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Nature and scope of industrial marketing
Nature and scope of industrial marketing
Nature and scope of industrial marketing
Nature and scope of industrial marketing
Nature and scope of industrial marketing
Nature and scope of industrial marketing
Nature and scope of industrial marketing
Nature and scope of industrial marketing
Nature and scope of industrial marketing
Nature and scope of industrial marketing
Nature and scope of industrial marketing
Nature and scope of industrial marketing
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Nature and scope of industrial marketing

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  • 1. Nature and Scope Of Industrial Marketing - Overview • Industrial markets present different types of challenges and opportunities as compared to consumer markets • Industrial Markets are markets for products and services, local to international, bought by businesses, government bodies and institutions for incorporation ( ingredient material or components), for consumption( process material, consulting services), for use( installations or equipment)or for resale.
  • 2. Nature and Scope Of Industrial Marketing - Overview • Industrial markets consist of all organisations that purchase goods and services to use in the creation of their own goods and services • Industrial marketing is the process of matching and combining the capabilities of the supplier with the desired outcomes of the customer to create value for the “customers customer” and hence for both organisations
  • 3. Characteristics of Industrial Market Customers • Industrial Market customers comprise commercial enterprises, institutions and governments – HCL Computers customers can be Air India, Delhi University and State Governments • A single purchase by an industrial customer may be far larger than individual customers – An individual may purchase one unit of Microsoft software or an upgrade but Citibank may buy 1000
  • 4. Characteristics of Industrial Market Customers • The demand for industrial products is derived from the ultimate demand for consumer products – Increase in demand for housing will stimulate demand for wood for making furniture and numerous other related products • Relationships between industrial marketers tend to be close and enduring - HCL Computers relationship with some key customers spans decades
  • 5. Characteristics of Industrial Market Customers • Buying decisions by industrial customers often involve multiple buying influences rather than a single decision maker – a cross functional team from an industrial buyer, say textile producer will evaluate various textile machinery companies before buying from any particular company. Purchasing, engineering, material mgt and other division members may be involved in this purchase
  • 6. Scope Of Industrial Marketing Industrial Customers 1.Commercial Enterprises • Users • Original Equipment manufacturers • Dealers and Distributors 2. Government Organisations 3. Institutions
  • 7. Commercial Enterprises • Users purchase industrial products or services to produce other goods or services that are sold in business or consumer markets. Machine tools is an example of such a purchase. Products purchased by users are not incorporated into final product, hence different from OEM’s as explained below. • Original Equipment Manufacturers ( OEM’s)Enterprises like Maruti, Xerox purchase industrial goods to be incorporated ation is OEM. They are generally the large volume users of goods and services
  • 8. Commercial Enterprises Dealers and Distributors – They are commercial enterprises that purchase industrial goods for resale( in basically the same form) to users and OEM’s. They accumulate, store and sell a large assortment of goods to industrial users. They ensure that their customers have timely access to the goods. They play an important strategic role
  • 9. Government Organisations / Institutions • Government and its agencies can be the large purchasers of industrial goods • The high volume purchasing can have procurement and administrative requirements that may require a large amount of effort to ensure compliance. • Focus should be on the value expectation and the factors that influence the buying decision • Public and private Institutions are also important customers and their procedural requirements should be carefully understood. Some of them may be subject to public scrutiny and may follow detailed procedures
  • 10. Industrial Market Environment Publics • Financial Publics • Independent Press • Public Interest Groups • General Publics • Internal Publics These publics have interests because of economic or societal effects of activity in the market or because they provide financing and companies must be sensitive to them
  • 11. Influence of Government • Government laws and regulations play an important role and affect all the participants • Matters like funding, interest rates and taxes, standards, research and environmental issues are of great importance to the activities of companies • International trade regulations are also part of Government interface • Companies generally act through associations and bodies with regard to general matters but must take suitable action regarding their own priorities
  • 12. Overview • The current industrial environment which is rapidly changing requires development and implementation of suitable strategies • Market research, technological innovations, assessing political and regulatory developments and evaluating social change are some measures • Independent, Cooperative and Strategic manoeuvring strategies can be utilised

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