Consider the differences between a candy store selling a chocolate bar to a single customer, and a chocolate manufacturer selling thousands of chocolate bars to a single candy store.
While selling candy to an individual customer might rely on salesmanship and knowledge about individual tastes and cravings, selling candy to a store takes more than attractive packaging.
Rather, the manufacturer must ensure a safe, profitable agreement between the two organizations. The manufacturer will market the quality, cost, and customer appeal of its chocolate bars to convince the candy store it will have an easy time selling them.
What is Industrial Marketing?
Industrial marketing, also known as business-to-business (B2B) marketing, is a branch of communications and sales that specializes in providing goods and services to other businesses, rather than to individual customers.
Because industrial marketing often involves large orders and long-term relationships between the producer and client, the process from first pitch to close of sale is often more complex than the process between a business and a private customer.
While B2C sales might focus on one-on-one interactions between two parties, businesses are usually made up of a number of individuals. Before the product appears on the other store’s shelves, the two businesses must reach a deal that will involve the manufacture, purchase, and shipping of thousands of products.
Who uses Industrial Marketing?
Many companies create and market products that have little to no application on the level of the individual customer, so their only clients will be other businesses. A company that makes large-scale manufacturing machinery, for example, is either unlikely or unable to sell that machinery to private individuals because those customers are unlikely to be able to afford it or won’t need equipment of such size. The machinery would have to be sold to another business that has both the resources and need to produce large quantities of their own product, such as a mass-market toy factory that needs to create one million units of the same toy each year.
Many consumer product companies develop special marketing divisions specifically for B2B clients. Furniture manufacturers often do this, opening up their tables, chairs, and couches to businesses that may want them for their corporate offices.
This typically happens when the manufacturer’s business grows to a large enough scale to accommodate larger orders. Service providers also occasionally expand to industrial clients to take advantage of more lucrative contracts. A legal practice specializing in contract law, for instance, could expand its scope from representing only individuals to helping businesses develop their own contracts.
By: Priscilla Acuña