What are Business Markets?
Business markets refer to organizations, businesses, or entities that acquire products and services for use in producing other services and products. These include goods that are supplied, sold, or rented to others. Among major players in the business, markets include fisheries, agriculture, mining, transportation, construction, mining, communication, finance, distribution, and insurance services.
Characteristics of Business Markets
- Presence of fewer but larger buyers- While the buyers may be few, they often buy in large quantities
- Geographically concentrated customers- Customers in these markets are at vast geographical locations
- Final customer demand-driven- Since production is tailored for the final consumer, the products are tailored towards the final consumers’ wants and needs
- Inelastic demand- The prices in these markets do not affect the demands as they do not change much
- Quick fluctuation in demand- Since businesses prefer to buy at the lowest prices, an increase in prices decreases products purchases since high-price-selling products do not sell well in the market
- Professional purchasing units- Due to the need to maintain a high level of professionalism, the purchasing process is very detail-oriented.
- Has a formalized buying process- The purchasing process involves following the organization’s protocol and the complete chain of command
What are Consumer Markets?
This is a market whereby businesses or producers sell their products or services directly to the final consumers. Marketing in consumer markets involves dividing consumers into markets and targeting them according to their likes, interests, dislikes, values, and opinions.
Characteristics of Consumer Market
- This is the foundation for understanding consumers and includes ethnicity, age, income, gender, occupation, religion, nationality, social class, education, and social class.
- These include consumer interests in a product such as how they intend to use it.
- This entails the kind of lifestyle the customer lives, their interests, opinions, attitudes, and personal values.
- This is information regarding where the consumer lives. It includes the climate, religion, or how densely populated the geographical area is.
Features of the Consumer Market
- The consumer market solely focuses on the consumers
- Branding is carried out to change or improve the consumer’s perception of the product
- This is done to attract buyers to the market
- Brands use different promotional tools to increase sales
- The demand for consumer products is elastic since it is affected by income and price.