1. Nature and Scope Of Industrial
Marketing - Overview
• Industrial markets present different types of
challenges and opportunities as compared to
consumer markets
• Industrial Markets are markets for products and
services, local to international, bought by
businesses, government bodies and institutions
for incorporation ( ingredient material or
components), for consumption( process material,
consulting services), for use( installations or
equipment)or for resale.

2. Nature and Scope Of Industrial
Marketing - Overview
• Industrial markets consist of all organisations
that purchase goods and services to use in the
creation of their own goods and services
• Industrial marketing is the process of
matching and combining the capabilities of
the supplier with the desired outcomes of the
customer to create value for the “customers
customer” and hence for both organisations

3. Characteristics of Industrial Market
Customers
• Industrial
Market
customers
comprise
commercial
enterprises,
institutions
and
governments – HCL Computers customers can be
Air India, Delhi University and State Governments
• A single purchase by an industrial customer may
be far larger than individual customers – An
individual may purchase one unit of Microsoft
software or an upgrade but Citibank may buy
1000

4. Characteristics of Industrial Market
Customers
• The demand for industrial products is derived
from the ultimate demand for consumer products
– Increase in demand for housing will stimulate
demand for wood for making furniture and
numerous other related products
• Relationships between industrial marketers tend
to be close and enduring - HCL Computers
relationship with some key customers spans
decades

5. Characteristics of Industrial Market
Customers
• Buying decisions by industrial customers often
involve multiple buying influences rather than
a single decision maker – a cross functional
team from an industrial buyer, say textile
producer will evaluate various textile
machinery companies before buying from any
particular company. Purchasing, engineering,
material mgt and other division members may
be involved in this purchase

6. Scope Of Industrial Marketing
Industrial Customers
1.Commercial Enterprises
• Users
• Original Equipment manufacturers
• Dealers and Distributors
2. Government Organisations
3. Institutions

7. Commercial Enterprises
• Users purchase industrial products or services to
produce other goods or services that are sold in
business or consumer markets. Machine tools is an
example of such a purchase. Products purchased by
users are not incorporated into final product, hence
different from OEM’s as explained below.
• Original Equipment Manufacturers ( OEM’s)Enterprises like Maruti, Xerox purchase industrial
goods to be incorporated ation is OEM. They are
generally the large volume users of goods and services

8. Commercial Enterprises
Dealers and Distributors – They are
commercial enterprises that purchase
industrial goods for resale( in basically the
same form) to users and OEM’s. They
accumulate, store and sell a large assortment
of goods to industrial users. They ensure that
their customers have timely access to the
goods. They play an important strategic role

9. Government Organisations /
Institutions
• Government and its agencies can be the large purchasers
of industrial goods
• The high volume purchasing can have procurement and
administrative requirements that may require a large
amount of effort to ensure compliance.
• Focus should be on the value expectation and the factors
that influence the buying decision
• Public and private Institutions are also important
customers and their procedural requirements should be
carefully understood. Some of them may be subject to
public scrutiny and may follow detailed procedures

10. Industrial Market Environment Publics
• Financial Publics
• Independent Press
• Public Interest Groups
• General Publics
• Internal Publics
These publics have interests because of economic
or societal effects of activity in the market or
because they provide financing and companies
must be sensitive to them

11. Influence of Government
• Government laws and regulations play an important
role and affect all the participants
• Matters like funding, interest rates and taxes,
standards, research and environmental issues are of
great importance to the activities of companies
• International trade regulations are also part of
Government interface
• Companies generally act through associations and
bodies with regard to general matters but must take
suitable action regarding their own priorities

12. Overview
• The current industrial environment which is
rapidly changing requires development and
implementation of suitable strategies
• Market research, technological innovations,
assessing political and regulatory
developments and evaluating social change
are some measures
• Independent, Cooperative and Strategic
manoeuvring strategies can be utilised