Customer for Industrial
Industrial customers can be classified in 3 categories.
1) Commercial Enterprises
a) Users Purchases industrial products or services
used in producing other goods or services
that are in turn sold in the industrial or
consumer market.
Lathe Machines,
Injection - molding
machines
b) Original
Equipment
Manufacturers
[OEMs]
OEMs purchases industrial goods for the
purpose of infusing them directly into other
products, sold in the industrial or ultimate
consumer markets.
A stereo
manufacturer who
buys electronic
components.
c) Dealers &
Distributors
These include those commercial enterprises
that purchase industrial goods & resell
them basically the same form to users &
OEM’s.
2) Government Organizations
3) Institutions
Difference between Consumer & Industrial Marketing
The industrial marketer’s promotional mix emphases personal selling rather
than advertising to reach potential buyers frequently only a small
portion of the industrial marketer’ promotional budget is invested in,
advertising most commonly through trade journals or direct mail.
An important service component.
Price negotiation is frequently.
Industrial firms generally found it more economical to sell to large
accounts directly; direct distribution to larger customers strengthens
relationship between buyer & seller.
The Organizational Buying Process
1) Multiple Buying Influences
The organizational buying process often involves not done but several
organizational members, who provide input in decision making.
Normally representatives from production, quality control, marketing, finance
& other people also involved.
2) Buying Motives
Participants in the industrial buying process are influenced by both rational &
emotional motivations. Rational motives include economic factors, such as
cost, quality & service. By contrast emotional factors include status, security
of fear.
3) Technical Complexity
Specifications for needed equipment, materials or services are meticulously
developed & alternative offering are thoroughly examined.
4) Time Lags
The technical complexity of many decisions, the large financial outlays,
involved & the corresponding risks & uncertainties all contribute to an
elaborate review process that can easily consume several months or more.
5) Organizations Vary
The industrial marketing strategist is charged with the task of tailoring a
marketing program to meet the special marketing requirements of a particular
organizational account.
Classification of Industrial Goods
1) Entering Goods
A) Raw Materials.
a) Farm Products Wheat, Cotton, Vegetables. etc
b) Natural Products Fish, Crude Petroleum, Iron, etc
B) Manufactured materials & Parts
a) Component Materials Steel, Cement, Textile, etc
b) Component Parts Small motors, Tyres, Castings, etc
2) Foundation Goods
A) Installations
a) Building and land rights Factories, offices
b) Fixed equipment Generators, Computers, etc
B) Accessory Equipments
a) Portable / light factory Equipment & tools Hand tools, Lift trucks, etc
b) Office equipments Type writers, desks, etc
3) Facilitating Goods
A) Supplies
a) Operating Supplies Lubricants, Coals, Typing paper, etc
b) Maintenance & Repair items Paint, Nails, etc
B) Business Services
a) Maintenance & repair services Window cleaning, typewriter repair,
b) Business advisory services Legal management consulting,
advertising, etc
Summary
To penetrate the industrial market effectively, the marketer requires tan
understanding of the organizational buying process multiple buying
influences, technical specifications, time lags & complex buying motives
surround the organizational decision process.
Industrial customers can be classified in 3 categories.
1) Commercial Enterprises
a) Users Purchases industrial products or services
used in producing other goods or services
that are in turn sold in the industrial or
consumer market.
Lathe Machines,
Injection - molding
machines
b) Original
Equipment
Manufacturers
[OEMs]
OEMs purchases industrial goods for the
purpose of infusing them directly into other
products, sold in the industrial or ultimate
consumer markets.
A stereo
manufacturer who
buys electronic
components.
c) Dealers &
Distributors
These include those commercial enterprises
that purchase industrial goods & resell
them basically the same form to users &
OEM’s.
2) Government Organizations
3) Institutions
Difference between Consumer & Industrial Marketing
The industrial marketer’s promotional mix emphases personal selling rather
than advertising to reach potential buyers frequently only a small
portion of the industrial marketer’ promotional budget is invested in,
advertising most commonly through trade journals or direct mail.
An important service component.
Price negotiation is frequently.
Industrial firms generally found it more economical to sell to large
accounts directly; direct distribution to larger customers strengthens
relationship between buyer & seller.
The Organizational Buying Process
1) Multiple Buying Influences
The organizational buying process often involves not done but several
organizational members, who provide input in decision making.
Normally representatives from production, quality control, marketing, finance
& other people also involved.
2) Buying Motives
Participants in the industrial buying process are influenced by both rational &
emotional motivations. Rational motives include economic factors, such as
cost, quality & service. By contrast emotional factors include status, security
of fear.
3) Technical Complexity
Specifications for needed equipment, materials or services are meticulously
developed & alternative offering are thoroughly examined.
4) Time Lags
The technical complexity of many decisions, the large financial outlays,
involved & the corresponding risks & uncertainties all contribute to an
elaborate review process that can easily consume several months or more.
5) Organizations Vary
The industrial marketing strategist is charged with the task of tailoring a
marketing program to meet the special marketing requirements of a particular
organizational account.
Classification of Industrial Goods
1) Entering Goods
A) Raw Materials.
a) Farm Products Wheat, Cotton, Vegetables. etc
b) Natural Products Fish, Crude Petroleum, Iron, etc
B) Manufactured materials & Parts
a) Component Materials Steel, Cement, Textile, etc
b) Component Parts Small motors, Tyres, Castings, etc
2) Foundation Goods
A) Installations
a) Building and land rights Factories, offices
b) Fixed equipment Generators, Computers, etc
B) Accessory Equipments
a) Portable / light factory Equipment & tools Hand tools, Lift trucks, etc
b) Office equipments Type writers, desks, etc
3) Facilitating Goods
A) Supplies
a) Operating Supplies Lubricants, Coals, Typing paper, etc
b) Maintenance & Repair items Paint, Nails, etc
B) Business Services
a) Maintenance & repair services Window cleaning, typewriter repair,
b) Business advisory services Legal management consulting,
advertising, etc
Summary
To penetrate the industrial market effectively, the marketer requires tan
understanding of the organizational buying process multiple buying
influences, technical specifications, time lags & complex buying motives
surround the organizational decision process.
No comments:
Post a Comment