Industrial Marketing Essentials: Products, Channels, Sales
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Raw Materials and Services Defined
- Raw materials are basic products.
- Services refer to technical support.
Understanding Industrial Products
An industrial product is defined as the combination of tangible and intangible aspects.
Industrial Product Development Process
The process to develop new industrial products includes:
- Idea Generation
- Idea Screening
- Concept Development and Testing
- Business Analysis
- Product Development
- Market Testing
- Commercialization
Distribution Channel Decisions
A distribution channel decision consists of determining the type and number of middlemen.
- In the cardboard case, it was suggested to combine all distribution channels.
- Distribution channels in industrial markets should be responsible for selling and promoting the products.
Total Cost Approach in Logistics
The Total Cost Approach balances two essentials:
- Total distribution costs
- Level of logistics services
Therefore, the total cost is designed to achieve a combination of cost and service levels that maximize profits for the company and channel members.
Promotional Strategies for Industrial Products
- Promotional strategies for industrial products should always include technical information.
- Sales promotions would generate a higher frequency of purchasing.
Key Sales Promotion Methods in Industrial Marketing
The 5 most important sales promotion methods in industrial marketing are:
- Catalogs
- Advertising
- Seminars
- Trade Shows
- Sales Contests
Learnings from Brochure and Catalog Design
From the customs agency exercise on brochure and catalog design, key learnings include:
- The importance of direct customer contact.
- Clearly presenting benefits, prices, and competitive advantages.
- Developing strategies that mutually benefit both the company and the customer.
COMEX Catalog Orientation for Retailers
A catalog for COMEX oriented towards retailers would typically include:
- Paints
- Painting tools
- Paint mixtures
- Paint mixing machines
Public Relations in Industrial Marketing
Public relations are concerned with the image of the company across different sectors.
Direct Marketing for Industrial Products
Direct marketing is suggested for industrial products. (Yes)
Personal Selling in Industrial Marketing
- Personal selling is not the least important factor in the industrial marketing mix.
- The cost per sale in the industrial market is normally high.
- Personal selling should be focused on the long range.
- Salespeople of industrial products should customize their activities.