Its all about the Industrial marketing against consumer marketing, its characteristics, steps involved in this process.

1. Presented by-
Jyotirekha Kar
INDUSTRIAL
MARKETING

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CONTENTS
1. Introduction-What is industrial marketing?
2. How it is different from consumer marketing?
3. Characteristics of industrial marketing
4. Steps involved in industrial marketing process
5. References

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Introduction
Marketing definition:
“Marketing is a social and managerial process by which individual and
groups obtain what they need and want through creating and exchanging
products and values with others.”
 Industrial marketing (or business to business marketing) is the marketing
of goods and services by one business to another. Industrial goods are
those an industry uses to produce an end product from one or more raw
materials.
 These markets are not intended directly to consumers but among
businessmen.
 Finished goods market
 Raw material market
 Services
E.g. – Accountancy, legal advice, security services, waste disposal
services

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Supplies
Services
Lubricants, Fasteners, paints
, Electrical ItemsSupplies & Services
Iron ore, Crude oil, fruits, fish
Material & Parts
Capital items
Light equipment/
Accessories
Subassemblies
Acids, Fuel oil, Steel ,
Chemicals
Component Parts Gauges, TV tubes, Tyres,
Plants & Building
Installation or Heavy
Equipments
Hand tools, Dies, Jigs
Exhaust Pipe in Motor Cycle
Manufactured
Materials
Raw Materials
Plants, Office Building
Machine Tools, Furnaces
Legal, Auditing, Advertising,
Courier, Market Research

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Understanding B2B Market & Environment with
Buyers Perspective

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Industrial Vs Consumer Marketing
Areas of difference Industrial market Consumer market
Market Characteristics Geographically Concentrated Geographically
Disbursed
Relatively Fewer Buyer Mass Market
Product Characteristics Technical Complex Standardize
Customized
Service Characteristics Service , timely Availability extremely
Important
Somewhat Important
Buying Behavior Involvement of Various functional area
from both the ends
Involvement of family members
Purchase Decisions are performance based
and rational
Purchase decisions are mostly
based on Physiological
/social/psychological needs
Technical Expertise Relatively less technical
expertise is required
Stable Interpersonal relationship Non- Personal relationship

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Areas of Difference Industrial Market Consumer Market
Channel Characteristics More Direct Indirect
Fewer Intermediaries Multiple layer of Intermediaries
Promotional Characteristics Emphasis on Personal Selling Emphasis on Mass Media
(Advertising)
Price Characteristics Competitive Bidding and
Negotiated Prices
List Price or MRP
List Price for Standard Products

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CHARACTERISTICS OF INDUSTRIAL
MARKETS
 Fewer and larger buyers
 Close supplier and customer relationship
 Multiple decision makers while buying
 Shorter and more distinct channels of distribution
 Derived demand
 Branding is of large scale when compared with B2C
 Inelastic and fluctuating demand
 Direct purchasing
 Multiple sales calls
 Reciprocity

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© jyotirekha kar
 The marketing mix is affected by the B2B uniqueness
which include complexity of business products and
services, diversity of demand and the differing
nature of the sales itself
 only a small part of their promotional budgets is
spent to advertising through direct mail efforts and
trade journals. While advertising is limited, it often
helps the business marketer set up successful sales
calls
 target market for a business product or service is
smaller and has more specialized needs reflective of
a specific industry

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Major segmentation variables for
industrial markets
1. Demographic:
 Industry
 Company size
 Location
2. Operating variables:
 Technology
 User or non user status
 Customer capabilities
3. Purchasing approaches:
 Purchasing function organization
 Power structure
 Nature of existing relationships
 General purchase policies
 Purchasing criteria

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Continued..
4.Situational factors
 Urgency
 Specific application
 Size of order
5.Personal characteristics
 Buyer seller similarity
 Attitudes towards risk
 loyalty

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Industrial marketing distribution
channel
In case of a consumer
product, indirect channel
of distribution, such as
wholesalers, retailers is
the most suitable
Direct channel of distribution is useful
because of the relatively small number of
customers need for personal attention,
salesman technical qualifications and
after sale servicing etc.

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The fundamental principle of marketing remains same for both
consumer and industrial marketing
 successfully match the product or service strengths with
the needs of a definable target market;
 position and price to align the product or service with its
market, often an intricate balance; and
 communicate and sell it in the fashion that demonstrates
its value effectively to the target market.

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References
 Marketing management by Philip Kotler
 www.wikipedia.in

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Thank you…Thank you…