Sales in industry and in other spheres are very different from one another. In industry, fewer points of sales exist. Direct channels are the key ones in this case. In other words, the manufacturer typically contacts the end customer right away. The direct channel is prevalent for a number of reasons.
Firstly, industrial customers are a narrow circle of customers. Secondly, industry has high supply volumes. In this case, logistics is greatly simplified if there are no intermediaries in the marketing channel. Thirdly, industrial distribution requires a high level of technical background of sale personal.
If an intermediary is present in the industrial sales channel, it differs greatly from the intermediate in other contexts. These industrial middlemen build stronger relationships with both the manufacturer and the consumer. Industrial intermediaries’ job is to modify the product to fit the consumer’s final objectives. Personal selling is the primary method used by the push approach to promote its products. Within the Push model, product customization is frequently done by an intermediary. The push method is more frequently used in commercial marketing.
The strategy, where he middleman actively participates is Push Strategy. Demand generation and supply are the duties of the intermediary. The second possible sales strategy is Pull Strategy. The manufacturer is primarily in charge of generating demand from end customers in this strategy. Direct sales to the ultimate consumer and advertising campaigns are used to generate demand.
To sum up, a Push Strategy means an intermediary is responsible for sales, and a Pool Strategy is when a company or brand has a direct impact on the end consumer. In general, It should be noted that industrial sales require the participation of a large number of employees, and most importantly managers.
Another feature of industrial marketing is low price elasticity. This means that price changes do not cause significant fluctuations in total demand. All this forms the concept that should be followed when forming the marketing mix. The marketing mix should match and reflect the brand’s market strategy.
by Dimerion Steelson,
ConselSenses