1. Session 6 Marketing Strategically in Industrial Markets
Chapters 9 and 11

2. Industrial Markets (Business Markets -B2B)
This is when an individual (or group) purchases a specific kind of product for resale, or to use in producing other products or to use in general operations
Business Markets
Producer Markets
Reseller Markets
Government Markets
Institutional Markets

3. Producer Markets
Includes buyers of raw materials, as well as purchasers of semi-finished and finished items used to produce other products
Manufacturers tend to be geographically concentrated and can be served more efficiently
Examples?

4. PRODUCER MARKETS Focused on producer market
“Fellowes” manufactures shredders. The company that sell raw materials, equipment and component parts to Fellowes and other manufacturers are serving producer market.

5. Reseller Markets Resellers
Intermediaries who buy finished goods and resell them for a profit
Factors resellers consider
Level of demand
Space required relative to potential profit
Ease of placing orders
Availability of technical assistance
Training programs from producers
Examples?

6. Government Markets
Federal, state, county or local governments that buy goods and services to support their internal operations and provide products to their constituencies
Examples?

7. Institutional Markets
Organisations with charitable, educational, community or other non-business goals
Examples?

8. Discussion Question
Can you think of products used mainly by institutional markets?

9. Characteristics of Transactions with Business Customers
Large orders
Expensive Items
Frequent replenishments
Long-term contractual agreements
Considerable marketing efforts
Purchasing committees
Reciprocity

10. Attributes of Business Customers
Well informed about the products they purchase
Demand detailed information and technical specifications
Help the firm achieve organisational objectives
Engage in rational buying behaviour
Goals of a purchasing agent may include advancement or financial awards
Often form partnerships with suppliers

11. Primary Concerns of Business Customers
Price
Quality
Service
Supplier relationships
Concerns of business customers
In this ad, CDW promises excellent and timely service; one of the primary concerns of business customers

12. VIDEO
Vodafone total business customers Understanding the needs of B2B customers
Vodafone Total Business Customer Stories Location:
Concept: Understanding the needs of B2B customers.
Clip Description: Vodafone UK video that shows stories of satisfied Vodafone business customers.
Key outcome/points to consider: Students will identify the needs of business customers in telecommunications services based on the stories/testimonials that are provided in the video. Students can elaborate a list of the drivers when they are selecting a mobile company and how it differs from the reasons pointed to in the video.

13. VIDEO
Boeing takes to the cloud with a solution to market its best- selling plane Understanding the needs of B2B customers
Boeing takes to the cloud with a solution to market its best-selling plane Location:
Concept: Understanding the needs of B2B customers.
Clip Description: Boeing shows how they use new technology to attract business customers.
Key outcome/points to consider: Students will understand that an innovative way of dealing with business customers is needed to better attract this customer group.