Mastering Marketing by Douglas Foster (auth.)

By Douglas Foster (auth.)

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In bad economic times this can adversely affect the cash flow and liquidity of the selling organisation. It is this fear of losing an order that may be one of the main reasons why prices for industrial products tend to approach the lowest possible level. (Intensifying competition is another. ) (c) Market definition Theoretically it is easier to define markets for industrial products than consumer goods. In the latter case, everyone in a country is a potential customer 24 Mastering Marketing and finding who are the real customers can be a major market research and statistical exercise.

26 Mastering Marketing ~ COMPANY PATRONAGE MOTIVES PRODUCT PATRONAGE MOTIVES Fig. 1 RAW MATERIALS COMPONENTS & SUPPLIES CAPITAL EQUIPMENT quality delivery reliability ease of access to supplier (communications & physical distribution), price & terms ability of seller to meet any emergency performance performance after-sales service past experience of sellers general reliability of sellers credit facilities price economy of operation and productivity reliabilityrelated to eqpt, the company and its services durability and labour-saving aspects of the equipment credit terms and facilities price suitability reliability and uniformity of quality reliability of supplier, especially delivery degree to which the purchased item enhances the saleability of the end product R&D record of supplier price Buying motives for industrial products (f) Buying decisions With consumer goods the buying decision is often taken by the individual consumer.

The key aspects are discussed in this chapter. 1 Business and society From the Industrial Revolution to the end of the Second World War developments in industry, science, technology, transport and communications all appeared to support each other. They added to the general wealth of the world, or at least of the industralised nations. The net result also appeared to be beneficial to society at large. Even if the increased wealth was unevenly distributed and a minority remained at subsistence level, the majority, to differing degrees in different countries, achieved improving levels of wealth often undreamed of by earlier generations.

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