International Industrial Marketing lecture in NTUU KPI by Carl-Axel Engdahl. Course AI212V.

1. Wellcome to Course AI212V
Industrial Marketing
Day
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7.10.09

2. The Market
• How to analyze the market
• Market segmentation
- Industrial market
- Consumer market
• Management of marketing,
- Relations to customers
Building new relations in a competitive market
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3. Assingment due end of this week
• Prepare and send by BILDA an outline of your
marketing plan.
- Follow the hints in the textbook.
- Maximum members if groupwork, 3 students.
- Not later then the 12 of June, please.
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4. Chapter 5
Creating Customer value,
satisfaction and loyalty
• The only value your company ever will create
is the value that comes from customers.
• Without customers, you don´t have a
business.
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5. Customer Perceived Value
Middlemanagement Frontline people
Top management
Customers Top management Customers
rontline people Middle management
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6. Customer Perceived value
• CPV = Total customer benefit – Total customer cost
• Customers are more educated and informed
than ever, and they have the tools to verify
companies' claims and seek out superior
alternatives.
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7. Customer value analysis
• 1 Major attributes and benefits
• 2 Quantitative scales
• 3 Company vs. competitors´
• 4 Examine customers in different segments -
• 5 Monitor value over time
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8. Example Caterpillar vs. Komatsu
• Buyer under order to buy at lowest price.
• Buyer will retire before company understand
Komatsu is more expensive to operate.
• Buyer is a friend of Komatsu sales person.
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9. Example Volvo
• The Luxury car that treats life
like the greatest luxury of all.
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10. Product and Service Quality
• High quality = (mostly) lower long run cost.
• Total quality.
• What is quality?
- Highest technical performance
- Same as last time.
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11. Customer Lifetime Value
• CRM, Customer relationship management
• CPA, Customer profitability analysis
• Customer portfolios
• CLV, Customer lifetime value
• CLV = sum over time (p-c)/(1+i)t S- AC
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12. CRM
• CRM, Customer relationship management
Database gimmick or useful tool in marketing?
One to one marketing
1. Identify
2. Differentiate
3. Interact
Customize
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4.

13. Customer Databases
• Downside of Database Marketing and CRM
- Implementing before a customer strategy
- Rolling out before changing organization
- Assuming more CRM technology is better
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Stalking, not wooing , customers

14. Chapter 6
Analyzing consumer markets
• Customer needs
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15. Chapter 7
Analyzing business markets
• Industrial markets
• Middle men markets
• Government markets
• Business organizations do not only sell; the
also buy…
- Raw materials
- Supplies
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16. Industrial Market –Buyer
roduction
Service
Sales organization
CEO
CEO
Pproduct Produc Product C
A tB
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17. Buyer situations -..
- Buyers organization vs. what is brought.
- Multiple influences, Multiple decisions
- Multipel calls
- Derived demand
- Inelastic demand
- Fluctuating demand
- Geographically locations
Direct buying
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18. Buyer situations -..
• Rebuy - straight
• Modified rebuy
• New – components
– Supplies
– Equipment
– Plant
– Services
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19. Sales vs. Buying
• Most industrial goods (components .. Etc) are
not sold – they are brought.
- Designers' in product development are looking
for solutions that …
Openings for new supplier – when presnt
supplier can´t deliver – help the customer to
continue operations.
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20. Buyer situations -..
• Risk reduction for industrial customers
- Multiple production plants
- Strong financial position and strong owners
- Reliable supply chain and service organization
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21. 7.10.09

22. Chapter 8
Market segmentation and targets
• Flexile market offerings
• Niche Marketing
• Local
• Individual
• Bases for segmentation
- Geography
- Demographic
- Psychographic
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23. Market segmentation and targets
Business markets
Demographic,
- Industry - Company size - Location
Operating Variables
- Technology, User status, Customer capabilities
• Purchasing Approaches
- Purchasing – function organization, - Power structure, Existing
relationship, Purchasing policy, Purchasing criteria.
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24. Segmentation creteria
• 1. Measurable
• 2. Substantial
• 3. Accessible
• 4. Differentiable
• 5.Actionable
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25. Chapter 11
Dealing with competition
• Look at example Progressive Insurance.
• How are the competitors?
• SWOT
• Is it possible to expand the market?
• Challenge market leader or not?
• Can followers compete?
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26. Competitive Forces
• Intense segment rivalry
• New entrants
• Substitute products
• Buyer´s growing power
• Supplier´s growing power
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27. Competitive strategies
• Market leaders
• Challenger
• Follower
• Nich
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28. Chapter 12
Setting product Strategy
• Jump to 4- P:s and then return
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29. 4 – P:s
• What the company control´s =
The Marketing Mix
• Product, Chapter 12, 13
• Price, Chapter 14
• Place , Chapter 15, 16
• Promotion, Chapter 17, 18 and 19
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30. 4 – P:s, strategies and
management
• The strategies of the 4-P:s require that all
alternatives of the 4:Ps are undertaken with
the interdependence between them aimed to
attract the customers in the selected customer
segment or segments.
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31. • Prepare and send by BILDA an outline of your
marketing plan.
- Follow the hints in the textbook.
- Maximum members if groupwork, 3 students.
- Not later then the 12 of June, please.
7.10.09