What are the problems of Industrial markets?
The problems of Industrial markets in India are as illustrated below:
a. The customer base is minute and new markets or customers are less.
b. Market is classified by high buyer concentration ratio within which few buyers do most of the purchasing as like automobile companies, fertilizers companies and aircraft industries.
c. The demand for industrial goods is finely derived through the demands of consumer goods. Thus, industrial marketer wants to closely monitor the buying patterns of eventual consumer and which of environmental factors those affect them.
d. The total demand for several industrial goods and services is not influenced by price changes.
e. Most of the industrial buyers are concentrated within given state and locations into India. Industries as Petroleum and Steel have greater geographical concentration. It has impact onto transportation costs.
f. There is a requirement for technical advice and continued assist after the sales that are found lacking.
g. Lengthy negotiation onto price between customer and manufacturer.
h. Close and constant customer-supplier relationship is needed where the product is to be custom made.
i. Stringent Government regulations and stipulations that at time favour or limit the supplier.
j. Existence of stiff competition offered through international players because of opening up of liberalisation and economy policy.
k. Corruption at all levels which influence the buying and selling.
l. Requirement for more direct personal selling, from advertising, sale promotion and publicity do not play sufficient role into industrial marketing.