1. ASSIGNMENT 1 :-
Q1)Define B2B ?
Ans. It (BUSINESS 2 BUSINESS) is defined as the
transactions that take place from one company
conducting commerce with another company.
Example:- transaction between manufacturer and
wholesaler or between a wholesaler or retailer.
Q2)Explain the nature and characterstics of industrial
marketing ?
Ans.Industrial marketing may be defined as the
marketing of prdoucts,services, and solutions to
organizations such as big enterprises,govt
departments,and institutions. It is also called as B2B
marketing or organizational marketing.
NATURE:-
 The concept of industrial marketing is used to
describe marketing activities targeted at all
individuals and organisations that acquire products
and services that are used in the production of other
products and services.

2.  Justification for creating industrial marketing as a
specific field of study in marketing derives from the
awareness that the market behaviour, which affects
the demand and purchases of industrial products
and services.
 The demand for industrial products is a derived
demand.
 The purchasing process of industrial products is also
relatively more complex.
 The industrial products are funded with
organisational resources.
CHARACTERSTICS :-
1) Demand Characteristics:- The nature of demand for
industrial products is derived ie demand for
industrial goods depends on the demand for
consumer goods.The relation between consumer
and industrial goods may be clarified by following
illustration:
In 2004 and 2005 the demand for various types of
cars continued to increase. Manufacturers could
meet its demand by increasing their production
figures.Increase in the production was achieved first

3. by improving the capacity utilization, increasing the
no. of shifts and thereafter by capacity
augmentation by adding machine tools and othe
equipments etc. Thus it is seen that increase in
demand for consumer goods resulted in increase in
demand for industrial products.
2)Market characterstics:- Industrial markets differs
from consumer markets in size of the market or
number of consumers and location of the market.
While the number of customers of consumer
products and services is very large, the number of
customers of industrial products and services is very
small.Consumer markets are widely scattered
whereas industrial markets are concentrated in
specific geographical areas. The marketing
implication of this is that it is easy to reach and
service those customers at low cost.
3)Product Characterstics:-Industrial products include
both standardized and tailor made products.Both
the product groups are definitely more technical and
complex as compared to consumer products and
services.Industrial customers require a lot of pre-
sales and post sales support from their suppliers.

4. Their requirements of timely service level is very
high.
4)Price Characteristics:-Generally, for standardized
industrial products, prices are governed by price
lists.However customers negotiate on these prices
and get a better deal. In case of custom bulit
products there can be no list of prices. A supplier
estimates the cost of a product, adds the overhead
component and the desire margin and comes to the
price.
5)Place or distribution characteristics:-Channel
lengths in industrial marketing are short and in many
case direct.The marketing implication for this is the
simplified distribution functions.
6)Promotion characteristics:-The role of advertising
either to make customers aware or remind them
about purchasing becomes redundant in industrial
marketing. All purchases are task driven, they are
not going to buy merely because a promotional
measure is adopted by suppliers. Thus the role of
sales promotion is restricted.
7)Behavior characteristics:-Industrial buyers are
knowledgeable, technically sound and skilled in

5. negotiations. They are rational buyers driven by task
motives. They need good pre sales and post sales
support from the suppliers.A few companies conduct
free training of operators, mechanics, and engineers
employed by its customers. This also ensures that
these personnel use and maintain the equipment
well.
Question no. 3 (Continued in next page)

6. Q3)Differntiate between consumer goods and industrial
goods with example
CONSUMER GOODS INDUSTRIAL GOODS
They are are those They are those which are
which are meant for not used by the consumers
final consumption directly but these goods are
by the consumer used for the production of
consumer goods.
The number of The number of customers
customers for for industrial goods is less
consumer good are but they purchase the
very large but the quantities in bulk.
quantity purchased
by them is less
The demand for The demand for industrial
consumer goods is goods is derived demand
autonomous as these industrial goods
demand as these are used for the production
goods are of consumer goods.
demanded for
ultimate
consumption

7. The market in In case of Industrial goods
which the the market is small
companies can sell because of less number of
consumer goods is buyers of such goods.
large because of
large number of
customers.
They can be divided They can be divided into 5
into following subcatoegories:-
subcateogories:- Industrial supplies,
Shopping goods, installations,fabricated
Specialitygoods and materials and parts,accesory
convenience goods equipment,raw materials
Examples:-Bread, Examples:-lubricants,
soap ,furniture etc copper, timber, tools etc