SMT Equipment Manufacturers Marketing Model

The Component Placer is the core equipment in a SMT line (for Circuit boards assembly process in electronic products manufacturers), around 20 SMT-Placer manufacturers are all from Europe, the United States and Japan. More than 50% of total SMT-Placer were sold to China in past years.2008 financial crisis caused big operation result in China market in those SMT-Placer manufacturers. Besides the technical characteristics of their equipment, the different marketing model in between those manufacturers is the main reason for the results. The main factors should be considered for a best marketing model in China SMT market and its ability to withstand market risks are the purposes of this paper.Normally, there are three sales models for industrial equipment manufacturers, that is: Factory direct sales, Agent sales, using direct sales and agent at same time. This article start from the road map review about electronics products manufacturing industry market of China, summed up the status of-SMT-equipment market. By-focusing on analysis of two marketing model:"Factory direct sales" and "selling via agent" and its marketing processes, SMT equipment technical features/specifications and end-user's decision-making mechanism in purchasing process, Summed up that the SMT equipment manufacturers must consider three basic factors in their sales model selection process:the firm size of equipment manufacturer and its equipment technical characteristics, the type of their target end users, the status of the industry agent market. The three representative SMT manufacturers and the market model they are using I listed here is a good validation by review their operation result before and during 2008 financial crisis.To find and select a more sustainable market model on doing business in China under current market environment, SMT equipment manufacturer need carefully analysis and study above three basic elements under their own characteristics. In final, hope my study in this article can be a reference and/or guidance to SMT equipment manufacturers or similar equipment manufacturers in other industry during their do marketing model selection.