Business Markets What are Business Markets Definition Marketplaces

Business Markets

What are Business Markets? • Definition: • Marketplaces where organizations purchase raw materials, natural resources and components of other products for their resale or for use in manufacturing another product. Business markets are generally made up of businesses which buy products and raw materials for their own operation.

Types of Business Markets • All businesses sells something, whether that means offering products to help other businesses run more smoothly or a service that lets people watch movies from home. • What the business sells and who they sell it to defines the type of business market they participate in. • It is critical for every business owner to be able to identify their business market so they know how to best identify their target audience and promote their products efficiently. • After all, a company that sells a product used in industrial assembly lines wouldn't be spending its money well if it attempted to advertise the item on national television

Five Types of Business Markets • • • Consumer market Service Market Industrial Market Business to Business Market Professional Services Market

Consumer Market • A consumer business market is one in which a business advertises and sells its products directly to individual consumers. • This is the largest type of business market because of its mass market of customers. • Examples include grocery stores, clothing stores and car dealerships. • Franchises, or businesses that sell the rights to operate branches of their company to others, also fall under the consumer market category as long as the final buyers are individual consumers. • A well-known consumer market franchise is the chain restaurant.

Service Market • A service market is like a consumer market only the business sells its services directly to individual consumers rather than products. • Examples include telephone services, plumbing and electrical work. • In some instances a consumer product may be sold in conjunction with the service. An example is a landscaping business that provides the service of cutting lawns, but also sells plants, fertilizer, and other garden care products and implements.

Industrial Market • Industrial markets sell industrial or production products, good and services to other business industries. • These are often goods that are not marketed to consumers, such as raw materials like steel, glass and wood or large-scale goods such as multi-network computer systems. • Industrial markets have a much smaller target audience than other markets because the products and services it supplies are not focused on a mass market.

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. • Examples include office furniture, corporate accounting services and conference and exhibit supplies. • Many business-to-business markets have some overlap with consumer and service markets, for example, a cleaning company may provide both residential and commercial services.

Professional Services Market • Professional services are those categorized as specialized areas of business that typically come with a degree of accountability in terms of licensing and certification. • Examples include legal and medical services. • As with the business-to-business market, there is sometimes overlap between markets. • For example, a law firm may represent both individuals as well as corporations.