Types of Markets

Table of Contents

Introduction1

Types of markets and the form of insertion of an organization1

Consumer Markets1

Industrial Markets1

Skills in decision making in the constitution of an organization2

Main methods and behaviors in decision making to create a company3

Company imagined and its characteristics and needs with reference to e-business4

Conclusion5

References6

Types of Markets

Introduction

Business marketing can be considered as the process in which the individuals or the businesses are involved in order to make their products available to the other individuals or organizations that in return could either use the products in the manufacturing of other items or can even sell those products. This course work focuses on number of aspects including the types of markets and the form of insertion used by an organization to enter these markets, the decision making skills required in the constitution of an organization, methods and behaviors involved in decision making along with the example of creation of an imagined company considering their needs and characteristics within the context of e-commerce.

Types of markets and the form of insertion of an organization

Before the initiation of an organization, there exists a need to analyze the types of markets that operates in the society. The broader classification of the markets includes consumer markets and business or industrial markets.

Consumer Markets

These are the markets where the goods and services are bought by the individuals for the purpose of their own or family use. There are several ways to categorize the goods bought in the consumer markets. Some major categories include

Fast Moving Consumer Goods: In this category, the unit value is low, are bought in high volume and purchased frequently. Newspapers, readymade meals are some of the examples.

Consumer durables: These are bought in low volume but are represented by high unit value. They are often classified as white and brown goods, where white goods usually include cookers, microwaves and the brown goods comprises of DVD players, personal computers etc.

Soft Goods: their nature is very similar to the durable goods but have a short replacement cycle. Examples includes shoes, clothes etc.

Services: In this category, the most prominent examples are hairdressing, child care etc.

Industrial Markets

It relates to trade of goods between the large key units that are the businesses and are not directly aimed or focused at consumers. These markets are classified as:

Sale of finished goods: The most prominent examples are office furniture, computer systems.

Sale of raw materials or unfinished goods: Steel, coal, gas are included in this category.

Sale of services to businesses: Examples here include accounting services, legal services etc.

At the time when an organization inserts in any type of market, whether it is consumer market category or the industrial market category, a detailed environmental analysis is required by them in order to understand the characteristics of the consumers as well as the markets.

In the context of insertion of an organization in a consumer market, a general process that a company has to follow includes

Analysis of environment

Identification of the segments and then on the basis of the results of the analysis dividing ...