SEMINAR P R ES E NT A T I ON

ON
INDUSTR I A L M A R K E T IN G
C E B ET W E E N C O NS UME R &
(FEATURES , DIF F ER EN
INDUSTR IA L MA R K ET I N G )

B Y : SA YED MU NIRU DD IN
PRESENTED
 INTRODUCTION
• The fundamental of consumer marketing are equally applicable to
the industrial marketing. The work of the industrial market is
exclusively different, as all the forces of market that affect
industrial demand.
• The managers of industrial market must react in a different way to
change the markets develop products to meet these changes and
market them in exclusively different ways to the target and
sophisticate customers while maintaining corporate policies.
CONT…

• Therefore, industrial marketers face many distinctive marketing situations

not normally encountered in the consumer market. Further, the industrial
market has been the back bone of the high standard of living enjoyed by
consumers in past or since the industrial revolution at global level.
• It is dynamic growth and development. As and when the principles,
knowledge, and practice of marketing cut across all industries, to market
than it becomes compulsory for the policy makers to study the industrial
marketing differently and to understand the industrial marketing problems.
MEANING OF INDUSTRIAL MARKETING

•INDUSTRIAL MARKETING IS THE MARKETING OF GOODS

AND SERVICES FROM ONE BUSINESS TO ANOTHER.
• INDUSTRIAL MARKETING IS ALSO KNOWN AS B2B
(BUSINESS TO BUSINESS) MARKETING.
 INDUSTRIAL MARKETING

• A marketing channel that specializes in selling goods and services to other business
organizations. Marketing for B2B customers involves large orders and long-term
relationships between organizations. It mostly involves purchase and sale of materials
for the manufacturing/production of goods and services.
• Example:
1. Software company selling its software solution to speaker manufacturing companies.
2. Industrial automation company selling its industrial robots to original equipment
manufacturers.
FEATURES OF INDUSTRIAL MARKETING

FEWER; BUT LARGER MARKET:

Business buyers will be very less as compared to consumer buyers;
but they purchase in bulk or more quantities.
 CLOSE RELATIONS:
Relation between seller and buyer have to be kept very close and
professional. Because once the relations are build; can’t be
changed easily as it reflects huge profit.
COMPLEX BUYING PROCESS:
Very complex procedure is adopted by business buyers; because
before purchasing, the approval is required from different officials
and authorities.
 CONTINUOUS SALES CALLS:
To finalize the deal, it requires constant follow ups and continuous
sales calls.
EXPERTISE SELLING SKILLS:
Sharp selling skill is required to sell the product to industrial
buyers. As they are purchasing in bulk, they will not be easily
convinced. Deep product knowledge is required.
 INFLUENCES:
To finalize the product, different authorities and officials will
interfere and influence the decision to purchase the product.
 DERIVED DEMAND
• The demand for industrial goods is ultimately derived from the
demand for consumer goods.
INELASTIC DEMAND
• The total demand for many industrial goods and services is not
much affected by price changes.
• Demand is especially inelastic in the short run because producers
cannot make many changes in their production methods.
FLUCTUATING DEMAND:
The demand for industrial goods and services tends to be more
volatile than the demand for consumer goods and services. This is
especially true of the demand for new plants and equipment.
PROFESSIONAL PURCHASING:
Industrial goods are purchased by professionally trained purchasing
agents, who spend their work lives learning how to buy better. Many
belong to the national association of purchasing agents, which seeks
to improve the effectiveness and status of professional buyers.
IMPORTANCE OF INDUSTRIAL MARKETING

MAJOR SHARE OF REVENUE:

Major share of revenue is generated by selling the product to
business buyers as they purchase in bulk therefore it is important
to take care of business deals.
 LESS EXPENDITURE:
As the business buyer are very few, no much expenditure is
required to reach and to contact them.
 IMPORTANCE OF INDUSTRIAL MARKETING

LESS PROMOTIONAL EFFORTS:

Free gifts, demonstration etc is not required; because the product
is not to be shown to mass audience.
 PERMANENT CUSTOMERS:
Once the relations are built, business buyers will purchase the
products for longer period of time. Therefore the future is secured
if existing buyers are satisfied properly.
DIFFERENCE BETWEEN INDUSTRIAL MARKETING
AND CONSUMER MARKETING
INDUSTRIAL MARKETING
• A marketing channel that specializes in selling goods and services to
other business organizations. Marketing for B2B customers involves
large orders and long-term relationships between organizations. It
mostly involves purchase and sale of materials for the
manufacturing/production of goods and services.
CONSUMER MARKETING
• A marketing channel that specializes in selling goods and services to
individual buyers. Marketing for end customers involves customizing the
marketing campaigns and communication channels to reach the target
audience. Marketing strategies are more focused on personalizing the
experience of the user with the product or service offered.
• Example
• TV manufacturer selling its TV sets for individual buyers.
• A mobile manufacturer selling its mobile handsets to individual buyers.
 COMMON FACTORS IN INDUSTRIAL MARKETING
AND CONSUMER MARKETING

• Industrialand consumer marketing are quite similar when you

address the fundamental principles of marketing. Both categories
follow the principles of the marketing mix and  the and objectives of
marketing.  They share a common patch in following ways:-
• Match the product or service with the needs of the target market.
• Understand the market and decide on position and pricing, of the
product or service to align with the market needs.
 COMMON FACTORS IN INDUSTRIAL MARKETING
AND CONSUMER MARKETING

•Create effective communication means to demonstrate the

value of the product in the target market.

•Design an end-to-end marketing process to cater to the

requirements and develop a long-term relationship with the
costumer.
 Industrial Marketing
1.Sales cycle Longer Sales cycle
Calculated decisions are
made after several rounds
of review and analysis.
Marketing should generally
involve lengthy nurture-
based approach for sales
2.Buying behavior Buying decision is made by
a team. Involves a specific
process to be followed to
arrive at a collective
decision for buying
Consumer Marketing
Shorter Sales Cycle
Consumers make a
decision on the spot based
on few or limited
preferences.
Buying decision is done by
an individual. The choice is
based on personal
requirements.
 Industrial Marketing
3.Products complexity Complicated products, requires a
thorough knowledge of the
product.
Knowledge on technical
specification of the product is
the focus
4.Market information Information on industrial market
niches is very difficult to gain. It
requires quality and extensive
industrial experience.
Consumer Marketing
Customized products, specific
technical specification.
Knowledge of the customized
specification is required for the
sales of the product.
Information on the consumer
market is easily available.
Consumer demographic
information database helps
easily identify the consumer
profile and kind of market to
target.
 Industrial Marketing Consumer Marketing

5.Advertisement and Advertisements are Advertisements are

promotions more focused on more focused on
products’ applications needs/wants and
and benefits trends
 CONCLUSION
• THECONCEPTS OF INDUSTRIAL MARKETING DON’T VARY
MUCH FROM CONSUMER MARKETING EXCEPT FOR THE
FACT THAT MARKET FORCES THAT ARE DOMINATED BY
CONSUMER REQUIREMENTS DIRECTLY AFFECT THE
INDUSTRIAL DEMAND.
• INDUSTRIAL MARKETING IS BUSINESS-TO-BUSINESS
MARKETING WHERE A BUSINESS BUYS PRODUCTS TO
FULFIL THE NEEDS OF THE ORGANIZATION WHICH MAY
INVOLVE INCREASED PRODUCTION, REDUCTION IN COSTS
AND TO FACILITATE AN OVERALL INCREASE IN THE
PROFITS. 
THANK YOU…