Consumer Market and Business Market: What is the difference underlies?
To understand the difference between consumer and business market, you will need to understand the two terms first and then you will be able to think in them and can draw the distinction between them.
Consumer Market: is the market where individuals, groups and organizations select, buy, use, and disposal of goods and service, ideas or experiences to satisfy their needs and wants.
For e.g. If you go to the store to buy some foods, drinks, or other goods or if you go to the outlets to get cut your hairs, making up yourself with beauty parlor, using the goods for yourself like, bikes, cars, electricity and paying for them is the indications that you are the person of consumer market.
Business Market: all the organizations that possesses goods and services used in the production of other products and services that are sold, rented or supplied to others are considered to be involved in the Business Market term.
For e.g. Consider the examples of aerospace, agriculture, forestry, fisheries, chemical, computer, constructions, defense, and energy, mining, manufacturing, construction, transportations, communication; public utilities, banking, finance, insurance distributions and services.
In the B2B Market they have their goods and services they use, in order to create other goods and services and later on, they would be reach out to the final place, a consumer.
The companies underlies in B2B Market are:
Businesses that sell products or services to other businesses fall under the B2B (business-to-business) market category. Here are some examples of companies in the B2B space:
- Producers These companies purchase raw materials and transform them into finished products. They rely on other businesses to supply them with the things they need to manufacture their goods.
- Ex: Dow Jones (industrial supplies), Intel (computer components), Caterpillar (construction equipment)
- Resellers These companies buy products from other businesses and then sell them to their own customers. They don’t make any changes to the products themselves.
- Ex: Sysco (food distributor), Staples (office supplies), Office Depot (office supplies)
- Governments Governments are major purchasers of goods and services, from office supplies to military equipment.
- Ex: U.S. General Services Administration (GSA)
- Institutions Hospitals, universities, and other non-profit organizations are also B2B buyers. They purchase a wide range of products and services to keep their organizations running.
- Ex: Mayo Clinic, Harvard University, American Red Cross
These are just a few examples, and there are many other types of companies that operate in the B2B market. The B2B market is a complex and ever-changing landscape, but it is an essential part of the global economy.
The companies underlies in the Consumer Market are:
Companies that sell directly to individual consumers fall under the consumer market category, also known as B2C (business-to-consumer). This is the most well-known type of market where businesses sell products we use in our everyday lives. Here are some of the major categories within the consumer market:
- Fast-Moving Consumer Goods (FMCG): These are high-volume, low-margin products that are consumed rapidly and purchased frequently. They are essential items that people need on a regular basis.
Examples: Companies like Procter & Gamble (makes Tide detergent, Gillette razors, Charmin toilet paper), Nestle (makes Kit Kat bars, Nescafe coffee, Maggi instant noodles), Coca-Cola (Coca-Cola soda, Sprite, Fanta)
- Consumer Durables: In contrast to FMCGs, consumer durables encompass products that are not purchased frequently but are expected to last over an extended period. These are often higher-priced items that require more thought and research before a purchase is made.
Examples: Companies like Samsung (makes TVs, smartphones, appliances), Ford (makes cars and trucks), Whirlpool (makes appliances)
- Consumer Services: This category includes businesses that provide services directly to consumers.
- Examples: Banks (JPMorgan Chase, Citigroup), insurance companies (State Farm, Progressive), telecom companies (Verizon, AT&T)
- Retail: This includes companies that sell a variety of products to consumers, often through physical stores or online marketplaces.
- Examples: Amazon, Walmart, Target, IKEA, The Home Depot, Macy’s
The consumer market is vast and encompasses a wide range of industries. These are just a few examples, and new categories and products are constantly emerging.
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