CONSUMER AND

BUSINESS
MARKETS
greoup 1
Consumer Markets
A consumer market is a market when individuals Primarily there are four types of
purchase products or services for their own consumer markets:
personal use, as opposed to buying it to sell
themselves. Consumer markets consist primarily of
1. Food and beverages,
products that people use as part of their everyday
2. Retail,
lives. Anytime someone purchases a product for
their own use, they become part of the consumer 3. Consumer products
market. 4. and Transportation.

Consumer market examples include products in categories

like fast-moving consumer goods and consumer durables.
Commercial activities in this market involve individuals
purchasing goods and services for personal use. They may
purchase electronic items, food and beverages,
recreational services, clothing, transportation and financial
services.
Types of consumer markets
A consumer market is a type of customer market consisting of multiple subtypes. Each variant has distinct characteristics:
Fast-moving consumer goods (FMCG) sector
Also known as the consumer packaged goods (CPG) market, the FMCG sector is one of the largest sub-categories in the
consumer market. Consumers generally purchase low-value items regularly, and the goods come with a relatively shorter shelf
life. Merchants offset the low profits by distributing large volumes of the merchandise.

Popular multinational companies active in this sector include large beverage companies and pharmaceutical organizations.
Manufacturers and retailers sell a wide selection of consumer products that fall under categories like:

Personal care products

Foodstuffs
Beverages
Home care items

Price competition can be intense in this market due to the similarities between products. To boost customer loyalty, merchants
employ various marketing approaches. Once a product earns a considerable base of loyal customers, brands find it easier to
increase prices.
Companies often hire marketing firms specializing in FMCG campaigns to achieve the desired results. That said suppliers need
to invest in research and development to create innovative product ideas that meet consumers' changing needs.
CONSUMER DURABLES CONSUMER
NONDURABLES
Consumer durables are a category of products that Consumer nondurables are goods that are
are designed to last a long time and therefore are purchased for immediate use. These items
purchased less frequently. Perishables like milk and typically have a lifespan of several minutes
produce are the opposite of a consumer durable up to three years. Common examples of
because these items have a short shelf life and their consumer nondurables include:
economic value is consumed not long after being
purchased. Some examples of consumer durables ✓Food
include: ✓Beverages
✓Apparel
✓Jewelry ✓Shoes
✓Vehicles ✓Gasoline
✓Electronics ✓Dish soap
✓Sporting goods ✓Light bulbs
✓Vehicle parts ✓Paper products
✓Home and office furniture ✓Laundry detergent
✓Appliances
 Consumer durables are high-value items that fall either under the white or brown
goods sub-categories. White goods are kitchen appliances and not portable. They
were given the name because in the past they were almost exclusively painted white.
Conversely, brown goods are generally portable, excluding some audio equipment.
Here is a look at some examples of each:

Brown goods :
White goods :

Gaming consoles Tumble driers

Televisions Freezers
Computers Washing machines
Audio equipment Dishwashers
Digital media Refrigerators
players Stoves
Consumer Decision-Making Process
The consumer decision-making process involves five basic steps. This is the
process by which consumers evaluate making a purchasing decision. The 5
steps are problem recognition, information search, alternatives evaluation,
purchase decision and post-purchase evaluation.
1. Need recognition (awareness): The first and most important stage of the buying
process, because every sale begins when a customer becomes aware that they
have a need for a product or service.

2. Search for information (research): During this stage, customers want to find out
their options.

3. Evaluation of alternatives (consideration): This is the stage when a customer is

comparing options to make the best choice.

4. Purchasing decision (conversion): During this stage, buying behavior turns into
action – it’s time for the consumer to buy!

5. Post-purchase evaluation (re-purchase): After making a purchase, consumers

consider whether it was worth it, whether they will recommend the
product/service/brand to others, whether they would buy again, and what
feedback they would give.
Participants in the organizational buying
process play as many as seven different roles, namely those of
initiator, influencer, user, decider, approver, buyer and
gatekeeper.
1. Initiators—Users or others in the organization who request
that something be purchased.
2. Users—Those who will use the product or service. In many
cases, the users initiate the buying proposal and help define
the product requirements.
3. Influencers—People who influence the buying decision, often
by helping define specifications and providing information for
evaluating alternatives.
4. Deciders—People who decide on product requirements or on
suppliers.
5. Approvers—People who authorize the proposed actions of
deciders or buyers.
6. Buyers—People who have formal authority to select the
supplier and arrange the purchase terms. Buyers may help
shape product specifications, but they play their major role in
selecting vendors and negotiating. In more complex
purchases, buyers might include high-level managers.
7. Gatekeepers—People such as purchasing agents and
receptionists who have the power to prevent sellers or
information from reaching members of the buying center.
Business market or organizational market
Business markets are defined as the platform where businesses can offer their
products or services to other businesses. These marketplaces are ideal places
to trade goods and services with other businesses that may use them as a
source of raw material for further manufacturing or resell them to their target
audiences.
Business markets usually involve businesses that have a direct link to each
other, unlike the consumer markets that involve the sale of goods and services
from businesses to end-users or customers. Businesses in these marketplaces
are linked to each other through different business relationships such as
supplier-customer, distributor-manufacturer, and so on.

Types of Organizational Marketing

The organizational marketing focuses on return on investment, corporate
goals and technical suitability rather than perceived values, fads styles.
There are three main types:
Producer Reseller Marketing
marketing is convincing the producers and The most crucial part of reseller marketing is to be
organizations to buy raw materials and machinery. well-aware of their (AVP) or added-value proposition.
Producer marketing requires special knowledge and For instance, is the reseller company is a wholesale
expertise of producer’s organizations and operations. A store offering very low prices for bulk items, then the
typical producer marketing’s plans and strategies
reseller marketers should drop proposals according
include determining the problems arising in the
to their needs and characteristics.
producer’s organization, in the company’s proposing
The reseller marketing will be completely different if
solutions and operations.
an organization buys equipment and resells it to its
Institutional Marketing consumers in top-notch quality.
Institutional marketing refers to convincing non-profit and government organizations and companies for
long-term business relationships. The purchasing operations for are the government and non-profit
organizations are highly bureaucratic. The government institutions exist for providing benefits to their
consumers rather than improving the economy. So, the marketers should drop their proposals keeping this in
mind.
the group business market
A business market is a method a company uses to sell products or services to a specific group of
consumers. Typically, business markets facilitate sales from one business to another in cases
where one business plans to reuse or resell another company's products or services.

A company that purchases goods and services in a business market might also use the items
they purchase as materials to produce new products of their own. There are business markets
designed around making sales directly to consumers as well, and they focus on reaching a large
audience rather than marketing to other businesses.

Consumer Markets Vs Business Markets

Consumer Market is where businesses sell their products and services to the tail-end consumers.
As compared to the buyer market, the consumer market has many sellers and the selling market
is very competitive.
Business buyers would buy the products or services to produce some new products for sales. The
business won’t buy the next shipment until the sale of already prepared products.
Unlike the temporary relation of the consumer market, the business market involves a long term
interaction of buyer and seller. That’s what makes the relationship very stable and volatile at the
same time. It’s good if it keeps working well.
The consumer market is very precise about the demography of its targeted audience like age,
gender, beliefs, social status, attitude, and behavior. All of those factors vary in terms of
geographical regions, it’s because people in different regions have different preferences, likes,
and dislikes.
types of business markets
1. Business-to-business (B2B) markets
Business-to-business markets are the ones where businesses offer their products or services to other
businesses. The goods and services traded in business-to-business market places are used by the
business buyers for further manufacturing or resale to their target audiences. Businesses such as
wholesalers, industrial suppliers, and so on operate in these marketplaces.

2. Business-to-consumer (B2C) markets

The business-to-consumer market is the one where businesses offer their products or services to end-
users or customers. Businesses such as retail stores, online retailers, and so on operate in these
marketplaces. The transactions in these marketplaces are mostly based on cash.

3. Industrial market
If a business sells products or services used in industrial or production projects, it likely operates in an
industrial market. Most companies that use an industrial market advertise and sell their goods and
services to other companies rather than immediately to consumers.
3. Industrial market
Industrial markets are the ones where businesses offer their products or services to other
businesses that use them as raw materials for further manufacturing or processing. Businesses
such as steel manufacturers, oil refineries, and so on operate in these marketplaces.

4. Services market
The service market is the one where businesses offer service-based products such as
maintenance, repairs, and so on to other businesses. Services industry professionals sell different
services to other business customers. Businesses such as repair shops, housekeeping services,
and so on operate in these marketplaces.

5. Global market
Global markets are the ones where businesses offer their products or services to other
businesses in different countries. Businesses such as multinational corporations, export-import
firms, and so on operate in these marketplaces.

6: Professional service market

Business markets where businesses offer their professional services to other businesses, such as
consultancy, marketing, and so on are known as professional services marketplaces. Businesses such
as advertising agencies, law firms, and so on operate in these marketplaces. In this one, services
industry professionals may offer services to other businesses or consulting services.
 Business market characteristics
Here are a few common characteristics of business markets:
Business markets often serve a smaller consumer market that contains large buyers.
Business markets can facilitate business between companies that are far away from
each other in terms of location.
Demand in business markets remains consistent and unaffected by changes in prices.
Business markets grow and shrink depending on how many customers are purchasing a
final version of a product.
Purchases made in a business market might involve several buyers.
Selling and advertising in a business market requires a high degree of professionalism.
Business markets can present more complex purchasing decisions than consumer
markets.
Making purchases in a business market is a formal process.
Business markets facilitate long-term professional relationships between buyers and
sellers.
thank you
group 1
Andria Joy Capilastique
eden rose eder
Ma. Geseil Federico Ancona
John Patrick Panes
Mary Ianne Therese Gumabong