Industrial Marketing- Basics

Lahore School of Economics

Winter 2019
 Industry
• Definition:
• Collective large-scale manufacturing of goods in well-organized plants with a
high degree of automation and specialization.

• Difference between industry and sector ?

 Types of Industry

Primary Secondary Tertiary

 Industrial Marketing Defined
• Industrial marketing consists of all activities involved in the marketing of
products and services to organizations that use products and services in the
production of consumer and industrial goods and services , and to facilitate
the operation of their enterprises.

• The process of matching and combining the capabilities of the supplier

with the desired outcomes of the customer to create value for the
“customer’s customer.”

• Industrial Marketing is human activity directed towards satisfying wants

and needs of organizations through the exchange process.
Process of Exchange in Industrial
Markets
Product Information
Exchange Exchange

Financial Social
Exchange Exchange
 Product Exchange
• The characteristics of a product or service involved have a
significant effect on the industrial exchange process.

• The ease of exchange depends upon the ability of the seller to

identify the buyer’s needs and the product’s potential to
satisfy those needs.
 Information Exchange
• Information Exchange often consists of answering technical,
economic , and organizational questions regarding pre and
post sale maintenance and servicing.

• Products must be planned and designed to serve customers.

To accomplish this, buyers and sellers tend to work together,
exchanging product specific information over long periods of
time.
 Financial Exchange
• It involves such considerations as the granting of credit or the
need to exchange money from one currency into another
when dealing with foreign buyers.
 Social Exchange
• It is important in such areas as reducing uncertainty between
buyer and seller, avoiding short term difficulties , and
maintaining the exchange relationship over a lengthy
transaction period.
 B2C Marketing

Marketing

Customer/
Business
Consumer
 B2B Marketing

Marketing Marketing Marketing

Business Business Business Business

B2B and B2C Marketing Combined

Marketing Marketing Marketing

Customer/
Business Business Business Consumer
B2C Marketing : Example

Marketing

Customers/
Bed Sheets
Consumers
 B2B and B2C Marketing Combined: Example

Marketing Marketing Marketing Marketing

Home Textile Customer/

Ginning Spinning Weaving (Bed Sheets) Consumer