The fundamentals of consumer marketing are equally applicable to industrial marketing. The work of the industrial market is exclusively different, as all the forces of market that affect industrial demand. The managers of industrial market must react in a different way to change the markets, develop products to meet these changes, and market them in exclusively different ways to the target and sophisticate customers while maintaining corporate policies. Industrial marketers face many distinctive marketing situations not normally encountered in the consumer market. Further, the industrial market has been the backbone of the high standard of living enjoyed by consumers in past or since the industrial revolution at global level. It is dynamic and challenging in any nation‘s economic growth and development.
The word Industrial Marketing is also treated as Business-to-Business Marketing, or Business Marketing, or Organizational Marketing.
Industrial marketing/business marketing is to market the products and services to business organizations, manufacturing companies, government undertakings, private sector organisations, educational institutions, hospitals, distributors, and dealers.
The business organizations, buy products and services to satisfy many objectives like production of goods and services, making profits, reducing costs and so on.
Size of the Market:
Compared to the great number of households that constitute the mass market for consumer goods and services, In the case of industrial markets, it is common to find less than 20 companies to represent the total market for an industrial product or service. In fact, only three or four customers may comprise the major portion of a total market. Further, in industrial arena, oligopolistic buying organisations (very large firms) tend to dominate many markets such as, large power transformers or high-tension switchgears, there are limited numbers of customers-mainly State Electricity Boards, large private and public sector organisations. While there are relatively few industrial customers, they are larger in size, purchase larger quantities, and engage in this volume purchasing on a repeat basis.
Product Characteristics:In industrial marketing, the products or services are generally technically complex and not purchased for personal use. They are purchased as components parts of the products and services to be produced or serve the operations of the organisations. Because of the importance given to the technical aspects of products, the purchases are made based on the specifications. As compared to consumer marketing, industrial customers place greater importance on service, that is, timeliness, certainty in delivery or availability of product.
Buyer Behaviour:In industrial marketing, the buying process is more difficult as compared to consumer marketing. The purchase decisions in industrial marketing are based on many factors, such as compliance with product specifications product quality, availability, timely supply, acceptable payment and other commercial terms cost effectiveness, after-sales service, and so on The buying decisions generally take a longer time and involve many individuals from technical, commercial/materials, and finance departments. After the initial offer made by a seller, there are negotiations and exchange of information between the specialists and representatives from both the buyer and the seller organisations. Therefore, inter-organisational contacts take place and interpersonal relationships are developed. The relationships between the sellers and buyers are highly valued and they become stable in the long run because of a high degree of interdependence.