Direct Marketing

1.Identify and explain each of the different types of industrial goods.

Industrial goods are raw materials, fabricated materials and parts, installations, accessory equipment and operating supplies. Raw materials are products destined to become part of another product. Fabricated materials are products that have already been processed. Installations are major equipment with long lives such as buildings, generators and aircraft. Accessory equipment aids and implements production and includes such things as machinery. Examples of operating supplies are lubricating oil, ball point pens and floor wax.

2.Overview the four characteristics of industrial demand as discussed in you text.

The four characteristics of industrial demand is derived demand, inelastic demand, widely fluctuating demand, knowledgeable demand. Demand for industrial goods is derived from consumer demand this is what is meant by derived demand. Industrial demand for products such as automobile tires is really dependent on the demand for automobiles by consumers. Industrial products represent a small part of a bigger product is most cases. Price sensitivity is low. Generally the demand for industrial goods is subject to wide fluctuation. Industrial buyers are usually very well informed in relation to consumers. They also generally have more specialized interest in terms of product purchases.

3.Discuss the many uses of direct marketing for business consumers.

There are several uses for Business to Business uses of direct marketing, these are:

Generate qualified "leads" for salesperson follow-up.

Achieve direct sales remotely (i.e. via catalogs and Websites).

Reinforce all sales efforts.

Introduce new products.

Develop new markets and applications.

Build industrial customer goodwill.

Conduct industrial market research.4. Describe the challenges facing industrial marketers today.

There are five major challenges facing industrial marketers these are:

Marketing costs that are increasing while the audience reached is decreasing. It costs more generate awareness than ever before.