Industrial Marketing Strategy

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), to help sales people in their selling effort, to motivate distributors of industrial goods, and to reach those who either directly or indirectly influence the buying of industrial goods.… Read the rest

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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 mix rather than as an intrinsic  element of market-positioning strategy; and price is not varied enough for  different product items, market segments, and purchase occasions.… Read the rest

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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.

  1. 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.
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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.

  1. Direct to users – through the manufacturers own sales force, with or  without a network of branch warehouses.
  2. 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.
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Strategic Industrial Marketing

Marketing is carefully meshed with production, finance, research and development (R&D), purchasing,  and other functions of the business so as to make the maximum contribution to  company objectives. The marketing activities of industrial products are an  integral part of the company’s total operating system. Therefore, it is useful to  identify the major types of plans by which operations of an enterprise are  directed. These may be designated as strategic, operational, logistical, and  organizational.

A plan is a goal-directed system of action. A strategic plan is one which  describes the allocation of a firm’s resources which the management believes  will achieve the corporate mission with the greatest efficiency over the long run.  … Read the rest

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Industrial Marketing Communication

The industrial products are technical in nature that have very few buyers  compared to the consumer products. This makes the industrial marketers to  change their promotional strategy for industrial goods and services. The  promotional mix used by the industrial marketer consists of advertising, sales  promotion, publicity, public relations, personal selling and direct marketing.  These tools help them to build awareness, develop company image, inform  about the product features thus assisting the company sales force and other  intermediaries to increase their sales. Of all the promotional mix, personal  selling is the most important because industrial products are technical in nature  and they involve lot of direct interactions by the company people with the  industrial customers.… Read the rest

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