3 Types of Markets: Consumer, Industrial, Reseller - Essay Sample

Introduction

The market can be termed as a group of sellers and buyers of products, services, or information. Generally, there are many types of markets, but the major three types of markets include the consumer market, the industrial market, and the reseller market. Consumer market refers to where individuals purchase goods or services for their interests. Drugs and groceries can be categorized as products under the consumer market. Concerning the industrial market, organizations or groups purchase goods and services for use in their day to day activities, for instance, raw materials that could be used in the production of other products. Finally, the reseller market, the wholesalers, and the retailers buy goods and services in bulk to resell them for a profit. In this research paper, the main focus will on the consumer market. The most preferred product will be drugs, which can be used under medical practitioners' supervision or for addiction purposes.

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Market Segmentation Variables

Large markets can be further divided into smaller portions through market segmentation in terms of demographics, geographics, psychographics, and behavioral variable.

Demographic

Dividing the market in terms of age, income, education, race, religion, and many other demographic variables. The interest or need for a particular good or service usually relates to the characteristics of a demographic target market. For instance, the younger age between 20 years and 25 years or rather before marriage tend to consume more contraceptives pills, as an entrepreneur planning to set such kind of business one should consider where most residents are between that age, especially college students (Chao et al., 2020).

Additionally, old ages tend to be consumers of diabetes drugs and high blood pressure drugs.in terms of religion. One should consider the morality of a specific target group since different religions have different ideologies on drugs; others will prefer traditional drugs. In contrast, others will prefer the modernized medicines that have undergone processing (Chao et al., 2020). Concerning the consumer market, some of the demographic factors considered include annual revenue, number of employees, size of the company also the customers' size. For instance, a chemist or rather a drug store may opt to concentrate more on painkillers since they are frequently consumed by most people.

Geographic

Dividing the market by state, region, or even counties. When planning to establish a business, one should decide whether to run the business locally, regionally, nationally, or internationally. For instance, when running a business internationally, one should define all possible business boundaries. Also, the regions the business should be located in. Geographic may also be concerning the location, where should a particular business be located, the particular area with some specific climatic conditions too, suitable terrain for easier accessibility of the facility (Chao et al., 2020). The location of the health facility should obviously be located in a central position but also in the right air conditioning place far from industries that could have other effects.

Psychographic

Dividing the market by group values, interests, and opinions. Some factors influence the consumer to purchase a particular product such as emotion, attitude, beliefs, or even the luxury associated with using the product. In the consumer market, the characteristics considered in the target include the lifestyle also the target trend. The psychographic characteristics that the consumer looks for in businesses include the business style also the innovation level.

Behavioral

Business people should be able to determine their target buying and consuming behavior. For instance, consumers usually don't rush for new products in the market before they fully understand if it satisfies their needs. Different consumers purchase different products for different reasons. A business should understand some products are occasion oriented in that they are purchased on particular occasions only. In contrast, others are usage oriented in that we have light and heavy users of a product. There is also loyalty oriented and benefits sought.

Consumer Behavior

Consumer behavior refers to the study of people then make decisions about what they buy, want, or need regarding a particular product, service, or company.it is important for marketers to understand consumer behavior to know how potential customers will respond to new products. Some of the factors that influence consumer behavior include psychological, personal, and social.

Concerning psychological factors, they often affect the thinking of consumers, and different issues have a different and unique effect to a particular consumer. The marketers must take into consideration these factors to make an appealing advertisement to their target market. Personal factors are usually unique characteristics that may not relate to other people. These personal factors can be interests, opinions, and also decisions. Regarding decisions, factors considered include age, gender, or even background culture. Lastly, there are social factors; they are quite diverse as they incorporate the lifestyle of a person. A person's lifestyle in terms of living conditions, education level also the income of people.in addition to social factors, products associated with famous people might attract most buyers.

Consumer's Decision Making Process

Consumer decision making is a procedural that starts from problem recognition to post-purchase activities. The process involves five major processes namely

Need Recognition

Need recognition usually occurs when a consumer determines the exact needs needed to complete the gap of his desires. For instance, one who goes to a chemist or a hospital to get drugs identifies their need as illness. Business needs to avail their products and services to their target market by being able to determine the need recognition (Block et al., 2016).

Information Search

The consumer usually tends to change the demand for particular products and services frequently. This is whereby you find consumers seek more information concerning products that satisfy their needs. Data can be retrieved from numerous fields such as commercial sources that involve the advertisements, salespeople also repackaging of products (Huang & Benyoucef, 2017). Additionally, there are private sources which include recommendations from people who have already used the products and got a good experience. Public sources such as newspapers and magazines can be a source of obtaining information concerning a product. There are also experiential sources; this involves personal experience with a particular product (Block et al., 2016).

Evaluation of Alternatives

Once a consumer has identified a particular product that will satisfy the need, evaluation is done concerning price, quality, availability, and any other factor that is important to the consumer. This is whereby you find a customer makes the comparison of prices, goes on to check the reviews of a particular product (Huang & Benyoucef, 2017). For instance, one could go to Google, search for a particular drug, and try to read different reviews from different consumers to get a clear understanding of the medicine.

Purchase Decision

At this stage, a consumer has done the evaluation of all possible facts and has come to the conclusion of purchasing a particular product which they desire and can easily afford (Block et al., 2016).

Post Purchase Behavior

The action refers to the evaluation of the product, whether the product met the expectations or not. If the product meets the expectation, the consumer becomes loyal to the particular brand and encourages other people to consume or buy a particular product due to its quality services or products (Huang & Benyoucef, 2017).

Strategic Decisions Taken on Marketing Activities

Marketing activities usually refer to the activities undertaken by the company while making their products and services aware to the public. Some of the strategic decisions undertaken include

Target Audience

Based on the existing customer profile, you can target an audience with the same behavior also the audience with similar psychographics. Once you become familiar with the customer s profile, it is important to go deeper, get a better understanding of some attributes such as age, also gender income. This helps out in creating effective marketing strategies (Banerjee, 2017).

Company Goals

Refers to the determination of goals to be achieved, various ways of achieving the set goals. The goals often cut across every person involved in the organization from the internal to external stakeholders as they are the ones who ensure the goals are achieved (Banerjee, 2017).

Personal Branding

For a company to gain credibility and trust from the customers, a company should embrace personal branding so that consumers can quickly tell the type of product as well as its source (Banerjee, 2017).

Conclusion

In conclusion, a company should determine the appropriate decisions to take during marketing activities for sales success. A company should also have a full understanding of the consumer behavior of their target to enhance proper business management. The depicted strategic decisions made also depend on the needs of both internal and external stakeholders.

References

Chao, C. W., Reid, M., Lai, P. H., & Reimers, V. (2020). Strategic recommendations for new product adoption in the Chinese market. Journal of Strategic Marketing, 28(2), 176-188. Doi: 10.1080/0965254X.2018.1555545

Banerjee, S. B. (2017). Corporate environmentalism and the greening of strategic marketing: Implications for marketing theory and practice. In Greener Marketing (pp. 16-40). Routledge. Doi: 10.4324%2F9781351283083-9

Block, L. G., Keller, P. A., Vallen, B., Williamson, S., Birau, M. M., Grinstein, A., ... & Moscato, E. M. (2016). The squander sequence: understanding food waste at each stage of the consumer decision-making process. Journal of Public Policy & Marketing, 35(2), 292-304. Doi: 10.1509/jppm.15.132

Huang, Z., & Benyoucef, M. (2017). The effects of social commerce design on consumer purchase decision-making: An empirical study. Electronic Commerce Research and Applications, 25, 40-58. Doi: 10.1016/j.elerap.2017.08.003