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7188324 SEM4 MKT Industrial Marketing 1[1]

7188324 SEM4 MKT Industrial Marketing 1[1]

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Published by: manali26 on Oct 10, 2009
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Industrial MarketingQ No. 3
In how many ways the industrial products can be classified?Discuss the characteristics and the marketing plan for each class of theproduct.Ans :The industrial products can be classified into following:
Major Equipment:
This category includes large machines or other toolswhose net purchase price are so great that expenditures for them arechanged to capital account and not the current account. Major equipmentis of two types:-
Multipurpose or standard machines
which can be used by a no. of different industries or by many firms in the same industry.
Single purpose machines
are designed to perform one particular operation and no other. Since the net price of major equipment is sometimes very high, itspurchase may involve financial problem for the buyer. Firms marketingsuch equipment must be prepared to loan for the buyers, to help themfloat issues of securities, to negotiate with investment concerns, or tolease equipment.Minor or accessory equipment: It is machinery used in an auxiliarycapacity. Its price is lesser than that of major equipment and its cost isgenerally charged to the current account. These are purchased in routinemanner and involve lesser negotiation. Minor equipment items arestandardized and suited to the performance of a function involved in more
 
than one operation of a business. The organisation for marketing themmust be more widespread and such items are sold through many outletsand the relation between the buyer and the maker can be less direct andimmediate.Fabricating or Component part: Components are often bought on thebasis of specifications prepared by the purchaser, although many itemssuch as batteries of tyres in the automobile industry are standardizedaccording to the specifications of the parts manufacturer. Somecomponents retain their identity in the finished product; this offers theopportunity for the buyer of enhancing the sales appeal of these endproducts by including in them a component of market acceptance.
Process Material:
This closely resembles component part in that theyusually enter into and form an undistinguished part of the finished product.For example a good manufacturer may buy a variety of ingredients, mixthem in proper proportions and sell the resulting material on the market asa cake mix. Suppliers may build repulsion for these material for ensuringhigh quality and greater purity. The standardization is sufficient to throwconsiderable emphasis on price and service as a competitive factor in thesale of process material.
Operating supplies:
They do not become a part of the finished product,but are continuously worn out or used up in the process of operating or facilitating the operation of an enterprise. Such items are paints, soaps,detergents, etc. They are usually marketed through middleman andmaintenance and repair supplies are supplied directly by the firm.
Raw material:
Raw material is the basic materials of industry and aresupplied chiefly by agriculture, lumbering, mining and finishing industries.
 
Farm products like wheat, cotton, fruits which are seasonal, therebranding takes lot of time to establish. Natural products like iron ore, crudeoil, fish are limited in nature having low unit value but high transport cost.Raw materials are bought in the open market and sold on the basis of recognized standards.

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