Uses of Industrial Advertising

Rarely is advertising employed by itself in the industrial arena. The  complexity of most industrial products, coupled with buyers’ expectations and  unique information needs, requires personal contact. It is not possible, however, for  sales people to make contact with all the various individuals who may be  involved in a purchasing decision. In fact, studies have indicated that on the  average for every ten buying influencers, salesperson reaches only three to four.  Not only is industrial advertising an effective means of reaching inaccessible or  unknown buying influencers, it creates awareness, enhances the effectiveness of  the sales call, increases the overall efficiency of the selling effort, and is an  important ingredient in creating and maintaining demand at the distributor level.… Read the rest

Medias used in Industrial Advertising

While some industrial advertisers use traditional consumer media when  they serve their advertising objectives, their choices generally center on  whether to use print media (business magazines, trade publications, and  industrial directions), direct marketing (direct mail, telemarketing, catalogs, and  data sheets), or some combination thereof.

General Business and Trade Publications

General business and trade  publications are classified as either horizontal or vertical. Horizontal  publications deal with specific functions, tasks, or technologies and cut across  industry lines. Vertical publications are directed toward a specific industry and  may be read by almost anyone from the person on the assembly line to the  company president.… Read the rest

Develop a Successful Industrial Promotion Program

Today’s economic conditions call for careful consideration of the  elements that are essential in developing an effective communication  program – whether it is industrial or consumer oriented. Promotional variables  must be artfully integrated if communication objectives are to be achieved most  effectively.

Many of the principles that are followed in developing consumer  advertising programs are not only applicable but are necessary in developing an  effective industrial promotional program. The objective of industrial  advertising, for instance, is to communicate something about the company and its products. It should be designed, then, to enable the company and its sales people to become favorably known to current and potential customers, to convey specific and technical information regarding the characteristics of a particular product(s), to help sales people in their selling effort, to motivate distributors of industrial goods, and to reach those who either directly or indirectly influence the buying of industrial goods.… Read the rest

Pricing Decisions in Industrial Marketing

Price still remains one of the most important elements determining  company market share and profitability. Generally, prices were set by buyers and  sellers negotiating with each other. Setting one price for all buyers is a relatively  modern idea. Price is the only element in the marketing mix that produces  revenue. Price is also one of the most flexible elements of the marketing mix.  At the same time, pricing and price competition are the number-one  problems faced by many marketing executives. Yet many companies do not  handle pricing well. The most common mistakes are these: Pricing is too cost  oriented; price is not revised often enough to capitalize on market changes; price  is set independent of the rest of the marketing mix rather than as an intrinsic  element of market-positioning strategy; and price is not varied enough for  different product items, market segments, and purchase occasions.… Read the rest

Indirect Channel Relationships in Industrial Marketing

The manufacturer’s choice of indirect channel relationships may be  separated into those of a strategic nature and those which are matters of  policy. In the former instance there are two basic alternatives: selective  distribution is one in which the firm sells through one or a limited number  of outlets in each market area or segment, or intensive, is one in which all  outlets in a given market segment will be utilized. The decision to pursue a  selective rather than an intensive strategy, or vice versa, based on a number  of circumstances.

  1. Intensive distribution: If the manufacturer elects to market through  all outlets of the chosen type or types that will buy his products, he may be able to gain complete coverage of his total market rather quickly.
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Channel Strategy Formulation in Industrial Marketing

Formulating the channel strategy  in industrial marketing involves an analysis of conditions  which have a bearing on the best choice among structural alternatives and on the  relationship between them and the manufacturer which will be most productive.  In general, the industrial marketer has a choice of three types of  structural arrangements.

  1. Direct to users – through the manufacturers own sales force, with or  without a network of branch warehouses.
  2. Indirect to users – through agents or wholesale distributors. The choice  of an indirect channel system involves the choice of a selective (only one or a  few outlets in each market area) or intensive (a number of outlets in each market  area) relationship.
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