Lesson 2: Types of Market
Unit 1: Meaning of Market
The word market connotes all potential or prospective customers sharing a particular need or wants who might be willing and able to engage in exchange to satisfy the needs and wants. In other word, marketing is a process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organisation goals
Marketing activities include: buying, pricing, selling, packaging, promoting, storing, financing, obtaining market information. The essence of marketing is the exchange process in which two or more parties give something of value to each other to satisfy felt needs.
Marketing is also used as a term that involves analyzing customer needs, securing information needed to design and produce goods or services that match buyer expectations and creating I maintaining relationships with customers and suppliers.
Unit 2: Types of Markets
Markets can be classified or grouped into two, these are:
i. Consumer market
ii. Organisational market
i. Consumer Market:
A market is composed of people or institutions with sufficient purchasing power, authority and willingness to buy. Hence, consumer markets can be described as people or institutions with sufficient purchasing power who procured a product for immediate consumption.
Consumer market can also be described as consumer products. Categories of consumer products are convenient products, shopping products, specialty products and unsought products. Consumer market can be segmented into: geographic segmentation, demographic segmentation, psychographic segmentation and product related segmentation.
ii. Organisational Market:
Organisational markets can be described as markets created for further production and manufacturing of goods and services. This type of market is also known as business to business market
Categories of organisational market include: installations, accessories raw materials, component parts, supplies etc
Unit 3: Types of Organisational Market
Types of organisational markets would be considered under the following division: industrial market, reseller, market and government market.
(i) Industrial Market:
This connotes group of particular buyers with purchasing power or products that are produced for other business rather than household consumption. They can also be described as set of organisations that buy products for the purposes of using them in the production process to make profits or achieve other goals or motives. E.g. publishers buy papers to produce books.
(ii) Reseller Market:
This is the group of business organisations that buy products in order to resell them for profit. e.g. bookshops buy textbooks from publishers at a discounted price with a view to make a little profit.
(iii) Government Market:
This is the set or group of government agencies that procure products for the purpose of producing public services and or convert these products to other categories of the public who need them, e.g. Water Corporation procure chlorine chemical to purify tap water for public consumption
Unit 4: Competitors and Types
Competitors according to Hill and O’Sullivan (1996):
…..”competitors are organisation’s trying to satisfy similar customer needs and producing products that customers see as being alternatives for satisfying their needs.’
Kotler (1980) identifies the following types of competitors
- Desire competitors: This refers to immediate desires that consumer might want to buy.
- Generic competitors: This refers to other basic ways in which the buyer can satisfy a particular desire.
Units 5: The Concept of Public Consumers
Koffer (1980) defines an organisation public or consumers as “any group that has an actual or potential interest ¡n or impact on an organisation’s ability to achieve its corporate objectives”.
Categories of Public Consumers
(i) Welcome public: This refers to a company’s public that the company or an organisation is interested in and that is interested in the company.
(ii) An unwelcome public: This refers to the public which a company has to market not only to its target customers but often to its major public.
(iii) Sought public: This is the one that the company ¡s interested in but that does not take a strong interest in the company.
1. Define consumer market
2. State the differences between Consumer market and organisational market
3. Describe a consumer product that you have patronised of recent.
Scroll Down to Select Page 4 for the next topic – Lesson 3: Consumer and Organisational Behaviour
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