FEATURES
& IMPORTANCE OF INDUSTRIAL MARKETING
BY
SMART
LEARNING WAY
CONTENTS
·
INTRODUCTION
OF INDUSTRIAL MARKETING
·
MEANING
·
WHY
STUDY INDUSTRIAL MARKETING
·
FEATURES
OF INDUSTRIAL MARKRTING
·
IMPORTANCE
OF INDUSTRIAL MARKETING
·
BIBLIOGRAPHY
INTRODUCTION OF INDUSTRIAL MARKETING
The fundamental
of consumer marketing are equally applicable to the industrial marketing. The
work of the industrial market is exclusively different, as all the forces of
market that affect industrial demand. The managers of industrial market must
react in a different way to change the markets develop products to meet these
changes and market them in exclusively different ways to the target and
sophisticate customers while maintaining corporate policies.
Therefore, industrial marketers face many
distinctive marketing situations not normally encountered in the consumer
market. Further, the industrial market has been the back bone of the high
standard of living enjoyed by consumers in past or since the industrial
revolution at global level. It is dynamic growth and development. As and when
the principles, knowledge, and practice of marketing cut across all industries,
to market than it becomes compulsory for the policy makers to study the
industrial marketing differently and to understand the industrial marketing
problems.
MEANING OF INDUSTRIAL MARKETING
Industrial marketing is the marketing of goods
and services from one business to another. Industrial marketing is also known
as B2B (business to business) marketing.
WHY STUDY INDUSTRIAL MARKETING ?
Unquestionably, employment opportunities for
college graduates are quite broad. So why study industrial marketing? The heart
of that question lies in the observation that, while many industrial executive saw
increased marketing competency as the
key priority for the 1980s , they recognize that the “ Historical
weakness in their firms” has been the lack of marketing orientation. Which has resulted in
:
A failure
to provide proper guidance and stimulation for research and development of new products.
A failure to exploit and develop markets for
new products.
An inability to define new methods for
promoting products to customers in the face of major increases in the cost of
media advertising and personal selling.
A failure to innovate in distribution and
other areas to keep up with changing
requirements of industrial customers
doing business on a multinational basis.
An
inability to refine and modify product
positioning.
A tendency for product managers and higher
levels of management to approach
problems in the same old way.
The marketing competency needed to correct
such situations will only come through
painful experience in the marketplace. However, to overcome our industrial
marketing weaknesses, the foundation for achieving that competency must be
laid here, in the academic setting.
The skills needed for success in industrial
marketing have been defined by industrial practitioners.
FEATURES OF INDUSTRIAL MARKETING
FEWER; BUT LARGER MARKET:
Business buyers will be very less as compared to consumer buyers; but
they purchase in bulk or more quantities.
CLOSE RELATIONS:
relation between seller and buyer
have to be kept very close and professional. Because once the relations are
build; can’t be changed easily as it
reflects huge profit.
COMPLEX BUYING PROCESS:
very
complex procedure is adopted by business buyers; because before purchasing, the
approval is required from different officials and authorities.
CONTINUOUS SALES CALLS:
To
finalize the deal, it requires constant follow-ups and continuous sales calls.
EXPERTISE SELLING SKILLS:
sharp selling skill is required to sell the product to industrial
buyers. As they are purchasing in bulk, they will not be easily convinced. Deep
product knowledge is required.
INFLUENCES:
To
finalize the product, different authorities and officials will interfere and
influence the decision to purchase the product.
GEOGRAPHICALLY CONCENTRATED BUYER:
More
than half of the nation’s industrial buyers are concentrated in seven states:
new York, California, Pennsylvania, Illinois, Ohio, new jersey, and Michigan.
Industries, such as petroleum, rubber, and steel, show even greater geographic
concentration. Most agricultural output comes from a relatively small member of
states. This geographical concentration of producers helps to reduce the costs
of selling to them . Industrial markets will want to watch any tendencies
toward or away from further geographies concentration.
DERIVED DEMAND
the
demand for industrial goods is ultimately derived from the demand for consumer
goods. Thus animal hides are purchased because consumers buy shoes, purses, and
other leather goods. If the demand for these consumer goods slackens, so will
the demand for all the industrial Goods entering into their production.
INELASTIC DEMAND
the
total demand for many industrial goods and services is not much affected by
price changes. Shoe manufacturers are not going to buy much more leather if the
price of leather falls. Nor are they going to buy much less leather if the
price of leather rises unless they can find satisfactory leather substitutes.
Demand is especially inelastic in the short run because producers cannot make
many changes in their production methods.
FLUCTUATING DEMAND
the
demand for industrial goods and services tends to be more volatile than the
demand for consumer goods and services. This is especially true of the demand
for new plants and equipment.
PROFESSIONAL PURCHASING
Industrial goods are purchased by professionally trained purchasing
agents, who spend their work lives learning how to buy better. Many belong to
the national association of purchasing agents, which seeks to improve the
effectiveness and status of professional buyers.
IMPORTANCE OF INDUSTRIAL MARKETING
MAJORS SHARE OF REVENUE:
Major
share of revenue is generated by selling the product to business buyers as they
purchase in bulk therefore it is important to take care of business deals.
LESS EXPENDITURE:
As the
business buyer are very few, no much expenditure is required to reach and to
contact them.
LESS PROMOTIONAL EFFORTS:
Free
gifts, demonstration etc is not required; because the product is not to be
shown to mass audience.
PERMANENT CUSTOMERS:
Once
the relations are built, business buyers will purchase the products for longer
period of time. Therefore the future is secured if existing buyers are
satisfied properly.
BIBLIOGRAPHY
Essentials of marketing management
author
:Philip kotler
Marketing management
author: s.a.sharleker
Himalaya
publishing house
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