Beckman PowerPoint Presentation

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g o o d s and s e r v i c e s
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Consumer Goods Consumer Services Industrial
Goods Industrial Services
Industrial Business
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Consumer Goods Consumer Services Industrial
Goods Industrial Services
Consumer Goods and Services - are for consumers,
the final customer Industrial Goods and
Services - are used in making consumer goods and
services
Industrial Business
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Industrial Goods Industrial Services
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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.
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3 types of industrial markets

• - producers and manufacturers- trade industries
  (wholesalers and retailers)- governments

Not in the text
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3 types of industrial markets

• producers and manufacturersThose 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
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3 types of industrial markets

• 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
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3 types of industrial markets

• 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
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Industrial Market Demand
1. Derived Demandmeans 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

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Industrial Market Demand
2. Joint Demandmeans the demand is related to
the demand for other industrial thingseg. The
demand for printer cartridges is linked to the
demand for printer paperfor services, the
demand for Netscape 4.05 - is linked to the
demand for an ISP account
Not in the text
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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, law
firms
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Categories of Industrial Products

• Capital Itemsthings that last a long time, and
  become less and less in value over time2.
  Expense Items
• - things that are used within a short period of
  time
• - some types of raw materials, office supplies,
  materials in production

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Categories of Industrial Products
1. Capital Itemsex - car - office building -
machinery and equipment2. Expense Items ex - gas
for the car - washing the windows for the
building - parts for the machinery
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Categories of Industrial Products

• 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 1996etc.

Not in the text
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Various Classes of Consumer and Industrial Goods
and Services