Topic 8- Trends in Industrial Marketing

The current trends in industrial marketing include the following:

1. Emphasis on technical training and product considerations rather than on the

market itself. However, the whole focus is on customer satisfaction and so
manufacturers are increasingly getting concerned about the quality of their
products. With increasing technological complexity, firms have to spent money
in training employees to be up to date with technology.

2. A continuous attempt by manufacturers to manipulate the derived demand so

that they can have access to the end user. The derived demand is characterized
by the presence of indirect consumers who tend to shield the final consumers
from the manufacturers thus try to stimulate demand by undertaking promotion
programs that target the final consumer, for example, a steel manufacturer may
try to promote the use of steel products such as steel gates, by showing that
properly secured homes are safer.

3. There has been increased need for R & D and acquisition for growth and
diversification. There is evidence that industrial firms are generating many new
productions in order to respond to the changing consumer needs. This was
occasioned by major shifts in such areas as patterns of the final demand, rapid
phase of technological change, increasing size and complexity of manufacturing
firms.

4. Customer Focus:- Customers are the lifeblood of every business. Industrial

marketers know this. Customer acquisition is the primary marketing goal for any
industrial marketer. Moreover, customer acquisition is used to measure
marketing success.

-To stay focused on customers, industrial marketers are investing in digital

programs such as email marketing, e-newsletters, webinars, and catalog
programs to get closer to customers and potential customers.

-They also are focusing on working with media partners who best understand
the customer and can offer programs that produce significant levels of awareness
and engagement.

5. Brand Awareness: -Over the next five years, industrial marketers indicated their
marketing teams will be placing more emphasis on brand awareness.

-Having a brand that is positively recognized in your market puts your company
in a position to shorten the sales cycle and win more business.
 -Marketing programs that deliver a consistent and persistent presence – such as
your website, online catalogs, and banner ads – can increase the visibility of your
brand.

-Content marketing initiatives can help personalize and strengthen your brand.

6. Creating and Distributing Content: -Another area of focus for marketing

departments will be creating and distributing content.

-Engineers and other industrial professionals are constantly looking for relevant,
educational content to help them do their jobs better.

-Today, industrial marketers increased spending on content creation because

content marketing contributes to sales.

7. Lead generation and customer acquisition are top marketing goals.

In 2010, 74 percent of manufacturers stated that customer acquisition or lead generation

is their primary marketing goal. In 2009, the percentage was 73 percent. What this
translates to is that it’s all about sales—regardless of the state of the economy.

8. E-mail is the most frequently used online marketing tactic.

65 percent of manufacturers use e-mail marketing to in-house lists and 16 percent use e-
mail marketing to rented or purchased lists. Although e-mail is the granddaddy of
online marketing, it remains an effective and affordable marketing tactic in the
industrial sector.

9. Manufacturers are investing more marketing resources online.

Manufacturers know the vast majority of their audience goes online to search for
products, services, and suppliers—and in response are investing more marketing
resources online to connect with this audience. The majority of companies (51 percent)
will shift more of their budget to online marketing in 2010. 47 percent will spend more
than one-third of their marketing budget online. Online marketing channels occupy the
top six areas where manufacturers are increasing marketing.

10. Online channels deliver the best leads.

Manufacturers continue to report that their best sources for leads are online channels.
Three of the top four sources of leads are online channels, including the company Web
site, e-mail marketing, and search engine optimization. Online channels often provide
near real-time delivery of lead information and full contact data on potential customers.

11. Quality of leads is the most important factor when allocating marketing budget.
Over the past several years, manufacturers have consistently stated that the quality of
leads is the most important factor when determining where to allocate their marketing
budget. Sales teams would agree: they’d much rather have a manageable number of
high quality leads than a boatload of unqualified names or anonymous Web site clicks
they can do nothing with.

12. Social media is starting to gain traction.

68 percent of manufacturers plan to increase their spending on social media in 2010.

LinkedIn is the most popular social media application in the industrial sector—used by
59 percent. While only 23 percent are currently using video, 37 percent are planning to
implement it in 2010. As with audiences everywhere, the industrial professional is both
reading and watching online.

13. Traditional media continues to decline.

While online marketing experiences growth, spending on traditional media continues to

decline, a trend GlobalSpec has documented over the past several years. In 2010, 25
percent of manufacturers are decreasing trade magazine advertising and 24 percent are
decreasing use of printed directories.