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Industry

An economic activity concerned with the


processing of raw materials and manufacture of
goods in factories.
Processing: cold storage,
transportation...earlier..animal based,
power...coal...industrialization
it is a much broader process ofeconomic
developmentwhich has in view the
integrateddevelopmentof all other sectors,
i.e. agriculture, power, transport and other
services.
Objective of make in india
Make in Indiais an international marketing
campaigning slogan coined by the Prime
Minister ofIndia, Narendra Modi on 25
September 2014 to attract businesses from
around the world to invest and manufacture
inIndia.
15% agriculture
60 service
25 industry
Industrial and consumer
market
Market is a place where buyers and Seller connect with
each other for the purpose of Buying and Selling their
products . With this , one thing is common in both the
market i.e Industrial Market as well as Consumer
Market same activity takes places. However difference
lies in the audience who are there in one market .
In Consumer Market (product market) , the buyer is
always the end consumer of goods where as in
Industrial Market (factor market) , the buyer is not the
end user of goods rather the one who will be
processing it further to make it available for the end
users .
The industrial marketing concept
involves more than facilitating
exchange with these customers
because it is based upon the
structure of a partnership between
buyer and seller for the purpose of
achieving the organizational goals of
both.
difference
Market characteristics:
few buyers, geographically concentrated
Geographically disbursed, mass markets
Product
Customised, technical complex
Standardised
Service
Service, time delivery, availability is very
important
Somewhat
difference
Buying behaviour
Involvement of various functional
areas, performance basis, stable
relationship, technical expertise...
Involvement of family , buying
decisions are made on the basis of
socio, bio, psycho needs, less
technical, non personal
Decision making
Channel
Short more direct, few middleman
Indirect, layers of middleman
Promotion
Personal selling
Advertising
Price
Tender, bidding, negotiated price
List price, MRP
Types of business marketing
customers
Commercial , constitute first segment : transport companies,
service firms ex hotels, manufacturers, wholesalers etc intel
selling microprocessors to HP and DELL and in turn they target
other customers.
2014-15 data...151lakh manufacturing firms...1lakh employee
more than 80 workers and they produce 50% of all indian
products.
Geographically: pune, gujrat, up and chennai and- variations will
be there. Smaller manufacturing firms also contribute. 3
crore...employing less than 10 people...
Institutional, constitute 3rd: schools, libraries, universities,
colleges, hospitals, clinics, art galleries etc
Governmental constitute 2nd: defence, local govt , state
govt....formal advertising and negotiated contract ....when only
price can not be a criteria.
Distinctive capabilities
Market Sensing.
Customer Linking
(1) close communication
(2) joint planning
(3) the coordination of joint activities
and (4) joint problem solving and
conflict resolution.
B2b must demonstrate crm
Nestle as consumer and business
marketer
characteristics
Relationship marketing
Single purchase by a industrial buyer
is far larger than individual consumer
Derived from consumer demand
Relationship is close
Multiple buying influences
Job titles remain same
difference
marketing of products and services to
individuals, families, and households is made
in consumer marketing. The consumers buy
products and services for their own
consumption.
Further, 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 or
industrial goods and services, and to facilitate
the operation of their enterprises.
objectives
The needs and objectives of
industrial buyers are satisfied
through the following exchange
processes.
Product Exchange
Information Exchange
Financial Exchange
Societal Exchange
Derived demand
Demand for industrial good is derived from
demand of customer good...Harley Davidson
Fluctuating demand Economists refer to this
effect as the acceleration effect. Sometimes a
rise of only 10% in consumer demand can cause
as much as 200% Industrial demand for
products in the next period
Stimulating demand....develop marketing
program also...ad campaign by
aluminium.....change in demand of plastic etc..
Price sensitivity
Joint demand
Inelastic: shoe and leather
cross elasticity of demand cross
elasticity of demandwill be
negative, as shown by the decrease
in demandfor cars when the price
for fuel will rise.
PRODUCT CLASSIFICATION
Industrial goods: bought for further
processing or use in business

Material and Parts


Capital items
Supplies and business services
PRODUCT CLASSIFICATION
entering goods
Material and parts: that enter the manufacturers
product completely
Raw material
Manufactured material and parts
Raw material:
Farm products: wheat, fruits, vegetables, cotton etc, supplied by
many, intermediaries are involved, less advertising, but special
marketing practices because of its perishable characteristic
NECC: Sunday ho ya Monday, roz khao Ande
NDDB: Piyo glass full dudh
Natural products: lumber, fish, iron ore etc, limited supply, must
be moved from the producer to the user. Long term contracts are
common ex Pepsi Food Limited- tomatoes processing plant
Price and reliability of supplier is important
PRODUCT CLASSIFICATION
Manufactured material parts
Component material:
fabricated further, yarn to cloth, cement
to wall, steel price and reliability are
major consideration
Component part:
tyre to car, micro chips they enter the
finished good with no further change,
price and service are major consideration
PRODUCT CLASSIFICATION,
foundation goods
Capital items: long lasting goods, that
helps in developing the finished product
Installations:
buildings ( office)and fixed equipment ( computer,
elevator)
Bought directly from the producer, long decision
period
Accessory: light factory equipment: lift trucks
Office equipment: desks pcs etc
portable office equipments and tools
Middleman is used
PRODUCT CLASSIFICATION,
facilitating goods
Supplies and services: that do not
enter the finished product at all
Supplies:
operating supplies( paper, pencil, coal etc)
and repair and maintenance items( paint,
nails etc)
Services:
Maintenance and repair services: computer
repair
Advisory services: legal, advertising etc