Business marketing defined Industrial marketing consists of all

Business marketing defined Industrial marketing consists of all the activities involved in marketing of products and services to organizations that uses products and services in u • Production of consumer or industrial goods • To facilitate the operation of their enterprises

Business Marketing Industrial Marketing is the marketing of the products and services to business organisations. u Business organisation include manufacturing companies, government undertakings, privatre sector, educational institution etc u

u Business marketing is the practice of individuals, or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations. business marketing is also called business-to-business marketing, or B 2 B marketing.

THE SUPPLY CHAIN

Industrial versus consumer marketing management Less number of customers but large customers u Geographically concentrated market u Channels of distribution are shorter u Highly organized and well informed buyers u Promotional Characteristics (Business mktg is focused on personal selling) u Price Characteristics: Business mktg, price is fixed as per competitive bidding and negotiated prices. u

Characteristics of Business Maketing u Business may be defined as an enterprise engaged in the production and distribution of goods for sale in the market or rendering service at a price. The chief characteristics of the business are:

u u Creation of utilities: Business denotes creation of utility and service for satisfaction of human wants. Business helps in the creation, distribution and production of utilities. Recurring activities: Business activities are recurring in nature. Recurring purchase and sales are regarded as identifying marks of the business.

u Transfer of title: The goods produced or purchased by the business are made with the intention of sale or transfer of title from the seller to the buyer. Because of this reason goods acquired for the sake of personal consumption are excluded from business.

u u Mutual benefit: Business activities are not one sided affairs because both the parties are benefited. The buyer gets the benefit of having the goods and the seller gets the benefit of having money. Expectation of earning: Business provides a way of living to the businessman because he intends to earn profit.

Types of industrial customers Commercial enterprises Industrial suppliers Government agencies Institutions Hospitals, schools etc Lubricants Coal paper users OEMs Original equipment mfrs Steel Cement Raw materials Airplanes Typewriters guns Products Consumables

u Commercial enterprise: it includes private sector, profit-seeking organisation consisting of : Industrial distributors or dealers

Classification of industrial products u Material and parts • Raw materials • Components u Capital items • Installations(Heavy equipments) • Accessory equipment (Light equipment) Supplies and services u Supplies items includes paints, soaps, oil and grease u

These items are generally standardized & are marketed to a wide cross-section of industrial users. u Services: It includes services like building maintenance services, auditing services, legal services, marketing research services u

Market Segmentation and B 2 B Marketing qcompany size q. Behaviour or Needs q. Certainly large companies may be of key or strategic value to a business but some want a low cost offer stripped bare of all services while others are demanding in every way

u u u Size Segmentation Examples Targeting companies who see $500 million/year in revenue. Only targeting the largest companies in your region based on number of employees. u Segmenting By Vertical A hanger warehouse may only target companies in the retail industry, a graphic software firm may only target design departments or design houses u Segmenting by Geography u u u Segmenting by Behavior segmenting targets prospect groups based on their buying behavior. How are your customers using your product, how often are they using it, and what is the challenge your prospects face? Those questions, coupled with the propensity of your prospect to actually pull the ‘buy’ trigger, is the cornerstone of behavioral segmenting.

u Eg: selling enterprise software, you’ll probably have at least 4 sets of campaigns / messages aimed at different groups within the company: - business function: the department who’ll be using your software the most, focus on use cases, user benefits, features - IT: how it’s technically superior, integration options, reliability, security… - Finance: return on investment, compliance, legal requirements, financial credibility - Executive: strategic, case studies, overviews, hospitality

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