Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 14 – Products and Services for Businesses
Teaching Objectives
The overall objective of this chapter is to illustrate how the differences in the motives between buyers of
consumer products and industrial goods and services place different emphasis on the marketing of these
products. It is important to stress that much of what has been discussed in Chapter 13 is relevant for
industrial goods and services but that emphasis is affected by the inherent nature of industrial goods. The
teaching objectives are to:
1) Emphasize a fundamental difference in consumer demand vis-à-vis industrial demand—the
inherent volatility of the latter.
2) Explore the relationship between a country's stage of economic development and demand for
industrial goods.
3) Stress the growing importance of technology and quality in successful product development.
4) Illustrate the important role of relationship marketing in maintaining competitiveness in industrial
goods marketing.
5) Examine industrial trade shows as an important means of promotion.
6) Present the major issues in marketing business services globally and the affect of the fundamental
characteristics of business services on marketing.
Comments and Suggestions
1. Perhaps the most important point to make regarding the marketing and development of industrial
products is the inherent volatility of derived demand. Demand for capital equipment is particularly
susceptible to huge fluctuations in demand.
2. The growing importance of technology and quality in successful industrial goods marketing cannot be
overstressed. The level of technology reflected in the product, compliance with standards that reflect
customer needs, support services and follow through, and the price relative to competitive products
are all part of a customer’s evaluation and perception of quality.
Lecture Outline
I. The Volatility of Derived Demand
II. The Industrial Product Market
A. Stages of Economic Development
B. Technology and Market Demand
C. Attributes of Product Quality
D. Quality is Defined by the Customer
E. Service and Replacement Parts
G. Universal Standards
H. ISO 9000 Certification—An International Standard of Quality
III. Promoting Industrial Products
A. Industrial Trade Shows
IV. Marketing Services Globally
A. Services Opportunities in Global Markets
B. Entering Global Markets
1 Client Followers and Market Seekers
2. Entry Modes
D. Cultural Barriers and Adaptation
V. Relationship Marketing and Industrial Products
