Ultimately depends on what the buyers are producing • Marketers need to pay attention to the markets served by their customers • Can play a proactive role in stimulating derived demand by advertising their product directly to final consumers; Eg: Intel which markets its computer chips direct to consumers in the hope that, due to consumer demand, computer manufacturers will buy Intel chips rather than Motorola or nonbranded chips
?
?
? Professional Buyers
• Purchasing activity is undertaken by professionals who have access to more information than do consumers. This means that marketing to businesses may be more reliant on technical specifications and the salespeople themselves may need to be more technically aware • In contrast, such elements of the marketing mix as packaging may play less of a role
?
Communication Process • Personal selling more important than mass paid advertising • Support sales with other promotional activities: advertising in trade journals, catalogs, trade shows, direct mail, internet • Message focused on technical, factual, and descriptive content. • Multiple audience members
Thank you
doc_404102002.pptx