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. Reaching Buying Continue reading
Industrial Marketing
Industrial marketing, also known as business-to-business (B2B) marketing, is a branch of communications and sales that specializes in providing goods and services to other businesses, rather than to individual customers.
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. The choice of one or the other, or both, is dictated by the desire to penetrate a particular industry, Continue reading
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), Continue reading
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 Continue 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 Continue reading
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. Direct to users – through the manufacturers own sales force, with or without a network of branch warehouses. 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. Mixed structure – the nature of the structural Continue reading