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Marketing Industrial Products and Services

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... companies cannot maintain toll-free information hotlines or solicit phone-order catalogue sales. ... Catalogs. Websites. Direct Mail. Trade Shows/Fairs. 13 ... – PowerPoint PPT presentation

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Title: Marketing Industrial Products and Services


1
Chapter 13
Marketing Industrial Products and Services
2
Major Categories U.S. Exports
Category Percentage
Services Total 28.5
Travel (hotels, etc)
8.7 Transportation (fares, freight, and port
services) 7.5 Commercial,
professional, and technical services
(advertising, accounting, legal,
construction, engineering)
1.7 Financial services (banking and insurance)
1.5 Education and training services
(most foreign student tuition)
1.0 Entertainment (movies, books, records)
0.8 Other categories (telecommunications,
information, health care) 7.3
13-2
Irwin/McGraw-Hill
Source U.S. Department of Commerce,
http//www.doc.gov. 2001
3
Major Categories U.S. Exports
Category Percentage
Merchandise Total 71.5
Food, feeds, and beverages (wheat, fruit, meat)
4.8 Industrial supplies (crude oil,
plastics, chemicals, metals)
15.1 Capital goods (construction equipment,
aircraft, computers telecommunication)
32.1 Automotive vehicles, engines, and
part 7.7 Consumer goods
(pharmaceuticals, tobacco, toys, clothing)
8.2 Other categories 3.6
13-3
Irwin/McGraw-Hill
Source U.S. Department of Commerce,
http//www.doc.gov. 2001
4
Marketing Industrial Products and Services
  • I. Easier Standardization
  • 1) Consumed by Businesses
  • 2) Industrial Buyers seek profit
  • II. Volatility of the Industrial Market
  • 1) Buyers Act in Concert
  • 2) Derived Demand

5
Derived Demand
SOURCE Adapted from R.L. Vaile, E.t.Grether, and
R. Cox, Marketing in the American Economy (New
York Ronald Press, 1952), p.16. Appears in
Robert W. Hass, Business Marketing, 6th edition
(Cincinnati, OH Southwestern, 1995) p.115
6
Marketing Industrial Products and Services
  • Managing Volatility
  • - Maintaining broad product lines
  • - Raise prices faster
  • - Reduce advertising expenditures
  • - Stability as a goal

7
Marketing Industrial Products and Services
  • III. The Industrial Product-Market
  • 1) Stages of Economic Development
  • 2) Technology and Market Demand
  • 3) Attributes of Product Quality
  • 4) Quality Defined by the Customer
  • 5) Service Replacement Parts
  • 6) Lack of Universal Standards

8
Stages of Economic Development
Pre-Industrial or Commercial Primary
Manufacturing Concerned With The Partial
Processing of Raw Materials and Resources
Growth of Manufacturing Facilities for
Non-Durable and Semi-Durable Consumer goods
Well Industrialized Economy Complete
Industrialization
9
ISO 9000
ISO 9000 is the registration and certification
of a manufacturers quality system. It relates
to generic system standards that enable a company
through a mix of internal and external audits, to
provide assurance that it has a quality control
system. It is a certification of the production
process only, and does not guarantee that a
manufacturer produces a quality product or
service.
13-7
Irwin/McGraw-Hill
10
Service Opportunities in Global Markets
American airlines are falling all over
themselves to capture greater shares of the fast
expanding Latin American travel market through
investments in local carriers. Insurance sales
are also burgeoning in Latin America with joint
ventures between local and global firms making
the most progress. Banking in China is about
to undergo a revolution with National Cash
Register ATMs popping up everywhere.
11
Service Opportunities in Global Markets
Merrill Lynch is going after the investment-
trust business expected to take off after Japan
allows brokers to enter that business for the
first time in 1998. Foreign students spend
some 7 billion a year in tuition to attend
American universities and colleges. American
engineering consulting firms will provide
services to design and manage construction of
more than 1 trillion worth of infrastructure
development worldwide during the next decade.
12
Service Opportunities in Global Markets
Currently phone rates in markets such as
Germany, Italy and Spain are so high that
American companies cannot maintain toll-free
information hotlines or solicit phone-order
catalogue sales. Xena, Hercules and
comparably dumbed-down (i.e, heavy on action,
violence and sex) video-game heroes are
conquering electronic screens worldwide.
13
Marketing Industrial Products and Services
  • IV. Relationship Marketing in Industrial Markets

14
Reading Industrial Customers
  • Print Advertising
  • Catalogs
  • Websites
  • Direct Mail
  • Trade Shows/Fairs

13-9
Irwin/McGraw-Hill
15
Percentage of Media Budget Spent on Participation
in Trade Events
U.S. Europe
5
13-10
22
Irwin/McGraw-Hill
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