ROM - Different types of markets Flashcards
what is a market?
groups of actual and potential customers for the businesses products
The market is no longer just a place; t is any physical, theoretical and/or digital space in which sellers compete with each other for customers.
When thinking about their market, businesses need to:
Identify the type of market that they are operating in
Outline its different characteristics and expectations
Design strategies to appeal to these characteristics and satisfy these expectations
the resource market
Consists of those that are engaged in all forms of primary production including mining, agriculture, forestry and fishing
communicating in the resource market
Marketing is usually undertaken by a whole section of the industry
Buyers are generally looking for a product of high and consistent quality
Sellers aim to provide the product with consistent quality at the cheapest price because of the competition within the marketplace
the industrial market
The market for raw materials and component parts that are already processed or assembled to some degree
In the industrial market, buyers are looking for various inputs that are part of their production processes. The quality of the items and the consistency of supply are important.
strategies for dealing in the industrial market
Products will usually be sold through a sales representatives who visits potential customers and organises the sales and devliery of products
The producers and suppliers of goods and services for the industrial market need to be aware that:
- Offering credit facilities are usually an important part of often lengthy negotiations.
- Large businesses can use their buying power to influence prices and the conditions of supply
Intermediate market
Consists of wholesalers and who sell and retailers who buy finished products and sell them again to make a profit.
Many producers are happy to pass on the final process of selling the product to a retailer in order to concentrate on the manufacturing part of the process.
Kellogs and Coca-cola
Kellogg’s is involved in an intermediate market when it sells its products to wholesalers who sell it onto retailers including the major supermarkets
Similarly Coca-Cola operates in an intermediate market when it sells its beverages to bars, cafes and restaurants as well as supermarkets
strategies in the intermediate market
Wholesalers and distributors will emphasise their consistency reliability, flexibility and speed.
Retailers want to know that they can replenish their stock quickly and that this stock will be of a consistent quality.
consumer market
Where producers, wholesalers and retailers all sell to individuals and households who purchase them for personal consumption.
Sellers study closely the purchasing habits of consumers in order to satisfying their needs and wants.
Mass market
deal with standard and undifferentiated products for which there is a large demand. There are many consumers and often many suppliers.
The products are the same, or significantly similar, to appeal to any consumer.
niche market
A niche market is a small part of a larger market that has it own specific needs, which are different from the larger market.
Niche markets are lower volume, higher-value markets, where the specific needs of customers are provided for by offering extras or additional aspects to a product or service
strategies in a mass market
Mass marketing businesses produce and sell high volumes and keep costs low to stimulate sales and profits.
They have developed techniques of mass production and automation develop large scale marketing campaigns to increase sales.
Intense competition keeps businesses constantly reinventing ways of keeping the product in the customer’s mind.
strategies in a niche market
In order to operate within a niche market, a business must first engage in market segmentation by dividing the market into groups of common characteristics…
You will then select one of these groups, gain insights into their values and preferences and adapt a product accordingly.
