Slide 1
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 2
Industrial = Business
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 3
Consumer Goods and Services
- are for consumers, the final customer
Industrial Goods and Services
- are used in making consumer goods and services
Industrial = Business
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 4
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 5
Industrial Market / BUSINESS PRODUCTS
“Individuals and organizations that acquire goods
and services to be used, directly or indirectly, in the
production of other goods and services or to be
resold.”
Beckman TEXT
“People who buy stuff to make other things.”
W.T.G.R.
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 6
- producers and manufacturers
- trade industries (wholesalers and retailers)
- governments
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 7
• producers and manufacturers
Those who transform goods and services, through
production, into other goods and services
• manufacturing firms (eg. Auto parts, computers)
• farms
• mining and forest industries
• construction and building companies
• service companies (trucking, air, rail)
Not in the text
• public utilities,
banks,
insurance
To accompany
Basic Marketing,
Shapiro,
10th & 11th companies
Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 8
• Trade Industries (gong ye maoyi)
• Organizations such as wholesalers and retailers
that buy things for resale to customers
• examples - lumber dealers, fabric wholesalers, building
materials
• metal and electrical products
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 9
• Governments (zheng fu)
• Federal Ministries and Crown Corporations,
Provincial Ministeries and Crown Corporations,
Municipal governments and agencies
• examples: Dept. of Defense buying trucks from GM, Dept.
of Revenue buying computers, Royal Canadian Mint
buying paper and
• Provincial agencies buy services such as snow clearance,
Not in the text
cellular phone service …...
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 10
1. Derived Demand
means the demand is derived (or caused by, or
linked to) demand for a consumer item
- demand for lithium is “derived” from the demand
for lithium batteries, which is in turn “derived” from
the demand for cell phones
- demand for wood pulp is derived from the demand
for paper, which is derived from the increase in
people printing on paper
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 11
2. Joint Demand
means the demand is related to the demand for
other industrial things
eg. The demand for printer cartridges is linked to
the demand for printer paper
for services, the demand for Netscape 4.05 - is
linked to the demand for an ISP account
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 12
Classifying Industrial Products
1. Installations - major assets, factories, heavy
machinery
2. Accessory Equipment - used in production
- short-lived items eg. tools
3. Raw Materials
4. Component Parts and Materials - finished units
which, when assembled, make the complete product
5. Maintenance, Supplies (MRO Items)
- maintenance,- cleaning fluids
6. Professional Services
- accounting
firms, Shapiro,
law firms
To accompany
Basic Marketing,
10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 13
Categories of Industrial Products
1. Capital Items
things that last a long time, and
become less and less in value over
time
2. Expense Items
- things that are used within a short
period of time
- some types of raw materials, office supplies,
materials in production
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 14
Categories of Industrial Products
1. Capital Items
ex - car
- office building
- machinery and equipment
2. Expense Items
ex - gas for the car
- washing the windows for the building
- parts for the machinery
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 15
Categories of Industrial Products
•Depreciation
• The accounting concept for charging a
portion of the cost of a capital item as a
deduction against the company’s revenue
- eg. 486 DX2 Office computer bought in 1995
- deduct $750 in 1995
- deduct $750 in 1996
etc.
Not in the text
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides
Slide 16
Various Classes of Consumer and
Industrial Goods and Services
G o o d s a n d S e r v ic e s
Consumer Goods
Consumer Services
Convenience Goods
Shopping Goods
Specialty Services
Convenience Services
eg. Mac's Milk
eg. clothing
eg. banking
eg. fast foods
eg. newspaper
eg. groceries
eg. travel
raw material
grain, steel
Industrial Goods
Industrial Services
Production Goods
Support Services
component
parts
eg. circuit board
materials
nuts, bolts
accessory equipment
tools, computers
installations
eg. buildings
eg. wiring
harness
To accompany
Basic Marketing, Shapiro, 10th & 11th Cdn Ed.
Compiled by Prof. Tim Richardson
ppt slides