FEATURES & IMPORTANCE OF INDUSTRIAL MARKETING- MARKETING MANAGEMENT



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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