INTERNATIONAL INDUSTRIAL MARKETING Lecture Notes on Concepts, Theories and Models

The concept of organisational or industrial marketing is used to describe marketing activities targeted at all individuals and organisations that acquire products and services that are used in the production of other products and services. These products include capital goods (e.g. buildings, land and machines), operational products (e.g. accessory equipment, supplies, maintenance services), and output products (e.g. raw materials, components, production services). The justification for creating industrial marketing as a specific field of study in marketing derives from the awareness that the market behaviour, which affects the demand and purchases of industrial products and services, is generally quite different from that experienced in consumer markets. One of the distinctive differences between industrial and consumer markets is that the demand for industrial products is a derived demand, meaning that the magnitude of demand for these products varies with the demand for the finished products and services based on them. The purchasing process of industrial products is also relatively more complex, and may be divided into a number of stages taking place over time. The purchase decision making process usually involves many people who are drawn from different departments of th