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INDUSTRIAL MARKETING
HOW IS IT DIFFERENT ?
(a) (b) Focused more on relationship Approach differs for each market
INDUSTRIAL MARKETING
INDUSTRIAL PRODUCTS
INDUSTRIAL MARKETING
Services :
Facilitate the functioning of the organisation
INDUSTRIAL MARKETING
Includes all organisations that acquire goods & services used in production of other products or services that are sold, rented or supplied to others E.G. Manufacturing, mining, banking, construction, transportation, finance, communication etc. Key characteristics
Various types :
1.Producers of goods & services 2.Middlemen 3.Government units 4.Non-profit organisation
INDUSTRIAL MARKETING
MARKET SEGMENTATION
It refers to offering different products, prices, distribution, promotion and / or support services to different customer segments When all elements of Marketing Mix are differentiated for each market segment, you have a perfect Segmentation strategy.
INDUSTRIAL MARKETING
INDUSTRIAL MARKETING
INDUSTRIAL MARKETING
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INDUSTRIAL MARKETING
1. 2. 3. 4. 5. 6. 7. 8.
INTERNAL CUSTOMERS
Operators ( ease of use) User dept (Up time) Maintenance dept ( less / no maintenance) R & D dept ( Technology ?) Materials / Purchase (Cost / delivery) Finance dept (actual cost) Personal ( how safe is product) C.E.O. ( value for money)
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INDUSTRIAL MARKETING
1. 2. 3. 4. 5.
The composition of above members is also known a buying center Period for purchase in Industrial marketing varies from a day to several months
Marketing Application & Practices 12
INDUSTRIAL MARKETING
multiple suppliers
the basis of past purchase the basis of fresh negotiations the basis of Tenders
Marketing Application & Practices 13
INDUSTRIAL MARKETING
INDUSTRIAL MARKETING
7. Placement of Order 8. Order Follow up 9. Receipt & Inspection of Products & Documents 10. Payment
Marketing Application & Practices 15
INDUSTRIAL MARKETING
Closely tied firms often work at lower total costs simply by reducing the risks & uncertainties
Marketing Application & Practices 16
INDUSTRIAL MARKETING
INDUSTRIAL MARKETING
Co Operation efforts treats problem as joint responsibility Information sharing could be risky Operational linkages may help in reducing the total inventory cost Powerful customers may control relationship Buyers may look for other sources to reduce risks Reciprocity may influence relationship in big way e.g. Japan
Marketing Application & Practices
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INDUSTRIAL MARKETING
TYPES OF PROMOTION
1. 2. 3. 4. 5. 6. 7. 8. 9. Telephone Directory / Yellow Pages Trade Directories / Publications Journals Press Advertising Direct Marketing Tele Marketing Catalogue / Company Literature Seminars / Exhibitions Give Away
Marketing Application & Practices 19
INDUSTRIAL MARKETING
INDUSTRIAL MARKETING
INDUSTRIAL MARKETING
This helps in limiting the competition for each type of product category Unless vendor is approved the process of sale cannot start
Marketing Application & Practices 22
INDUSTRIAL MARKETING
STRATEGY
ACTIONS AIMED DIRECTLY AT ALTERING THE STRENGTH OF THE ORGANISATION RELATIVE TO THAT OF ITS COMPETITORS Not included are all actions aimed at improving operational effectiveness WITHOUT COMPETITION THERE WOULD BE NO STRATEGY Analysis is the critical starting point of Strategic Thinking
Marketing Application & Practices 24
INDUSTRIAL MARKETING
2. Ripeness : 3. Resources :
CORPORATE STRATEGY
Market Attractiveness
C
B
A
Corporate Strength
Marketing Application & Practices 26
INDUSTRIAL MARKETING
INDUSTRIAL MARKETING
COMPETITIVE STRATEGY :
It involves positioning of business to maximise the value of the capabilities that distinguish it from its competitors
COMPETITIVE STRATEGIES :
Cost Leadership Differentiation Focus
Marketing Application & Practices 27
PORTER'S MODEL
COMP. ADVANTAGE FULL COST LEADERSHIP PRODUCT DIFFERENTIATION
MARKET
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INDUSTRIAL MARKETING
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INDUSTRIAL MARKETING
INDUSTRIAL MARKETING
PRODUCT DIFFERENTIATION
Many products sell on image as well as physical attributes. 2. Strategy of differentiation is making tangible and intangible aspects of product different from those offered by other sellers
1.
FEATURES
Strives to earn higher profit margins by charging higher prices Strategy largely successful as customers are willing to pay extra for special or superior products
Marketing Application & Practices
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WHY REQUIRED ?
1. 2. 3. 4. 5. 6. 7.
Cost of Contacting Customers Channel reach selling support Channels influence Faster response Faster Order Execution Easy Payment Better Pre-sales/After sales service
Marketing Application & Practices 32
TYPES OF CHANNELS
1. 2. 3. 4. 5.
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INDUSTRIAL MARKETING
1. 2. 3. 4. 5. 6. 7. 8.
Sales / Target (%) Orders / Quotations (%) Margins / Sales (%) Cost of Sales / Sales (%) Sales Value / Number of Order (%) Orders / Calls (%) Key Account Contact New Customer Orders / Orders
Marketing Application & Practices 34
INDUSTRIAL MARKETING
1. 2. 3. 4.
Calls per day / Face to face time New Prospects called Credit Orders / Total Orders (%) Calls to build Customer Relationship 5. Discounts / Sales (%) 6. Timely Submission of reports 7. Timely submission of Itineraries
Marketing Application & Practices 35
1. Is the issue negotiable 2. Are the negotiators interested in compromise trading value for value ? 3. Do they trust each other, at least to some extent 4. Do they have the authority to come to an agreement ? Marketing Application & Practices
Defn : Negotiation is the process of determining what the other side really desires and reaching an agreement so that they get what they want while you get what you want Pre Requisites :
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Styles of Negotiation :
5 Ps of Negotiation :
Lose Lose (No desire for agreement) Win Lose (Competitive) Lose Win (Lose now for future) Win Win (Co operative, problem solving) Modified Win Win (Both feel they have won) Positive attitude The will to succeed Preparation before negotiation Problem solving approach Probing during negotiation Marketing Application & Practices Promote yourself, company & product
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Crucial Factors :
Information / preparation required Evaluating bargaining power Opening the Negotiation Rules of Conduct Handling difficult personality types Understanding devious negotiation tactics Follow - up
Marketing Application & Practices 38