Industrial marketing can be defined either as the marketing to industrial users or as the marketing of industrial products to users.
Industrial products are products that are intended to be used for making other products or for resale.
Industrial marketing consists of the performance of those activities aimed at facilitating and expending exchange between producers and users.
Industrial marketing is therefore concerned with:
1. Research into industrial market
2.The planning, development and management of industrial product
3. Buying and selling of industrial products
4. Pricing and promotion of industrial goods and services
5. Distribution of industrial products
6. Study of behavior of industrial users, factors that influence and determine purchase decision
7. Post purchase behavior
Features Of Industrial Marketing
1. Demand in the industrial market is derived.
2. Buyers in the industrial market are likely to be rationally motivated.
3. There is a tendency towards concentration of buyers
4. It involves a greater degree of formality
5. The market is easily readily identified
6. Products sold are more technical and complex
Classifying Industrial Products
Industrial products are classified into 6 classes
1. Raw materials
2. Components parts and materials
3. Installations of major capital equipment
4. Accessory equipment
Segmenting Of Industrial Market
Methods of segmenting the industrial market are by
1. The type of user
2. The size of user – the size could be measured by total asset base, number of employees, sales turnover, geographical coverage, area of floor space.
3. Segmentation based on complex factors such as:
a. Variations in the technological content of the user’s products – the complexity in technological differences may lead to the requirements of different products.
b. Range of product uses – this refers to the different application of a product.
c. Variation in buying strategies – differences in terms of order size, product range, purchase frequency and sources of supply.