Consumer generated marketing

The marketing strategy identifies the target markets that the business intends to serve and the marketing mixes to be used for each market. In consumer-generated marketing, consumers themselves are playing a bigger role is shaping their own brand experiences and those of others. Here, companies leverage their own customers to generate not only interesting advertisement, but also some resulting good press and buzz too.

This might happen through uninvited consumer-to-consumer exchanges in blogs, video-sharing sites and other digital forums. The content is usually submitted via the company’s website. Selected winners may have their advertisement appear in the company website or on broad community internet forums, such as YouTube.com.

Two major trends have caused consumer-generated information to gain importance:
*The increase tendency to consumers to publish their own thought
*Consumers’ tendencies to trust other consumers over corporations
Consumer generated marketing

Derived Demand for Industrial Goods and Services

Derived Demand for Industrial Goods and Services
Demand for industrial goods and services are derived from the demand for consumer goods and services.

Raw materials, components and subassemblies become part of the customer’s finished product and therefore, the demand from them is directly determined by the demand for the industrial customer’s product.

Not so obviously but equally true, the demand for capital equipment, for maintenance and repair item, and for services of various kinds is also determined by the strength of demand facing the industrial marketer’s customers.

It is probably more realistic to say that industrial customer; purchases reflect their expectations about future demands for their goods and services.

Clearly purchasing decisions must be made in anticipation of the market conditions that the customer company expects to face.

The customer’s actual need for products, willingness to make commitments to potential suppliers, and ability to pay for these purchases are all a function of the customer’s optimism or pessimism about the future.

Information about purchasing agent’s expectations has proven to be a useful indicator of economic growth.

Some purchases may be made in anticipation of hard times rather than good times. For examples, cost reducing capital equipment may become a more attractive purchase of a company expects to face declining sales and eroding profits margins.

Or, to take an opposite situation, a customer operating at full capacity may not have enough organizational slack to permit a program of equipment installation or other innovation requiring a modification of production schedules.

Because demand for industrial products s derived demand, industrial marketers can sometime stimulate demand for their products by stimulating demand for their customer’s products.

A somewhat more complex from of end-user demand stimulations is often required to develop markets for truly innovative products.

For example, a manufacturer of a high barrier paper coating material used in food packaging found it necessary to work with paperboard manufacturers, paper coaters, packaging forms, food processors and retail chains in order to develop the markets for its product.

It is therefore true that understanding the nature and scope of industrial markets requires understanding both the nature of demand facing the industrial customer an the customer’s customers through out the marketing channel to actual consumer demand.

In addition, it is usually helpful to analyze competition in the customer’s industry and perhaps competition among the customers in the market that customer serves.
Derived Demand for Industrial Goods and Services

Industrial Marketing

Industrial Marketing
Industrial marketing is the marketing of goods and services to industrial and institutional customer.

These include manufacturing firms, governments, public utilities, educational institutional, hospitals, wholesalers and retailers, and other formal organizations.

Consumer marketing, in contrast, is concerned with marketing to individual, families and households purchasing goods and services for their own consumption.

The distinguishing feature of industrial and institutional customers is that they use purchased goods and services in their own production of goods and services.

Purchased products, such as raw materials, components and subassemblies, may become part of the customer’s final product or may be added to physical facilities, in the form of construction and equipment.

In other cases the purchases may be supplies used in operations, repair and maintenance activities, including such products as fuel, office supplies and building materials.

Resellers, such as retailers, distributors and wholesalers purchase products for resale but add value to those products in the form of the services they provide, such as availability, credit and customer.

In real sense, industrial marketing keeps the economy functioning by providing the products and services required by factories, offices, government agencies, hospitals, universities and other providers of goods and services.

It has been estimated that industrial marketing transactions equal in dollar value at least twice the value of consumer purchases.

This can be understood by considering the long and complex chain of industrial market transactions preceding the manufacturing and sale of a consumer product, such as a shirt or a can of soup, chain that begins with raw materials from farm, forest, mine, or ocean and almost certainly crosses national border at several points.

Given that all manufacturers depend upon other manufacturers for goods and services, the chain is virtually endless.
Industrial Marketing