Consumer markets

and Industrial markets

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.

What is the difference between industrial marketing, B2B

marketing, Business marketing & Organizational
Marketing?
No Difference!
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
Market GEO Concentrated GEO Disbursed
Few Buyers Large no. Of Buyers
(Mass
Markets
Products Technically Complex Non – Technical
Customized Standardized
Service Very Important Somewhat important
Buyer Behavior Various Functional Family members involved
specialists involved Physiological /
Mainly Rational buying Psychological Social need
decisions. based buying decisions
Interpersonal Non – Personal
relationship between Relationship.
buyers and sellers.
Channel More direct Indirect
Multi Channel Few Channels with many
layers
Promotional Importance to personal Importance to Advertising.
selling
Pricing Competitive bidding / MRP
Negotiated prices
Industrial Demand is called “Derived Demand”

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

demand for consumer goods / services.

 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.,
What are the types/classifications of Industrial/Business
customers?
INTERMEDIARIES /
MIDDLEMEN (DISTRIBUTORS)
COMMERCIAL
ENTERPRISES OEMS

USERS

PUBLIC SECTOR
UNITS (BHEL)
GOVERNMENT
CUSTOMERS
GOVT. UNDERTAKINGS
(RAILWAYS, DEFENCE UNITS)
INDUSTRIAL /
BUSINESS
CUSTOMERS PUBLIC INSTITUTIONS
(GOVT. HOSPITALS)
INSTITUTIONAL
CUSTOMERS
PRIVATE INSTITUTIONS
(SCHOOLS, COLLEGES)

MANUFACTURING
UNITS (SUGAR, MILK)
CO-OPERATIVE
SOCIETIES
NON-MANUFACTURING
UNITS (BANKS, HOUSING)

F
I
G
.
T
Y
P
ES
O
F
I
ND
U
S
T
R
I
A
L
/
BU
S
I
N
E
S
SC
U
S
T
O
ME
R
S
How are Industrial Products / Services Classified?
Classification into 3 Groups shown below.

RAW MATERIALS (IRON ORE, CRUDE OIL)

MATERIALS MANUFACTURED MATERIALS
& PARTS (STEEL, FUEL OIL)
(ENTER PRODUCT
COMPONENT PARTS (BEARINGS, TYRES)
DIRECTLY)
SUB ASSEMBLIES (EXHAUST PIPE IN M.C.)

INDUSTRIAL CAPITAL ITEMS LIGHT EQPT (COMPUTERS, HAND TOOLS)

PRODUCTS / (USED IN
HEAVY EQPT (MACHINES, TURBINES)
SERVICES PRODUCTION /
OPERATIONS) PLANT/BUILDING (FACTORIES, OFFICES)

SUPPLIES / SUPPLIES (LUBRICANTS, ELECTRICAL ITEMS)

SERVICES
(TO SUPPORT
OPERATIONS) SERVICES (LEGAL, COURIER)

FIG. CLASSIFICATION / TYPES OF INDUSTRIAL PRODUCTS / SERVICES