University of Dar es Salaam

Department of Mechanical and Industrial

Engineering

IE 445: Entrepreneurship for Engineers

 Chapter 3(b)

Industrial and International Marketing,

and
Digital marketing
 Industrial (Business) Marketing

What is industrial marketing?

• The basic concept of marketing remain the same for both the
consumer marketing and industrial marketing.

• However, there are differences between consumer markets and

industrial markets.

• These differences must be understood well by industrial

marketers, who want to reach and satisfy the customer better
and faster then their competitors in order to achieve the
corporate objective.
 What is industrial marketing?
• Industrial marketing is also referred to as business to
business (B2B) marketing or business marketing or
organizational marketing.

• Industrial marketing is the marketing of products and

services to business organizations.

• Business organizations include manufacturing

companies, educational institutions, hospital,
distributors and dealers.
 What is industrial marketing?
(A) What is Industrial (Business) marketing?
• It is marketing of products / Services to business firms.
• In contrast consumer marketing is marketing products/ services to
individuals & households.

(B) What is the difference between industrial marketing, B2B

marketing, Business marketing & Organizational Marketing?
• No Difference!

(C) What are the differences between Industrial & Consumer

Marketing?
• Basic tasks of marketing are same difference Exists in the
characteristics shown next.
AREAS / CHARCTERISTICS IND MARKETS CONSUMER MATKETS
GEO Disbursed
Geographically Concentrated
Market Large no. Of Buyers
Few Buyers
(Mass Markets
Technically Complex Non – Technical
Products
Customized Standardized
Service Very Important Somewhat important
Various Functional
Family members involved
specialists involved
Physiological /
Mainly Rational buying
Psychological Social need
Buyer Behaviour decisions.
based buying decisions
Interpersonal
Non – Personal
relationship between
Relationship.
buyers and sellers.
Indirect
More direct
Channel Few Channels with many
Multi Channel
layers
Importance to personal
Promotional Importance to Advertising.
selling
Competitive bidding /
Pricing Maximum Retail Price (MRP)
Negotiated prices
 What is industrial marketing?
(D) Why is Industrial Demand called Derived Demand?

• Because Industrial demand is derived from (or depends on)

demand for consumer goods/services.

• E.G., steel is demanded for production of consumer durable

products like Cars & Refrigerators, which are demanded by
household consumers.

• Hence, Demand for Steel is derived from forecast of consumer

demand for Cars, Refrigerators, Washing Machines, Etc.,
 Classification of Industrial Products
• Industrial products and services are classified into three broad
groups.

(1) Material and Parts: These goods enter the product directly
• Raw Material (Basic Products like fabric, iron ore, crude oil,
fruits, vegetables, etc.)
• Manufactured Items (Garments, Acids, fuel oil, steel,
chemicals)
• Components Parts (semi finished parts like bearings, TV
Tubes, small motors, tyres, etc.)
• Subassemblies (semi finished goods like exhaust pipe in
motorcycle)
Classification of Industrial Products
(2) Capital Items
✓ A capital good is a durable good (is a good that does
not quickly wear out) that is used in production of
goods or services.

✓ These goods are used in production process.

• Light equipment or accessories (Hand tools, computer

terminals.)

• Installations or heavy equipment's (machines, turbines)

• Plant and building (Offices, plants, warehouses, parking

lots, housing, which are real estate property)
Classification of Industrial Products
(3) Supplies and Services

• These goods /services support the operations

• Supplies – These are operating maintenance supplies

like fuels , packaging materials, lubricants, paints,
electrical items

• Services – Companies need a wide range of services

like Legal ,auditing, advertising, courier, marketing
research agency
 Digital
Marketing
 What is digital marketing?

• Digital marketing can be described as actively

promoting products and services using digital
distribution channels as an alternative to the more
traditional mediums such as television, print and
radio.

• Digital marketing is the marketing of products

and services via digital technologies like internet,
mobile phones, social media and electronic
billboards.
 What is Digital Marketing?
▪ Today’s consumer is more cognizant of the marketing messages
all around them, leaving them more likely to tune out
advertisements or other forms of marketing communication

▪ In the “golden age” of television, an ad on one of the big three

networks could reach 70 percent of the viewing audience

▪ According to Seth Godin (author of Permission Marketing),

today’s consumer receives roughly one million marketing
messages a year on average
Why should techno-entrepreneurs
learn digital marketing?
 Reasons why every entrepreneur should learn digital
marketing.
1. OUTRANKS YOUR COMPETITORS

• The last thing that every entrepreneur would agree is falling behind the
competitors.

• If your competitors are proficient with digital marketing, your company will
struggle to survive.

• Knowledge of digital marketing and social media strategies allows you to

compete with competitors which is otherwise not possible in the internet
savvy world.

2. INCREASED BRAND AWARENESS

• Digital marketing helps entrepreneur build brand awareness.
• Brand awareness is vital both for the startups as well as for the businesses
that have been operating since many years.
 Reasons…..
3. POWERFUL AND USEFUL SKILL – In the present-day time, if
you’re an entrepreneur and you are proficient in digital marketing,
it will help you take your own right decisions. Otherwise, you will
be forced to agree what your agency or digital marketing manager
says – no matter whether it’s right or wrong. You will be creative,
strategic and relevant while building your digital marketing
strategy.

4. HELPS KEEP TRACK OF RESULTS – When you know digital

marketing, you can easily keep track of results. This will help you
know how the campaign has performed and how the loopholes can
be addressed.

5. GUIDE WEB DESIGNERS – Entrepreneur should know the

digital marketing skills because this makes them capable enough to
guide the web designers on how to improve the site structure and
landing page designs.
 Reasons…..
6. MANAGE ON YOUR OWN – It is easy to manage digital
marketing techniques and all social media platforms on your own,
but it needs time and commitment. You can update the posts on
your own if the agency fails to do so. Once you’re confident, you
can save cost on retainer and manage the social media platforms on
your own.
7. EASILY CONVERT LEADS – Facebook and Instagram
advertising and marketing are sure to bring in traffic, boost brand
awareness to events, eBook downloads, and webinar sign ups.
When a user tends to visit your website, often they browse more
than the webpage they land upon.
8. DIGITAL MARKETING IS CHEAP – Digital marketing is vital
for businesses of all sizes for it gives them more visibility in the
online marketplace. You can adopt cost effective strategies to use
online to further legitimize and attract people to your business and
the product and services thus offered.
9. BUILD LONG LASTING RELATIONSHIP – Building a trust
filled relationship with current and potential customers is the basis
of digital marketing.
10. MARKET WHILE YOU TRAVEL OR SLEEP –Digital
marketing is active even when you’re traveling or asleep.
 Digital Marketing
Overwhelmed consumers are becoming adept at tuning out
marketing messages

➢ E-mail filters to block spam

➢ Digital video recorders (DVRs) to skip commercials

➢ Caller ID to screen telemarketers

➢ Recycling direct mail pieces without opening them

 Digital Marketing
Business and marketing professionals refer to this
saturation as “clutter”

➢ Clutter is a major problem for today’s marketer

➢ The cost of selling has almost tripled over the past decade

➢ Today’s consumer has a broken trust with traditional marketing

means (broadcast media, print media etc.)
 Digital Marketing
How does clutter impact marketers?

• Marketers today must determine ways to effectively cut through

the clutter if the firms they represent are to financially thrive

• Today’s digital marketers must become more creative and free

thinking in their approach to promoting company products and
services

• Sports, entertainment and event marketing provide an effective

means for cutting through today’s marketing clutter
 Digital Marketing Strategies
How are marketers adjusting?

Digital marketers turn to technology to help reach target

consumers

1. Internet marketing

2. Mobile marketing

3. Social marketing

4. Viral marketing
 Digital Marketing
How are marketers adjusting?
The goal for digital marketers is to focus on
interactive elements, encouraging consumers to
participate in the marketing process
 Digital Marketing Strategies
Internet Marketing

The Internet, far more than any other medium, has given
consumers a voice, a publishing platform and a forum
where their collective voices can be heard, shared and
researched, creating a more powerful and educated
audience than ever before
 Mediums of Digital Marketing

• Websites
• Social media
• Search engines
• Billboards
• Email
• Mobile phone
 Different types of Digital Marketing
1.SEO
• SEO stands for Search engine optimization. It is a
type of marketing in which the primary goal is to
get your website rank higher in google searchers.

2.PPC
• PPC stands for Pay Per Click and also know as
CPC (Cost per Click). In which advertiser pays
the publisher when the add is viewed. PPC is an
internet advertising model used to get traffic to
the website.
 Different types of Digital Marketing

3.SMM
• SMM stands for Social Media Marketing. It is a type of
marketing which uses the benefits of social networking site
such as LinkedIn, Google+, Snap Chat, Twitter, etc. SMM
is a fastest way to get exposure and get connect with
customers.

4.CM
• PPC stands for Content Marketing. It is a strategic
marketing approach that involves creating and distributing
relevant and valuable content such as video, blogs and
social media posts to attract and encourage the audience.
 Digital marketing
• How to Develop a Digital Marketing
Strategy for a Tech Startup?
INTRODUCTION TO DIGITAL
ENTREPRENEURSHIP
 ENTREPRENEUR
• The word 'entrepreneur' is derived from the French word
entreprendre, meaning 'to undertake'. Thus,entrepreneur is the
person who undertakes the risk.

• The entrepreneur is one who undertakes to organize, manage, and

assume the risks of a business

• A digital entrepreneur is an individual who uses the Internet as a

tool to create commercial opportunities, disseminate information,
and collaborate with clients and partners.

• Digital entrepreneurship consists of creating a business on the

Internet, selling services or products online, without the need to
invest in physical spaces.

• A few examples of digital businesses are online courses, e-

commerce, blogs, YouTube channels, and technological solutions in
general.
Traditional entrepreneurs Digital entrepreneurs
• Personal initiative • Passion
• Seize opportunities • Integrity
• Endurance • Generosity
• Information seeker • Open minded
• High work quality • ANY OTHER???
• Commitment
• Efficient
• Creative problem
solving
 Digital entrepreneur
Name Company
Brian Acton and Jan Koum Whatapps
Steve Chen Youtube
John Donahoe Ebay
Jack Dorsey Twitter
Mark Zuckerberg Facebook
Jeff Bezos Amazon
Larry Pages & Sergey Brin Google
Internet Marketing/Online/e-marketing
• Any marketing activities conducted online

• E.g., advertising and marketing efforts that use the

Web and email to drive direct sales via electronic
commerce.

• Divided into 3 areas :

– web marketing
– email marketing
– social marketing
 Web marketing

• Any marketing activity conducted online.

• Significantly less expensive
• Spaces are free to use/no cost
• Simplifies a company's ability to track, store,
and analyze data about a customer's
demographics, personal preferences, and
online behavior
 Types of web marketing
• Display Advertising
• Search Engine Marketing.
• Search Engine Optimization
• Social Media Marketing
• Email Marketing
• Referral Marketing
• Affiliate Marketing
• Inbound Marketing.
• Video Marketing
 Email marketing

• Directly marketing a commercial message to a

group of people using email.
• Types of email :
– Transaction email
– Direct email
 Social marketing
• An approach used to develop activities aimed at changing or
maintaining people's behaviour for the benefit of individuals
and society as a whole.
• Proven tool for influencing behaviour in a sustainable and
cost-effective way.
SOCIAL MEDIA
 SOCIAL MEDIA PLATFORMS

• Websites and software programs used for

social networking
• Websites and applications that enable users to
create and share content or to participate in
social networking
• "a group of Internet-based applications that
build on the ideological and technological
foundations of Web 2.0
SOCIAL MEDIA PLATFORMS
 ADVANTAGES & DISADVANTAGES
ADVANTAGES DISADVANTAGES
• Easy to reach target • Lack emotional
audience connections
• Allow feedback • Decreases face to face
• Expand market communication
• Increase website traffic & • Bad branding
ranking • Commitment
• Easier sharing content & • Relevant content
faster • Time
• Low cost • Risky for negative
comment
 Social media + business
• Convert social followers to email contacts
• Build your customer profile
• Strengthen your content's SEO (Search Engine
Optimization)
• Build Customer Loyalty with Social Media
• Customer Segmentation is the subdivision of
a market into discrete customer groups that
share similar characteristics.
• Practice of dividing a customer base into
groups of individuals that are similar in
specific ways relevant to marketing, such as
age, gender, interests and spending habits.
 KPI FOR SALES
• Leads flow
• Number of Qualified Opportunities Created
• Conversion Rate
• Book revenue

KPI set of quantifiable measures

that a company or industry uses to gauge or compare
performance in terms of meeting their strategic and
operational goals
 ROI in social media
• ROI = the money you invest in the company
and the return you realize on that money
based on the net profit of the business

• Social media ROI = what you get back from all

the time, effort, and resources you commit to
social.
 Social media (SM) ROI =
(SM return – SM investment) / SM investment %

Social media return (the amount of value that we

got from our social media campaign)

Social media investment (the amount of money

that we invested in our social media campaign)
SOCIAL MEDIA

Defining the target audience can help

you tailor content like social media posts, paid
advertisements, photos and videos, as well as
help you determine which marketing methods
may be most beneficial to your business
• Who the people are, you know how to get to
them (the blogs they read, the sites they visit,
the stuff they search in Google etc)
• How they describe the type of services they
offer, you can word the copy on your site to
match the conversation in their head (very
important!)
• How they choose and compare products in your
category, you know how to structure and
prioritize content on your site
• What they want, your value proposition can state
exactly that and the whole site can be 98%
relevant to them
• What they don’t care about, you can dismiss and
cut it from the site
• How their life is better thanks to your service,
you know which end-benefits to communicate
• Products and services of the business are
marketed to other businesses.
• Relationships are developed and ongoing, and
the sales processes involved take longer
• Eg : a food manufacturer purchasing salt.
• Business-to-customer marketing
refers to the tactics and best
practices used to promote
products and services among
consumers
• Also describe a company that
provides goods or services for
consumers
 Social media marketing plan
• Summary of everything you plan to do and
hope to achieve for your business using social
networks

https://www.youtube.com/watch?v=ACxGUowY
cSk
 Social media Marketing Policy
• Introduce the purpose of social media
• Be responsible for what you write
• Be authentic
• Consider your audience
• Exercise good judgment
• Understand the concept of community
• Respect copyrights and fair use
• Remember to protect confidential
• Bring value
• Productivity matters
Personal Data Protection (PDP) Act
• It is important to observe PDP act: an Act that
regulates the processing of personal data in
regards to commercial transactions.

• There is a penalty for non-compliance:

Monetary or imprisonment or both.

• Be careful
• In several countries, such act applies to any person
who collects and processes personal data in regards to
commercial transactions.
• The seven principles of the Act include:
i. General
ii. Notice and choice
iii. Disclosure
iv. Retention
v. Security
vi. Access
vii. Data integrity principle
 Intellectual Property
• Read from BRELA and COSOTA

• BRELA: Business Registration and Licensing

Agency

• COSOTA: The Copyright Society of Tanzania

 Digital marketing
• Is digital marketing good for
entrepreneurs?
• Digital marketing can help entrepreneurs
build brand awareness.
• Brand awareness is important for both new
businesses and businesses that are already
established.
• Companies like Apple, Coca-Cola, and Nike
have brands that are recognized
internationally.