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types of markets
The types of market you are in determines the type of business strategy you need to have. Strategies for consumer markets are completely different from that of industrial markets.
Furthermore, with the rise of globalization, companies have themselves gone global and thus their marketing strategies have adapted accordingly. There are several factors which are added to normal business strategies when you are considering going global. And last but not the least, the Government and Institutional business which are the real revenue generators because of their huge orders.
1) Consumer Markets – As the name suggests, the consumer market involves marketing of consumer goods such as Television, Refrigerator, Air conditioners etc. As awareness and knowledge of consumers rises, marketing of consumer goods gets tougher. Today a lot of focus has shifted to consumer goods marketing because a consumer has a lot of choices. The brand loyalty is at its lowest and the worst fear a brand can face now is a high rate of brand defection.
Along with the branding part, the costing part too needs to be considered in the consumer market. The cost of operations is too high with various departments and specialities coming together to form a consumer goods companies. There is inventory management, logistics, manufacturing, promotions, strategies and whatnot. The presence of a tangible product increases the importance of proper planning without which a consumer goods company is sure to fail. Consumer durable market is characterized by the presence of high competition, penetration pricing, dynamics of channel management and finally a high expense on manufacturing and distribution.
2) Business Markets – Similar to consumer markets, nowadays even the organizational buyer has numerous options in his kitty. Just at the number of software and hardware services providers in the Market. For software there’s IBM, Accenture, Oracle and several other top brands. For hardware there’s Microsoft, Dell, and others. The competition is increasing. Furthermore, the organizational buyer will think 4–5 times before purchasing a product because of the cost involved. An order for computers for an multinational company’s office will probably go in crores.
Because of the cost involved, Organizational buyers make it a point to be much more knowledgeable than any average customer
Finally, In case of business markets, the sales force, the price and the product have a much upper value than the promotions. Some services such as Accenture and Intel hardly advertise their products nowadays. They just advertise their presence in the market. The rest is done by the quality of products they have. Same goes for Microsoft. Of the 4 P’s of the marketing mix, promotions is the most ignored in case of business markets.
3) Global Markets – The changes in the cost of transportation, government policies and the overall need for expansion have given an impetus to globalization. The strategies of global market companies may differ from each other but the core concept is the same. Most global marketing companies work on one fundamental. “Think local, act global”. The company which comes at the top of my mind is McDonalds and Coca Cola. Both known for their global presence as well as for the way they customize their message based on the country they are in.
Firstly lets look at the options they have for modes of entry. How do they enter a country? Do they partner with some local company? Do they export their product? Or they shift a part of their operations in the country to directly establish their presence? Multiply these questions with the cost of operations involved as well as the amount of information which needs to be accessed. Now you know the difficulties!!
4) Government or Non profit Market – The government market mainly involves Government offices, ordnance factories, army, navy and other government departments. The non profits on the other hand may involve groups based on different beliefs some of which really have an excellent brand name and are recognised by several companies. Both of these entities have a limited purchasing budget and hence the price of products is important. Accordingly the purchase process is organized.
Most government and non profit organizations involve the issuance of tenders and bids
Furthermore, with the rise of globalization, companies have themselves gone global and thus their marketing strategies have adapted accordingly. There are several factors which are added to normal business strategies when you are considering going global. And last but not the least, the Government and Institutional business which are the real revenue generators because of their huge orders.
1) Consumer Markets – As the name suggests, the consumer market involves marketing of consumer goods such as Television, Refrigerator, Air conditioners etc. As awareness and knowledge of consumers rises, marketing of consumer goods gets tougher. Today a lot of focus has shifted to consumer goods marketing because a consumer has a lot of choices. The brand loyalty is at its lowest and the worst fear a brand can face now is a high rate of brand defection.
Along with the branding part, the costing part too needs to be considered in the consumer market. The cost of operations is too high with various departments and specialities coming together to form a consumer goods companies. There is inventory management, logistics, manufacturing, promotions, strategies and whatnot. The presence of a tangible product increases the importance of proper planning without which a consumer goods company is sure to fail. Consumer durable market is characterized by the presence of high competition, penetration pricing, dynamics of channel management and finally a high expense on manufacturing and distribution.
2) Business Markets – Similar to consumer markets, nowadays even the organizational buyer has numerous options in his kitty. Just at the number of software and hardware services providers in the Market. For software there’s IBM, Accenture, Oracle and several other top brands. For hardware there’s Microsoft, Dell, and others. The competition is increasing. Furthermore, the organizational buyer will think 4–5 times before purchasing a product because of the cost involved. An order for computers for an multinational company’s office will probably go in crores.
Because of the cost involved, Organizational buyers make it a point to be much more knowledgeable than any average customer
Finally, In case of business markets, the sales force, the price and the product have a much upper value than the promotions. Some services such as Accenture and Intel hardly advertise their products nowadays. They just advertise their presence in the market. The rest is done by the quality of products they have. Same goes for Microsoft. Of the 4 P’s of the marketing mix, promotions is the most ignored in case of business markets.
3) Global Markets – The changes in the cost of transportation, government policies and the overall need for expansion have given an impetus to globalization. The strategies of global market companies may differ from each other but the core concept is the same. Most global marketing companies work on one fundamental. “Think local, act global”. The company which comes at the top of my mind is McDonalds and Coca Cola. Both known for their global presence as well as for the way they customize their message based on the country they are in.
Firstly lets look at the options they have for modes of entry. How do they enter a country? Do they partner with some local company? Do they export their product? Or they shift a part of their operations in the country to directly establish their presence? Multiply these questions with the cost of operations involved as well as the amount of information which needs to be accessed. Now you know the difficulties!!
4) Government or Non profit Market – The government market mainly involves Government offices, ordnance factories, army, navy and other government departments. The non profits on the other hand may involve groups based on different beliefs some of which really have an excellent brand name and are recognised by several companies. Both of these entities have a limited purchasing budget and hence the price of products is important. Accordingly the purchase process is organized.
Most government and non profit organizations involve the issuance of tenders and bids