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UNIVERSIDAD DE STA.

ISABEL
MARILLAC ALTERNATIVE COLLEGE
CITY OF NAGA

IN PARTIAL FULLFILMENT IN
MARKETING MANAGEMENT

(A REPORT ON INDUSTRIAL MARKETING)

PREPARED BY:

RHEA BASILAN AND APPLE M. CAMBA


BSCE-NT
Industrial
Marketing
OBJECTIVES:
DEFINE INDUSTRIAL MARKETING, ITS
IMPORTANCE, ITS CHARACTERISTICS
AND THE WAY IT IS DISTRIBUTED
THROUGHOUT THE MARKET.
DIFFERENCIATE INDUSTRIAL
MARKETING FROM CONSUMER
MARKETING.
IDENTIFY THE FACTORS THAT CAN
INFLUENCE INDUSTRIAL MARKETING.
DEFINE INDUSTRIAL ADVERTISING.
Industrial Marketing
is the marketing of goods
and services from one business
to another.

The word "industrial"


means machinery run by power
to produce goods and services.
Industrial goods
are those which are used in
Industry for producing a Different
end product from one or more raw
materials.
Business-to-business (B2B)

Describes commerce transactions


between businesses, such as
between a manufacturer and a
wholesaler ,or between a
wholesaler and a retailer.
Types of Industrial Goods
Raw Materials
Semi-Manufactured Goods
Installations
Supplies
Accessories
Possible Industrial Markets
Manufacturing Industries, Construction,
transport, public utilities, mines and quarries,
service, Institutions, fishing, newspaper
industries , winery, commercial
establishments, Gov’t. institutions and various
professions.
IMPORTANCE OF
INDUSTRIAL MARKETING
Helps all company to bear the
bridge between buyer and seller.
Helpful in building a bridge
between themselves and their
customer.
Helps the company to know
their return on
investment/revenue.
Industrial Marketing Vs. Consumer Marketing
“B2B” “B2C”

• Marketing is one-to-
•Marketing is one-to-many in
one in nature. nature
•Highly professional •Lower value of purchase
and Trained people in
•Decision making is quite
Buying processes are
often impulsive in nature.
involved
•Greater reliance on
•Purchase decision is distribution
typically made by a
•More effort put into mass
group of people
marketing
•Often the •More reliance on branding
buying/selling process
•Higher use of main media
is complex and
includes many stages
Characteristics of Industrial Market
Derived Demand
Elasticity of Demand
Geographical Concentration
Limited Number of Buyers
Well informed Buyers
Quality Consideration
Leasing of Equipment
DISTRIBUTION OF
INDUSTRIAL PRODUCTS

PRODUCERS

SALES FORCE REPRESENTATIVES MARKETING CHANNELS

CUSTOMERS
FOUR MAIN TYPES OF DISTRIBUTION

GENERAL LINE
DEPARTMENTALIZED
SELECTED LINE
SPECIALIZED
Buying Motives of Industrial Buyers

To maintain continuity of supply


To do so with a minimum investment
To avoid duplication
To maintain standards of quality and
materials
To procure materials at the lowest cost
To maintain the company’s competitive
position
FACTORS INFLUENCING
PATRONAGE
QUALITY
SERVICE
RELIABILITY
PRICE
CONTINOUS SUPPLY UNDER ALL
CONDITIONS
LIBERAL CREDIT
TRADE-IN ALLOWANCE
INDUSTRIAL ADVERTISING

“ ANY PAID FORM OF


NONPERSONAL PRESENTATION
AND PROMOTION OF INDUSTRIAL
GOODS, SERVICES, IDEAS, OR
INSTITUTIONS BY AN IDENTIFIED
SPONSOR”
ELEMENTS OF AN EFFECTIVE
INDUSTRIAL PRODUCT
NATURE AND DISTINCTIVE
CHARACTERISTICS OF THE INDUSTRIAL
PRODUCT
ADVANTAGE OVER COMPETING
PRODUCTS
ADAPTABILITY TO THE BUYER’S NEEDS
EXPERIENCE OF OTHERS IN ITS USE
GAINS TO RESULT FROM PURCHASE
DEPENDABILITY OF THE SUPPLIER
THANK YOU!
1. TYPE OF INDUSTRIAL GOODS WHICH INCLUDE EQUIPMENTS USED FOR BASIC
PROCESSING.
A.) RAW MATERIALS
B.) INSTALLATIONS
C.) ACCESSORIES
D.) SUPPLIES
2. TYPE OF INDUSTRIAL DISTRIBUTORS WHICH COMPROMISE A GENERAL LINE & A
SPECIALIZED DISTRIBUTOR, THROUGH DEPARTMENTS.
A.) DEPARTMENTALIZED
B.) SELECTED LINES
C.) SPECIALIZED
D.) GENERAL LINE
3. THESE ARE GOODS WHICH UNDEGO FURTHER PROCESSING & ARE USED IN
MANUFACTURING FINISHED PRODUCTS.
A.) CONSUMER GOODS
B.) INDUSTRIAL GOODS
C.) COMMERCIAL GOODS
D.) COMPETITIVE GOODS
4. TYPE OF INDUSTRIAL GOODS WHICH ARE HIGHLY ESSENTIAL TO THE EFFICIENT
OPERATION OF THE BUSINESS SUCH AS FILING CABINETS, PAPER AND OFFICE
STATIONERY.
A.) RAW MATERIALS
B.) INSTALLATIONS
C.) ACCESSORIES
D.) SUPPLIES
5. ONE OF THE CHARACTERISTICS OF INDUSTRIAL MARKETING IN WHICH IT IS
DERIVED FROM THE NEED FOR THE GOODS OR SERVICES IT CAN BE USED TO MAKE
OR RENDER.
A.) DERIVED DEMAND
B.) ELASTICITY OF DEMAND
C.) GEOGRAPHICAL CONCENTRATION
D.) QUALITY CONSIDERATION
6. ONE OF THE FACTORS THAT COULD INLFUENCE AN INDUSTRIAL CUSTOMER TO
EXTEND HIS PATRONAGE THROUGH CONSISTENCY OF THE INDUSTRIAL PRODUCTS.
A.) PRICE
B.) LIBERAL-CREDIT
C.) QUALITY
D.) TRADE-IN ALLOWANCE
7. PERTAINS TO: “ANY PAID FORM OF NONPERSONAL PRESENTATION AND
PROMOTION OF INDUSTRIAL GOODS, SERVICES, IDEAS, OR INSTITUTIONS BY AN
IDENTIFIED SPONSOR”
A.) INDUSTRIAL MARKETING
B.) INDUSTRIAL GOODS
C.) INDUSTRIAL SERVICES
D.) INDUSTRIAL ADVERTISING

8.
9. IN YOUR OWN UNDERSTANDING DEFINE INDUSTRIAL MARKETING.
10. ( 3 PTS.)

BONUS QUESTION: (2 PTS.)


R Y

WHEN TWO BUSINESS FIRMS CAN USE EACH OTHER’S PRODUCTS


THEY MAY REGULARLY BUY FROM EACH OTHER.

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