Eight Outlines of Construction Machinery Marketing

Construction Machinery is a technical equipment for humans to transform nature, develop resources and infrastructure, and is widely used in industries such as transportation and energy development, agriculture, forestry, water conservancy, metallurgy and mining, municipal construction, environmental protection, and national defense engineering. It directly reflects the transformation of a country. Nature, development resources and infrastructure capabilities and levels.

Construction machinery is a means of production and is a means of production that serves the construction of a project. Construction machinery is different from consumer products such as household appliances, clothing, and daily chemicals, and also different from automobiles, machine tools, and agricultural resources. Therefore, marketing of construction machinery has its own characteristics, methods, and strategies. The following is a summary of the strategies described by the author.

First, analyze social needs and forecast market trends

The purpose of the production of any commodity is to satisfy the needs of society. To make more effective production and sales of construction machinery, it is necessary to study the structural conditions of the society's demand for construction machinery, in order to seek the law that affects the market trend of construction machinery, and better respond to the market development trend.

(1) Derivative demand for engineering The so-called derivative demand means that the purpose of the customer's purchase of goods is not for their own needs, but for the provision of additional customer services. The engineering machinery purchased by the engineering contractor is aimed at completing the construction task of the project. That is to say, the demand of the customers for the purchased construction machinery is derived from the project owner's demand for the engineering.

To help illustrate the origin of this derivative demand, here is an example. A construction contractor who constructs a freeway will purchase (and possibly lease) some road construction equipment. What kind of equipment they buy, how much they buy, when they buy, does not depend on their own wishes, but to meet the needs of investment owners on highway quality standards and project schedules. Logically speaking, the project contractor's demand for these construction equipment is derived from the needs of the highway project. Therefore, for any project machinery market demand forecast must take into account the needs of the project construction.

(2) Associated with demand The contractor’s demand for equipment is of a joint nature. The connotation of this joint demand is that when a customer purchases a certain type of construction machinery, it must also use a number of additional construction machines to support the construction tasks. This scale of joint demand and its advanced level are often related to the project nature, quality requirements, construction technology and duration of construction projects. For example, when a contractor who builds a dam purchases a road roller, he or she must consider buying an Excavator and a shovel transportation machine. A contractor who undertakes a pavement project must purchase a road roller and must purchase a paving machine and mixing equipment. . Marketing companies can, by analogy, catch more market demand information through the sales information of a certain product.

Another aspect of joint demand for construction machinery is the degree of serialization and completeness of the product. Customers sometimes try to purchase more series of products from a supplier, which facilitates driver training, spare parts supply, equipment management and maintenance technical services. This rational concept of customers can provide more opportunities for construction machinery manufacturers and marketing companies.

(3) Investment-driven demand Construction machinery is an investment-driven product, and its total social demand is largely constrained by the government's investment plan. This is because construction machinery serves the transformation of nature, development of resources, and capital construction. No matter what kind of country, the scale and speed of investment in these construction projects are controlled by the government. It goes without saying that any measure of the construction machinery market should not leave the government’s investment policy. For example, China’s Western Development Plan has created a “blowout” phenomenon in the domestic construction machinery market in recent years, and the impending brakes on infrastructure investment in 1994 caused the Chinese construction machinery industry to linger for five years.

(4) Social maintenance Demand engineering machinery is a fixed asset owned by a company and is depreciated and updated year by year. However, it is still in a state of social security. If the unit will not use it for a longer period of time or even forever, it will transfer the right of use or ownership in the form of lease or transfer. Therefore, when estimating the current sales volume of a certain type of construction machinery, it must take into account its existing social reserves and the construction requirements of existing projects. When it is necessary to estimate the total domestic sales of a product in the same industry, the following calculation method can be used.

Project Demand Qx = Last Year's Social Ownership Qx - 1 Update qx + New Addition Qx

New volume in the year â–³Qx = industry sales in the year Cx + imports Cin - exports Cout

The total sales of the domestic industry in that year should be: Cx=Qx-Qx-1+qx-Cin+Cout. Except for large equipment, the service life of general construction machinery can be calculated in 10 years, so the amount of updates in the current year should be equal to the increment of the last 10 years. .

Analyzing the demand structure is crucial for sales managers. Sales managers and manufacturers cannot simply let customers succeed or fail by their own power, or sit back and watch market development. A well-qualified sales manager should be able to proactively predict the market, stimulate demand, and pay close attention to those associated factors that will affect his industry's demand.

Second, understand the characteristics of the market, communicate the concept of supply and demand

The market characteristics of construction machinery are determined by the derivative demand they serve in engineering construction. Understand these characteristics, can better communicate with customers, in the equipment operating costs, technical services, funding and delivery cycle, etc. in a timely manner to solve doubts in place.

(1) Pay attention to operating costs Construction machinery belongs to heavy machinery. After purchase, customers convert to fixed assets and will depreciate over their useful lives. The total cost of the use of construction machinery consists of fixed costs and operating costs. Customers want to purchase equipment that is not only cost-effective, but more importantly, operating costs are low, especially to save energy. The working reliability and energy utilization of equipment are the core indicators of the market competitiveness of construction machinery. They are all ultimately manifested in the form of operating expenses. Marketers should appropriately describe to customers the composition of their company's product application costs, and users should also pay attention to mastering this knowledge.

(2) Paying attention to the procurement of technical engineering machinery has a wide variety of specifications, and the technical structure is complex, involving every branch of the fields of knowledge, electricity, liquids, and information. The purchase, use and maintenance of equipment are all highly technical, which is a great technical burden for the engineering contractor. Therefore, we must emphasize the technical service capabilities of manufacturers and agents to ensure the normal use of equipment and long-term safe operation.

Construction machinery is usually purchased according to specifications, because the size of a certain equipment is directly related to the production efficiency, construction process and equipment. Good salesmen should be able to explain these relationships proficiently and introduce customers to the availability of their own company's series of products, and take the opportunity to expand their results.

(3) Buying a large amount of investment The amount of investment in the purchase of construction machinery is very large, ranging from a few hundred thousand, a few hundred thousand to several million dollars, and some even tens of millions. Customers require suppliers to provide good technical services and economic guarantees, and some even require payment by installments, renting and selling, or jointly negotiating funds. Some multinational companies have financial services institutions that can provide credit to customers or help agents to raise shipping funds. The operating profit of Caterpillar's 2003 financial products reached US$345 million, which represented 20.44% of its total operating profit. This shows that its operating strategy has achieved a win-win situation for manufacturers, agents and equipment users.

(4) Strong construction seasonality Due to the seasonality of construction, procurement time, personnel training and spare parts supply of construction machinery also show strong seasonality. Both supply and demand sides need to accurately grasp the cyclical changes in production, contracting and supply. It is not only easy to save financing costs but also to meet the needs of project construction.

It is due to the seasonal construction of the project, coupled with its own associated demand relationship, so the sales of construction machinery emphasizes the accuracy of delivery. Delayed delivery will directly affect the progress of the project and bring economic losses to the contractor. Users may also be unable to work due to the failure of a certain device to be in place. This is reflected in the more mechanized projects.

Third, segment customer groups and find key decisions

Users of large-scale use of construction machinery, they are all a group unit, and their procurement (or renting) behavior is usually very intensive, that is, procurement decisions are not made by a single person. Divide this group and find out the key to decision. The sales manager of construction machinery should be able to break through the key.

(1) Intensive decision-making The so-called intensive approach is that the selection and evaluation of purchased equipment are often coordinated by leaders, experts, and operators, and may even form a temporary procurement decision-making team. These different levels of personnel will influence purchasing objectives from different perspectives. But in the end, it can analyze the people who have a decisive influence. This person may be in charge of leadership or procurement experts.

The job of the construction machinery sales manager is to identify the key people in these customer groups in order to complete their marketing tasks. But we can't ignore the role of other members of the purchasing team, because sometimes someone's saying "no" can make you miss your past.

(2) The style of decision-makers The purchasing decision makers of construction machinery users are generally well-educated, have the level of engineers or economists, and have good professional knowledge and rich work experience. They must make clear decisions on the technical parameters, functional features and specifications of the machine prior to purchase. This kind of purchasing behavior is more rational, and it does not act on impulse.

(3) The personality of procurement experts Most of the procurement experts prefer to purchase the best equipment at a reasonable price in their profession in order to improve the company's economic efficiency and reputation. They are cautious when examining prototypes or accessing relevant technical data, and will try their best to release their excitement at the negotiation table. What they dislike most is that the delivery is not timely, and the personnel of other departments point him to how to purchase.

(4) The dynamics of procurement behavior Because the purchase motivation of engineering machinery customers is the satisfaction of the derived demand of engineering projects, their purchasing behavior is dynamic with the changes of their contracting projects. The other meaning of the so-called dynamic is that, in the short period of time before the supply and demand parties have not signed up, the attitude of the demanding party may change due to other factors. Therefore, suppliers should keep communicating with users without interruption in order to seize business opportunities in due course.

Fourth, analyze procurement behavior, measure consumer dynamics

Purchasing behavior refers to the behavior of exploring, purchasing, using, and evaluating products that customers display in order to meet their needs. The general market researcher calls it consumer behavior. In order to better understand the customer's purchasing motivation, measure market trends and determine the company's business objectives, the modern market research more use of behavioral science. Experts do their best to use psychology, sociology, economics, humanities, and public relations to further understand, interpret, and predict purchasing behavior, and to refine the scope of their research into the professional market.

(1) Purchase Motivation of Customers The purchase motives are caused by certain incentive factors, which are rational and emotional. Rational factors are mainly technical and economic indicators based on demand, and perceptual factors often have some subjectivity, the most important is the credibility of the supplier company. Although the purchasing decisions of construction machinery customers are more rational, the influencers and implementers of procurement behavior are still people. Therefore, it is rare that purchasing decisions do not have both rational and emotional factors.

(2) Reasonable factors of procurement The rational factors that influence the purchasing behavior of construction machinery customers can be summarized as: consistency of product manufacturing quality and specifications; minimum quotation when quality and specification are acceptable; and technical service capabilities that products can provide The accuracy of the delivery by the supplier according to the required quantity and time; The technical performance of the construction quality can be improved; The maneuverability of the driver is not required to be retrained; The pollution-free performance recognized by the environmental protection department; Adapted to the climatic conditions of the construction site Special features; engineering machinery used for mechanized construction support to meet joint demand.

(3) Usual perceptual factors Construction machinery customers are affected by perceptual factors, which does not mean that procurement personnel will be tempted by certain perceptual factors. However, certain perceptual colors are quite common. For example, the imagination of the purchased equipment and its manufacturers is good; the credibility of the supplier to provide good technical services and compliance capabilities; when the trust in the brand is impeccable; the valuation of the advanced technology of the manufacturer is better The continuity of the traditional relationship with suppliers and the choice of geographic location.

(4) Influence of authority figures Due to the continuous advancement of science and technology, the customer's demand for equipment quality also changes, which is also a manifestation of the dynamic characteristics of procurement behavior. On the other hand, engineering machinery products are constantly being upgraded, and manufacturers must also be accompanied by technological orientation to cultivate new market demands. This dynamic change can sometimes be influenced by a person or by a consulting body such as an industry association or academic group.

V. Exploring the mentality of users and seizing the opportunities for success

Before the supply and demand sides did not sign contracts, there were often more than one supplier that users contacted. For each supplier, the buyer's mentality was unknown. As a sales manager for construction machinery, whether you are a winner or a latecomer, you need to constantly explore the buyer's mental state. The quick-witted people are trying to “defend” and the latecomers are trying to sneak in, all in order to seize the opportunity.

(1) Emphasis on the purchase of brand-name construction machinery users are more concerned about the purchase of brand-name products and focus on traditional suppliers, brand-name products are manufactured by advanced technology and equipment and management tools, product quality is relatively stable, use them to ease. Because of the need for technical assistance, users of general construction machinery will maintain a relationship with traditional suppliers for a long period of time and will not easily change them in order to seek technical support and spare parts supply from each other.

(2) Do not take a single route. Construction machinery users always want to purchase from those manufacturers who are in a leading position in the industry, and think that doing so can enable their company to maintain the advanced nature of construction equipment as the supplier progresses in technology. They usually choose more than two suppliers of the same equipment, rather than taking a single route, but generally have a dominant supplier. The purpose of doing so is to have a reliable supplier, but also to promote competition between sellers.

(3) Do not rely on price decision Construction machinery users often do not use price as the main decision-making factor of the procurement target, preferring to buy equipment with reliable quality, timely delivery, and guaranteed technical service. What they are most afraid of is delaying the construction period. The most thought that it is in vain is the rework of the project. For those construction machines that can guarantee the quality of the project and the progress of the construction, it would be worthwhile to pay more for a little extra money.

(4) It is expected that the price inversion of construction machinery users will have an expected elasticity inversion of future prices in the short term, that is, they will purchase more quickly when the suppliers increase their prices. Because they expect prices to rise further, they always want their companies to be less affected by price increases. On the other hand, if the price drops, the sales volume does not increase. At this time, the user will think that the manufacturer's product quality is not too hard or the technical service ability is poor, or he guesses that he will continue to cut prices.

6. Strengthen service awareness and focus on market development

The purpose of the customer's purchase of goods is to meet the needs of a certain service project, but the product is only the carrier of this service function, not all of the service project. With the product (service hardware), service software (technical) is even more important for construction machinery customers. Therefore, the development and maintenance of any construction machinery market should not be separated from this base point.

(1) Paying attention to the pre-sale service The engineering machinery marketing must implement the pre-sale, sales, and after-sales service processes. The marketing company should dispatch technical experts to the target market for technical exchanges and public relations activities in a planned manner to guide potential customers' procurement goals. On the basis of exchanges, deepening technical services can develop new markets and ensure the continuity of traditional markets.

(2) Improving Service Level Considering the complex technical performance of construction machinery, marketing companies are equipped with some high-level engineers to do technical promotion and market development work. Construction machinery manufacturers should appoint some mature and economically minded old designers to serve in the sales department, which can improve the quality of the sales force.

(3) The developers of the construction machinery manufacturing enterprises should plan to assign product development personnel to participate in sales technical services and promotional activities, and in-depth understanding of the construction site and the user's performance requirements for the equipment. This will not only improve the quality of technical services, but also enhance the sense of innovation in product development. It is an important means for companies to maintain the market and enhance product competitiveness.

(4) Extension of technical services Marketing companies must establish a network of parts supply and maintenance services that are adequate for adaptation. Information networks must be able to reflect the actual situation of product after-sales services and user opinions without distortion. An important part of the extension of technical services is timely improvement of product technical performance and manufacturing quality, and promotion of product replacement. These are indispensable for the development and maintenance of the market.

VII. Grasping sales strategies to gain competitive advantage

Being able to grasp the sales strategy is the most important management idea for the general manager of the marketing company, and is the final trick for the construction machinery manufacturer to enhance the market competitiveness. The following points are only symbolic tips.

(1) Managers grasp the responsibilities of general managers of strategic marketing companies. They use information to analyze the market situation, sales targets and their target markets. They can skillfully determine product plans, sales promotion methods, sales channels and pricing strategies, and make necessary adjustments in time. .

(2) Personnel marketing The sales channels for the main construction machinery are short. Generally, the supply and demand sides meet and negotiate, and the sales promotion is mainly based on personnel. Even if it is sold by agents, users and manufacturers will maintain a close relationship, because the strength of technical services is ultimately at the manufacturer. The sales personnel of construction machinery should be able to skillfully introduce the product's technical performance, manufacturing quality, usage and technical service status, etc., and help customers solve the technical problems of selection, matching and maintenance. At the same time, we must promptly respond to and discuss some of the customer's queries and opinions. In many cases, effective salesmen should have the level of engineers, and must have a wealth of business knowledge and good public relations.

(3) Advertising Promotions Media advertisements are an important means of marketing strategies for construction machinery. Advertising is known for expanding information coverage. The role of construction machinery advertising is to step up sales for the salespersons, so as to avoid rushing to visit and increase marketing costs. Advertising can also show the public a good image of the company, especially when there is a strong competitor, advertising can help influence the customer's purchasing direction, and make people who have never met the influence of purchasing influence.

(4) Price Constraints Limited construction machinery generally should not use prices as the main means of promotion, because in many buyers' opinion, the price factor is far less important than specification adaptation, reliable quality, timely delivery, and good technical service. On the other hand, the price elasticity of construction machinery is very low for the needs of the entire society. This is because the total demand of construction machinery depends on the derivative demand of the project. The price of a certain type of construction machinery is not obvious for the amount of social purchases. Impact. This is different from a family car or other consumer goods. A cheaper price can guide residents to spend. But for construction machinery manufacturers, price elasticity is still a strategy that sales managers must master, especially in a buyer's market where competitors are always eyeing.

VIII. Pay attention to environmental changes and adjust development strategies

One of the important signs of modern shopping malls like the battlefield is strategy. The core issue of the company's business strategy is to coordinate the business objectives, the external environment and the internal conditions of the enterprise and achieve a dynamic balance. Because of the structural characteristics of the social needs of construction machinery, its business objectives are sensitive to the political environment and economic environment at home and abroad. Only in a peaceful and stable environment will the engineering construction industry flourish and it will be possible to develop engineering machinery that is a project-derived demand. Especially in the era of global economic integration and domestic market internationalization, the dependence of construction machinery on the international environment has greatly increased.

At the same time, due to the openness of the market economy, the market competition for construction machinery has become increasingly fierce and complicated. All groups of companies want to increase their market share, competition between domestic and foreign companies, competition between local and foreign companies, and some companies’ strong-strong alliances, mergers and acquisitions, and market competition. Horizontal, vertical and vertical" are all odd.

These external environmental factors are the objective basis for engineering machinery companies to formulate business strategies. This requires companies to have a moderate market information agency responsible for collecting, organizing, and transmitting this information.

The marketing company should specify the task of information search for all sales personnel, not only to understand the customer's investment status, demand dynamics, market segmentation, and user's improvement opinions on the company's products, but also to grasp the situation of competitors, such as their products, Prices, service capabilities, delivery promises, and sales methods. This information is extremely useful for developing sales strategies and advocating new product development.

With regard to the study of professional markets, especially the research on the means of production, there are not many data in this regard. With the development and deepening of the market economy, it is extremely important for corporate marketers to discuss more about how to do business activities and expand product sales channels, and increase the sensitivity of companies to the market, based on their product demand structure and market characteristics.