Question

Read the case given below and answer the questions that follow:

Pooja has started a small company that manufactures steel and aluminium rods used by construction firms. She has made a large capital investment in this venture and also hired an excellent sales team. Their marketing approach is to contact the buyers directly and explain the features of their product. They have a complete control over the distribution of their products.

1. Identify the type of product manufactured by Pooja's company. 
2. Briefly explain any two features of the product identified in subpart (i).
3. State the channel of distribution used by the company in the above case.
4. Identify and briefly discuss any three objectives of the element of Promotion Mix used by the Sales team in the above case.

Answer 1

1. The type of product manufactured by Pooja's company is an industrial product.
2. The two features of industrial products are as follows:
   1. Few Buyers: The number of buyers of industrial items is restricted.
   2. Shorter distribution channel: Industrial products are typically sold through direct or one-level channels due to their limited and focused buyer base.
3. The company distributes directly. The above scenario indicates complete control over product delivery. Pooja's company offers its products directly to building enterprises, bypassing intermediaries like wholesalers and retailers.
4. Pooja's company's sales staff uses Personal Selling as part of their promotion mix. Personal selling involves direct interactions between sellers and potential consumers to urge them to make a purchase.
   Objectives of the promotion mix used by the sales team are:
   1. Inform: The sales team informs potential purchasers about the company's steel and aluminium rods, including their characteristics, benefits, and specifications. They offer extensive explanations to help buyers comprehend how the product fits their construction demands.
   2. Persuade: The sales team aims to persuade potential buyers by stressing the benefits of their products over competitors' offerings. They may emphasise quality, durability, and cost-effectiveness to persuade buyers to purchase.
   3. Build relationships: The sales team strives to establish strong relationships with buyers through direct and individual communication. Understanding each buyer's unique wants and preferences allows for tailored approaches that establish long-term partnerships.