How the marketing of industrial goods goods differs to that of marketing consumer goods?

Industrial goods are differentiated from the the consumer
goods on the basis of the purpose for which the goods are used and the nature of the
customer. The industrial goods are the purchased by business firms for processing and
resale. These include rat materials, components and consumables used in manufacturing of
other goods. Capital goods purchased by businesses also classify as industrial. Also
purchase of finished or semi finished goods for trading or resale are classified as
industrial goods. Finished goods on the other hand are purchased by individuals and
household for personal use or for gifting.

The marketing of
industrial goods differs from that of consumer significantly in several ways. These
differences are described below.

• Number of
  buyers of industrial goods are fewer in number as compared to buyers of consumer goods.
  However the average size of buyer in terms of value of goods purchased is significantly
  higher for industrial goods. Because of this, marketing of industrial goods is often
  based on more direct and closer interaction between buyers and seller. For example mass
  advertising plays a less important role in industrial goods marketing as compared to
  consumer marketing. Also the sales persons are generally required to make multiple sales
  call to the customer for securing each customer
  order.


• The buyers of industrial goods tend to be located
  in small geographical. For example lot, there is concentration of auto companies in
  Detroit, and there s concentration of IT related companies in Silicon Valley. This kind
  of geographical concentration makes frequent and closer buyer seller-interaction even
  more preferred marketing approach.


• Bigger buyers
  concentrated in fewer geographical locations makes it easier for a company to sell to
  them directly, rather than through distributors. Frequently the industrial buyers also
  prefer to deal directly with the manufacturers, rather than with resellers like
  distributors or retailers.


• Persons assigned to do
  purchasing in business establishments are professional in methods of purchasing. Also,
  often they are more knowledgeable about the technical characteristics of goods being
  purchased. The marketing of industrial goods, therefor, needs to rely more on technical
  consideration and professional methods rather than appeal to personal or emotional
  considerations of individuals.


• Usually there are several
  different persons, with different perspective involved in taking the purchase decision.
  For example the purchase decision may be influenced by representatives from purchasing
  department, user department, finance, and design. Also, while the initial
  investigations, discussions and negotiations may take place at lower levels, the final
  decision may need to be approved by a person at higher level. The industrial marketing
  effort mus be designed to satisfy the requirement of all such multiple buying
  influences.


• The demand for industrial goods is often
  directly dependent on the business volume of the buyer and the specifications for their
  products and processes. This means that the marketing of industrial goods must
  concentrate on getting the maximum share of an elastic demand, rather than try to
  increase the total demand.