DIMENSIONS OF

INDUSTRIAL
MARKETING
DIVYA SINGH(77)
FANEESH SHARMA(78)
GARIMA GUPTA(80)
KHYATI ANAND(85)
RICHA PANDEY(97)
SURABHI (106)
BUSINESS MARKETING
◦ “Business Marketing is the practice of individuals, or
organizations, including commercial businesses,
governments and institutions, facilitating the sale of their
products or services to other companies or organizations that
in turn resell them, use them as components in products or
services they offer, or use them to support their operations”
INTEL EXAMPLE
B2B v/s B2C
Characteristics of B2B Demand
◦ Derived Demand
A demand for a commodity, service, etc. which is a consequence of the
demand for something else.
◦ Demand Elasticity
Demand elasticity is calculated by taking the percent change in quantity
of a good demanded and dividing it by a percent change in another
economic variable.
◦ Joint Demand
Demand for product or services is interdependent on each other
Industrial Markets
◦ Industrial markets aims at selling products and services to other
companies.

◦ The targets in this trade include: Government undertakings,

manufacturing companies, education institutions, private sector
organizations, dealers , distributors etc.
Classification of Industrial/business customers

1)Commercial Enterprises
2)Government Customers
3)Institutional Customers
4)Co-operative Societies
◦ Commercial Enterprises- These are those enterprises which purchase
industrial goods and services for purposes other than selling directly to
ultimate consumers. The commercial enterprises consists of industrial
distributors or dealers, original equipment manufacturers(OEMS) and
users. Example : IBM, General Motors, Computer Land etc.
◦ Institutional Customers- Public and private institutions such as churches,
hospitals, colleges are important classification of industrial customers.
Some of these institutions follow rigid rules and procedures while some
follow casual procedures.
◦ Government Customers- Working with government provides variety of
opportunities and challenges. A contract with municipal, state or federal
agency means having a solid client that will honour its obligations and pay
on time. It includes public sector units such as BHEL & govt. undertakings
such as Railways, defence units etc . They have low purchasing budgets
therefore prices are important.

◦ Co-operative Societies – These include both manufacturing(sugar and

milk) and non manufacturing units(banks and housing)
CLASSIFICATION OF INDUSTRIAL PRODUCT
Business Marketing environment
◦ The interface level
◦ The publics level
◦ Macro Environment
 The Interface Level

◦ key participants who immediately interface with an industrial firm (buyer or seller)
◦ in facilitating production, distribution and purchase of firm’s goods and services.
◦ Participants in the interface level include:
Input supplier
Distributors
Facilitators
Competitors
 The Publics Level

◦ Publics are distinct groups that have actual or potential interest or impact in each firm’s
ability to achieve its respective goals.
◦ Publics have the ability to help or hinder a firms effort to serve is markets.
◦ It includes-
Financial publics
Independent press
General public
Internal public
Macro Environment

◦ This level of the organization is made up of components that have

less specific and less immediate implications for managing the
organization effectively.
◦ It includes
◦ Economic
◦ Social
◦ Legal
◦ Technological
◦ Political
◦ Demographic
Political Factors:
◦ Enjoys political goodwill in India coupled with a stable government in office even though there are fears of
having a hung parliament in the country.

Economic:
Economic factors also affect the performance of Infosys. For example, the company enjoys huge demand
domestically.

Technological factors:
◦ India’s communication industry is a force to reckon in its business market. Indians enjoy the lowest call
rates with more than 500 million subscribers.
◦ Moreover, India has the second largest telephone network after China, with a Tele-density of 19.86%.

Legal Factors: There are flexible IT requirements when setting up IT companies.

◦ This means you can set up an IT firm with at least 10 hectares coverage and enjoy a host of tax benefits
and fiscal advantages. Additionally, there is no legal requirement on the bonds, which employees are
supposed to work.
 Remsons Shoes CASE STUDY

◦ Mr. M. Ramarao inherited a small shoe-manufacturing unit called “Remsons Shoes”

from his father. Remsons was supplying shoes to dealers and other branded
manufacturers.These shoes were then sold to users under others brand name .Remsons
remained asunbranded suppliers. There was an intense competition among suppliers
and hence profit margins were non-existent.Ramarao studied the market situation and
found out that there was no future for remaining as supplier. He also found that it was
difficult to sell directly without establishing a brandname. It was impossible for Ramarao
to spend money on establishing brand name in consumer market. He decided to look for
other opportunities .He came to know about safety shoes used in industries. Due to new
legislations, large companies were forced to provide safety shoes to workers. The Big
shoe manufacturers were not interested in this market as they considered market small
and long procedures required. Ramarao got some imported samples and manufactured
few shoes using traditional skills. With great difficulty, he found first industrial customer,
a chemical unit. He supplied 1000 pairs to the chemical units. Within six months, there
was major complaint, as the shoes were not withstanding the chemical used. Ramarao
investigated the failures and replaced all the shoes though it was great burden to him.
The next lot performed to customer satisfaction.
◦ During the industry interaction, he found out that though companies
were buying the shoes, labor union were the real decision makers. He
established good rapport with most industrial unions. He became
member of International safety organization for labor and started India
chapter .He involved his own skilled workers as marketing men as
union leaders could co relate with them. Within short time, Remsons
established as major supplier of industrial safety shoes. Remsons
established low cost after sales service network using local “mochi”
or shoe repairs. As a secretary of international safety organization, he
kept good relations with industry managers and workers. He took
safety as social cause and conducted awareness campaigns across
industry. He was appointed as consultant to labor ministry on
industrial safety. He found large market for safety products such as
industrial helmets, goggles, earmuffs. He diversified into new
products and started offering a total industrial safety solution to
industries.
THANK YOU