Volume 13, Number 3 Article by V Kishore Kumar September 2001
Labyrinths: Peculiarities of Industrial Marketing in India :
While consumer marketing is aimed at individuals, industrial marketing, or organisational selling, is about selling to organisations. Dealing with Indian industrial organisations can be very complex, and companies who wish to make it in India must be prepared to invest a certain amount of time and effort. An understanding of the major factors that influence industrial buying is essential for success. On the surface it may appear that organisational buying decisions are taken on highly rational parameters. But in reality, different individuals and functions within an organisation look at the needs of the organisation from different perspectives, and ultimately influence the decisions in the organisation. It must therefore be borne in mind that the decision makers in organisations are also human and there is a fair amount of human behaviour involved in organisational buying. Applying the Webster and Wind model, which classifies the major influences on industrial buyers into four groups (environmental, organisational, interpersonal and individual factors), V Kishore Kumar examines the decision making process in industrial organisations in India. He provides a backdrop to the industrial environment in India, and describes the types of organisations that a marketer is likely to encounter, before going on to elaborate on the Indian psyche, the interpersonal factors and their influence on purchase decisions. Industrial purchase decision processes involve role playing by organisational members. Adapting to Indian realities the seven types of role play described by Webster and Wind, Kishore provides valuable tips on identifying and convincing these vital players — initiators, users, influencers, accountants, approvers, buyers and blessers. Some of these players are often to be found in unexpected positions in the hierarchy, he warns, and it would be unwise to overlook an ally in any position. Finally, step-by-step strategies are provided for landing contracts and ensuring unambiguous, fool proof agreements. A few examples are illuminating, and steer would-be marketers through the pitfalls of industrial marketing in India.
Reprint No 01305