Slide 1

To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed. Compiled by Prof. Tim Richardson

ppt slides

Slide 2

Industrial = Business
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. Compiled by Prof. Tim Richardson ppt slides

Slide 3

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

Slide 4

To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed. Compiled by Prof. Tim Richardson

ppt slides

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

Slide 6

- 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

Slide 7

producers 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) Not in the text public utilities, banks, insurance To accompany Basic Marketing , Shapiro, 10th & 11th companies Cdn Ed.
Compiled by Prof. Tim Richardson

ppt slides

Slide 8

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

Slide 9

Governments

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, Not in the text cellular phone service ...
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. Compiled by Prof. Tim Richardson ppt slides

Slide 10

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

Slide 11

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

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, law firms To accompany Basic Marketing , Shapiro, 10th & 11th Cdn Ed. Compiled by Prof. Tim Richardson
ppt slides

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

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

Slide 15

Categories of Industrial Products

Depreciation

The accounting concept for charging a portion of the cost of a capital item as a deduction against the companys revenue
- eg. 486 DX2 Office computer bought in 1995 - deduct $750 in 1995 - deduct $750 in 1996 etc. Not in the text
To accompany Basic Marketing, Shapiro, 10th & 11th Cdn Ed. Compiled by Prof. Tim Richardson ppt slides

Slide 16

Various Classes of Consumer and Industrial Goods and Services

Goods and Services
Consumer Goods Consumer Services Industrial Goods Industrial Services
Convenience Goods Shopping Goods Specialty Services Convenience Services

Production Goods
materials nuts, bolts

Support Services
accessory equipment tools, computers installations

eg. Mac's Milk

eg. clothing

eg. banking

eg. fast foods

raw material grain, steel

component parts

eg. newspaper

eg. groceries

eg. travel

eg. circuit board

eg. buildings

eg. wiring harness

To accompany

Basic Marketing, Shapiro, 10th & 11th Cdn Ed. Compiled by Prof. Tim Richardson

ppt slides