Unit 5

Markets

Objectives

List the four characteristics of a market. Explain the difference between the

consumer market and the business market.

List the four categories of customers in the business market.

Objectives

Distinguish between a consumer and a customer.

Describe the difference between a mass market and a market segment.

Explain why marketers segment a mass market.

Marketing Terms

market consumer market business market consumer B2C B2B producer

reseller institution government mass market market segment marketing

strategy

A Group of Buyers

A market is a group of people who want a

product and are able to buy it

What qualities should a market have?

A Group of Buyers

Characteristics of a market need or want the product able to buy the product willing to buy the product have the authority to buy the product

Give an example of a group who might want a product, but not be able or

have the authority to buy it.

Consumer Market vs. Business Market

Two types of markets consumer market

– people who buy products for their own use

business market– people who buy products for use in a

business

The Consumer Market

Consumer member of the

consumer market buys products for his

or her own use buys groceries,

clothes, cars, gifts, and other consumer goods and services

The Consumer Market The consumer market is also called B2C

Business selling to Consumers

The Business Market

The business market consists of businesses who buy products

– from other businesses

A customer in the business market is another business

The business market consists of businesses The consumer market consists of

individual consumers

The Business Market The business market is also called B2B

Business selling to Businesses

The Business Market

The three uses for business products making new

products resale running the

business

Give examples of each business use.

Types of Business Customers

Four types of customers in the business market producer reseller institution government

Types of Business Customers

Producer makes goods

and services farmers,

manufacturers, mining, and construction

Name some businesses that are producers.

Types of Business Customers

Reseller buys finished

products– to sell at a

profit also called

retailer

Name some businesses that are resellers.

Types of Business Customers

Institution nonprofit

corporation school, hospital,

or charitable organization

Name some institutions.

Types of Business Customers

Government organizations and

institutions that run a geographic area– such as a country,

state, or city includes federal,

state, city, and county governments

WORKOUT

Complete Consumer Market or Business Market assignment.

Customer vs. Consumer

The term consumer has more than one meaning1. member of the consumer market

2. person who actually uses (consumes) the product

The customer (the person who buys the product) is distinguished from the consumer (the person who uses

the product)

Customer vs. Consumer

In the consumer market a parent buys food

for his or her child

Who is the customer? Who is the consumer?

Customer vs. Consumer

In the business market a purchaser

buys computers for the accounting department

Who is the customer? Who is the consumer?

Market Segments

Think of everyone who drinks cola beverages

All the cola customers are a mass market

All the customers for a type of product are called a mass market

Mass Market for Colas

A mass market consists of all the customers for a type of product

Cola

Market Segments

Does everyone in the cola market want the same kind of cola?

List subgroups by types of cola that people want.

Market Segments

A market segment is a subgroup of a larger market everyone in a market segment has similar

needs and wants for a particular product the needs of one market segment are

different from the needs of another market segment

Market segmentation is the process of dividing a large mass market into smaller market segments.

Caffeine-free Diet

Caffeine-free Regular

DietRegular

Low Carb

Segmented Market for Colas

Choosing Your Target Market

It is very difficult to meet the needs of all the customers in a mass market

Market segmentation can help a business find a target market it is usually easier to select a target

market and– meet the needs of that smaller market

Choose a market and give at least twomarket segments for that market.

Segmentation and the Marketing Concept

The marketing concept says that the best way to make a profit is by satisfying customers’ needs and wants

Targeting a market segment helps businesses follow the marketing concept

It is easier to satisfy customers if marketers target a market segment

– in which all customers have the same wants and needs

Marketing Strategy

A marketing strategy is the selection of a target market and the

– development of a marketing mix to meet the needs and wants of the target market

MarketingMarketingStrategyStrategy

MarketingMarketingMixMix

+ =TargetTargetMarketMarket

WORKOUT

Complete B2B handout.

Review

What is the difference between the consumer market and the business market?

Describe the three types of uses for business products.

List the four types of customers in the business market.

What is a market segment?

Glossary

B2B. Business selling to business. B2C. Business selling to consumers. business market. Customers who buy

products for use in a business; also called industrial market, organizational market, or commercial market.

Back

Glossary

consumer. Member of the consumer market; customer who buys products for his or her own use.

consumer market. Customers who buy products for their own use.

government. Consists of the organizations and institutions that run a geographic area, such as a country, and includes federal, state, county, and local governments.

Back

Glossary

institution. Nonprofit corporation, such as a school, hospital, or charitable organization.

market. Group of people who want a product and are able to buy it.

marketing strategy. The selection of a target market and the development of a marketing mix to meet the needs and wants of the target market.

Back

Glossary

market segment. Subgroup of a larger market; this subgroup has similar wants and needs for a particular product.

mass market. All the customers for a type of product considered together.

Back

Glossary

producer. Business that makes goods and services.

reseller. Business that buys finished products to resell at a profit.

Back

WORKOUT

Complete Unit 4 test.