Chapter 14 :Products and Services for Businesses

For firms producing products and services for industrial markets, the chief reason for venturing abroad is the prospect of high profits with no risk.

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The single most important difference between consumer and industrial marketing is the cyclical swings in demand inherent in the latter.

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Managers need to understand the concept of derived demand, particularly when they are selling capital equipment and big-ticket industrial services.

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Derived demand can be defined as demand that is not dependent on another source.

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Industrial demand is unaffected by changes in consumer demand.

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One of the ways that an industrial firm should manage the inherent volatility of the industrial sector is by increasing advertising expenditure during booms.

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The most significant environmental factor affecting the international market for industrial goods and services is the degree of standardization.

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The degree of economic development of a country can be used as a rough measure of the country's industrial market.

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In Stage 1 (the traditional society) of Rostow's five-stage model of economic development, the most important industrial demand is labor.

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In Rostow's five-stage model of economic development, countries in Stage 5 (the age of mass consumption) are mostly service economies.

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