industrial marketing 6

8/2/2019 Industrial Marketing 6

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INDUSTRIAL

MARKETING


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Business market consistsofall theorganizationsthat acquiregoods andservices

usedinthe productionofotherproductsor

servicesthat aresold,rentedorsuppliedto

others.

Industrial marketing isthe marketingofgoods

andservicesfrom one businessto another.

Industrial goods arethose which areusedinIndustryforproducing a differentend product

from oneormoreraw materials.


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CHARACTERISTICS OF

INDUSTRIAL MARKETS


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Fewer, largerbuyers

Closesupplier-customerrelationship

Multiplesalescalls

Multiple buyinginfluences

Deriveddemand


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Inelasticdemand

Fluctuatingdemand

Geographicallyconcentrated buyers

Direct purchasing


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INDUSTRIAL GOODS


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ENTERING GOODS

RAW MATERIALS

-Farm Products

-Natural Products

MANUFACTURED

MATERIALS AND PARTS

-Component Materials

-Component Parts

FOUNDATION GOODS

INSTALLATIONS

-Buildings and Land Rights

-Fixed Equipment

ACCESSORY EQUIPMENT

-Light Factory Equipment

-Office Equipment

FACILITATING GOODS

SUPPLIERS

-Operating Supplies

-Maintenance and RepairItems

BUSINESS SERVICES

-Maintenance and Repair

Services

-Business Advisory Services


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TYPES OFCUSTOMERS


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Commercial enterprises

Users

Original Enterprise Manufacturers(OEMs)

Dealers anddistributors

Governmentorganisations

Institutions


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BUSINESS MARKET VS.

CONSUMER MARKET


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SR.

NO.

BASIS CONSUMER

MARKETS

BUSINESSMARKETS

1. MARKET

STRUCTURE

Geographical

disbursed

Geographical

concentrated

2. BUYERS AND

SELLERS

Manysellers and many

buyers

Few sellers andfew

buyers

3. COMPETITION Perfect Oligopoly

4. PRODUCTS Standardized Technically complex,

Customized

5. SUBSTITUTES

ANDAVAILABILITY

Service,delivery and

availabilityis minimalbecausesubstitutes

are available

Service, availability and

deliveryisimportant.Substitutes are least

6. CHANNEL OF

SUPPLIES

Indirectchannels,

multiple linkage

Shorter, moredirect,

fewerlinkages


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7. BUYING

BEHAVIOR

Family involvement

Social/psychologicalmotives predominate

Lesstechnical expertise

Non personal relationships

Functional involvement

Rational/task motivespredominate

Technical expertise

Stablerelations

Interpersonal

relationships

Reciprocity

8. PRICE List prices Competitive bidding

Negotiatingoncomplex

purchases

List pricesonstandard

items9. PROMOTI

ON

Emphasis ison advertising Majoremphasis ison

personal selling


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THEBUYING CENTER


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Initiators

Users

Influencers

Deciders

Approvers

Buyers

Gatekeepers


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B

UYING SITUATIONS


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Straight Rebuy

Modified Rebuy

New Task


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STAGES IN INDUSTRIALBUYING


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PROBLEM

RECOGNITION

GENERAL NEED

DESCRIPTION

PRODUCT

SPECIFICATION

PROPOSALSOLICITATION

SUPPLIER

SELECTION

SUPPLIER SEARCH

PERFORMANCE

REVIEW

ORDER-ROUTINE

SPECIFICATION


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BUYGRID FRAMEWORK


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BUYCLASSES

BUYPHASE

S

New Task Modified

Rebuy

Straight

Rebuy1.Problem

Recognition

Yes Maybe No

2. General Need

Description

Yes Maybe No

3. ProductSpecification

Yes Yes Yes

4. SupplierSearch Yes Maybe No

5. Supplier

Solicitation

Yes Maybe No

6. Supplier

Selection

Yes Maybe No

7. Order-Routine

Specification

Yes Maybe No

8. Performance Yes Yes Yes


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INDUSTRIAL MARKETSEGMENTATION,

TARGETING ANDPOSITIONING


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1. Identify measurable ,relevant

and operational variables for

segmenting the market

2. Define macro profiles of

resulting segments

3. Define micro profiles of

resulting macro segments

1. Evaluate resulting macro/micro

segments :

a. Profitability analysisb. Competitive analysis

2. Decide on market coverage:

a. Undifferentiated

b. Differentiated

c. Concentrated

3. Select the target segment(s)

1. Develop product/market

positioning for each target

market selected

2. Develop marketing mix for

each target segment selected

MARKET SEGMENTATION TARGET MARKETING

PRODUCT POSITIONING


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MARKET SEGMENTATION

Basisforsegmentingindustrial markets :

Macro segmentation

Micro segmentation


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MACRO SEGMENTATION

VARIABLES

Organizational characteristics

Size (small, medium, large ; basedonsalesornumberofemployees)

Geographical Location

Usagerate(lightuser, moderateuser,heavy

user)

Structureofprocurement(centralized,

decentralized)


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Product/Service application

End marketserved

Valueinuse

Characteristicsofpurchasingsituation Typesofbuyingsituation

Stagein purchasedecision process(early

stages, latestages)


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MICRO SEGMENTATION

VARIABLES

Keycriteria(quality,delivery,supplierreputation)

Structure of decision making unit

Importance of purchase

Attitude towards vendors

Organizational innovativeness (innovatoror

follower)Personal characteristics


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TARGET MARKETING

Undifferentiated market selection

Differentiated market selection

Concentrated market selection


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MARKET POSITIONING


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A good positioningstatement will containthree

elements:

Thetarget market(Whoisthe productfor?)

Thecompetitiveframeofreference(What are

weselling?)

Theunique benefit(Whyshouldthecustomerbuyit?)


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CHANNEL DISTRIBUTION


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PRICING STRATEGIES


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Penetration

Skimming

Cost-oriented

Mark-up

Target pricing

Demand-oriented


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CONCLUSION


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THANK

YOU

industrial marketing 6

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