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Slide 1

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To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

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Slide 2

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Industrial = Business
To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

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Slide 3

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Consumer Goods and Services


- are for consumers, the final customer
Industrial Goods and Services
- are used in making consumer goods and services
Industrial = Business
To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

9
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Slide 4

e
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To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

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Slide 5

Industrial Market / BUSINESS PRODUCTS

Individuals and organizations that acquire goods


and services to be used, directly or indirectly, in the
production of other goods and services or to be
resold.
Beckman TEXT

People who buy stuff to make other things.


W.T.G.R.

To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

9
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Slide 6

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- producers and manufacturers


- trade industries (wholesalers and retailers)
- governments

Not in the text


To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

9
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Slide 7

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Mproducers

and manufacturers

Those who transform goods and services, through


production, into other goods and services
manufacturing firms (eg. Auto parts, computers)
farms
mining and forest industries
construction and building companies
service companies (trucking, air, rail)
public utilities, banks, insurance companies
Not in the text
To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

9
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Slide 8

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Trade Industries
Organizations such as wholesalers and retailers
that buy things for resale to customers
examples - lumber dealers, fabric wholesalers, building
materials
metal and electrical products

Not in the text


To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

9
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Slide 9

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Governments (zheng fu)


Federal Ministries and Crown Corporations,
Provincial Ministeries and Crown Corporations,
Municipal governments and agencies
examples: Dept. of Defense buying trucks from GM, Dept.
of Revenue buying computers, Royal Canadian Mint
buying paper and
Provincial agencies buy services such as snow clearance,
cellular phone service ...
Not in the text
To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

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Slide 10

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1. Derived Demand
means the demand is derived (or caused by, or
linked to) demand for a consumer item
- demand for lithium is derived from the demand
for lithium batteries, which is in turn derived from
the demand for cell phones
- demand for wood pulp is derived from the demand
for paper, which is derived from the increase in
people printing on paper
To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

9
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Slide 11

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2. Joint Demand
means the demand is related to the demand for
other industrial things
eg. The demand for printer cartridges is linked to
the demand for printer paper
for services, the demand for Netscape 4.05 - is
linked to the demand for an ISP account
Not in the text
To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

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Slide 12

Classifying Industrial Products

1. Installations - major assets, factories, heavy


machinery

2. Accessory Equipment - used in production


- short-lived items eg. tools

3. Raw Materials
4. Component Parts and Materials - finished units
which, when assembled, make the complete product

5. Maintenance, Supplies (MRO Items)


- maintenance,- cleaning fluids

6. Professional Services
- accounting
firms, Shapiro,
law firms
To accompany
Basic Marketing,
10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson

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Slide 13

Categories of Industrial Products

1. Capital Items
things that last a long time, and
become less and less in value over
time
2. Expense Items
- things that are used within a short
period of time
- some types of raw materials, office supplies,
materials in production

To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

9
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Slide 14

Categories of Industrial Products

1. Capital Items
ex - car
- office building
- machinery and equipment
2. Expense Items
ex - gas for the car
- washing the windows for the building
- parts for the machinery
To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

9
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Slide 15

Various Classes of Consumer and


Industrial Goods and Services
G o o d s a n d S e r v ic e s

C onsum er G oods

C o n s u m e r S e r v ic e s

C o n v e n ie n c e G o o d s

S h o p p in g G o o d s

S p e c ia l t y S e r v ic e s

C o n v e n ie n c e S e r v ic e s

e g . M a c 's M ilk

e g . c l o t h in g

e g . b a n k in g

e g . fa s t fo o d s

eg. new spaper

e g . g r o c e r ie s

e g . tra v e l

r a w m a t e r ia l
g r a in , s t e e l

I n d u s t r ia l G o o d s

I n d u s t r ia l S e r v ic e s

P r o d u c t io n G o o d s

S u p p o r t S e r v ic e s

com ponent
p a rts
e g . c ir c u it b o a r d

m a t e r ia ls
n u ts , b o lts

a c c e s s o r y e q u ip m e n t
to o ls , c o m p u te rs

in s t a ll a t io n s

e g . b u il d i n g s

e g . w ir in g
h a rn e s s

To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed.


Compiled by Prof. Tim Richardson

ppt slides

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