An Overview of Industrial Marketing


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Abstract

Industrial marketing involves the sale of goods
by one business to other businesses. Typically it is the
marketing of goods and services to business
organizations for use in the manufacture of their
products or in the operation of their businesses.
Industrial Marketing is also known as Business-to-
Business Marketing (B2B Marketing).

Introduction

The concept of organizational or industrial
marketing is used to describe marketing activities targeted at
all individuals and organizations that acquire products and
services that are used in the production of other products and
services. These products include capital goods (e.g. buildings,
land and machines), operational products (e.g. accessory
equipment, supplies, maintenance services) and output
products (e.g. raw materials, components, production
services). Goods involved in Industrial marketing are quite
diverse in nature for example B2B selling can involve raw
materials and energy supplies such as gas, electricity, steel
and other metals.

Buying Process

Industrial marketing differs from consumer
marketing for a basic reason. Consumer shopping is
discretionary and consumer behaviour is determined by
marketing, in-comes, taste etc. but businesses must buy
supplies and services to keep their operations running and the
price they pay for these items has a direct impact on these
firms profitability. Brands also allow industrial buyers to
reduce the time spent in selecting alternative brands, are less
risky in terms of addressing possible technical problems and
resolving internal production problems.

Conclusion

Industrial marketing is about marketing transactions
between organizations where customers are not necessarily
the end users of products and services - that is, marketing is
"business-to-business" or b2b. This type of transaction differs
from consumer marketing in very specific ways including the
make-up and size of customers and the complexity and nature
of purchasing processes.