Business marketing

Dimensions of Industrial Marketing:

Nature of Industrial Marketing: IM is the marketing of products and services to business organizations. It includes manufacturing companies, government undertakings, private sector organizations, educational institutions,hospitals,distributors,dealers.

 IM need to understand the buyers need, resources, policies and buying procedures. BM is to create value.

 The basic task of marketing management apply to both consumer and industrial marketing. 1. Deciding the target market 2. Finding the needs and wants of the target markets 3. Developing products and services to meet the requirements of those markets

Difference between industrial and consumer marketing

1. 2. 3. 4. 5. 6. 7. Market characteristics. Product characteristics Buyer behavior. Distribution channel characteristics. Promotional characteristics Price characteristics. Service characteristics.

Industrial demand
The demand for industrial products and services does not exist by itself, it is derived from consumer goods and services. IM should be in close touch with customers purchase, finance, quality, R&D and marketing

Joint demand
Joint demand occurs when one industrial product is useful if other products also exist. IP do not have individual demand, but are demanded only if the other products are available from the industrial supplier.

Cross- Elasticity of demand

Elasticity is the change in demand from the change in price. Demand is inelastic if the percentage change in quantity demanded is less than the percentage change in price. Demand is unitary if the percentage change in price is matched by an equal percentage change in quantity.

 Demand is elastic if the percentage change in quantity demanded is more than the percentage change in price.

Types of industrial market

Commercial enterprises Government customers Institutional customers Cooperative societies

 Commercial enterprises 1. Industrial distributers 2. Original equipment manufactures 3. Users

 Government customers Central and state government department, Undertakings and agencies.

 Institutional customers: public and private institutions such as hospitals,schools,colleges,universities and prisons. Cooperative: cooperative sugar mills, onmanufacturing organizations

Classification of industrial products and services

Materials and parts Capital items Suppliers and servicers

Procurement orientation
It has a strategic focus and is proactive. It seeks both quality improvement and cost reduction. The company adopts  Collaborative relationship with major suppliers  Working closely with other functional areas.

Supply chain management orientation

The SCM has three purchasing philosophies  Deliver value to the end users.  Outsource non-core activities.  Support collaborative relationship with major suppliers.

Environmental analysis in industrial marketing

Types of environment  physical and ecological environment  Internal  External

Internal environment
It is to identify periodically the specific strengths and weaknesses of the company It includes the analysis of firm including marketing, finance, R&D,manufacturing,organisation structure and human resources.

External environment
Both micro and macro external environment factors change continuously. These changes spin out new opportunities and threats. a) The time-horizon for environmental scanning b) The responsibility for environmental analysis

micro environment
Customers Competitors Suppliers

Macro environment factors

Economic Technological factors Government, political and legal Public Cultural and social