After decades of a rapid growth of the industry ofChina's industrial products, the industrial economy has fundamentally got rid of shortage and the market trend changes from the seller’s market to the buyer's. Back in the early 1990s,China's industrial consumer goods showed the tendency of the buyer's market. In recent years, many industrial production materials began to have oversupply and supply surplus also appears in energy, raw materials, transportation, communications and other infrastructure which had been a bottleneck since the Foundation of PRC. As a result, the sales-output ratio decreases, and the vacancy rate of inventory goods and industrial production equipments rises. At present,China's industrial market is in the transition process with typical characteristics of the transition market:
1. The market is huge with rapid development and changes;
2. Relative economic policies are variable;
3. The market is in a disorder with excessive competition;
4. There are differences in region, institution, industry as well as marketing.
Given the current market situation, if Chinese industrial enterprises want to achieve a competitive advantage over those of other countries, one of the keys lies in building their own core competencies and improving their ability of marketing management. Currently there are mainly two modes of industrial marketing inChina:
The first mode is the traditional marketing model. In the traditional marketing system of industrial products, the supplier provides a single product for all manufacturers. In the early period of economic development in the domestic market, market development was very immature and most suppliers of industrial products adopted this approach for sales, who would not segment their products or services or simply segment the client according to the grade of clients. However, due to the relatively small number of manufacturers, the profit margin of this marketing model is already very high;
The second one is marketing model of industrial products based on industry research. Industry-based industrial marketing is a new model of industrial marketing, which studies the characteristics and needs of customers’ industries and introduces suitable products and services to different application industries, followed by a marketing series of promotion, pricing, channel management and public relations to sell products. The innovative part of the new marketing model is its emphasis on the subtle needs of the customer, the subdivision of customers and the provision of corresponding applicable products and services for customers from different industries.
With the current problems of China's industrial marketing and the characteristics of industrial product marketing, enterprises need to have a clear understanding of what is marketing, consider marketing as a science, take personnel selling as the core, employ three-dimensional methods of promotion, strengthen service marketing and technique marketing and focus on cultivating their own industrial brands. Only by doing so can they better accommodate themselves to today's market environment.