Incorporating shortage strategies in industrial marketing

Abstract

Industrial marketers must handle the problem of working in an environment characterized by supply shortages occurring on a regular basis. As customers continue to demand more, tolerance for supply delays and out‐of‐stock situations has decreased. Customer service has taken on an increasingly important role and suppliers must do a better job in understanding the cause and impact of shortages when and if they arise. Accordingly, customer relationships must be reexamined. Discusses key issues for suppliers to consider in managing the marketing mix in shortage situations. Industrial marketers are developing and using new and better techniques to deal with the inevitability of shortage conditions that confront all companies regardless of size, industry or geographical location. Specifically, this paper overviews the basic principles of relationship marketing as they apply to shortages. It offers suggestions on how industrial suppliers can manage their marketing efforts more effectively when materials, parts, components or other supplies are short.

Citation

Wagner, W.B. and Gopalakrishna, S. (2001), "Incorporating shortage strategies in industrial marketing", Journal of Business & Industrial Marketing, Vol. 16 No. 7, pp. 540-552. https://doi.org/10.1108/EUM0000000006191