Industrial marketing - business to business marketing

" Sales begin long time before the salesman picks up the phone "

Features of industrial marketing

What are the main features of industrial marketing?
Let’s start analyzing the way that a company makes a decision in industrial procurement. Sales arguments, objective and subjective influencing methods have their purpose, too. A buyer manager can be easily convince by an old business friend, a professional salesman from a partner company maybe only for old time‘s sake, but… But he has to offer some solid sales/ buying arguments, with number and facts to convince his bosses and colleagues about the opportunity of the procurement. These sales arguments can be numbers, information about the products, its capacity, commercial terms, logistics and support.
We cannot pretend from a purchasing manager, even the most correct and loyal one, who (influenced emotionally by some happy food TV ads) just bought some snacks or desert for his child at 8 am, when taking him to school, and in half an our to take a major decision regarding a procurement only based on numbers and technical data. And don’t forget the personal influence of the highly trained sales force.
Sales forces’ importance in business to business marketing. Let’s make a comparison FMCG market vs. b to b market. On FMCG markets the most useful and efficient communication channel (till now) is mass advertising. On the industrial markets personal relationships, personal selling is very important. You can have the perfect product, at very low price, but if the sales forces don’t work properly and don’t build long term partnerships you’ll never have success. We cannot forget that salesmen or sales engineers who offer high tech product or special business services at high value for procurement managers or executives need special skills, product and technological knowledge and wide experience. Their profile could be very different from an “avon lady”, salesman offering food and beverage for small neighborhood shops or a simple salesman who sales for the population.
Other features of business to business market:
– less buyers, but with high impact
– closer seller – buyer relationships
– professional procurement (decision making)
– more sales visits
– indirect demand influenced by the consumer markets
– unstable demand, geographically focused

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Industrial marketing intro

We don’t see very often TV ads for example mining industry equipments or other technical equipments or stuff. Why is that?

Are industrial or business to business companies using marketing or advertising? If yes, how do they do marketing?

Why advertising agencies focus (almost exclusively) on FMCG? Why do de treat industrial products and services like on outkast?

We have a large marketing experience in both categories. In business to consumer fields we met fast moving consumer goods – FMCG, services for large public, retail, tourism. And on the other side, the business to business fields: steel and building material trading, buildings, logistics – transports, IT – webdesign and online marketing, industrial sewing machine trading… Everywhere we met new, interesting marketing and selling methods,  tools and strategies.

The first aspect we noticed was that market target and decision making mechanisms define the style, the conception and the methods of marketing for each specific domain.

Very often innovative methods with huge success in one domain proved to be a total failure in other appropriate domains. Some marketing tools that make big sales for sure in the case of beer, could be totally inefficient for plumbing or sanitary stuff. And that means bog loses for the company, wasted money.

Of course, the basic precepts of marketing activity are the same for each domain. We can reduce to the following basic steps: analyzing a situation, diagnose the market of the company or product, making marketing plan or marketing strategy, implementing it and controlling. Little bit scientifically: we start with a market research (qualitative and quantitative), we analyze internal environment, we identify the possible developing directions. One of the key moment is the proper using of the most commented SWOT analysis.  Meaning not only mentioning the strengths, the weaknesses, the opportunities and the threats, but analyzing them like parts of a complex system, with multi-directional influences, we can establish powerful concept of future development or marketing strategy.  Then we can establish marketing plan: product, price, promotion and place (distribution) policies. We identify cleat objectives, which motivates and also are reachable, action plan with strict deadlines and tasks.

Even in the 21st century business some company ignore the fact that establishing a strategy must start with the mission and vision of the company and the general objectives of it. There are a lot of companies who “start marketing” when they already have major problems and are losing the marketing. It’s crucial to make early plans and to adapt continuously to the market and economy challenges. Without planning we only take a promenade or we fight for surviving. And this is also true for a small bakery and an industrial mammoth.

More to follow: the importance of the sales force, online marketing for b to b company, expo and fairs, industrial selling, marketing places, en-gross market, and much more

Szekely Szilard

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