Marketing Assignment

1. Identify, describe, and give examples of the four major types of business markets.

1. Producer Markets

a. Individuals and businesses that purchase products used to produce other products or for use in their operations for the purpose of making a profit.

b. Includes buyers of raw materials, semi-finished and finished items used to produce other products.

c. Examples:

i. farmers –purchase seed to grow crops such as corn, soybeans, etc.,

ii. construction firms – lumber used to build houses, decks

2. Reseller Markets

a. Consist of intermediaries including wholesalers and retailers that buy finished goods and resell for a profit. Physical characteristics are not changed in products handled. Most products are sold through this market first unless sold directly to consumers.

b. Wholesalers purchase products to resell to retailers, other wholesalers, producers, governments, and institutions.

c. Examples:

i. Super Valu –wholesaler in the grocery industry sells to grocery stores

ii. Retailers –Wal-Mart, Kroger, Home Depot, Costco, Target, Staples

d. Purchase decision factors considered by retailers include:

i. Amount of space a product requires in relation to potential profit.

ii. Evaluate level of demand to determine quantity and price product could be resold for

iii. Resellers consider the ability and ease of fulfilling orders to keep product available for resale as needed

iv. Determine if a potential new product competes with or complements products they currently handle

3. Government Markets

a. Consist of Federal, State, County and Local governments

b. Billions are spent each year on a variety of goods and services. Examples are health care services, office supplies, heavy equipment, vehicles, and weapons for products such as highways, education, water, energy, and national defense. Public funds are spent to buy the products needed to provide services and are therefore accountable to the public.

c. Government purchases are made through bidding or negotiated contracts. In order to bid on a job, firms must apply, be approved, and placed on a list of qualified bidders. Governments are usually required to accept the lowest bid.

4. Institutional Markets

a. Include organizations of charitable,