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TODO types of markets notes 📅 2024-04-18
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a market is defined as a group of individuals, organisations or both that: need or want a product (goods or service)
- have the money (purchasing power) to purchase the product
- are willing to spend their money to obtain the product
- are socially and legally authorised to purchase the product.
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The Six types of markets are:
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Often B2B:
- Resource market
- Industrial market
- Intermediate market
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Often B2C (to consumer):
- Consumer market
- Mass market
- Niche market
Resource market
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- groups involved in primary production
- (e.g. mining, agriculture, forestry, and fishing)
Industrial market
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- businesses that purchase products to use in the production of other products or in their daily operations.
- (e.g. a bakery uses flour to produce bread)
Intermediate market
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- consists of wholesalers and retailers who purchase finished products and resell them to make a profit.
- This can be referred to as business to business engagement (B2B)
- (e.g. a cafe selling pre-packaged muffins)
Consumer market
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- consists of individuals (members of a household) who plan to use or consume the products they buy.
- This can be referred to as business to consumer engagement (B2C).
Mass market
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- when the seller mass produces, mass distributes, and mass promotes one product.
- businesses do not target a specific group of buyers,
- but rather assumes that all customers have homogenous or similar needs.
Niche market
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- a narrowly selected target market
- (a.k.a. a concentrated or micro market)
- The mass market is divided into smaller market segments of buyers who have specific lifestyles
- It assumes that all consumers have heterogeneous or different needs.