Industrial Marketing

Frontmatter

Chapter 1. Basic Considerations

Abstract

This chapter introduces industrial marketing.

Ronald McTavish, Angus Maitland

Chapter 2. Demand and Product Characteristics

Abstract

We discuss in this chapter the two features of the industrial market, mentioned in Chapter 1, whose importance justifies separate and more detailed treatment. These are:

1

Types of industrial products and

 

2

The derived nature of demand

 

Ronald McTavish, Angus Maitland

Chapter 3. The Industrial Customer

Abstract

The last chapter emphasised that the industrial marketer can obtain useful insights into the demand for his products by studying their characteristics and the indirect way in which need for them arises. But this information needs to be supplemented by a closer examination of the motives and behaviour of actual customers themselves. By using information of this sort to influence resource allocation decisions, the seller is in a position to satisfy the basic requirement of a marketing-oriented approach.

Ronald McTavish, Angus Maitland

Chapter 4. Planning the Market Offering

Abstract

Planning in general can be defined as the process of guiding the business towards clearly stated objectives consistent with a realistic view of the future. This process includes planning decisions in areas other than marketing, although these will impinge on marketing and marketing on them. Examples of such areas are finance, research and development, labour relations, purchasing and organisation.

Ronald McTavish, Angus Maitland

Chapter 5. Researching the Industrial Market

Abstract

As government, society and industry develop and become increasingly complex, there is an accompanying need for specialised information to use as a basis for all types of planning. One of the features of the post-war development of industrialised countries has been a shift in resources from manufacturing to services with a concomitant increase in the burden which has been placed on manufacturing industry. It has been required to produce increasing amounts of physical wealth with a diminishing proportion of the factors of production at its disposal.

Ronald McTavish, Angus Maitland

Chapter 6. Industrial Marketing Research: an Overview of Techniques

Abstract

In the last chapter it was noted that the manner in which market research is executed is a function of the needs and resources of the industrial organisation. Before embarking on a description of market research techniques it is useful to clarify the differences in emphasis between industrial and consumer market research as this influences the importance of the techniques used. These differences are adequately described by both Gordon¹ and Hutchison,² and the most important can be summarised as follows:

1

Consumer goods are purchased by members of the public whereas industrial goods are purchased on behalf of an organisation.

 

2

The industrial market researcher tends to require a knowledge of product technology.

 

3

The consumer population tends to be normally distributed and thus subject to sophisticated statistical analysis, whereas the industrial population is less numerous, and less easily categorised, and random samples are not likely to be representative of the total industrial population.

 

Ronald McTavish, Angus Maitland

Chapter 7. Forecasting

Abstract

Looking into the future is certainly not a new experience for mankind, but as a discipline it is relatively new. The roots of systematic forecasting have been traced to the mid-nineteenth century when trend curves were used as an expression of population growth.¹

Ronald McTavish, Angus Maitland

Chapter 8. Channel Management

Abstract

Discussions of distribution channels are most often heard in connection with consumer goods, yet it would be a serious omission to overlook the fact that industrial products must equally find their way to the eventual user. This chapter is therefore concerned with the peculiar problems of industrial distribution. The main channels are described and an assessment is made of the advantages and disadvantages of each. The chapter also considers, inter alia, how to choose a channel, physical distribution, and overall distribution effectiveness.

Ronald McTavish, Angus Maitland

Chapter 9. Pricing

Abstract

In the history of economics, price theory has held a central part and a great deal of attention has been paid to it. The price of a product or a service is simply the rate at which is can be exchanged for another product or service, but despite its apparent simplicity pricing remains one of the most difficult areas of decision making in industry.

Ronald McTavish, Angus Maitland

Chapter 10. Sales Promotion

Abstract

To the extent that the industrial goods manufacturer indulges in sales promotion of one sort or another, these activities in similar fashion to the product, price and distributive channels, must ‘fit’ into the total marketing mix so as to make the most effective contribution possible to attaining the firm’s marketing goals. At the same time, the area of promotion, in that it calls for co-ordinating different activities (e.g. sales representation and advertising) presents its own ‘mix’ problem — that is, the elements of the promotional programme must be balanced.

Ronald McTavish, Angus Maitland

Backmatter