The document provides information on business-to-business (B2B) marketing and industrial customers. It discusses that B2B marketing involves marketing products, services, and solutions to organizations for use in production or to facilitate their operations. Industrial customers include commercial enterprises, government bodies, institutions, and non-profit organizations. The document then describes characteristics of B2B markets, classifications of industrial products and customers, and strategies for marketing to different types of industrial customers like commercial enterprises and government entities.

1. MODULE 1

2. • The place where industrial buyer
come into direct contact industrial
seller.
• Industrial Marketing/ B2B
Marketing/Organizational
Marketing

3. • Marketing of Products, services and
solutions to organizations.
• Unique needs of industrial
customers.
• Relatively few buyers and Derived
demand.
• Products used for production of
other consumption related
products.

4. Business customers are also known as industrial
customers, purchase products or services to use in the
production of other products.
Classification of industrial customers
• Commercial enterprises
• Government customers
• Institutional customers
• Cooperatives societies

5. 1. COMMERCIAL ENTERPRISES
 Distribution by size
 Geographic Concentration
2. GOVERNMENT
 E-Government
 Influence on Government Buying
 Understanding Government Contracts

6. Purchasing Procedures
Number Of Customers
Group Purchasing
4. CO-OPERATIVE SOCIETIES
Open Membership
Sources of Finance
Service Motive

7. * Marketing strategies for industrial
customers
Commercial enterprises
Industrial marketer must understand the process &
preference of commercial enterprise buying.
Different promotional strategy should be used for industrial
product sales.
Proper communication between marketer & buying center
of organization.
Assurance of dependable supply.
Understanding the requirement of a specific target
organisation& building a marketing program around these.

8. * Government customers
Business marketer must understand the unique c of
challenges selling to federal government units.
Contractual guideline fixed price contract
cost- reimbursement
contracts
Authorized department asked for proposals from qualified
suppliers.
Reverse trade show concept particularly in provincial &
territorial govt.

9. * Institutional customer
Business marketer must carefully evaluate the budgeting
status of institutional customers.
Salesperson must carefully analyze both professional staff &
purchasing department.
Group purchasing for quantity discount.
Discount &effective distribution function play important
roles in obtaining & keeping institutions as customers.

10. Classification of
industrial products
Capital equipment and investment
Manufactured materials and component parts
MRO supplies ( maintenance, repair, operating)
Process materials
Raw materials
Business services
Overlapping of categories

11. B2B MARKETING
IS
 MARKETING OF GOODS AND SERVICES TO :
◦ Companies
◦ Government Bodies
◦ Institutions (i.e. hospitals)
◦ Non-Profit Organizations (i.e. American Red
Cross)
FOR
 USE IN PRODUCING THEIR PRODUCTS
AND/OR TO FACILITATE THEIR OPERATIONS

12.  Business that sells products or provides
services to other businesses.
 goods or services are sold for any use
other than personal consumption
 sale of their products or services to other
companies or organizations that in turn resell
them, use them as components in products or
services they offer.
 business marketing(industrial marketing)
is also called business-to-business marketing

13. • B2B sale is to a "Business" i.e. organization
or firm
• Shorter and more direct channels of
distribution.
• For corporate (E.g; ingredient materials or
components) for consumption(E.g. process
materials, consulting services) or for resale...
• DuPont and IBM spend more than $60
million a day on purchases to support their
operations.

14. Major Uses of B2B Products
 For additional production
 For use in operations
 For resale

15. Characteristics B2B Market
Sales volume Greater
Purchase volume Greater
Number of buyers Fewer
Location of buyers Concentrated
Buyer-seller relationship Closer
Nature of channel More direct
Key promotion method Personal Selling

16. • Their demand is derived from the demand for final consumer
goods.
• Industrial demand may be inelastic
• Buyer interest in price depends on the nature of the product.
• Buying is basically concerned with economic factors.
• The buyer’s attitude seems to be affected by the tax
treatment according to the product.

17. PURCHASING
ORIENTATION AND
PRACTICES OF BUSINESS
CUSTOMERS

18. Supplier Search Proposal Evaluation
Product
Specification Purchase Decision
Post-Purchase
Need Recognition
Behavior

19. 1. Buying orientation
2. Procurement Orientation
3. SCM Orientation

20. Component Intermediari
& es
Subassembly (Distributors
Raw
Supplier , Dealers)
Material
Supplier Final
Assembly Consumers /
supplier End users

21. Industrial marketing environment are those factors and institutions which
affect the organization and operation of the business activities. It affects the
functioning of the businesses.
Nature of Industrial Environment
1.Interdependence
2.Dynamic
3.Media of Social Change
4.Adverse Condition
5.Uncertainties & Restriction
6.Unlimited effect of Uncontrollable Factors
7.To keep regular Vigil on the changing environment
8.Danger of the Causal Change

22. Basically Industrial environment has two types:
Industrial Environment
Internal Environment External Environment
Micro / Operating Macro/ General
Environment Environment

23. Internal Environment refers to factor existing within a business firm in the industrial
market. These environments are controllable in nature and can be alter or modify to suit
the business.
It includes the following Factors:
Value System
Mission and Objective
Management Structure and Nature
Internal Power Relationship
Human Resources
Company Image and Brand
Other Factors:
Physical Assets and Liabilities
R & D and Technological Capabilities
Marketing Resources
Financial Factors

24. External Environment refers to the factors existing outside the business firm in the
industrial market. The external factors are by and large, beyond the control of the
business. The external environment has two types:
1. Micro/ Operating Environment:
Micro environment consists the company’s immediate environment that affects the
performance of company. This environment remains close to the business and affects
the ability to work.
The micro environment factors are as follows:
Suppliers
Customers
Facilitator
Competitors
Marketing Intermediaries
Public

25. 2. Macro/ General Environment
Macro environment are general environment of the business and uncontrollable in
nature. These factors create opportunities and pose threats to the business.
According to Philip Kotler “ Macro environment includes forces that create
opportunities and pose threat to the business units. It includes
economic, demographic, natural, technological, political and cultural environment”.
Political
Natural Economical
Macro
Environment
Socio-
Demographic
Cultural
Technological

26. Environment Analysis is managerial decision making process of assessing and
interpreting the information gathered through scanning. The information is evaluated
for accuracy, to resolve inconsistencies , and to assign significance. The current
change are identified and future changes are predicted.
The steps of Environment Analysis is as follows:
Scanning Monitoring Forecasting Assessment

27. Industrial environment clearly dictates the need for industrial marketers to develop
and maintain strategies to influence, modify, or respond to actions within the
environment that may hinder or aid the achievement of organizational objective.
Marketers must adopt a proactive , creative stance with respect to the external
environment.
The strategies that are available for marketers for environmental management are as
mentioned below:
Independent Strategies:- Pricing decision, promotion decision etc
Cooperative Strategies :- Cooperation with other groups, firms or industries (Joint
venture) Examples: Myriad computer manufacturer, IBM Compatibles etc.
Strategic Maneuvering:- It involves strategic that are designed to alter or change
the firm’s relationship with respect to its interface environment.

28. thank
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