Chapter-01

What is Business Marketing?

Industrial marketing also referred to as Business-to-Business Marketing, or Business
Marketing, or organizational marketing Industrial Marketing is a primarily B2B sale which
means Business to Business. It mostly involves the supply and purchase of goods and services.

For example, A truck manufacturer purchase tire and battery for the manufacture of truck. In
this case, tire and battery are considered as industrial goods. The buying process of
manufacturer is called industrial marketing.

Objective of Marketing:
1.Identifying Needs and Wants: One of the primary objectives of marketing is to identify the
needs and wants of potential customers. By conducting market research and understanding
consumer behavior, companies can gain insights into what their target audience requires and
desires.
2.Satisfying Customers: Marketing aims to create a positive and satisfying customer
experience. Satisfied customers are more likely to become repeat buyers, brand advocates, and
can contribute to positive word-of-mouth marketing.
3.Earning Profit: While marketing focuses on customer satisfaction, its ultimate goal is to
generate revenue and profitability for the company.
It's essential to note that these three objectives are interconnected. By identifying and
satisfying customer needs and wants, businesses can create value for their customers, which,
in turn, contributes to their profitability. Successful marketing strategies strive to strike a
balance between customer-centric approaches and achieving financial objectives.

Objective of Business Marketing:

1. Production of goods and services: One of the fundamental objectives of any business is to
produce goods and/or services to meet the needs and demands of the market.
2. Earning Profit: Earning a profit is a key objective for businesses, as it sustains and grows the
company.
3. Reducing Cost: Cost reduction is an important objective for businesses to improve their
overall efficiency and profitability.

Importance of business marketing to society:

1. To provide proper guidance and stimulation for research and development of new products.
2. To exploit and develop markets for new products.
3. To meet significant new competition through traditional ways of doing business.
4. To refine and modifying product positioning.
5. To define new method for promoting product to consumers in the face of major increases in
the cost of media advertising and personal selling.
Difference Between Marketing and Consumer Marketing:
Areas Industrial Markets Consumer Markets

1. Market Characteristics 1.Geographically concentrated 1.Geographically Disbursed

2. Relatively fewer buyers 2. Mass markets
2. Product Characteristics 1.Technical complexity Standardized
2.Customized
3. Service Characteristics Service, timely delivery and Service, timely delivery and
availability very important availability somewhat
important
4. Buyer Behavior 1.Technical expertise 2.Stable 1.Less technical expertise
interpersonal relationship 2. Non-personal relationship
between buyer and seller
5. Channel Characteristics More direct and fewer Indirect and multiple layers
middleman of intermediaries
6. Promotional Emphasize on personal selling Emphasize on advertising
Characteristics
7. Price Characteristics Competitive bidding and List prices or maximum retail
negotiated prices price (MRP)

Experience Curve:
Q. ‘When you are marketing products like ceiling fans and furniture, you are doing consumer
marketing as well as industrial or business marketing.’ Do you agree to this statement?
Explain your answer.
Ans: Yes, I agree with the statement that marketing products like ceiling fans and furniture
involves both consumer marketing and industrial or business marketing. Let's explain this in
detail:
Consumer Marketing: Consumer marketing, also known as B2C (Business-to-Consumer)
marketing, focuses on promoting and selling products directly to individual consumers. In the
context of ceiling fans and furniture, consumer marketing involves creating awareness and
interest among residential customers who purchase these products for personal use in their
homes. The marketing efforts aim to appeal to consumers' preferences, needs, and lifestyle
choices to influence their buying decisions.
For example, consumer marketing for ceiling fans may highlight features like energy efficiency,
remote control options, and aesthetic designs to attract homeowners or individuals looking to
upgrade their living spaces. Similarly, marketing furniture will emphasize factors such as
comfort, style, and functionality to appeal to consumers seeking suitable home furnishings.

Industrial marketing: Industrial marketing for ceiling fans and furniture may involve a different
set of considerations compared to consumer marketing. Here, the focus might be on aspects
such as bulk purchasing options, durability, reliability, and cost-effectiveness. The marketing
efforts aim to address the specific needs and requirements of businesses and position the
products as suitable solutions for their commercial applications.
In summary, marketing ceiling fans and furniture involves a dual approach: targeting individual
consumers for personal use (consumer marketing) and targeting businesses or organizations
for commercial use (industrial marketing). Both aspects of marketing are essential for
maximizing the reach and sales potential of these products in their respective markets.
Effective marketing strategies will take into account the different motivations, buying
behaviors, and decision-making processes of consumers and business customers to tailor their
messages and offerings accordingly.

What is Industrial demand and derived demand?

The demand for industrial products and services does not exist by itself. It is derived from the
ultimate demand for consumer goods and services. Industrial demand is, therefore, called
derived demand.
Industrial customers buy goods and services for use in producing other goods and services.
Ultimately, whatever is finally produced will be sold to the consumers. Hence, the demand for
industrial goods and services is derived from consumer goods and services.
For example, the demand for precision steel tube does not exist in itself. It is demanded for the
production of bicycle, motorcycle, scooters which are consumed by the consumers. Thus, the
demand for precision steel tubes is derived from the forecast of consumer demand for bicycle,
motorcycle etc. So, industrial demand is called derived demand.
What is joint demand and cross-elasticity of demand?
Joint demand occurs when one industrial product is useful if other products also exist. For
example, a pumpset cannot be used for pumping water if the electric motor or diesel engine is
not available.

Cross-elasticity of demand is the responsiveness of the sales of one product to a price change
in another product. Cross-elasticity of demand is simply the change in demand from a change
in price. Percentages are used to measure the relative changes.

For those three demands, industrial demand is more complex than consumer demand.

Types of Industrial Middleman:

Industrial Distributors: Industrial distributors are businesses that buy products in bulk from
manufacturers and sell them to retailers or end-users.
Brokers: Brokers act as intermediaries who facilitate transactions between buyers and sellers
without taking ownership of the products.
Merchant Middleman: Merchant middlemen purchase products from manufacturers and
resell them to customers at a markup.
Agents: Agents represent the interests of manufacturers or suppliers in a specific market or
territory.
Value-added Resellers: VARs are companies that purchase products from manufacturers,
enhance or modify them, and then sell them as a bundled package or solution.
Commission Merchants: Commission merchants, also known as consignment agents, sell
products on behalf of manufacturers or suppliers.
Manufacturers’ Representatives: Manufacturers' representatives, or sales representatives,
work as independent agents representing multiple manufacturers.
 Chapter-02
Industrial customers are businesses or organizations that purchase products, equipment, and
services for their own operational needs or to incorporate into their own production
processes. These customers differ from individual consumers in that they buy in larger
quantities and usually for commercial or industrial purposes rather than personal use.

OEMs: Industrial customer who purchase the product for produce broad product.
User: Industrial customer who purchase the product to facilitate the operation.

Types of Industrial Customer:

1.Commercial Enterprises: Commercial enterprises are private businesses that operate for
profit. These can include small, medium, and large businesses across various industries.
2. Government Customers: Government customers include various governmental agencies and
departments at the local, state, and national levels. They procure industrial products and
services for a wide range of applications, such as public infrastructure projects, defense, law
enforcement, healthcare, education, and other governmental initiatives.
3.Institutional Customers: Institutional customers refer to organizations that provide essential
services to the public or their members. This category includes educational institutions
(schools, colleges, universities), healthcare facilities (hospitals, clinics), religious organizations,
and research centers.
4. Cooperative Societies: Cooperative societies are organizations owned and operated by their
members to fulfill common economic, social, or cultural needs and aspirations. They can be in
various sectors, such as agriculture, consumer goods, banking, housing, and more.

Types of Industrial products and services:

1. Materials and parts: These are raw materials, components, and assemblies used in the
manufacturing or production process of other goods. Industrial businesses often purchase
materials and parts to incorporate them into the products they manufacture.
2. Capital Items: Capital items, also known as capital goods or equipment, are long-term and
expensive assets that businesses use to produce other goods or provide services. These items
have a significant impact on the company's operations and productivity. Capital items are not
intended for resale, but rather for use within the business. Examples of capital items include
machinery, tools, vehicles, computers, and manufacturing equipment.
3. Supplies and services: Supplies refer to consumable items that businesses use in their day-
to-day operations but are not directly incorporated into the final products. These items are
often used up during the production process. Examples include office supplies, cleaning
materials, lubricants, and packaging materials.
Types of Environment:
1. Ecological/Physical Environment: This type of environment refers to the natural
surroundings and physical conditions in which living organisms, including humans, exist. It
encompasses elements such as air, water, land, climate, ecosystems, flora, and fauna. The
ecological environment plays a critical role in supporting life and influencing the behavior and
development of living organisms.
2. Internal Environment: The internal environment pertains to the conditions, factors, and
elements within an organization or system that influence its operations, performance, and
culture. In a business context, the internal environment includes aspects such as the
company's organizational structure, management style, company culture, employees,
resources, and capabilities.
3. External Environment: The external environment refers to the factors and conditions
outside an organization or system that can affect its operations and performance but are not
directly controllable by the organization. The external environment includes various
components, such as the market, customers, competitors, suppliers, government regulations,
economic conditions, technological advancements, social trends, and political factors.
Q. How does industrial product effect the environment?
1.Resource Depletion: The production of industrial products often requires the extraction of
raw materials from the environment, which can lead to resource depletion. This includes the
extraction of minerals, fossil fuels, and timber, which can disrupt ecosystems and habitats.
2.Energy Consumption: The manufacturing of industrial products consumes significant
amounts of energy, especially for processes like melting metals, chemical reactions, and
transportation.
3.Pollution: Industrial processes can release various pollutants into the air, water, and soil. Air
pollution from factories can result in the emission of harmful gases, particulate matter, and
volatile organic compounds. Water pollution may occur due to chemical discharges, heavy
metals, and untreated wastewater. Soil pollution can result from improper waste disposal and
chemical spills.
4.Waste Generation: The production of industrial products often generates waste, both during
the manufacturing process and at the end of a product's life cycle. Poor waste management
can lead to environmental contamination and harm to ecosystems.
5.Deforestation: Industrial products, particularly those made from wood and paper, can
contribute to deforestation when unsustainable logging practices are used to meet the
demand for these materials.
6.E-waste: Electronics and electrical equipment are a significant source of electronic waste (e-
waste) when they become obsolete or reach the end of their life cycle. Improper disposal of e-
waste can lead to hazardous substances leaching into the environment.
7.Climate Change: Certain industrial products, such as refrigerants and greenhouse gas
emissions from various industrial processes, contribute to global warming and climate change.
 Chapter-06
Market Segmentation:
Market segmentation is the process of dividing the total market for a product or service into
several segments or distinct group of buyers. Each group of buyers is homogeneous and may
require separate benefits from the product.

Segmenting, Targeting and Positioning (STP) Framework:

Market Segmentation:
1.Carryout marketing research: The first step is to conduct comprehensive market research to
gather data about the target market. This research can include surveys, interviews, focus
groups, and data analysis of customer demographics, preferences, purchasing behavior, and
other relevant information.
2.Identify segment variables from the analysis of market research data: Once the marketing
research data is collected and analyzed, the next step is to identify variables or factors that
differentiate various groups of customers.
3.Prepare profiles of the resulting segments: Using the identified segment variables, the
market can be divided into distinct segments. Each segment will consist of customers who
exhibit similar characteristics or behaviors.
Target Marketing: Target marketing is a strategic approach that follows the process of
evaluating market segments, selecting the most appropriate target segments, and deciding on
a market strategy to reach and serve those chosen segments effectively.
1.Evaluating the resulting segments: After conducting market segmentation and preparing
profiles of various segments, the first step is to evaluate each segment's attractiveness and
viability.
2.Select the target segments: Target segments are the specific groups of customers that the
company aims to serve with its products or services.
3.Decide target market strategy: Once the target segments are selected, the final step is to
determine the market strategy to reach and cater to these segments.
Positioning:
1.Identify target customers attributes for differentiation: The first step is to understand the
target customers and their specific needs, preferences, and buying behavior.
2.Select the right attributes or benefits: Once the relevant attributes are identified, the next
step is to choose the most compelling and differentiating ones. These attributes should set the
product or brand apart from competitors and resonate with the target customers.
3.Communicate the chosen position to each target market: After selecting the key attributes
for differentiation, the next step is to effectively communicate this positioning to the target
market.
Benefits of Market Segmentation:
1.Better Targeting: Market segmentation allows businesses to target specific customer groups
more effectively.
2.Increased Sales and Revenue: Targeting specific market segments enables businesses to
focus their resources on customers who are more likely to be interested in their offerings. This
can lead to increased sales conversion rates and higher revenue generation.
3.Enhanced Customer Satisfaction: When products and services are tailored to meet the
specific needs of each segment, customers are more likely to be satisfied with their purchases.
4.Optimized Marketing Efforts: Market segmentation helps companies allocate their marketing
budgets more efficiently. Instead of employing a one-size-fits-all approach, businesses can
invest their resources in marketing strategies that are more relevant and effective for each
segment.
5.Market Insights: Segmenting the market provides valuable insights into customer behavior,
preferences, and trends. This information can be used to identify new opportunities, develop
innovative products, and stay ahead of competitors.
6.Competitive Advantage: By focusing on specific market segments, businesses can create a
competitive advantage. They can position themselves as specialists in catering to the unique
needs of certain customer groups, making it challenging for competitors to replicate their
success.
Limitations of Market Segmentation:
1.Cost and Complexity: Implementing market segmentation requires data analysis, research,
and additional marketing efforts to reach and serve multiple segments. This can be costly and
time-consuming, especially for smaller businesses with limited resources.
2.Overlooked Opportunities: Overemphasizing segmentation can lead to overlooking potential
customers who do not fit neatly into any specific segment. This can result in missed
opportunities to reach broader markets.
3.Inaccurate Segmentation: If the segmentation criteria are not well-defined or the data used
for segmentation is flawed, it can lead to inaccurate segment profiles. This can result in
misdirected marketing efforts and missed targets.
4.Increased Competition: Segmenting the market may attract more competitors to each
specific segment, reducing the overall profitability of serving those segments.
5.Limited Scope: Focusing too much on segmentation may lead to a narrow view of the
market, neglecting the overall market dynamics and trends.
6.Changing Consumer Behavior: Consumer behavior is subject to change over time, and
segments that were once viable may become less relevant. This necessitates continuous
monitoring and adjustment of segmentation strategies.
Criteria used for selecting of segmentation variables to achieve effective segmentation:
1.Measurable: Segmentation variables should be measurable, meaning they can be quantified
and observed. Measurability allows marketers to identify and size the different segments
accurately. It involves collecting data on the chosen variables to determine the characteristics
and needs of each segment.
2.Differentiable: Segmentation variables should make segments distinguishable from one
another. In other words, customers within each segment should share similar characteristics
that set them apart from customers in other segments.
3.Substantial: Substantiality refers to the requirement that each segment should be large
enough and have sufficient purchasing power to warrant separate marketing efforts. Targeting
small and insignificant segments may not justify the resources allocated to reach and serve
them.
Target Marketing: Objectives/ The steps involved in target marketing:
1. Evaluating market segments:
a) Size and growth: This step involves assessing the size of each market segment and its
growth potential.
b) Profitability analysis: Analyzing the profitability of each segment helps identify the
segments that offer the highest return on investment (ROI) and are financially attractive to the
company.
c) Competitive analysis: A segment with less intense competition might provide better
opportunities for market penetration and differentiation.
d) Company objectives and resources: The company's own objectives, capabilities, and
available resources play a significant role in the evaluation process.
2. Selecting the target segments:
3. Decide target market strategies:
a. Concentrated marketing: Also known as niche marketing, this strategy involves focusing all
marketing efforts on a single, well-defined market segment.
b. Differentiated marketing: With this strategy, a company targets multiple market segments
and designs separate marketing strategies for each.
c. Undifferentiated marketing: Commonly referred to as mass marketing, this strategy treats
the entire market as a single segment.

Criteria in choosing target-market strategy:

1. If the company resources are limited, choose concentrated marketing strategy.
2. If a new product in the “Introduction” stage of the product life cycle, a firm can follow either
concentrated or undifferentiated marketing strategy. For “mature stage” of the PLC,
differentiated marketing is sensible.
3. If major competitors follow differentiated marketing strategy, an industrial marketer must
also follow the same strategy. If competitors use undifferentiated marketing strategy, a
company will gain by using either differentiated or concentrated marketing strategy.
Positioning: Positioning is a marketing strategy that involves creating a distinct and favorable
perception of a brand, product, or service in the minds of target customers relative to
competitors. It is about how a company wants its target audience to perceive and think about
its offerings, emphasizing unique attributes and benefits that set it apart from other
alternatives in the market. The goal of positioning is to occupy a distinct and advantageous
position in the target customers' minds, making the brand or product stand out and be
preferred over competitors.

Procedures for developing a positioning strategy:

1. Identify major attributes for differentiation:
a) Product variables: These attributes pertain to the physical or tangible features of the
product. They are directly related to the product itself and include characteristics.
b) Service variables: Service variables focus on the intangible aspects of the customer
experience and the level of service provided. These attributes are crucial for service-oriented
businesses.
c) Personnel variables: These attributes relate to the people representing the company and
their interactions with customers. Personnel variables play a significant role, especially in
service industries.
d) Image variables: Image variables are associated with the overall perception and reputation
of the brand or company. They are influenced by marketing efforts, public relations, and
customer experiences.
2. Selecting the differentiating attributes:
3. Communicating the company’s positioning:

Procedures Followed for Market Segmentation:

1.Market Research: The process begins with conducting comprehensive market research to
gather data and insights about the target market. Market research involves various methods,
including surveys, interviews, focus groups, and data analysis, to understand customer
characteristics, behaviors, preferences, and needs.
2.Analysis (to identify segments): Once the market research data is collected, the next step is
to analyze and process the information to identify distinct segments within the market. The
analysis involves using statistical tools and techniques to identify patterns, similarities, and
differences among customers.
3.Profile (or outlines) of segments: After the segments are identified through analysis, the
next step is to prepare profiles or outlines of each segment. Each profile describes the
characteristics, needs, and preferences of the customers within that segment.
 Chapter-07
Industrial Product: The industrial product is defined as not only as a physical entity, but also as
a complex set of economic, technical, legal and personal relationship between the buyer and
seller. In a competitive market, customers value these traditional benefits both tangible and
intangible. An industrial marketers should be aware of what constitutes a total product
package in the mind of prospective customers.
Classification of New product:
1. Products that are innovative and new to the world.
2. Products that are new to the company, but not new to the market.
3. Revisions or improvements to the existing products in the existing market.
4. Additions to the existing product lines with additional markets.
5. Responding existing products to new market segments.
6. Products with substantial cost reductions without reduction the performance.
Unique characteristics of service and marketing implications:
1.Intangibility:(Service can not be seen or felt before they are purchased)
Example: 1.Management consultancy, 2.Executive development programs.
Marketing Implication: 1.Buyers look for evidence of the serviced quality, 2.Service providers
try to tangibles the intangible.
2.Inseparability:(Service are generally produced and consumed simultaneously).
Example: 1.Machinery or equipment repairs, 2.Courier service.
Marketing Implication: 1.Effective buyer-seller interaction depends on the service provider
2.Requires effective recruitment and training of service providers.
3.Variability: (Quality of service are highly variable depending on who provides, when,and
where they are provided).
Example:1.Marketing research, 2.Management education.
Marketing Implication:1.Standarisation of output and uniformity in quality are difficult to
achieve, 2.Service provides should emphasis on quality standards, develop system to minimize
errors, and try to automate.
4.Perishability: (Generally service can not be stored).
Example:1.Airlines empty seats, 2.Unused warehouse space.
Marketing Implication:1.When demand fluctuates service firms have difficult problems, 2.Plan
capacity around peak demand.
5.Non-Ownership: (Service buyer uses but does not own the service purchased)
Example: 1.Use of hotel service, 2.Use of car rental.
Marketing Implication:1.Service marketer should communicate advantage of non-ownership-
reduction in labour and overheads, and flexibility.
How would u convert service into a product?
Converting a service into a product involves transforming the intangible nature of the service
into a tangible offering that can be sold repeatedly without direct human involvement. This
process requires careful planning, consideration of customer needs, and the creation of
scalable systems.
Here are the steps to convert a service into a product:
1.Identify the Core Service: Analyze your existing service to determine its key components and
value proposition. Understand what aspects of the service can be packaged and standardized
to create a product.
2.Define the Target Market: Identify the target audience for your product. Understand their
needs, pain points, and preferences. This will help you tailor your product to meet specific
customer requirements.
3.Standardize and Systematize: To create a product, you need to standardize the service's
delivery process. Develop a step-by-step system that outlines how the service will be executed
consistently and efficiently.
4.Create a Product Prototype: Develop a minimum viable product (MVP) that showcases the
core features of your service-turned-product. This will allow you to test the market and gather
feedback before investing more resources.
5.Automate and Scale: Implement automation wherever possible to reduce the need for
manual intervention. Automation will enable you to scale your product without drastically
increasing operational costs.
6.Set Pricing and Packaging: Determine a pricing model that reflects the value of your product
and resonates with your target market. Consider different packaging options, such as tiered
pricing or subscription-based models, to cater to various customer segments.
7.Build a Sales and Marketing Strategy: Develop a comprehensive sales and marketing
strategy to promote your product to the target market.
8.Customer Support and Training: Provide customer support resources, such as FAQs,
documentation, and tutorials, to help users understand and make the most of your product.
This will improve customer satisfaction and retention.
9.Measure and Iterate: Monitor the performance of your product and gather customer
feedback. Use this data to make improvements and updates to enhance the product's value
and user experience continuously.
10.Expand and Diversify: As your product gains traction, explore opportunities to expand its
offerings or create related products that complement the original offering. This will help you
diversify your product line and cater to a broader customer base.
 Chapter-08
Distribution Channel: A set of intermediaries’ organization that make a product and service
available to customers for use. This channel may direct or indirect.
Distinctive nature of industrial channels:
1. Geographical distribution: Industrial intermediaries (such as distributors or dealers)are
highly concentrate geographically. They are found where industrial market exists, that is, in
large cities or towns with industrial estates.
2. Channel size: Industrial channels are short and involve a type of intermediary for selling and
handling the products. Sometimes the channels are direct from the manufacturers to the
customers, without intermediaries. The reason for the shorter channels in industrial markets is
that the organizational buyers expect product availability,tech-nical expertise, and servicing
capabilities. These expectations have to be fulfilled by the intermediary (distributor or dealer)
and the manufacturer.
3. Characteristics of intermediaries:Industrial intermediaries are often technically qualified
and have close relationship with the industrial organizations. The types of intermediaries used
by industrial marketers are also different from the wide variety of wholesalers and retailers
used by marketers of consumer products.
4. Mixed system:Some industrial marketers use a mixture of direct and indirect channels in
order to meet the requirements of different market segments, or when the company has
resource constraints.
Why industrial marketer use intermediaries?
1. Buying: The distributor or dealer purchases products from the manufacturer for resale to
industrial end-users.
2. Promotion and selling: The middlemen contact potential or existing customers, promote the
product,negotiate, and secure orders.
3. Assorting:Some middlemen bring together several related items from various sources to
serve potential customers.
4. Financing:The dealers/distributors purchase products and invest in the inventory. They also
extend credit to customers while reselling the products. Thus, they help manufacturers to
finance the marketing process.
5. Warehousing:The distributors or dealers must store the products properly at their
warehouses to assure product availability in good condition to the industrial users.
6. Grading:The manufacturer sometimes asks the middlemen to inspect and test the product
and assign distinct quality grades.
7. Transportation:Some middlemen also manage the physical movement of the product from
their warehouses to customers' locations. Many industrial customers consider prompt delivery
as an important benefit.
8. Information:The middlemen have responsibilities to provide information both to their
customers and suppliers.
9. Risk-taking:When middlemen buy a product, store it and then resale it there is a risk that
the product may deteriorate, become obsolete, or may not be required by customers.
10. Technical services:Some middlemen are equipped to give pre-sales and after-sales services
to the industrial users by recruiting and training service.

Why industrial customers buy from distributors?

Industrial marketers can market their products through distributors (or dealers) only if the
industrial customers or users find it desirable to buy through distributors. A number of studies
conducted on this subject indicate-the following reasons.

1. Dependable delivery: The most important reason is fast and economical delivery.
Dependable delivery enables the industrial buyer to reduce the inventory level and therefore,
the inventory carrying cost. Often, the distributors deliver the goods with-out charging the
freight. These are some of the savings in costs that are important, particularly for small-scale
manufacturers.
2. Information: Useful information about the products of many manufacturers, like price,
availability, and quality can be obtained from the local distributor. Sometimes, detailed
technical information may not be available from the distributor's salesman but the same can
be obtained from the manufacturer.
3. Variety: There is an availability of products at the distributor's shop, which meets most of
the requirements of small-scale manufacturers (or customers).
4. Liberal credit: Liberal credit Often this is, offered by the local distributor who is familiar with
the financial needs of the local manufacturers/customers. On the whole, dependable customer
service is the main reason considered by the industrial buyers for buying from the local
distributors/dealers.
 Chapter-10
Industrial communication: Industrial communication refers to the exchange of data,
information, and signals between various machines, devices, and control systems within an
industrial environment.
Industrial communication systems are designed to meet the unique requirements and
challenges of industrial settings, which often involve harsh environments, high levels of noise,
and the need for reliable and fast data transfer.
Advertising: Advertising is a form of communication that aims to promote or persuade an
audience to take specific actions, typically to buy a product, use a service, support a cause, or
adopt a particular behavior. It is an essential marketing strategy used by businesses,
organizations, governments, and individuals to reach their target audience, raise awareness,
and influence consumer behavior.

Sales promotion: Sales promotion is a marketing strategy that uses short-term incentives and
promotional activities to encourage customers to make a purchase or take a specific action.
The primary goal of sales promotion is to increase sales, attract new customers, retain existing
ones, and create excitement around a product or service.

Publicity: Publicity is a form of communication that involves gaining public attention and media
coverage for a person, organization, product, service, or event. Unlike advertising, which
typically involves paid promotional messages, publicity is often earned media, meaning it is
obtained through non-paid or organic means. Publicity aims to create positive awareness,
visibility, and interest in the subject being promoted.

Public relations: Public relations (PR) is a strategic communication practice that focuses on
building and maintaining positive relationships between an organization, individual, or brand
and its target audience. The goal of PR is to establish a favorable image and reputation,
enhance credibility, and create goodwill among stakeholders, including customers, employees,
investors, the media, and the general public.

Direct marketing: Direct marketing is a form of advertising and promotional strategy where
companies communicate directly with targeted individuals or specific groups of potential
customers to promote their products, services, or offers.
The goal is to encourage immediate action and generate a direct response, such as making a
purchase, signing up for a service, or requesting more information.
Developing the process of industrial communication program:
Step 1: Determining the communication objectives.
Step 2: Identifying the target audience.
Step 3: Determining the promotional budget. a) Affordable method, b) Percentage-of-sales
method, c) Competitive-parity method, d) Objective-and-task method
Step 4: Developing the message strategy.
Step 6: Evaluating the promotion’s result.
Step 5: Selecting the media.
Step 7: Integrating the promotional program.
Fig: Industrial buying decision process
The role of advertising in industrial marketing:
The relative importance of promotional tools between consumer and industrial markets varies,
as shown in Figure. Consumer products (or services) companies rate advertising, sales
promotion, personal selling, direct marketing, publicity, and public relations (PR) in that order.
Industrial goods (or services) companies rate personal selling, direct marketing, sales
promotion, advertising, and publicity and public relations (PR) in that order.
Promotional Tools Consumer Markets: 1. Advertising,
2.Sales Promotion, 3.Personal Selling, 4.Direct Marketing,
5. Publicity and P.R. (Relative Spending)
Promotional Tools Industrial Markets:1. Personal Selling,
2. Direct Marketing, 3. Sales Promotion, 4. Advertising, 5.
Publicity and P.R. (Relative Spending)
Fig: Relative Importance of Promotional Tools in Consumer
and Industrial Markets
Functions performed by industrial advertising:
Industrial advertising serves several important functions to
support business-to-business (B2B) marketing efforts. Some key functions performed by
industrial advertising include:
1.Creating Awareness: Industrial advertising helps create awareness about a company's
products, services, and brand within its target market.
2.Reaching Members of Buying Center: In B2B transactions, multiple individuals are often
involved in the decision-making process, collectively known as the buying center. Industrial
advertising aims to reach and influence these key decision-makers, such as purchasing
managers, engineers, and executives, who play critical roles in the purchasing process.
3.Increasing Sales Efficiency and Effectiveness: Effective industrial advertising can lead to more
informed and motivated prospects. Sales teams can then engage with potential customers who
already have some level of awareness about the products or services, making the sales process
more efficient and productive.
4.Efficient Reminding: Industrial advertising helps reinforce a company's message and brand in
the minds of potential customers. By maintaining a consistent presence through advertising,
companies can remind their target audience about their offerings and benefits.
5.Sales Lead Generation: Through lead-generating advertisements or call-to-action messages,
industrial advertising can attract potential customers and generate sales leads.
6.Supporting Distribution Channel Members: Industrial advertising can also benefit
distribution channel partners, such as distributors and resellers, by creating demand for the
products or services they offer.

Difference between public relation and publicity:

Criteria Public relation Publicity

1. Definition 1. Public relation is the process of 1. Publicity is the movement of

building good relationship with information with the effect of
companies’ various publics by increasing public awareness about a
obtaining favorable public image, subject.
for creating good corporate image.
2. Duration 2. Long term 2. Short term
3.Nature 3. It is an overall program 3. It is a part of public relation
4. Problem 4. Almost everyone has a public 4. A few people have a publicity
relation problem problem
5. About 5. It is about strategically managing 5. It is about getting ink.
brands reputation
6. Activities 6. Public relation professional work 6. Publicity usually takes the form of
to building term relationship among text, audio, video, news releases
individuals and institutions. about an organization on individual
distributed to newspapers television
stations and magazines
7. Monitor 7. It monitor internal and external 7. It monitor mainly external publics
publics
8. Control 8. It is more controllable 8. It is less controllable
9. Pattern 9. Positive 9. Positive and negative
10. Example 10. The dove campaign for real 10. Politicians and performance of
beauty, Pepsi refresh project print artists
campaign, radio television
campaign, online campaign