Steel mills marketing era of big changes

In the face of increasingly fierce competition, product homogeneity of iron and steel enterprises have increased the importance of marketing work, by increasing the number of foreign distributors, to speed up to improve the proportion of direct selling products, actively expand target customers targeted strong national product sales network, increase the intensity of sales promotion of our products, strive to gain a foothold in the new round of market impact. Over the nature of its business model, more is still in the iron and steel iron and steel enterprise high profit inertia model, and still rely primarily on mainly agent sales way, lack of marketing initiatives and extensibility, lack of enough purpose in the marketing planning and enforceability. So, try to ask mills marketing road in where? To answer this question, need to be illustrated from three aspects: marketing mode: why do you want to change? I need to change the core? How should change?

The right business model transformation

Why such a large steel market homogeneity competition? Its answer has three: one is in the steel industry high profit, the iron and steel industry in China on a large scale expansion, broke the domestic steel products supply and demand balance, to supply the market stage; 2 it is to the body of the iron and steel products manufacturing technology with high speed development, after a short period of time has been unable to realize the revolutionary progress again, entered a mature platform; 3 it is the planned economy era to the particularity of steel sales, as well as long-term formed during high profit and maintain the relationship between supply and demand, the demand greater than supply of iron and steel enterprises make the marketing mode for a long time is in a state of relative stagnation, enterprises lack of marketing planning in market competition and powerful marketing tool.

In terms of iron and steel enterprise itself, rely on technology improvement, expect technology revolutionary breakthrough, driving up the cost of production reduced dramatically or product price of rapid ascension, is difficult to achieve in a short period of time. In the process of transformation and upgrading of the iron and steel enterprise, following the path of technological innovation is the basis of long-term development, transformation and upgrading needs a process, in the current, enterprises should realize the transformation of business model.

Mining solid market from the Angle of users

Now a lot of iron and steel enterprises have already realized the importance of the market, have put forward a market-oriented, user-centered, etc. But in the actual operation management, such as structure setting, operation mode, and full of the subconscious, really stand on the user’s point of view, consider their needs and win-win?

At this stage the market concept of iron and steel enterprise, its essence is still stays on the traditional business model, production and sales have not fully to the town, main operation is still the basis of production units, its characteristic is to output and cost as the core, the representation based on the existing high profit space product, choose a demand of customers in the market, rather than to create products and services to the customers.

Maybe it is the purpose of that made us a lot of time the idea of “user-centric” can only stay in surface, but not really become instinctive behavior of enterprise itself. Objective decision behavior, thus to change the iron and steel enterprise marketing mode, to start from the first step.

When companies determine a new direction of reform, the need to establish a scientific and orderly system as guarantee, at the same time also have strong department to execute. However, in most of the iron and steel enterprise running system, currently does not have a represents the interests of the users of the powerful department, also do not have to have its own products and marketing resources to conduct a comprehensive integration, more not through scientific planning and strong promotion, form a genuine market impact.

This is a what kind of department, what kind of tasks needs to be done? We are here to make an example. Suppose that a user is put forward to buy intention, need a lot of steel used in construction, at this time, the iron and steel enterprises will do? Steel product sales by traditional way most is a simple one to one, customers to buy what, what I sell. Traditional iron and steel enterprises at the same time may because signed a lot of orders and smug. However, ever thought about why customers buy iron and steel enterprise, buy what to do?

If the user is to building a set of commercial residential building, iron and steel enterprises have can further mining market space? Market is not linear, also is not flat, but diverse, three-dimensional, more of a development. Builders are not the owner of the apartments, and the building also need construction steel, not just building follow-up decoration and building the construction of the internal and external function facilities, require different types of steel. These are just some of the appearance of demand.

Many steel companies are now developing the steel industry, but in terms of product sales, iron and steel business stagnated, the integration of iron and steel products and steel products packaging is almost none. If there is a dedicated to serving the customer manager, can according to the enterprise has comprehensive resources, at any time to follow up the potential customers’ needs. Such as iron and steel enterprises of steel pieces have qualification of construction supervision, can provide supervision services. Further extension, if the train of thought, we can see more market: when building under construction, we can provide logistical support? After the completion of the property management can participate in? Since it is commercial residential buildings, the sustainable development of its itself is a huge market, we can consider cooperation, implement a series of commercial promotion? Etc. All this is a valuable market resources, a lot of iron and steel enterprises also have the corresponding products and services, but because of the lack of perfect marketing planning, the lack of adequate follow-up and anticipation, not do a good job in iron and steel industry and steel industry market resources integration of the match, all be missing out on valuable market opportunities.

The user for heart sales for head

With the multivariate, integration, integrated development of products and services, in terms of marketing model, our iron and steel enterprises has been far behind the other industries. Launch overall solution in many industries, iron and steel products but also in the condition of single variety, a single specification fight alone, still rely on point-to-point single sales model, even in an excessive reliance on middlemen as the main way of sales.

Solve the above problems, needs in the enterprise management process, the business sector has higher status than production units and voice, of all kinds of products and marketing resources to achieve full integration, all aspects for the user’s demand, to carry on the full range of packaging services, follow more flexible pricing mechanism, truly sales to the user as the center, to play a leading role.

If we are a bit more aggressive, also can consider to take “product + trade” mode, namely when have related products to complete product sales; Face itself does not have the product demand, trade and related services, only one purpose, is fully in line with the market and the needs of users.

To sum up, transformation and upgrading of industry is the inevitable choice of the iron and steel industry development under the new normal. As the marketing part of directly facing the market, create value, is the first step to achieve the overall business model transformation, is also the most crucial step. Only through fundamental changes to the overall business model nature occur, iron and steel enterprises to achieve real diversification, to win a broader space for development.