Characteristics of Business Markets
Business markets have fewer buyers, but these buy in larger quantities. Business markets are aimed at creating long-lasting relationships with their customers. These markets are more complex, formal, professional, and they generally involve a lengthy, complex, formal buying process. Business markets are influenced by various factors and involve many decision-makers, such as managers, executives, and technical experts, in their decision-making. The business buying process includes formal approvals, long waiting times, and extensive supplier searches. Moreover, business markets often have an international outlook and aim to market to end customers.
4 Key Customer Markets
What are the 4 key customer markets?
There are four key customer markets:
- Consumer
- Business
- Global
- Nonprofit and governmental markets
Consumer markets include companies selling mass consumer goods and services. Business markets comprise companies selling business goods and services. Global markets expand to customers internationally, presenting unique challenges. Nonprofit and governmental markets involve companies selling to organizations such as churches, educational institutions, charities, and government agencies.
5 Types of Customer Markets
What are the 5 key customer markets?
Five main types of markets exist:
- Consumer
- Business
- Institutional
- Government
- Global
Consumer markets allow for freedom over product design and boast a large, diverse customer base. Business markets involve sales between businesses, including various industries like consulting, goods intermediaries, and transportation. Government markets provide vast public utilities often free of direct use cost. Institutional markets purchase goods and services for their own production. Global markets engage in sales across different countries, cultures, and languages, presenting both unique opportunities and challenges.