Industrial Marketing Final Sem

Why Study Industrial Marketing?
With the increasing marketing competency of the 1980’s,

managements of many firms saw some weaknesses in their
organizations and that resulted in
1. Lack of guidance and stimulation for research and
development of new products.
2. Lack in developing markets for new products.
3. Lack of methods for promoting products to customers
in the face of cost & promotional factors.
4. Lack in innovation of logistics with the needs of
industrial customers on national and global basis. .
5. Lack in meeting the new competition through
traditional ways of business.
6. An inability to modify product positioning. The
marketing people needed to correct such situations with
experiences of the marketplace.
7. Industrial practitioners have defined the skills needed
for success in industrial marketing as they dictate the
market.
• Market Planning
• Market Analysis
• Sales Forecasting
• Market Research
• Product Planning
• New Product Development
• Product Management
• Pricing Strategies
• Price Theory
• Sales Management
These ten qualities and some more were the basic
requirements of successful marketing of the marketing
people. It was necessary for continuous upgrade of
knowledge and skill development for the marketing men
in these areas of marketing management.
Failing which the six lack of functions of marketing

mentioned above could not or would be very difficult to
overcome.
To make the subject of Industrial Marketing more

precise and to make the career of people in Industrial
Marketing, research methodology in marketing,
marketing planning & market forecasting techniques are
viewed as the most important areas of study.
1.Product exchange: Supply of raw materials to the

organization to process the finished goods for the end user or
consumer. Examples can be many. Supply of soap/ detergent
powder to the manufacturers of soaps or detergents. To HLL
there must be suppliers of the raw materials of soap/
detergent raw materials to give the end product s like Rin
Detergent Bar or Surf Excel.
2. Information Exchange: When one organization gives the
technical knowledge, economic consultancy, or giving replies
to organizational questions to another organization it is
termed as information exchange. To site an example we say
that the installation of sophisticated software’s in an
organization and operating system of that software can be
termed as information exchange.
3. Financial Exchange: Grant of credit facilities to an
organization is financial exchange. Exchange of currency from
one organization to another country. Example of this we can
say the functioning of Industrial Development Bank of India
(IDBI), which grants loans to industries.
4. Social Exchange: Social exchange is important in areas of
reducing uncertainty between buyer and seller, avoiding
short-term difficulties and thus maintaining a better relation
over a long period of time. We repeat our statement again
that though consumer marketing and industrial marketing
have the same tenets but significant differences do exist.
Those can be:
a. Market Size
b. The Geographic Concentration
c. The Competitive Nature of the Market.
Industrial Versus Consumer Marketing Management While

the basic tasks of marketing management apply in both the
consumer and industrial markets, unique forces combine to
pose special challenges for the industrial marketing manager.
In the industrial market, markets are relatively concentrated
and channels of distribution are shorter; buyers are well
informed, highly organized, and sophisticated in purchasing
techniques; and multiple influencers con-tribute different
points of view to purchasing decisions.
Thus, industrial marketing creates its own set of conditions
for marketing decisions. As in the consumer market,
industrial marketers must define their target mar-kets,
determine the needs of those markets, design products and
services to fill those needs, and develop programs to reach
and satisfy those markets. However, in comparison to
consumer marketing, industrial marketing is more a
responsibility of general management.
In fact, many industrial executives have difficulty in
separating marketing from corporate strategy and policy. In
consumer marketing, changes in marketing strategy are often
carried out completely within the marketing department
through changes in advertising, promotion, and packaging.
However, as Figure 1-1 indicates, changes in industrial
marketing strategy tend to have company wide implications.
Such implications may involve departures from traditional
engineering and manufacturing techniques or major shifts in
developmental emphasis.
As. in the case of Caterpillar, this may require capital
commitments for new plants and equipment. (To revamp
one 40-year old facility will take Caterpillar five years and
$200 million)? Although marketing may identify the need for
such departures from tradition, decisions on such departures
are often the responsibility of general management, which
must provide the follow-through in all functional areas.
Joint Venture With economic liberalization, came a spate of
joint ventures and collaboration.
There are three distinct phases in the lifetime of a Joint
Venture-an exploratory period when the partners explore
their form of a marketing arrangement, a technology transfer
deal and a licensing arrangement.
Once the decision of financial participation has been taken,
the Joint Venture enters its first phase. The transnational
secures quick entry into a foreign market, sometimes even
adding strong local brands to its portfolio, and amasses
knowledge about the market, the business environment, the
regulatory framework, the cultural nuances, and the
necessary skills.
On this part, the Indian partner gains, technology,
contemporary management practices, and perhaps most
important protection from another competitors through the
alliance with a powerful, financially strong global player. The
second phase begins when these companies start plateauing.
When, market penetration is completed, older brands are
milked and replaced by the transactional ‘s brands, and
familiarity with local conditions is achieved. The Indian
partners acquire information on technology. Management
skills are transferred.
Access to export markets has been assured. The partners
utilize the changing developments to rework their objectives;
many of the original compulsions which catalyzed the
formation of Joint venture are discarded, with their place
being taken by a set of other objectives. To fulfill them, the
partners have to renegotiate the terms and conditions of
their alliance; either reinventing their existing joint venture in
the process, or dissolving it and start a new one instead, thus
entering the third phase of Joint Venture.
17. Grt
promotions.ppt
Refer entire ppt
THE BUYING CENTER
CONCEPT
• Buying center Participants in an organizational buying

action.
BUYING CENTER ROLES

Decider
Buyer
Users
Gatekeeper
Influencer

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Why Study Industrial Marketing?

With the increasing marketing competency of the 1980’s,

Failing which the six lack of functions of marketing

To make the subject of Industrial Marketing more

1.Product exchange: Supply of raw materials to the

Industrial Versus Consumer Marketing Management While

• Buying center Participants in an organizational buying

BUYING CENTER ROLES

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