Ever wondered what it takes to market industrial brands?

We asked S.K., executive officer at a global manufacturer and marketer of building products with annual sales in excess of $2.5 billion, for some insights.

One of the things we noticed during the discussion was that while the core principles are very similar, the terms used for marketing are quite different.

A quick comparison of some terms:

Q: What do you think are the core differences in consumer and industrial marketing?

“Very broadly speaking, product managers for fast moving consumer goods may develop advertising campaigns that appeal to emotional levers or consumer psychographics.

For industrial goods, current oil prices, energy consumption levels or technology are often considered as possible value propositions instead. The ultimate question a market and business development manager will ask is “How do I tailor make my product to add value to my customer’s product?”"

Q: How do you build brand loyalty for industrial brands?

“The emphasis in marketing industrial products is on partnerships and brand awareness. In more mature markets like Europe and the US, B2B networks and relationships are stable and brand switching occurs only occasionally. Brand loyalty in the West tends to be strong.

This is not the case in Asia, where markets are dynamic. Brand building is vital to market penetration and growth.”

Q: What are some unique brand building opportunities for the Chinese industrial market?

“In China, companies often pay for the opportunity to write industry codes that become definitive standards for their sectors.

This helps raise brand recognition very quickly and position the brand as a technology leader, hence building first mover advantage and brand preference.”

Q: How is the marketing budget usually spent?

“Industrial companies’ market development budgets make up a much smaller proportion of sales, and tend to hover around 1% of projected revenues. In many cases, a significant portion of it is spent even before the products are ever made.

Marketing programmes for industrial goods focus on continuous product development and partnership development. Such programmes may not always be considered to be the purview of marketing and business development.”

For more information, please contact Manifesto.