Industrial Marketing Research

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  1. samozain

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    May 29, 2012
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    first of all i think this part talking about Marketing so i got best article in my blog articles2day.Org and i will post it here as first post in our forum businessadviceforum so i want form you your ideas about that

    If you like my article please support me


    Industrial Marketing Research
    This review of the strategy of industrial marketing will have shown the vital importance to management of an adequate, continuous and accurate supply of information in its primary task of decision-making. The nature of industrial markets is such that a true understanding of the environment in which the company operates is often difficult to achieve. As already discussed, many industrial-product manufacturers are further removed from the ultimate demand determinants for their products than their counterparts in the consumer- product field. Their reliance on market research consequently is considerable.


    Industrial market research has been defined as providing information which will lead to an understanding of the markets in which the company is operating today and in which it may hope to operate tomorrow. The bulk of its work can perhaps more aptly be described as market intelligence. It is a task that can - and, wherever possible, should - be carried out within the company organization. The information it provides should be on a continuous basis. It should report on the size of the relevant markets, the nature of the products that are being supplied to those markets, and the nature of the competition. It should monitor trends in both supply and demand. It should supply regular information on prices and profitability, on technological developments, on the development of substitute products, and on changes in the structure of those industries from which demand arises.

    Market intelligence should not limit its fact-finding to the current situation only. Companies have to plan today for the kind of business they expect to be in several years hence. As has been stressed previously, market information based on projections for three, five or ten or more years ahead, should be provided.

    Field research in the industrial sector demands a different method than that practised in the consumer-goods field. Sampling techniques have to be modified. The ‘universe’ of an industrial market is not always known and therefore difficult to define. It is often necessary at the outset to decide where the market lies and what are its essential characteristics before a sampling programme can be started. A method frequently adopted by industrial market researchers is to segment the market before sampling. Instead of using a predetermined sample, the researchers interview successive firms to establish a pattern of answers.

    It is possible to use very much smaller samples for industrial research because of the smaller size of the markets. Industrial interviews may be as little as 10 per cent of the number used in consumer research; this will reduce the cost of the survey, although, generally speaking, the interviewing of senior management personnel of major industrial firms will often take longer than a series of interviews with housewives. Furthermore, a higher level of interviewing skill is generally necessary in the conduct of industrial interviews.

    Among the larger organizations, market research is accepted as an essential adjunct to the marketing process. Smaller companies, however, still lag far behind in this respect; yet the need for market research cannot be denied. Its function is to reduce the risks inherent in decision-taking. Since every business executive, whatever the extent of his company’s operations, must speculate continuously to take advantage of the opportunities the market situation may offer, it should be obvious that the more reliable the information available, the less of a gamble such decisions become.

    There is a general criticism, however, that market research tends to be under-used by industrial companies. The reasons often advanced are that research budgets, in comparison with those of firms producing consumer goods, are very limited, that many companies believe that they can obtain a better view of their markets by means of their sales representatives’ reports than by research surveys, and that those that have adequate technical knowledge and interviewing experience within the company do not have sufficient time to undertake market surveys.

    These objections can be countered by pointing out that the average cost of an industrial market survey is usually much less than that of a consumer survey, and that salesmen generally are far too biased for their reports to provide a fully objective assessment of market conditions and the performance of the company within the market. Furthermore, if the firm does not have adequate personnel available for research, it can call upon the services of experienced outside consultants.

    The value of using outside consultants for industrial field research work is that an agency may well be able to provide a far wider knowledge of markets than its client’s own market research department, and will probably be more versed in MR techniques. It may also have greater experience in the interpretation of the results of its research to meet the needs of management.

    Source : Articles2day.Org | Industrial Marketing Research

    So what is your opinion ? and sorry for bad English

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