The document discusses different types of industrial and business markets, including characteristics that distinguish them from consumer markets such as business customers typically making larger single purchases and relationships between buyers and sellers being closer. It also covers classifications of industrial products such as materials and parts, capital items, and supplies and services that facilitate business operations and production but do not enter the final product.
The document discusses different types of industrial and business markets, including characteristics that distinguish them from consumer markets such as business customers typically making larger single purchases and relationships between buyers and sellers being closer. It also covers classifications of industrial products such as materials and parts, capital items, and supplies and services that facilitate business operations and production but do not enter the final product.
The document discusses different types of industrial and business markets, including characteristics that distinguish them from consumer markets such as business customers typically making larger single purchases and relationships between buyers and sellers being closer. It also covers classifications of industrial products such as materials and parts, capital items, and supplies and services that facilitate business operations and production but do not enter the final product.
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