Explain problem of industrial marketing in india, Operation Management

Explain problem of industrial marketing in india. 

Industrial market has all individuals and organisations which acquire goods and services into the production of other products and services which are sold, rented or supplied to others. Within India, the main industries making up the industrial market are forestry, agriculture, fisheries, manufacturing, mining, construction, communication, transportation, public utilities, finance, banking, insurance, computer hardware and automobiles and services.

The problem of Industrial markets in India is as follows:

(i)  The customer base is small and new markets or customers are less.

(ii)  Market is characterised through high buyer concentration ratio in which few buyers do most of the purchasing. For example: automobile companies, fertilizers companies and aircraft industries.

(iii)  The demand for industrial goods is eventually derived from the demands of consumer goods. Thus, industrial marketer requires to closely monitoring the buying patterns of eventual consumer and those of environmental factors which affect them.

(iv)The total demand for several industrial goods and services is not affected through price changes.

(v)  Most of the industrial buyers are concentrated in given state and locations in India.  Industries as Petroleum and Steel, etc. consist of greater geographical concentration. It has impact on transportation costs.

(vi) There is a require for technical advice and continued support after the sales, that is found lacking.

(vii)  Lengthy negotiation on price among manufacturer and customer.

(viii) Close and constant customer-supplier relationship is needed where the product is to be custom built.

(ix) Stringent Government regulations and stipulations that at time favour or restrict the supplier.

(x) Existence of stiff competition offered through international players because of opening up of liberalisation and economy policy.

(xi)  Corruption at all levels that influence the selling and buying.

(xii) Need for more direct personal selling, because advertising, publicity and sale promotion do not play adequate role in industrial marketing.

Posted Date: 5/23/2013 7:51:01 AM | Location : United States

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