Industrial Marketing
Industrial Marketing is the marketing of goods and services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw materials.
Industrial, or business to business (B2B) marketing
Examples of a B2B selling process:
- An organization seeks to split the work between the two firms based on an evaluation of each firm's capabilities.
- A sales representative makes an appointment with an organization that employs 22 people. He demonstrates a photocopier or fax or printer to the office administrator. After discussing a proposal, the business owner signs a contract to obtain the machine on a fully maintained rental and consumables basis, with an upgrade after 2 years.
Main features of the B2B selling process are:
- Marketing is one-to-one in nature. It is relatively easy for the seller to identify a prospective customer and build a face-to-face relationship.
- Highly professional and trained people in buying processes are involved. In many cases, two or three decision makers must approve a purchase plan.
- Often the buying or selling process is complex, and includes many stages .
- Selling activities involve long processes of prospecting, qualifying, wooing, making representations, preparing tenders, developing strategies, and contract negotiations.
Blurring between B2B and B2C
Industrial marketing can cross the border into consumer marketing. For example, an electronic component seller may distribute its products through industrial marketing channels , but also support consumer sales. Many products are equally desired by business and consumers—such as audio products, furniture, paint, hardware, etc. Nonetheless, manufactures and service providers frequently maintain separate industrial and consumer marketing operations to reflect the different needs of the two channels.