3.2 InformationExchange The information consists of technical, economic, and organisational questions:p r e a n d p o s t s a l e m a i n t e n a n c e a n d s e r v i c i n g m u s t b e e x c h a n g e d t o t h e participants of business o r g a n i s a t i o n s . P r o d u c t s a n d s e r v i c e s mu s t b e p l a n n e d a n d d e s i g n e d t o s e r v e c u s t o me r s e f f i c i e n t l y. To a c h i e v e i t , b u ye r s a n d sellerst e n d t o w o r k t o g e t h e r , e x c h a n g i n g p r o d u c t s p e c i f i c i n f o r m a t i o n o v e r l o n g periods of time.

1.3.3FinancialExchange The granting of credit or the need to exchange money from o n e c u r r e n c y t o another at the time of dealing with foreign buyers/customers are included in thisexchange. 1.3.4SocietalExchange Societal exchange is important to reduce uncertainty between buyer and seller,a v o i d i n g s h o r t - t e r m d i f f i c u l t i e s , a n d m a i n t a i n i n g t h e long-term exchangerelationship to one another. A number o f a s p e c t s o f a n a g r e e m e n t b e t w e e n b u ye r s a n d s e l l e r s i n t h e i n d u s t r i a l ma r k e t a r e b a s e d o n a r b i t r a t i o n a n d mu t u a l t r u s t , n o t fully formalized or based on legal criteria until the e n d o f t h e transaction period. 1.4 CHARACTERISTICS: INDUSTRIAL AND C O N S U M E R MARKETING The basics of marketing management: deciding the target markets; finding outt h e n e e d s a n d wa n t s o f t h e t a r g e t ma r k e t s , d e v e l o p i n g p r o d u c t s a n d s e r v i c e s t o meet the requirements of those markets, and evolving marketing programmes ors t r a t e g i e s t o r e a c h a n d s a t i s f y t a r g e t c u s t o me r s i n a b e t t e r a n d f a s t e r wa y t h a n competitors apply to both consumer and industrial marketing.T h e i n d u s t r i a l m a r k e t s a r e g e o g r a p h i c a l l y c o n c e n t r a t e d ; t h e c u s t o m e r s a r e relatively f e w e r ; t h e d i s t r i b u t i o n c h a n n e l s a r e s h o r t ; t h e b u ye r s ( o r c u s t o me r s ) a r e w e l l i n f o r m e d ; t h e b u y i n g o r g a n i s a t i o n s a r e highly organised and use AcroPDF - A Quality PDF Writer and PDF Converter to create PDF files. To remove the line, buy a license. M B A - M a r k e t i n g I n d u s t r i a l M a r k e t i n g sophisticated purchasing techniques; the purchasing decisions are based on o b s e r v a b l e stages in industrial marketing. Industrial marketing is more

a r e s p o n s i b i l i t y o f g e n e r a l ma n a g e me n t i n c o mp a r i s o n t o c o n s u me r ma r k e t i n g . S o me t i me s , i t i s d i f f i c u l t t o se p a r a t e i n d u s t r i a l ma r k e t i n g s t r a t e g y f r o m t h e corporate (company) strategy. But in case of consumer marketing, many timest h e c h a n g e s i n marketing strategy are carried out within the m a r k e t i n g d e p a r t me n t , t h r o u g h c h a n g e s i n a d v e r t i s i n g , s a l e s p r o mo t i o n , a n d pa c k a g i n g strategies. However, the changes in industrial marketing strategy generally havecompany-wide implications.Th e d i f f e r e n c e s b e t we e n i n d u s t r i a l a n d c o n s u me r ma r k e t i n g a r e a s s h o wn i n Table 1.1. Table1.1: DifferencesbetweenIndustrialandConsumer MarketingSr.No.B a s e s Industrial Markets Consumer Markets 1. Marketcacrts hr tii aes c Geographicallyconcentrated,Relatively fewer buyersGeographicallydisbursed,Mass markets2. Pdchrcrts r ut a tii o c aes c Technical complexity,C u s t o m i s e d S t a n d a r d i s e d 3. SvC aatrsis eie hrceitc rc Service, timely deliveryand availability veryimportantService, delivery, andavailability somewhatimportant AcroPDF - A Quality PDF Writer and PDF Converter to create PDF files. To remove the line, buy a license.

M B A - M a r k e t i n g I n d u s t r i a l M a r k e t i n g 4. Byreair ue hv b o Involvement of variousfunctional areas in both buyerand supplier firms,Purchase decisions aremainly made onrational/performance basis,Technical expertise,Stable interpersonalrelationship between buyersand sellersInvolvement of familymembersPurchase decisions aremostly made onphysiological/social/ psychological needs,Less technical expertise,Nonpersonalrelationship5. Dn a i g e- kn cm s i o Observable stages,DistinctUnobservable,Mental stages6. Canl hrcrts hne a tii . C aes c Shorter,More direct,Fewerintermediaries/middlemenIndirect,Multiple layers of intermediaries7. P mtnl hrceitc r o a aatrsis o iC o E mp h a s i s o n p e r s o n a l s e l l i n g E mp h a s i s o n a d v e r t i s i n g 8. PriceC aatrsis hrceitc Competitive bidding andnegotiated prices,List prices for standardproductsList prices or maximumretail price (MRP) 1.4.1 Market Characteristics B a s i c a l l y, t h e s i g n i f i c a n t d i f f e r e n c e s e x i s t b e t w e e n i n d u s t r i a l a n d c o n s u me r m a r k e t c h a r a c t e r i s t i c s t h a t a f f e c t t h e n a t u r e o f industrial marketing. Thesedifferences are: size of market; g e o g r a p h i c c o n c e n t r a t i o n ; a n d c o m p e t i t i v e nature of the markets. Sizeof theMarket : Compared to the great number of households that constitutet h e m a s s market for consumer goods and services, In the case of industrialmarkets, it is common to find less than 20 c o m p a n i e s t o r e p r e s e n t t h e t o t a l market for an industrial product or service. In fact, only three or four customersmay comprise the major portion of a total market. For example, for a consumerproduct like toothpaste or soap, a mass market, consisting of all the householdsin India, exist. Further, in industrial arena, oligopsonistic buying organisations AcroPDF - A Quality PDF Writer and PDF Converter to create PDF files. To remove the line, buy a license.

M B A - M a r k e t i n g I n d u s t r i a l M a r k e t i n g (very large firms) tend to dominate many markets such as, large powertransformers or high-tension switchgears, there a r e l i m i t e d n u m b e r s o f customers-mainly State Electricity Boards, large private and public s e c t o r organisations. While there are relatively few industrial customers, they are largeri n s i z e , p u r c h a s e l a r g e r q u a n t i t i e s , a n d e n g a g e i n t h i s v o l u me p u r c h a s i n g o n a repeat basis. Gorpia ocnan eg h l nett : a cC ri o Industrial customers also tend to be concentratedi n s p e c i f i c a r e a s o f t h e I n d i a s u c h a s An d a ma n Ni k o b a r , t h e L e h Hi l l s . S u c h c o n c e n t r a t i o n o c c u r s ma i n l y b e c a u s e o f n a t u r a l r e s o u r c e s a n d ma n u f a c t u r i n g p r o c e s s e s . F o r e x a mp l e , t h e g e o gr a p h i c l o c a t i o n o f n a t u r a l r e s o u r c e s e x p la i n s t h e c o n c e n t r a t i o n p a t t e r n s

o f mo s t e n e r g y - p r o d u c i n g f i r ms . O n l y a h a n d f u l of counties in California, Oklahoma,. Texas, and Louisiana produce the bulk of our g a s and oil. Manufacturers whose production processes add w e i g h t t o t h e i r p r o d u c t s t e n d t o l o c a t e n e a r c u s t ome r s , wh i l e t h o s e wh o s e p r o c e s s e s s u b t r a c t we i g h t t e n d t o l o c a te n e a r s o u r c e s o f i n p u t . M a n u f a c t u r e r s o f c o mp u t e r s a n d other advanced electronic products present an interesting case of plant location. T h e y t e n d t o concentrate in areas that have advanced teaching and r e s e a r c h f a c i l i t i es a n d d e s i r a b l e l iv i n g l o c a l e s s u c h a s t h e S i l i c o n V a l l e y i n B a n g l or e . S u c h l o c a t i o n s a r e c h o s e n t o f a c i l i t a t e t h e a t t r a c t i o n o f i n t e l l i g e n t , e d u c a t e d employees, who seek both intellectual challenges and physical pleasures. CompetitiveNature: A n a d d i t i o n a l d i f f e r e n c e b e t we e n t h e t wo ma r k e t s i s t h e n a t u r e o f o l i g o p s o n i s ti c b u yi n g . I n t h e i n d u s t r i a l a r e n a , o l i g o p s o n i s t i c b u yi n g o r g a n i z a t i o n s , o r g a n i z a t i o ns t h a t a r e v e r y l a r g e f i r ms , t e n d t o d o mi n a t e ma n y ma r k e t s . F o r i n s t a n c e , t h e s ma l l n u mb e r o f l a r g e a u t o mo b i l e p r o d u c e r s i n t h e United States purchase 60 percent of all synthetic rubber, 60 percent of all lead,a n d 7 2 p e r c e n t o f all plate glass produced in the United States. T h e s e o l i g o p s o ni s t s r e a c t i o n s t o c h a n g e s i n o n e a n o t h e r ' s b u yi n g p r a c t i c e s a f f e c t industrial marketing strategy decisions. AcroPDF - A Quality PDF Writer and PDF Converter to create PDF files. To remove the line, buy a license.