unit 5 markets. objectives list the four characteristics of a market. explain the difference...
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Unit 5
Markets
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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.
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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.
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Marketing Terms
market consumer market business market consumer B2C B2B producer
reseller institution government mass market market segment marketing
strategy
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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?
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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.
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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
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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
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The Consumer Market The consumer market is also called B2C
Business selling to Consumers
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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
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The Business Market The business market is also called B2B
Business selling to Businesses
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The Business Market
The three uses for business products making new
products resale running the
business
Give examples of each business use.
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Types of Business Customers
Four types of customers in the business market producer reseller institution government
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Types of Business Customers
Producer makes goods
and services farmers,
manufacturers, mining, and construction
Name some businesses that are producers.
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Types of Business Customers
Reseller buys finished
products– to sell at a
profit also called
retailer
Name some businesses that are resellers.
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Types of Business Customers
Institution nonprofit
corporation school, hospital,
or charitable organization
Name some institutions.
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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
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WORKOUT
Complete Consumer Market or Business Market assignment.
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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)
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Customer vs. Consumer
In the consumer market a parent buys food
for his or her child
Who is the customer? Who is the consumer?
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Customer vs. Consumer
In the business market a purchaser
buys computers for the accounting department
Who is the customer? Who is the consumer?
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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
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Mass Market for Colas
A mass market consists of all the customers for a type of product
Cola
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Market Segments
Does everyone in the cola market want the same kind of cola?
List subgroups by types of cola that people want.
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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.
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Caffeine-free Diet
Caffeine-free Regular
DietRegular
Low Carb
Segmented Market for Colas
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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.
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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
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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
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WORKOUT
Complete B2B handout.
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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?
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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
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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
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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
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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
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Glossary
producer. Business that makes goods and services.
reseller. Business that buys finished products to resell at a profit.
Back
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WORKOUT
Complete Unit 4 test.