Industrial marketing involves activities related to marketing products and services to commercial and non-profit organizations. There are four types of exchanges: product, information, financial, and social. Industrial markets differ from consumer markets in factors like market structure, product customization, buyer behavior, decision making process, and emphasis on personal selling over advertising. An industrial marketing strategy considers components like product planning, distribution, sales/service, advertising/promotion, and pricing. The industrial buying process involves recognizing a need, confirming it, agreeing on specifications, recommending a supplier, authorizing purchase, and placing an order.
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Industrial marketing involves activities related to marketing products and services to commercial and non-profit organizations. There are four types of exchanges: product, information, financial, and social. Industrial markets differ from consumer markets in factors like market structure, product customization, buyer behavior, decision making process, and emphasis on personal selling over advertising. An industrial marketing strategy considers components like product planning, distribution, sales/service, advertising/promotion, and pricing. The industrial buying process involves recognizing a need, confirming it, agreeing on specifications, recommending a supplier, authorizing purchase, and placing an order.
Industrial marketing involves activities related to marketing products and services to commercial and non-profit organizations. There are four types of exchanges: product, information, financial, and social. Industrial markets differ from consumer markets in factors like market structure, product customization, buyer behavior, decision making process, and emphasis on personal selling over advertising. An industrial marketing strategy considers components like product planning, distribution, sales/service, advertising/promotion, and pricing. The industrial buying process involves recognizing a need, confirming it, agreeing on specifications, recommending a supplier, authorizing purchase, and placing an order.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online from Scribd
Industrial marketing involves activities related to marketing products and services to commercial and non-profit organizations. There are four types of exchanges: product, information, financial, and social. Industrial markets differ from consumer markets in factors like market structure, product customization, buyer behavior, decision making process, and emphasis on personal selling over advertising. An industrial marketing strategy considers components like product planning, distribution, sales/service, advertising/promotion, and pricing. The industrial buying process involves recognizing a need, confirming it, agreeing on specifications, recommending a supplier, authorizing purchase, and placing an order.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
Industrial marketing consists of all activities involved
in the marketing of products and services to organizations which may be commercial, profit or non profit institutions, government agencies or resellers that use products or services in the production of consumer or industrial good and service, and to facilitate the operations of the enterprise. There can be four different types of exchanges in industrial marketing . Product exchange . . Information Exchange . .Financial Exchange . Social Exchange . COMPARING & CONTRASTING INDUSTRIAL VS CONSUMER MARKETING: Industrial Markets Consumer Markets 1. Market Structure Geographically Concentrated. Geographically Dispersed.
Oligopolistic Competition Monopolistic
competition. Products Technical Complexity Customized Standardized. Service very important Service somewhat important. Buyer Behavior Functional Involvement Family Involvement. Interpersonal Relationship No personal Relationship. Decision Making Distinct observable stages. Unobservable mental stages. Channels Shorter & Direct Indirect & multiple linkages. Promotion Emphasis on Personal Selling Emphasis on Advertising Price Competitive Biddings List Prices and Negotiating. Industrial Marketing Strategy Components Product Planning and Development 1. Product from that of competitors as viewed by customers. 2. Offer only one product and try to attract all buyers (i.e., use an "undifferentiated" strategy) 3. Develop separate products and marketing programs for each market segment (i.e., use differentiated" strategy). 4. Create new uses for existing products [through improved performances and/or exclusive features 5. Diversify into new markets with new products. 6. Establish product leadership through development of quality products Distribution 1. Warehouse products at locations that enable quick delivery to each distributor and customer 2. Provide additional outlets to reduce distribution cost per sale. 3. Use only one warehouse to minimize inventory control problems Sales / Service 1. Expand geographic area of operations to penetrate high potential regions not currently approached 2. Reshape distribution channels (i.e. dealers, distributors, agents, and company sales force) to satisfy market-buying preferences more closely. 3. Develop more competent sales force and/or dealer/distributor organization. 4. Require sales force to improve its knowledge of customers and their products. 5. Employ target marketing to identify and reach high- potential customers and prospects. 6. Minimize reciprocal purchases with suppliers where prudent. 7. Increase sales effort on most profitable products and customers. Advertising/Promotion . Employees "push" strategy to encourage dealers, distributors, and company sales force to move your product lines (good margins, bonuses. services, advertising. and promotional subsidies 2. Employ pulls strategy to stimulate customer demand through increased brand concept and product acceptance. 3. Maximize advertising and promotion coverage to increase volume, which will permit mass production and distribution. 4. Address advertising and promotion to key customers and "best" prospects to maximize the benefits of these expenditures in a limited market segment. Pricing 1. Set low, price for new products to discourage competitive entry into market. 2. Set low, price for products to encourage high sales volume which permits mass production and low cost unit 3. Provide minimum "extra" services to permit lower prices. 4. Price parts service, and repairs at cost or with slight markup to gain maximum good will 5. Price products to obtain principal profit on original sale rather than on follow-up service and parts_ Offer quantity discounts to encourage larger unit purchases. Industrial Buying Behavior Recognition of a need Confirmation of the need Agreement on specifications Recommendations as to supplier Purchase authorization and Placing of the order