DOMESTIC MARKETING


In the simplest terms a Market is composed of buyers & sellers, exchanging goods and services and money. Manufacturing industries form a complex with both external and internal product flows. Externally, the complex faces in two directions:-(1) procuring raw and semi finished materials from the extractive industries while supplying them with equipment and supplies; (2) selling capital goods, supplies , and consumer goods to households, government, business and institutional users, and exporters. Internally, it is engaged in the process of exchanging semi finished products, component parts, operating supplies, and equipment among the constituent manufacturing establishments.

There is a clear cut classification in domestic market trend:

  1. Industrial marketing - as opposed, for example, to agriculture marketing , which we will not discuss - encompasses the movement the materials .It includes the movement goods to government , non manufacturing business users , exporters as well as between units with in the manufacturing complex itself.
  2. OEM:- Original Equipment Manufactures are those, who produces goods for trading units, other brand name or may be taken as the ancillary units which produces the part of a whole product. This also comes in to the category of industrial marketing.
  3. Sales agents :- Operate in much the same manner as manufactures agents.
  4. They represent a limited number of sellers on a more or less continuous basis and charge a commission for their services.

  5. Brokers:- Play no very significant part in industrial goods marketing , but they can provide some very useful services. While brokers negotiate and facilitate sales, they do not take title to the merchandise involved and ordinarily bear no responsibility for it or its condition.
  6. Commission merchant:- Play a highly significant role in the marketing of agricultural products, there is no reason why the average industrial products maker should want to consistently consign merchandise to an agent with whom he has no continuing contractual mission relationship and who may or may not be able to self it.
  7. Although advertising agencies, consulting firms, transportation companies, and financial institutions participate in the industrial marketing system on the demand side, they also make a unique contribution to the movement of goods between byres and sellers and to the transaction which produce this movement.

CHANNELS FOR INDUSTRIAL MARKETING :-

  1. Manufacturer to branch house or branch office to customer.
  2. Manufacturer to distributor to customer.
  3. Manufacturer to agent to customer.
  4. Manufacturer to agent to distributor to customer.
  5. Mixed arrangement:- Using hybrid arrangements including two or more channel types.