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To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 2
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Industrial = Business
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 3
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Consumer Goods and Services

- are for consumers, the final customer

Industrial Goods and Services

- are used in making consumer goods and services

Industrial = Business
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 4
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To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 5
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“Individuals and organizations that acquire goods
and services to be used, directly or indirectly, in the
production of other goods and services or to be
resold.”
Beckman TEXT

“People who buy stuff to make other things.”

W.T.G.R.

To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 6
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- producers and manufacturers

- trade industries (wholesalers and retailers)
- governments

Not in the text

To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 7
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• producers and manufacturers

Those who transform goods and services, through

production, into other goods and services
• manufacturing firms (eg. Auto parts, computers)
• farms
• mining and forest industries
• construction and building companies
• service companies (trucking, air, rail)
• public utilities, banks, insurance companies
Not in the text
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 8
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• Trade Industries (gong ye maoyi)
• Organizations such as wholesalers and retailers
that buy things for resale to customers

• examples - lumber dealers, fabric wholesalers, building

materials
• metal and electrical products

Not in the text

To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 9
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• Governments (zheng fu)
• Federal Ministries and Crown Corporations,
Provincial Ministeries and Crown Corporations,
Municipal governments and agencies

• examples: Dept. of Defense buying trucks from GM, Dept.

of Revenue buying computers, Royal Canadian Mint buying
paper and
• Provincial agencies buy services such as snow clearance,
cellular phone service …... Not in the text
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 10
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1. Derived Demand
means the demand is derived (or caused by, or
linked to) demand for a consumer item
- demand for lithium is “derived” from the demand
for lithium batteries, which is in turn “derived” from
the demand for cell phones
- demand for wood pulp is derived from the demand
for paper, which is derived from the increase in
people printing on paper
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 11
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2. Joint Demand
means the demand is related to the demand for
other industrial things
eg. The demand for printer cartridges is linked to
the demand for printer paper

for services, the demand for Netscape 4.05 - is

linked to the demand for an ISP account
Not in the text
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 12
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a 1 Classifying Industrial Products
Ch ting
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machinery
2. Accessory Equipment - used in production
- short-lived items eg. tools

3. Raw Materials
4. Component Parts and Materials - finished units
which, when assembled, make the complete product
5. Maintenance, Supplies (MRO Items)
- maintenance,- cleaning fluids

6. Professional Services
- accounting
To accompany firms, Shapiro,
Basic Marketing, law firms
10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 13
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1. Capital Items
things that last a long time, and
become less and less in value over
time

2. Expense Items
- things that are used within a short
period of time
- some types of raw materials, office supplies,
materials in production
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 14
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1. Capital Items
ex - car
- office building
- machinery and equipment
2. Expense Items
ex - gas for the car
- washing the windows for the building
- parts for the machinery
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 15
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•Depreciation

• The accounting concept for charging a

portion of the cost of a capital item as a
deduction against the company’s revenue
- eg. 486 DX2 Office computer bought in 1995
- deduct $750 in 1995
- deduct $750 in 1996
etc.
Not in the text
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson
 r 9 Slide 16
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Industrial Goods and Services
G o o d s a n d S e r v ic e s

C onsum er G oods C o n s u m e r S e r v ic e s I n d u s t r ia l G o o d s I n d u s t r ia l S e r v ic e s

C o n v e n ie n c e G o o d s S h o p p in g G o o d s S p e c ia l t y S e r v ic e s C o n v e n ie n c e S e r v ic e s P r o d u c tio n G o o d s S u p p o r t S e r v ic e s

e g . M a c 's M il k e g . c l o t h in g e g . b a n k in g e g . fa s t fo o d s r a w m a t e r ia l com ponent m a t e r ia ls a c c e s s o r y e q u ip m e n t in s t a l la t io n s

g r a in , s t e e l p a rts n u ts , b o lts to o ls , c o m p u te rs

eg. new spaper e g . g r o c e r ie s e g . tra v e l e g . c ir c u it b o a r d e g . b u i l d in g s

e g . w ir in g
h a rn e s s

To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. ppt slides
Compiled by Prof. Tim Richardson