Industrial marketing till recently was considered just a selling function. However, it has now emerged as a critical function, much more than mere selling. Products were sold on the basis of quality and price. Today there is increased competition. Prices are not just cost-plus, but are dictated by competition. This is one of the reasons for the shift of emphasis from selling to marketing. Technological advantage does not always give the competitive edge. It calls for a marketing approach. Many companies are keeping in touch with the market and the consumer. They are setting up Market Development  Groups. These monitor are market and spot the opportunities for new and better products.   Gabriel discovered through such a group that its shock absorbers have a new market, i.e. of washing machine and exercise equipment. Product up-gradation is also necessary. The manufacturing process should be geared to provide better values to the consumer. In purchasing, product features and specifications are the  key factors. The industrial market is also being segmented, e.g. high, medium and low voltage switch gears. There are image building corporate campaigns. Prior to selling, a presentation of the corporate profile is made. Mainstream advertising is used to project a corporate image.

The product information is critical and selling is based upon it, rather than emotional appeals. There is generic promotion. As the buyers are well-informed, there is no place for hard sell.The concept of consultative selling is growing. Though personal selling is still a major element of promotion, we come across seminars, exhibitions, business-to-business interactions and direct marketing. Companies like to cater to OEM market (original equipment manufacturer ). There is also a replacement and spares market. In selling to OEMs, the key factors are the quality and cost. The nature of the buying organisation also matters — whether it is the government , the private sector or the public sector. Public sector selling involves tendering. In defence selling the quality and reputation of the manufacture matter more. In government buying, two committees are involved in decision making  — technical committee and price committee. The buying decision is based on purchase negotiations, the price, credit period, spares availability and after-sales-service. Service is emerging as a vital component of the marketing mix. Service has been made a revenue centre by many organisations. Channel decisions are also important in industrial marketing. Some companies operate through dealers or stockists. Some operate through distributors. When distributors are appointed, we have to deal with a small number of people and receiving payment is quite easier. But a dealer network ensures that the company is in touch with the marketing realities. A dealer provides valuable feedback.

Industrial marketers should not be limited to a small product range. They are vulnerable in a turbulent environment. They should resort to market segmentation. Industrial markets tend to be seasonal, affecting demand. Besides technological advances change the consumer requirements. The reliability is a key factor in building reputation.

A single order in industrial markets could be worth several crores.

Several industrial marketers have ventured into consumer marketing with varying degrees of success, e.g. the Tatas, Wipro, HMT, Andrew Yule, Crompton Greaves, TVS.