Transcript Industrial Marketing PowerPoint File

Industrial Marketing also known as
Business to Business Marketing
(B2B)
Industrial Marketing involves the sale
of goods by one business to other
businesses.
Industrial Marketing
Strategies used differs from consumer marketing
for a basic reason.
Consumer shopping is discretionary and consumer
behaviour is determined by, marketing, incomes,
taste etc but businesses must buy supplies and
services to keep their operations running and the
price they pay for these items has a direct impact
on their profitability.
Impact of JIT
Industrial Marketing must consider the impact of Just In Time on
marketing strategies.
JIT impacts in two ways
1 For those firms marketing logistic services (i.e. freight
haulage, parcel force) the ability to fit in with and help
satisfy buyers, JIT is important.
2 For suppliers of components and raw materials it is often
more important to market on ability to integrate supply and
order systems than on small price margins.
How to use the four Ps in Industrial
Marketing
Place
Promotion
Industrial
Marketing
Product
Price
Place
• Trade Fairs and Trade Shows, Personal Selling
An exhibition where companies in a specific industry can showcase and
demonstrate their new products and services. Generally not open to
public but attended by sales representatives. Deals can be made by
negotiating prices, product requirements, delivery.
• Internet B2B
Offers a wide range of B2B sites or portals, some of which are
specialist where suppliers of specific industrial goods can interface
with potential buyers. Geographic where sellers from other countries
advertise diverse products. Advances in Internet infrastructure,
business processes and software make the internet a must have
distribution point.
Price
B2B price can be negotiated as factors such as
•quantity supplied,
•delivery dates,
•competitors’ actions and
•potential for future custom are taken into account.
Price will also be determined by tender where a number of
potential suppliers are required to offer their best price to the
buyer of the goods.
Product
Similarly to consumer marketing both product and asset led
firms are evident. Firms can also be market led adapting the
product to the market, offering a type of product, with the
specifics to be negotiated with the potential buyer.
Asset led firms has a product/range of products for sale to the
market but will be adapted to meet the need of the buyer, this
may be simple labelling, changing technical specifications.
Component suppliers may be required to change product design
or produce products to fit with the production methods of
buyers.
Promotion
Promotion methods include
• trade magazines – placing a glossy advertisement to captivate
target audience
• trade fairs – NEC exhibition
• agricultural shows JCB
• person to person selling – businesses entertain potential
customers, develop and maintain customer relations is a main
focus