INDUSTRIAL MARKETING

MEANING
Industrial marketing (or business-to-business marketing) is the marketing of goods
and services by one business to another. Industrial goods are those an industry of uses
to produce an end product from one or more raw materials. The term, industrial
marketing has largely been replaced by the term B2B marketing.
For example;
In automobile manufacturing, in every model of car or truck they produce are dozens
of other companies product. These include the tires, batteries etc
CHARACTERISTICS
Product
Standardised products are manufactured on the basis of specifications developed by manufacturers of product.
Tailor-made products are those that are manufactured to customer designed specifications.

Price
Industrial product prices are governed by price lists. However, customer negotiate on these prices and get a
better deal.

Place or Distribution
Channel length is short and direct. This is a simplified distribution function.
Promotion
Industrial marketing calls for a close and sustained pre and post sale interaction between suppliers and
customers. It achieved through personal selling.

Behaviour
The buyers driven by task motives. They need good pre and post sales supports from the suppliers. A few
companies conduct free training of operation, mechanics, and engineers employed by its customer.

Market
Geographically concentrated, Relatively few buyers.
STRATEGIES
Product
Products will often be adapted to meet the needs of the buyer, this adaptation may mean simple labelling, or is
could go as far as changing technical specifications. Component suppliers may be required to change product
design, or product to fit with the production method of buyers.

Place
A marketing channel is composed of outlets through which a manufacturer’s goods flow to the market.
Industrial distributors
They act as intermediaries. They buy industrial products in bulk from a manufacturer and supply them to
businesses that then use them for production or manufacturing.
Sales agents
He is operate on a commission basis and represent the sellers. They don’t take a title of the good they handle.
The maker of single industrial goods they will faces a difficult problem in marketing his output
Manufacturer’s Branch Office
If a company operating on a large scale, they need their own branch offices. If they produce technical products,
such as bulk chemicals and bulky materials.
PRICE
Price doesn’t just determine the monetary value on the sale, it also sets expectations regarding quality, demand and
market position. It associated with new product development such as research, planning, testing, training etc
Management usually has two strategy
price a new product with very high level with a substantial gross margin
price it at or near the level to which its price would be expected to settle after competition is developed (low price)

PROMOTION
Personal selling
Personal selling is important in B2B marketing. It is a direct, face to face, seller to buyer conversation which can
communicate relevant facts about the product.
Business/Industrial Advertising
Industrial advertising is the strategy of attracting the attention of another business and convincing the company to
purchase the good and services offered by another business. which include publicity, print ads, direct mail etc
Trade show
Trade show are designed to let exhibitors meet many potential customers face to face
PROMOTION
Personal selling
Personal selling is important in B2B marketing. It is a direct, face to face,
seller to buyer conversation which can communicate relevant facts about the
product.
Business/Industrial Advertising
Industrial advertising is the strategy of attracting the attention of another
business and convincing the company to purchase the good and services
offered by another business. which include publicity, print ads, direct mail etc
Trade show
Trade show are designed to let exhibitors meet many potential
customers face to face
TARGET MARKET
A target market refers to a group of potential business customers
to whom a company wants to sell its product or service.
A segment of the market in order to increase the response rates.