Consumer Market and Business Market

Consumer Market and Business Market

1. Topic Consumer Market And Business Market

2. Consumer Markets Consumer markets refers to the markets where people purchase products for consumption and are not meant for further sale. Each time a consumer purchase a commodity for his own usage he is participating in a consumer market. In consumer market purchasers make their own decisions to purchase the products and these products can be used for personal use or can be shared with others.

3. Primarily there are four types of consumer markets : Food and beverages products Retail products Consumer products Transportation products Marketing plays an important role in consumer markets by influencing customer’s preferences and purchasing decisions . Brand loyalty of consumer plays a significant role in consumer markets .

4. Characteristics of Consumer Markets Demographic Characteristics Characteristics of consumer markets based on demographics include differences in gender, age, ethnic background, income, occupation, education, household size, religion, generation, nationality and even social class. Companies often identify these demographic characteristics through market research surveys. Companies can then target their advertising towards these demographic groups. For example, a new cell phone may be targeted toward 18 to 24-year-olds with incomes between 25,000 and 50,000 .

5. Psychographic Characteristics Consumer market characteristics can also be psychographic in nature. Psychographic characteristics of consumers include interests, activities ,opinions, values and attitudes. Opinions and attitudes can be both specific or general. A company may better understand consumer opinions and attitudes after conducting a focus group, and can use that information to advertising or marketing campaigns.

6. Behavioralistic Characteristics Behavioralistic characteristics can also be understood through marketing research. Behavioralistic characteristics of consumer markets include product usage rates, brand loyalty, user status or how long they have b een a customer . Companies like to know how often their consumers visit their restaurants, stores or use their products. Company marketing departments usually try to distinguish between heavy , medium and light users, whom they can then target with advertising .

7. Geographic Characteristics Consumer markets also have different geographic characteristics. These geographic characteristics are often based on market size, region, population density and even climate. A small retailer may find opportunities in a small market in which larger competitors have no interest. Companies that sell woolen clothes will likely sell more products in winter climates.

8. Business market Business market refers to all those organizations that purchase goods or services for the purpose of utilization in the manufacturing of other products or services. The wholesaling & retailing firms are also included in the category of business market. .

9. Characteristics of Business Market Market Structure & Demand   There are relatively large types of business buyer. It should also be noted that demand for the business markets and business products also tends to fluctuate, which only implies that the demand for business market products can change relatively quickly than the demand for consumer goods or services.

10. Nature of buying unit This is the other characteristic that distinguishes the difference between consumer markets and business markets . Participants in the business purchase tend to buy more and there are more participants On the other hand, participants in the consumer purchase are often less.

11. Decisions process The decisions revolving around the business market are somewhat complex than decisions made by the consumer markets. This is primarily because of the  intensive process that involves technical and economic considerations

12. Types of Business Markets Business-to-Business Market The business-to-business market has a focus on products, goods and services that are typically sold to other businesses, rather than direct to consumers. It includes : Industrial Market Industrial markets are typically defined by the sale of industrial or production products, good and services to other business industries. These are raw materials like steel, glass, wood etc.

13. Financial Services Financial services can include banking, insurance, commercial credit and lending, tax planning, investments etc Government Markets In most countries, government organizations are a major buyer of goods and services.

14. Difference Between Consumer Market And Business Market

15. Consumer Market Business Market Many customers , geographically dispersed. Smaller Amounts of money involved. Shorter decision cycles More reliance on mass marketing Less rigid Product standard Fewer customers often geographically concentrated . Larger amount of money involved. Longer decision cycles More reliance on personal selling More rigid product standard.

16. Thank You