Need for Advertising Agencies in Industrial Marketing

An Advertising agency is an organisation whose business consists in the acquisition of  the right to use space of time in advertising media and the administration of behalf of the  advertisers of advertising appropriations made by them. It renders advice and creative  services for its clients. It does not sell any tangible products, but sells creative talents  and past experience. Thus it is an organisation specially created for rendering services  in advertising.

The services of an advertising agency in general can be  summarized  as follows:

  1. It makes the advertisements pleasant and serves the purpose.
  2. It can get the advertisements published at the appropriate times.
Read the rest

Strategic Planning in the Industrial Market

While the basic principles of marketing planning apply in both markets, many  organizations have found that what works well in the consumer market fails to  do so in the industrial market. Two significant differences between these  markets appear to account for this phenomenon.  First, unlike the consumer market where products are normally’ marketed  through one or two channels, most industrial marketers face diverse markets that  must be reached through a multiplicity of channels-each requiring a different  marketing approach. A producer of communication equipment, for instance,  may market to such diverse segments as the commercial, institutional, and  governmental market, each of which will require a unique marketing plan.… Read the rest

Importance of Services in Industrial Marketing

Business services include maintenance and repair support and advisory support.  Like supplies services are considered as expense items. The explosive growth  of the internet has increased the demand for a range of electronic commerce  services such as delivering technical support, customer training and  management development programmes.

The rapid growth of business services  in industrial marketing is governed by four important  factors which are explained below.

  1. Innovations: The innovations in the field of science and technology have  contributed for increasing demand in the area of business services.  Advancement in computer security systems, computer enabled services,  environmental control systems for office and factory buildings are examples for  the effect of innovations on business services.
Read the rest

Industrial Product Development

Industrial product is defined as a complex  set of economic, technical, legal, and personal relationship between the buyer  and the seller. A product is a combination of basic, enhanced, and augmented  properties. Basic properties are included in the generic product, with  fundamental benefits sought by customers. Generic products are made  differentiable by adding tangible enhanced properties such as product features,  styling and quality. The augmented properties include intangible benefits such  as technical assistance, available of spare parts, maintenance and repair services,  warranties, training, timely delivery, and attractive commercial terms. The  product package as expected by the prospective customers should be well  understood by the industrial marketer.… Read the rest

Long-Term Industrial Product Strategies

Industrial marketing firms have to  adopt the following three important steps for developing long term product  strategies for existing individual products and products lines.

  1. Assessing the performance of all the existing products or product lines by  using product evaluation matrix.
  2. Examining the relative strengths and weakness of the firm’s products in  comparison to competitors’ products by using perceptual mapping technique.
  3. Deciding the product strategies for the existing products based on the above  analysis.
1. Product Evaluation Matrix

Yoran Wind & Henry Claycamp have developed  a technique called product evaluation matrix to be used to assess the product  performance. Performance parameters of a product such as industrial sales,  company sales, market share and profitability are combined in the matrix.  … Read the rest

Product Life Cycle and Industrial Pricing

Pricing strategies vary as the  industrial product moves through its life cycle. The industrial pricing strategy is a key  factor in each of the four cells of product life cycle.

  1. Introductory Stage Pricing Strategy: There are two pricing strategies  available for a new product which is in the introductory stage of its life cycle.  These are: (a) Penetration Strategy, and (b) Skimming Strategy. An industrial  marketer must analyze the price from the angle of the buyers. How soon the  firm should try ton recover the investment on the new product is another  important factor to be considered by the industrial marketer.
Read the rest