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

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

Managing the Industrial Sales Force

Sales force management is one of the important task for industrial marketing managers where they take great care in selecting the right personnel who can help them to increase their sales. They also give their sales team proper product training, supervise their performance, frequently motivate them by offering compensations, and at the same time control the expenses incurred. There are various steps that are involved in the industrial sales force management. 1. Selection of Sales Personnel Personal selling starts with selecting the salesperson who acts as the representative of an organization. They help to create an image and reputation of the company apart from increasing the sales by offering various products and services to the industrial buyers. In addition to giving the details on product features to their prospective buyers, they offer other services like technical assistance, recommendations, ideas, and sharing their experience. They also posses the skills that areContinue reading

Personal Selling in Industrial Marketing

Personal selling is one of the oldest forms of promotion. It involves the use of a sales force who orally communicates about the company’s products or services to the potential buyers with an intention to make a sale. Personal selling is the primary demand stimulating force in the industrial marketer’s promotional mix. Its role is very dominant in industrial markets because of less number of potential customers present compared to the consumer markets and the large amount of money purchases involved. As the cost per sale through personal selling is too high, industrial marketers have to carefully manage and integrate personal selling into organization’s marketing mix. This will also lead to maximize its effectiveness and efficiency. The job of personal selling starts after determining the target segment in the organization’s market. The sales force in most of the industrial organizations follow the “systems selling” approach where they recognize the entireContinue reading

Power Equations of Distribution Channels

The use of power by individual channel member to affect the decision making or the behavior of other is the mechanism by which congruent and effective roles become specified, roles become realigned, when necessary and appropriate role performance is enforced. There are a number of power equations that may be available to one channel member in his attempt to influence the other and vice versa. 1. Reward power 2. Coercive power 3. Legitimate power 4. Referent power 5. Expert power Let us discuss these power equations one by one; 1. Reward power: This refers to the capacity of one channel member to reward other if the latter conforms the influence of the former. This power base is present in virtually all channel system. The rewards are usually manifest in the perceived or actual financial gains, which channel member’s experience as the results of conforming toContinue reading