Industrial Marketing

Industrial Marketing is the marketing of goods &

services to organizations including commercial

enterprises, government and other profit & non-

profit institutions for use in the goods & services

they in turn produce for resale to other customers

or to facilitate the operation of their enterprise

Industrial Vs Consumer Marketing

Market Structure IM- Few, large buyers who are geographically concentrated CM- Mass markets that are geographically dispersedBuyer Behavior IM- Rational, Functional, Technical Expertise, Interpersonal Relations & Reciprocity CM- Family Involvement, Social/Psychological Motives, Less Technical Expertise & Non Personal RelationshipsDecision Making IM- Distinct Observable Stages CM- Unobservable Mental Stages

Industrial Vs Consumer Marketing

Products IM- Customized, Technical, Emphasis on Service, Delivery & Availability CM- Fairly StandardizedChannels IM- Shorter, Fewer and more Direct SCM CM- Indirect and MultiplePromotion IM- Emphasis on Personal Selling CRM CM- Emphasis on AdvertisingPricing IM- List Pricing, Bidding, Negotiations CM- MRP

Demand Characteristics of Business Market

Derived Demand

Price Elasticity of Demand

Joint Demand

Cross Elasticity of Demand

Industrial Marketing

Classification ofIndustrial Markets

Industrial Markets

Commercial Enterprises

Government

Institutions

Users

OEMs

National

State

Local

Profit

Not for Profit

Classification of

Industrial Products