• The fundamental of consumer marketing are equally applicable to
the industrial marketing. The work of the industrial market is exclusively different, as all the forces of market that affect industrial demand. • The managers of industrial market must react in a different way to change the markets develop products to meet these changes and market them in exclusively different ways to the target and sophisticate customers while maintaining corporate policies. CONT… • Therefore, industrial marketers face many distinctive marketing situations not normally encountered in the consumer market. Further, the industrial market has been the back bone of the high standard of living enjoyed by consumers in past or since the industrial revolution at global level. • Itis dynamic growth and development. As and when the principles, knowledge, and practice of marketing cut across all industries, to market than it becomes compulsory for the policy makers to study the industrial marketing differently and to understand the industrial marketing problems. MEANING OF INDUSTRIAL MARKETING
•INDUSTRIAL MARKETING IS THE MARKETING OF GOODS
AND SERVICES FROM ONE BUSINESS TO ANOTHER. • INDUSTRIAL MARKETING IS ALSO KNOWN AS B2B (BUSINESS TO BUSINESS) MARKETING. INDUSTRIAL MARKETING • A marketing channel that specializes in selling goods and services to other business organizations. Marketing for B2B customers involves large orders and long-term relationships between organizations. It mostly involves purchase and sale of materials for the manufacturing/production of goods and services. • Example: 1. Software company selling its software solution to speaker manufacturing companies. 2. Industrial automation company selling its industrial robots to original equipment manufacturers. FEATURES OF INDUSTRIAL MARKETING FEWER; BUT LARGER MARKET: Business buyers will be very less as compared to consumer buyers; but they purchase in bulk or more quantities. CLOSE RELATIONS: Relation between seller and buyer have to be kept very close and professional. Because once the relations are build; can’t be changed easily as it reflects huge profit. COMPLEX BUYING PROCESS: Very complex procedure is adopted by business buyers; because before purchasing, the approval is required from different officials and authorities. CONTINUOUS SALES CALLS: To finalize the deal, it requires constant follow ups and continuous sales calls. EXPERTISE SELLING SKILLS: Sharp selling skill is required to sell the product to industrial buyers. As they are purchasing in bulk, they will not be easily convinced. Deep product knowledge is required. INFLUENCES: To finalize the product, different authorities and officials will interfere and influence the decision to purchase the product. DERIVED DEMAND • The demand for industrial goods is ultimately derived from the demand for consumer goods. INELASTIC DEMAND • The total demand for many industrial goods and services is not much affected by price changes. • Demand is especially inelastic in the short run because producers cannot make many changes in their production methods. FLUCTUATING DEMAND: The demand for industrial goods and services tends to be more volatile than the demand for consumer goods and services. This is especially true of the demand for new plants and equipment. PROFESSIONAL PURCHASING: Industrial goods are purchased by professionally trained purchasing agents, who spend their work lives learning how to buy better. Many belong to the national association of purchasing agents, which seeks to improve the effectiveness and status of professional buyers. IMPORTANCE OF INDUSTRIAL MARKETING
MAJOR SHARE OF REVENUE:
Major share of revenue is generated by selling the product to business buyers as they purchase in bulk therefore it is important to take care of business deals. LESS EXPENDITURE: As the business buyer are very few, no much expenditure is required to reach and to contact them. IMPORTANCE OF INDUSTRIAL MARKETING
LESS PROMOTIONAL EFFORTS:
Free gifts, demonstration etc is not required; because the product is not to be shown to mass audience. PERMANENT CUSTOMERS: Once the relations are built, business buyers will purchase the products for longer period of time. Therefore the future is secured if existing buyers are satisfied properly. DIFFERENCE BETWEEN INDUSTRIAL MARKETING AND CONSUMER MARKETING INDUSTRIAL MARKETING • A marketing channel that specializes in selling goods and services to other business organizations. Marketing for B2B customers involves large orders and long-term relationships between organizations. It mostly involves purchase and sale of materials for the manufacturing/production of goods and services. CONSUMER MARKETING • A marketing channel that specializes in selling goods and services to individual buyers. Marketing for end customers involves customizing the marketing campaigns and communication channels to reach the target audience. Marketing strategies are more focused on personalizing the experience of the user with the product or service offered. • Example • TV manufacturer selling its TV sets for individual buyers. • A mobile manufacturer selling its mobile handsets to individual buyers. COMMON FACTORS IN INDUSTRIAL MARKETING AND CONSUMER MARKETING
• Industrialand consumer marketing are quite similar when you
address the fundamental principles of marketing. Both categories follow the principles of the marketing mix and the and objectives of marketing. They share a common patch in following ways:- • Match the product or service with the needs of the target market. • Understand the market and decide on position and pricing, of the product or service to align with the market needs. COMMON FACTORS IN INDUSTRIAL MARKETING AND CONSUMER MARKETING
•Create effective communication means to demonstrate the
value of the product in the target market.
•Design an end-to-end marketing process to cater to the
requirements and develop a long-term relationship with the costumer. Industrial Marketing Consumer Marketing 1.Sales cycle Longer Sales cycle Shorter Sales Cycle Calculated decisions are Consumers make a made after several rounds decision on the spot based of review and analysis. on few or limited Marketing should generally preferences. involve lengthy nurture- based approach for sales
2.Buying behavior Buying decision is made by Buying decision is done by
a team. Involves a specific an individual. The choice is process to be followed to based on personal arrive at a collective requirements. decision for buying Industrial Marketing Consumer Marketing
3.Products complexity Complicated products, requires a Customized products, specific
thorough knowledge of the technical specification. product. Knowledge of the customized Knowledge on technical specification is required for the specification of the product is the sales of the product. focus
4.Market information Information on industrial market Information on the consumer
niches is very difficult to gain. It market is easily available. requires quality and extensive Consumer demographic industrial experience. information database helps easily identify the consumer profile and kind of market to target. Industrial Marketing Consumer Marketing
5.Advertisement and Advertisements are Advertisements are
promotions more focused on more focused on products’ applications needs/wants and and benefits trends CONCLUSION • THECONCEPTS OF INDUSTRIAL MARKETING DON’T VARY MUCH FROM CONSUMER MARKETING EXCEPT FOR THE FACT THAT MARKET FORCES THAT ARE DOMINATED BY CONSUMER REQUIREMENTS DIRECTLY AFFECT THE INDUSTRIAL DEMAND. • INDUSTRIAL MARKETING IS BUSINESS-TO-BUSINESS MARKETING WHERE A BUSINESS BUYS PRODUCTS TO FULFIL THE NEEDS OF THE ORGANIZATION WHICH MAY INVOLVE INCREASED PRODUCTION, REDUCTION IN COSTS AND TO FACILITATE AN OVERALL INCREASE IN THE PROFITS. THANK YOU…