Indusyrial Marketing Introduction slides useful for MBa BBa Students who opted Marketing Speciliation

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Business Markets
Local to international
– Bought by
• Businesses
• Government bodies
• Institutions
– For consumption
– For use
– For resale
GE
Markets for products and services
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A Market Driven Firm
Market sensing capability…companies ability
to sense change and to anticipate customer
responses.
Customer linking…the ability to develop and
manage close customer relationships.
Has:

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Marketing’s Cross Functional Relationship
Business marketing planning must
be coordinated and synchronized
with corresponding planning efforts.
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Keys to Cross Functional
Working Relationships
Communications
Perspective taking
Responsive behavior
Compatibility

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Business Market Characteristics
• Derived demand
• Fluctuating demand
• Stimulating demand
• Price sensitivity/demand
elasticity
• Global Market perspective
GE
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Relationship Marketing
• All marketing activities directed toward
establishing, developing, and maintaining
successful exchanges with customers.

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Michael Porter and Victor Millar observed that “to gain competitive
advantage over its rivals, a company must either perform these activities at
a lower cost or perform them in a way that leads to differentiation and a
premium (more value).”
The Supply Chain

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Procurement Trends
• Longer term and closer relationships.
• Closer interactions among multiple functions.
• Supplier proximity considerations.

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Business Market Customer
Commercial Enterprises
• Three categories:
– Users
– OEMs
– Dealers and distributors

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Classifying industrial goods by
the following questions:
How does the good or service
enter the production process?
How does it enter the cost
structure of the firm?
Classifying
Goods for the
Business
Market
Source: Adapted from Philip
Kotler, Marketing
Management: Analysis,
Planning, and Control, 4th ed.
(Englewood Cliffs, N.J.:
Prentice-Hall, 1980), p. 172,
with permission of Prentice-
Hall, Inc.

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The Internet … Providing Goods & Services
Source: http://www.fao.com

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A Framework for Business Marketing Management
Business marketing strategy
is formulated within the
boundaries established
by the corporate
mission and
objectives.