Marketing Problem in the Engineering Industry

Marketing Problem in the Engineering Industry

Summary

For the success of an industry, high production is essential. However, the determining factor that determines the fate of a specific sector is market forces. Market force determines whether an enterprise is going to make profits or losses. For engineering industries, getting the market for products is very hard since industries are required to produce standard and quality goods that are going to be appreciated by the customers and clients (Sharma et al.). There are some common marketing problems for the engineering industries, such as weak bargaining power, poor design, poor quality, lack of demand, and inadequate marketing knowledge.

Lack of demand is associated with the quality of production in engineering industries. For example, the metal industry that produces products that lack specifications is at high risk of experiencing a lack of demand due to high competition in the market. Specifications help in that the clients will notice which company produces quality products (Sharma et al.). If a company has no specifications, there are chances that the company will not receive orders. Proper marketing demands that a company or any enterprise creates a brand that will enable it to be identified among the rest. This way, clients will be able to identify the perfect company that produces quality products.

Another major problem that is associated with the market of the engineering industries is the lack of finance. Capital plays a huge role in the engineering industries since the process of acquiring raw material to the transportation of final products requires a lot of money. Most industries, especially the amateur industries, often face this challenge before they come to understand how the market works. Furthermore, inventory cost is another problem that contributes to the shortage of fiancé in these industries. For instance, the metal industry involves the production of heavy products that require long transit and storage time. Therefore, the industry is required to pay high inventory costs as a result. Furthermore, the long transportation in many instances result in late payments from the customers making the industries to have limited resources since the capital from the customers are meant to improve production.

Opinion

This article has mentioned some of the critical factors that can result in market problems. From my point of view, the market is an essential factor that needs to be taken seriously by the engineering industries. Quality production is equivalent to a prosperous market. When an industry invests more in the production of quality and specified products, it will earn a better place in the market. Furthermore, knowing how the market works is the best way of understanding when to produce more. For instance, when the world economy is under crisis, the industry should focus on investing in the company so that when the market has been re-shaped, it will be able to produce enough products for the company. Besides, understanding what the clients want is a mandate for any industry. When an industry knows what the clients want, it will be easy to satisfy them. However, most of the engineering industries have not yet solved this puzzle because most of their products are almost the same; therefore, it is hard to understand what the clients really desires. Dealing with competition is another problem in the market that is affecting the engineering industries. For the developed countries, it is easy for them to have high quality products because of access to technology and enough financial support. However, the developing countries have challenges because they have access to raw material, but they are accessible to technology and lack financial support. That is why you find that engineering industries in the third world countries depend more on the developed countries to invest in their industries. All of these cannot be accomplished if the industry does not have enough capital for running the activities that facilitate the success of the sector.

Reaction

This article is full of information, and it is evident that the author made sure that he had done adequate research judging from the content I read from the article. The author argues that many factors cause market problems, but the major ones are lack of demand and financial issues (Sharma et al.). Out of the other engineering problems I have read, I noticed that the most common factor that is associated with the issues is insufficient capital. Lack of enough money seems to be a pillar of these problems. Therefore, it was not a surprise when I saw the author mentioned it.

The author argues that lack of demand is associated with poor quality products, and before reading through the author’s explanation, I had already figured out how the two are connected. When a company fails to produce quality products, there will be no clients interested in the product. Most at the time, competition plays a more significant role since every industry producing the same products would want to provide products that will satisfy the customer’s needs. If the industry fails to meet this, there are very high chances of the industry receiving less or even no orders from clients and customers. On the other hand, insufficient funds are closely related to low demand because when an enterprise has less capital, it will fail to invest in the production of goods. Expensive investments always lead to quality production, and quality production results in high demand. This is the connection that the author was trying to explain while writing the article. After reading the author’s argument, I realized that the market is the pillar of any industry it an engineering industry or any other.

Importance

The market is one of the essential factors for the success of any industry. The engineering industries have a more significant role to play to ensure that it receives the kind of market that it requires. The most crucial step to take in the industry to ensure that it has enough financial support, be it from the investors or the banks. Capital ensures that a company runs smoothly by producing quality products that will receive a bigger audience in the market. Furthermore, investing more in market knowledge is another factor that can enable engineering industries to thrive in the market forces. When an industry knows how to play its role in the market, there are higher chances that it will have a prosperous demand for their products.

The other factor that should be considered in solving the market problem, is keeping up with the market trends and standing out from the competition. Keeping up with the trends, in this case, means involving new technological strategies like the use of the website and all the social media platforms to market products. These days technology has made it easy for people to communicate and do business online without meeting face-to-face. If the engineering industries can adopt this form of marketing, there is no doubt that it will be able to accomplish its goal. Competition can be tackled by identifying what makes the industry unique from the other sectors. In achieving this, an engineering industry should survey other related industries to determine what will make them stand out from the competition.

Works Cited

Sharma, Abhinav, and Dr. S.K Gupta,. “PROBLEMS AND PROSPECTS IN ENGINEERING INDUSTRY”. International Research Journal Of Engineering And Technology (IRJET), vol 2, no. 2, 2020, p. 403., Accessed 23 Feb 2020.