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Types of Industrial Goods
Installations Installations are major capital items that
are typically used directly in the production of goods.
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Industrial Marketing
Also called: Business-to-Business (B2B)
and Organizational Marketing.
Definition: the creation and management
of mutually beneficial relationships
between organizational suppliers and
organizational customers.
Customer can be private firm, public
agency, or nonprofit organization.
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The Marketing Concept
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Marketing Concept
Three major components:
All company activities should begin with,
and be based on, the recognition of a
fundamental customer need.
A customer orientation should be integrated
throughout the functional areas of the firm:
production, engineering, finance, R&D.
Customer satisfaction is viewed as the
means to long-term profitability goals.
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Marketing Mission Statement
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Marketing Activities
Identify customer needs
Research customer behavior
Divide market into manageable segments
Develop new products/services
Establish/negotiate prices
Deliver, install, service products
Ensure adequate and timely supply of products
at correct place
Allocate resources across product lines
Communicate with customers
Evaluate/control marketing programs
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So whats different about B2B?
Marketing Concept
Marketing Mix
Market Segmentation
Product Life Cycle
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So whats different about B2B?
The technical characteristics of the
product are important.
These products directly affect the
operations and economic health of the
customer.
The customer is an organization rather
than an individual consumer, or family.
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Five Major Differences
Between B2B and B2C
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Products/Services
More complex
Large unit dollar value/Large quantities
Custom/Tailored
Various Stages from raw material to
finished goods.
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Raw Material Extraction
Material Processing
Manufacturing
Parts/Subassembly
Facilitators
Assembly
Distribution
Wholesale/Retail Trade
Final Consumers
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Firms in Production Chain
Nature of Demand
Derived
Joint/Shared
Concentrated
Inelastic
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How Customer Buys
Group Process
Formal
Lengthy
Loyal
Decisions based on risk and opportunity
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Communication
Personal selling more important than
mass paid advertising
Support sales with other promotional
activities: advertising in trade journals,
catalogs, trade shows, direct mail, WWW.
Message focused on technical, factual,
and descriptive content.
Multiple audience members.
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Economic/Financial Factors
Competition oligopolistic
Power/Dependency relationships
Reciprocity:Doing business with
companies that do business with them.
Economic variables: interest rates,
inflation, business cycle
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