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* Here is what you will learn in chapter 14: Demand in global business-to-business markets: volatility of industrial demand, stages of economic development, and technology and market demand; Quality and global standards; Business services: after-sale services, other business services; Trade shows; Relationship marketing in business-to-business. * There were predictions that there were “no clear technological threats” for Andy Grove and the board at Intel despite the financial meltdown in Asian markets. But he had not predicted the inescapable bust and it was ugly as sales declined by more than 20% and the stock price crashed from a high of $75 to below $20. The lesson here is: in industrial markets, including the global ones, what goes up must come down! While everyone is familiar with most of the consumer brands described in Chapter 12, sales of such products and services do not constitute the majority of export sales for industrialized countries. Take the United States, for example -- as can be seen in Exhibit 14.1, the main product the country sells for international consumption is technology. This is reflected in categories such as capital goods and industrial supplies, which together account for some 44 percent of all U.S. exports of goods and services. Technology exports are represented by both the smallest and the largest products—semiconductors and commercial aircraft, the latter prominently including America’s export champions, Boeing’s 747s. Two of the three most valuable companies in the world currently – Microsoft and General Electric – are sellers of high-technology industrial products. * * Three factors seem to affect the demand in international industrial markets differently than in consumer markets. First, demand in industrial markets is by nature more volatile. Industrial firms can take several measures to manage this inherent volatility, such as maintaining broad product lines and broad market coverage, raising prices faster and reducing adverti
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