The categories of goods are smaller than in consumer
markets.
The industrial market is more concentrated than consumer
markets. This is because there are often fewer final customers for products.
The industrial market is more supply side focused. There
exists strong buyer-supplier relationships which mean that there is often a
lot of negotiation to be done in terms of pricing an supply of
products.
There is strong importance placed upon the sales team, in
the industrial sector.
Advertising is not used as extensively as in the consumer
markets, specialist trade publications are the main advertising tools used.
There is elasticity of demand in the industrial market,
which is particularly important in JIT systems where organisations are
affected by changes in both the supply of a product and the pricing.
Custom built projects, ensuring the safety and reliability
of machinery.
Distribution issues are often more direct in industrial
markets.
There are special trading policies which exist in industrial
markets such as reciprocal trading, consortia, project management, leasing,
licensing, etc.
The role of marketing in the industrial sector is often
based more on the technical features of a product.
As industrial marketing occurs in markets with few products, the
strength of buyer-supplier relationships is paramount. Strong relationships need
to exist in order for new products/marketing campaigns to take place. Our Purchasing
& Logistics Strategy section discusses buyer-supplier relationships in
more depth.