Q. What do you mean by Industrial Marketing? How it is different from consumer marketing?
Ans. Meaning of Industrial Marketing: Industrial Marketing is also known as B2B Marketing, i.e., Business to Business Marketing. It is a process of exchange between the two business firms. Thus, when needs and wants of a firm are satisfied by some other firms through the exchange process, it is called industrial marketing. In the industrial market, markets are relatively concentrated and there are short channels of distribution, buyers are sophisticated in buying techniques, highly organized and fully informed. Therefore, industrial marketing creates its own set of conditions for the marketing decisions. It consists of all the activities involved in the marketing of products and services to the organizations that use these products and services for the production of other consumer or industrial products and services.
Industrial marketing is the human activity directed towards satisfying the needs, wants and demands of organizations through exchange process. It is basically marketing to customers who utilize the products and services they buy for manufacturing some other products and not for personal use. It consists of all the activities involved in the marketing of products and services to the organizations that use these products and services for the production of other consumer or industrial products and services.
According to Philip Kotler, “Industrial Marketing is a human activity directed towards satisfying wants and needs of the organisations through the exchange process.”
Industrial Marketing involves exchange process between two business firms, thus, it is called B2B (business to business) marketing.
Difference between Industrial and Consumer Marketing: The differences between industrial marketing and consumer marketing are based on the characteristics of both. The considerable differences exist between industrial consumer marketing in the following areas:
1. Market
2. Marketing Mix
3. Buyer’s Behaviour
4. Exchange Transactions
| Basis | Industrial Marketing | Consumer Marketing | |
|---|---|---|---|
| Market | Size | Global | Regional |
| Number of Buyers | Fewer Buyers | Mass Market | |
| Competition | Oligopolistic Competition | Monopolistic Competition | |
| Buyer’s Location | Geographically Concentrated | Geographically Dispersed | |
| Marketing Mix | Product Demand | Derived and Volatile | Direct and Less Volatile |
| Product Nature | Tailor Made and Standardized | Standardized | |
| Requirement of Buyer | Service, Delivery, and Availability very important | Service, Delivery, and Availability less important | |
| Price | Non-Standardized | Standardized | |
| Negotiation | More with Price Lists | Less with Price Lists | |
| Promotion | Personal Selling | Advertising, Sales promotion, Publicity | |
| Place | Channel Length: Short Linkages: Fewer | Channel Length: Long Linkages: Multiple | |
| Buyer’s Behavior | Quantity | Large | Small |
| Brand | Loyal to brand | Brand Switching | |
| Nature | Rational Buying | Rational and Impulsive both | |
| Relationship | Strong Interpersonal Relationship | Weak Interpersonal Relationship | |
| Exchange Transactions | Product Exchange | Need Satisfaction and Fulfillment of Product Specifications | Product Specifications not of a high order |
| Information Exchange | Strong and Deep Interaction between buyer and seller | Limited Interaction between buyer and seller | |
| Financial Exchange | More Importance to purchase price and, commercial terms | Limited importance to terms and conditions relating to price | |
| Social Exchange | Cordial relations necessary | Cordial relations not necessary | |
industrial marketing meaning difference consumer marketing.
No comments:
Post a Comment