Impact of purchasing trends on industrial marketers

Purchasing departments have undergone dramatic changes during the past decade. This article examines key characteristics that changed during the 1970s including the purchasers' view of effective salespersons and women in purchasing. It is important that industrial marketers better understand these changes and subsequently implement marketing efforts that compliment the purchasing environment of the 1980s.     

The relative importance of industrial promotion tools

This article describes a survey of the perceptions of organizational buyers regarding the extent to which their purchasing decisions are influenced by various promotional tools. The results of this survey provide some practical implications for industrial marketers regarding the relative effectiveness of various promotional tools and the relative emphasis that they should place on each of them.     

Optimizing the number of industrial salespersons

The objective of this article is to examine the major alternative methods currently used for optimizing the industrial sales force size and to assess their applicability in industrial firms. The article examines in detail the main difficulties facing an industrial firm trying to optimize its sales force, discussing some of the factors that affect industrial selling strategy and policy. The five alternative major techniques for optimizing the number of industrial salespersons, are then discussed in detail, presenting the basis of each approach/method, its advantages and disadvantages for an industrial firm, and when the method is applicable in an industrial marketing situation.     

Better use of the industrial marketing concept

Customer orientation is vital in order for industrial marketers to enjoy greater profitability in the industrial marketplace, which is at present characterized by rapidly changing environmental factors. These shifts include increased computerization of the purchasing departments, greater social and legal challenges to various buying organizations, deteriorating economic conditions and the changing role of the industrial purchasing manager. This paper suggests a way by which industrial marketers may adopt the marketing concept. The first part of the paper presents evidence of industrial marketers' failure to adopt the marketing concept and highlights the consequences of this practice. In addition, emphasis is given to the manner in which industrial marketers may adapt to the changing conditions—while capitalizing upon new opportunities that become available—by adoption of the marketing concept. The second part explores the use of market segmentation as a means for adopting the marketing concept. After reviewing the approaches that are now being utilized to segment industrial markets, a more pragmatic approach is presented.     

Attitudes of industrial buyers toward selected social issues

Although the demand on industrial establishments to resolve various social problems is ever-present, there is little substantive material in the literature concerning the industrial buyers' perceptions of the social responsibilities of their firm. Studies of executive's attitudes toward corporate social responsibility have focused heretofore on corporate personnel other than industrial buyers. Next to salespersons, however, industrial buyers have more contact with persons and businesses outside their company than other corporate personnel. People in purchasing, nonetheless, are perceived by many as conservative, hard-nosed negotiators either unconcerned about corporate social responsibility at best or denying such responsibility at worst. This article presents the results of a survey of industrial buyers concerning their attitudes toward various social issues.     

Similarities in industrial procurement across four countries

This article reports on a cross-sectional, longitudinal, and comparative study of industrial buyer behavior. The study points to clear similarities in industrial purchasing between buyers in two industries in four countries. It also shows similarities in results using the same instrument taken in studies several years apart and points to generalizations about the involvement of different departments in the purchase of a variety of product types in different international markets.     

Product profile analysis: A tool for industrial selling

The purpose of this article is to provide a step-by-step approach to how product profile Analysis (PPA) can be applied to industrial selling. Specifically, the sales representative can use PPA to help the prospective buyer identify the key criteria involved in the purchasing activity. The concentration on buyer-oriented criteria will aid in the development of the sales representative's role as a consultant to the client. The use of PPA will also help the buyer defend the purchasing decision that was made.     

Trade patterns,industry structure and industrial policy in telecommunications

This article examines three major changes which have been occuring in the telecommunications market: liberalization, leading to increased competition in services and equipment, the internationalization of the equipment market, and a rapidly changing industrial structure. The interrelationship among the three trends is analyzed, and the authors hypothesize that it is the technological determinants which are driving the changing structure of the industry and its trade patterns and regulatory environment. The instruments of industrial policy are discussed, with examples from several countries. The European Community's policy in telecommunications is explained in some detail.     

Marketing to associations that specify or approve industrial products

This article introduces the concept of indirect marketing. It examines a situation where individuals, groups, and organizations other than the purchasing organization have a major say in the purchase decision. Implications for a marketing program to meet this situation are discussed.     

An exploratory study of the Internet as an industrial communication tool: Examining buyers' perceptions

A thorough understanding of the impact of the Internet on industrial purchase decisions is of critical importance for industrial marketers seeking to incorporate the Internet in their overall communication strategy. Accordingly, this study examines (1) the degree to which purchasing professionals perceive the Internet as useful, (2) how purchasing professionals are using the Internet for communication activities, (3) how the Internet compares to other promotional tools in influencing buyers' purchase decisions, and (4) whether differences among buyers can be identified relative to the perceived influence of suppliers' websites. The results provide some practical implications for industrial marketers regarding the use of the Internet relative to other promotional tools.     

Realigning industrial marketing channels

Dramatic changes are occurring in industrial patterns of distribution. This article provides a structure for analyzing realignments in industrial marketing channels. Specifically, the analysis centers on the channel efficiency and effectiveness dimensions that were generated by a shift from industrial distributors to a public warehouse.     

When the purchasing agent is a committee: Implications for industrial marketing

This article describes a research project that investigated the relationship between the purchasing decision process occurring within a firm and intrinsic factors relating to the product. The study determined the effects of product complexity on the procurement process and identified those dimensions of complexity to which participating departments are sensitive. The results of the study provide information of great value to the theoretical development of buying centers as well as to those involved in targeting industrial marketing efforts.     

Buying an industrial service warehouse space

This paper reports the results of a study of the industrial buyer of warehouse space. The role of the purchasing agent and the other members in the buy group are identified and evaluated.     

Understanding the role of marketing-purchasing collaboration in industrial markets: The case of Russia

This study aims to investigate the role of interfunctional collaboration between marketing and purchasing functions in industrial companies. Interfunctional collaboration is considered as a measure of the internal alignment and partnership between departments in the firm, which in turn contributes to the creation of sustainable advantages via improved external partnerships and facilitating demand chain integration. We test the impact of customer orientation as well as the interactions between departments (specifically marketing and purchasing) as collaboration antecedents, and analyze the direct impact of marketing-purchasing collaboration on business performance. The model is tested on a sample of 148 industrial companies in Russia with two key respondents in each firm, incorporating the purchasing as well as the marketing perspective. The results show that marketing-purchasing collaboration mediates the effects of interfunctional interaction as well as customer orientation on business performance. Alternative model testing shows that the direct effects of these antecedent constructs on performance are non-significant in the context of Russian industrial companies.     

The use of approved vendor lists

This article describes a research project that investigated the use of approved vendors lists. The study sampled purchasing managers in five different industries and sought information on their use of approved vendors lists and how they derived those lists. The results contain some useful information for industrial marketers.     

Key problems facing industrial distributors

This article reports on a survey of the problems faced by industrial distributors. Five major problem categories are identified and managerial implications are derived from the findings.     

New technology and industrial relations

This article reviews recent studies of new technology and industrial relations and indicates four main areas for future research. The author concludes that more attention should be devoted to the technology itself, and that industrial relations research could usefully incorporate many recent insights and developments in industrial sociology .     

Generalizing industrial buying: A longitudinal study

This paper expands and updates a major survey conducted in 1970 by Scientific American, Inc. Both surveys were designed to measure the influence of key corporate groups or departments on the purchasing decision. Despite major differences in the two samples, there was very good agreement between the two surveys. All the Kendall's rank correlation coefficients were significant at the 0.05 level. The purchasing department continues to play a key role in the purchase of materials, component parts, and equipment, especially when it comes to taking advantage of new price differentials, surveying available makes, and choosing suppliers. The applications of the results are explored in two short cases.     

Factors that influence the length of industrial channels

This article is concerned with the length of channels utilized to market industrial products. Several marketing scholars have proposed that the appropriate channel structure is a function of conditions associated with the market for the product, the nature of the product itself, and characteristics of the producer and middlemen. By means of a survey of industrial product manufacturers, this study identified six characteristics of middlemen, industrial markets, and industrial customers that appear to be significant influences on the length of channels used to distribute industrial products.     

Advertising budgeting practices of industrial advertisers

This article reports the findings of a recent large-scale survey of British industrial advertiser budgeting practices. The article lends support to recent research suggestions from the United States that industrial advertisers have begun to move away from rules of thumb budgeting towards more sophisticated techniques. The trend to increasing sophistication is most marked amongst large industrial advertisers.