Types of markets

• What is a market

  a market is a group of individuals or organisations who need or want a product, are willing and able to buy it, and are permitted by law and other regulations to acquire it
• Resource

  Involves the individuals and groups engaged in the supply and purchase of raw materials from the primary industry

  For example farming or mining

  Producers of these materials aim to provide customers with products of high quality at low prices → Normally has a lot of competition

  Marketing for these products is usually undertaken by the industry as a whole to the end user

  Makes up over 8% of Australia’s economy and generates over $264 billion in exports, accounting for more than 60% of Australia’s exports
• Industrial

  In the second and tertiary industry

  Involves business that purchase materials to produce their own goods or services or for use in their daily operations

  Quality and reliability of suppliers ensure a large and ongoing supply of inputs
• Intermediate

  Involves businesses who buy finished products from producers and sell them to consumers

  These number were before COVID, which resulted in decreased consumer confidence, an increase in job losses as well as a reduction in household spending

  The retail market is predicted to decrease by 3.2% in 2020

  For example, retailers and wholesalers who are called intermediaries

  Benefit: allows producers to focus on manufacturing products, while intermediaries market the product
• Consumer

  Involves those who buy products to use or consume

  Marketing managers examine closely the behaviour of consumers so they can better understand what motivates an individual to purchase a particular product

  They also try to influence consumer buying behaviour by developing a mix of marketing strategies
• Mass

  Deals with standard products with a large demand

  The products that everyone buys like milk or vegetables

  As most competing products in the mass market are essentially the same, customers make decisions based on price

  Therefore businesses try to decrease costs and buy in bulk to maximise profits

  Low cost requires high levels of automation in operations

  large sales volumes require convincing promotional campaigns

  Due to greater choice, highper personal incomes and customers seeking more individualised products, the mass market has been replaced by segmented or niche markets
• Mass 2

  Benefits: the scope and cost efficiency of doing business on such a large scale

  Advertising messages broadcast over mass media give a business the ability to achieve eos and appeal to a very large audience in a single showing

  The advantages can only be achieved if the product in question is a commodity or is beneficial to people across a wide range of demographics
• Niche

  Involves lower-volume, higher-quality products for customers who have unique needs or lifestyles

  A smaller customer base allows businesses to accurately respond to the specific needs and wants of customers

  Due to less consumers, businesses will need to charge higher prices to be profitable, and their products need to match consumer needs closely and be of high quality