1. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 1

2. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 2 Industrial = Business

3. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 3 Industrial = Business Consumer Goods and Services - are for consumers, the final customer Industrial Goods and Services - are used in making consumer goods and services

4. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 4

5. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 5 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 Industrial Market / BUSINESS PRODUCTS People who buy stuff to make other things. W.T.G.R.

6. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 6 - producers and manufacturers - trade industries (wholesalers and retailers) - governments Not in the text

7. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 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) public utilities, banks, insurance companies Not in the text

8. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 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

9. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 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, cellular phone service …... Not in the text

10. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 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

11. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 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

12. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 12 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, law firms Classifying Industrial Products

13. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 13 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 Categories of Industrial Products

14. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 14 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 Categories of Industrial Products

15. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 15 Depreciation The accounting concept for charging a portion of the cost of a capital item as a deduction against the companys revenue - eg. 486 DX2 Office computer bought in 1995 - deduct $750 in 1995 - deduct $750 in 1996 etc. Categories of Industrial Products Not in the text

16. To accompany Basic Marketing, Shapiro, 10 th & 11 th Cdn Ed. ppt slides Compiled by Prof. Tim Richardson Chapter 9 Marketing 106 Slide 16 Various Classes of Consumer and Industrial Goods and Services