Professional Documents
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MBA ProMa
Industrial Marketing is different
Lecture 2- Spring 2009
Hossein Dadfar
Professor of Industrial/International Marketing
1
The Nature Of Industrial Markets
Installations – Major equipment with long lives such as buildings and major
equipment.
2
The nature of Industrial goods
and services
• They are often more complex than consumer goods and services
• They can be categorized as:
• Construction
• Heavy equipment
• Light equipment
• Components and subassemblies
• Integrated system, e.g., production line, power generator
• Raw material
• Processed material
• Maintenance, Repair and Operating (MRO) supplies and services
prof. Hossein Dadfar
CONSUMER
ORGANISATIONAL
PRODUCT PRODUCT
3
Some Examples of
Organisational Buying
¾ Paper cups by McDonald's
¾ Computer chips by Toshiba
¾ Concrete by Local Authorities
¾ Oil by Electricity Generators
¾ Fertiliser by Farmers
¾ Accountancy services by Ltd.. Companies
4
How industrial Marketing Differs from
Consumer Marketing
5
Central to Industrial Marketing is
relationship
BUYER-SUPPLIER
RELATIONSHIPS
Key Concepts
A Transformation in Relationships
Three Types of Buyer-Supplier Relationships
– Transactional Relationships
– Collaborative and Alliance Relationships
– Collaborative Relationships
– Supply Alliances
– Which Relationship is Appropriate?
The Supplier's Perspective
Developing and Managing Collaborative and Alliance
Relationships
6
Three Types of Buyer Supplier Relationships
Transactional
Collaborative
Alliance
7
Continuum of Buyer-Seller Relationships
Steel Steel
Car
manufactur processor Paintshop
manufac
er (steel (molds steel
parts) turer
sheets)
8
The process of developing
relationship management
Value creation
What value?
9
Shortfalls of Previous Theories
a) In the marketing mix concept, it is implicit that buyers are passive and
only react to the stimuli of the seller by buying or by not buying.
Interaction Approach
Interaction approach is based upon four main assumptions:
1. Both the buying and selling firms are active in transaction (exchange).
3. There is a stable industrial market structure, where buyer and seller know
each other and have a good knowledge of the market.
10
Shortfalls of Previous Theories
a) In the marketing mix concept, it is implicit that buyers are passive and
only react to the stimuli of the seller by buying or by not buying.
11