Industrial marketing (or business-to-business marketing) is the marketing of goods and services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw materials.

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INDUSTRIAL MARKETING
Dr. Vinosh Peter K.V.

2. Case Study
You have just been hired as a product manager
with profit responsibility for your company
brand of Industrial robot. In preparation for
developing a marketing plan, you decide to
learn more about the buying behavior of
Industrial buyers in your market.
Question
How would you go about setting objectives for
this study? Discuss.
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3. Buyer Behavior
 In industrial marketing, the buying process is more difficult
as compared to consumer marketing. The purchase
decisions in industrial marketing are based on many
factors, such as compliance with product Specifications
product quality, availability, timely supply, acceptable
payment and other commercial terms cost effectiveness,
after-sales service, and so on rather than on social and
psychological needs.
 The buying decisions generally take a longer time and
involve many individuals from technical,
commercial/materials, and finance departments. After the
initial offer made by a seller, there are negotiations and
exchange of information between both the prospective
buyer and the seller’s organization.
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4.  Therefore, inter-organisational contacts take place and
interpersonal relationships are developed. The relationships
between the sellers and buyers are highly valued and they
become stable in the long run because Of a high degree of
interdependence. Changes are few and occur relatively slowly.
Buyers charge problems in searching out and qualifying
suppliers. The cost of selecting a supplier who cannot meet
delivery requirements or who delivers an unsatisfactory product
can be high.
 Thus, the purchasing firm must be certain of a potential
supplier's technical, administrative, and financial capabilities. In
contrary, in consumer marketing the relationship between a
buyer and a seller is non-personal. Consumers change their
purchasing habits frequently and the buying decisions are always
based on physiological, social and psychological needs of the
members of a family household.
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5. MEANING OF INDUSTRIAL MARKETINGMEANING OF INDUSTRIAL MARKETING
Industrial marketing is the marketing of goods and
services from one business to another.
Industrial marketing is also known as B2B (business to
business) marketing
Business Marketing” or “Industrial Marketing” are used
interchangeably
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6. Industrial Marketing is the marketing of the
products and services to business organizations.
Business organization include manufacturing
companies, government undertakings, private
sector, educational institution etc.
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7. B2B And B2CB2B And B2C
The Consumer Market (B2C) and the Business
Market (B2B) at Dell, Inc.
B2B
Customers:
B2C
Individuals &
Households
Businesses
Global
Large corporations
Small & Medium
sized businesses
Institutions
Healthcare
Education
Government
Federal
State
Local
Selected
Products:
PCs
Printers
Consumer
Electronics
Simple Service
Agreements
PCs
Enterprise Storage
Servers
Complex Service Offerings

8. Differences between Industrial and Consumer MarketingDifferences between Industrial and Consumer Marketing
Bases Industrial Market Consumer Market
Market
characteristics
Geographically
concentrated,
Relatively fewer buyers
Geographically
disbursed,
Mass markets
Product
characteristics
Technical complexity,
Customized
Standardized
Service
Characteristics
Service, timely delivery
and availability very
important
Service, delivery, and
availability somewhat
important
Decisionmaking Observable stages,
Distinct
Unobservable,
Mental stag

9. Why study industrial marketing ?Why study industrial marketing ?
The “ Historical weakness in the firms” has
been the lack of marketing orientation. Which
has resulted in
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10. A failure to provide proper guidance and
stimulation for research and development of new
products.
A failure to exploit and develop markets for new
products.
An inability to define new methods for promoting
products to customers in the face of major increases
in the cost of media advertising and personal
selling.
A failure to innovate in distribution and other areas
to keep up with changing requirements of industrial
customers doing business on a multinational basis.
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11. An inability to refine and modify product
positioning.
A tendency for product managers and higher levels
of management to approach problems in the same
old way.
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12. FEATURES OF INDUSTRIAL MARKETINGFEATURES OF INDUSTRIAL MARKETING
FEWER; BUT LARGER MARKET:
Business buyers will be very less as compared to
consumer buyers; but they purchase in bulk or
more quantities.
CLOSE RELATIONS:
Relation between seller and buyer have to be kept
very close and professional. Because once the
relations are build; can’t be changed easily as it
reflects huge profit.
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13. COMPLEX BUYING PROCESS:
very complex procedure is adopted by business
buyers; because before purchasing, the approval is
required from different officials and authorities.
CONTINUOUS SALES CALLS:
To finalize the deal, it requires constant follow-
ups and continuous sales calls.
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14. FEATURESFEATURES
 EXPERTISE SELLING SKILLS:
sharp selling skill is required to sell the product to industrial
buyers. As they are purchasing in bulk, they will not be
easily convinced. Deep product knowledge is required.
 INFLUENCES:
To finalize the product, different authorities and officials
will interfere and influence the decision to purchase the
product.
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15. FEATURESFEATURES
GEOGRAPHICALLYCONCENTRATED
BUYER:
. Most agricultural output comes from a relatively
small member of states/(Country). This
geographical concentration of producers helps to
reduce the costs of selling
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16. IMPORTANCE OF INDUSTRIAL MARKETINGIMPORTANCE OF INDUSTRIAL MARKETING
 MAJOR SHARE OF REVENUE:
Major share of revenue is generated by selling the product
to business buyers as they purchase in bulk therefore it is
important to take care of business deals.
 LESS EXPENDITURE:
as the business buyer are very few, no much expenditure is
required to reach and to contact them.
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17. IMPORTANCEIMPORTANCE
 LESS PROMOTIONAL EFFORTS:
Free gifts, demonstration etc is not required; because the
product is not to be shown to mass audience.
 PERMANENT CUSTOMERS:
Once the relations are built, business buyers will purchase
the products for longer period of time. Therefore the
future is secured if existing buyers are satisfied properly.
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