Industrial Sales Force Deployment

Deployment of Sales Force in Industrial Marketing involves taking certain decisions like what should be the size of the saleDeployment of Sales Force in Industrial Marketing involves taking certain decisionss force, how the territory has to be designed, how the selling effort has to be organized and allocated. Sales force play a vital role in industrial marketing as they help in proliferation of marketing concept. Their ability to negotiate in this field and their search for new ways of marketing the products makes them the best people to judge the various alternatives methods as they deal with potential customers. They have immense talent of negotiating and coordinating with various departments and also the ability of effectively using the exiting product in alternative ways. Their ideas and suggestions play an important role in developing, improving and customizing the existing products. Industrial Selling Environment As industrial selling is specifically to organizational buyersContinue reading

Marketing Logistics

Logistics is a military term that refers to the management of various activities like transportation, inventory, warehousing right from the stage of processing the raw materials by the manufacturer to convert it into finished goods till they are made available to the customer for use. While logistics management helps to optimize the flow of material within the organization, supply chain management crosses the boundaries of organization extending material flow integration upwards to suppliers and also descending down to customers. Logistics basically represents two primary product movements, (i) Physical supply, concerned with supply of raw materials, component parts, and other related supplies necessary for the manufacturing process. This comes under the purchase function (Materials Management) and (ii) Physical distribution, concerned with delivering the finished product to customers and the middlemen. This comes under the marketing management that is also called as Marketing Logistics. Marketing logistics is the process of delivering theContinue reading

Factors Affecting the Structure of Industrial Channels

Industrial marketing channels are set of independent, external organisations involved in the process of marketing an industrial product available to industrial buyer. Marketing channels satisfy the demand of industrial buyers by supplying products at the right place, in the exact quantity requirements and at correct price. The factors influencing industrial channel structure are: Type of market: If a manufacturer product can be sold only to the members of one or few industries, and the number of firms in each industry is small, direct distribution is profitable. On the other hand, if the market is horizontal, the product must be sold to buyers in many industries. Market financial: If the probable volume of sales in a market area is quite large, direct marketing may prove profitable. On the other hand , if the sales volume of a specific product is low, the direct method may be too expensive. To what extentContinue reading

Buying Situations in the Industrial Marketing

There are three common types of buying situations in industrial market, which are discussed as follows: 1. New Purchase The industrial buyers buy the item for the first time in this situation. The need for a new purchase may be due to internal or external factors. For example, when a firm decides to diversify into new purchase situations the buyers have limited knowledge and lack of previous experience. Therefore, they have to obtain a variety of information about the product, the suppliers, the prices and so on. The risks are more, decisions may take longer time, and more people are involved in decision making in the new purchase decisions. 2. Change in Supplier This situation occurs when the organisation is not satisfied with the performance of the existing suppliers, or the need arises for cost reduction or quality improvement. The change in supplier may also be necessary if technical peopleContinue reading

Classification of Industrial Products

Industries are related to the raising, producing, processing or manufacturing of products. The industrial products can be classified into following: Major Equipment’s This category includes large machines or other tools whose net purchase price are so great that expenditures for them are changed to capital account and not the current account. Major equipment is of two types: Multipurpose or standard machines which can be used by a no. of different industries or by many firms in the same industry. Single purpose machines are designed to perform one particular operation and no other. Since the net price of major equipment is sometimes very high, its purchase may involve financial problem for the buyer. Firms marketing such equipment must be prepared to loan for the buyers, to help them float issues of securities, to negotiate with investment concerns, or to lease equipment. Minor or Accessory Equipment’s: It is machinery used inContinue reading

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. 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. Merely by the laws of chance at least one outlet in each market area should be willing to handle his product. Moreover, thereContinue reading