Business Explain: Marketing Industrial Products

What are typical characteristics for B2C markets?

1. Buyer is usually passive.

2. Relationship between buyer and seller is indirect.

3. Goods are often bought for end use.

4. Numbers of buyers and sellers are many.

What are typical characteristics for B2B markets?

1. Buyer is usually active.

2. Relationship between buyer and seller is direct.

3. Goods are often bought for production, not by end users.

4. Numbers of buyers and sellers are few.

How does the characteristics that define the uniqueness of industrial products lead naturally to relationship marketing?

Relationship marketing → based on mutual cooperation, trust and joint beliefs. The purpose of this marketing type is considered to enhance marketing productivity by achieving efficiency and effectiveness; great interdependence and partnering leading to a lower cost and achieving competitive advantages. Both within business-to-consumer and business-to-business markets, relationship marketing functions. However, relationships between businesses, B2B, normally emphasises long-term and thus demands a higher level of relationship and commitment.

It seems natural for companies producing industrial products to go for a relationship marketing strategy. To fulfill the needs of industrial customers, a marketer must understand those needs as well as how they will change when they buyer strives to compete in global markets that call for long-term relationships.

Why might a multinational company seek ISO 9000 certification?

ISO 9000 is a set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements to be implemented to maintain an efficient quality system. They are not specific to any one industry and can be applied to organizations of any size. ISO 9000 can help a company satisfy its customers, meet regulatory requirements, and achieve continual improvement. However, it should be considered to be a first step, the base level of a quality system, not a complete guarantee of quality.