Industrial Marketing Management

Nature of Demand in Industrial Markets

The demand for industrial products and services does not survive by itself. It is  derived from the ultimate demand for consumer goods and services. Therefore,  industrial demand is called derived demand. Sometimes, the demand for  industrial product is called joint demand, when the demand for a product  depends upon its use along with the existence of other product or products.  Cross elasticity of demand exists for some substitute products in industrial  market. These concepts are detailed as follows:

Derived Demand

The single most important force in marketing of industrial products and services  is derived demand. Industrial customers buy goods and services for making the  use in producing other goods and services and finally produced product/service  sold to the consumers.… Read the rest

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Definitions of Key Terms in Integrated Marketing Communications

Integrated means that combine or coordinate separate elements so as to provide a harmonious, interrelated whole. In other word, when all marketing communication tool work together, it will be more effective than work as a single component. It will create more competitive advantages, boost sales and profit, while saving cost, time and stress if this concept is incorporated in marketing strategy. So, if the marketing communication tools are combined as a group it will produce more powerful outcome in the process of delivering customer superior value.

Marketing

The root word for marketing is market. Market is defined as a place for consumer and sellers to carry out transaction that required cash as an exchange medium for obtaining a product or service.… Read the rest

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Application of Direct Marketing Tools in Industrial Marketing

Direct Marketing  is a recent activity that has come up and is used extensively by the  industrial marketers. The various tools used in direct marketing are direct  mails, telemarketing and online marketing channels. A direct marketing  channel does not involve any intermediary and the sale is done by the  company by directly contacting the target customer. As the cost involved  in direct marketing activity is much less compared to the cost of company  sales force directly meeting the customers, many industrial organizations  prefer this tool. This tool aids the sales force to gain entry into  prospective customer’s office where prospective customers are identified  beforehand and are informed about the company products.… Read the rest

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Sales Promotion in Industrial Marketing

Sales promotion is an activity used by the industrial marketer to boost  the immediate sales of a product or service. It is used to increase the  sales by impressing the customers, rewarding them and also motivating  the sales force to get more business. There are different techniques  used in a industrial sales promotion activity like a free-sample campaign, offering  free gifts, arranging demonstrations or exhibitions, organizing  competitions with attractive prizes, temporary price reductions, door-to-door  calling, telemarketing, using personal letters, etc.

More than any other element of the promotional mix, sales promotion is  about “action”. It is about stimulating customers to buy a product.… Read the rest

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Publicity and Public Relations in Industrial Marketing

Publicity

When any significant news about a product is made known to the people through a published medium like radio, television, newspaper or otherwise, such kind of act is known is publicity. Publicity has very high  credibility in the eyes of organizational buyers as the sponsor does not  pay anything for publicity and it is not a part of any promotional program.  It is the least costly promotional alternative available for the company  that is very effective. Publicity helps to generate sales leads and  improves relationship with customers. Technical articles published in  trade journals about a company or products with the identity of authors  (such articles are called as signed articles) improve the image of the  company and the products.… Read the rest

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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.
… Read the rest
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