Markets in Marketing

Video Transcription

Hi, I'm Jeff and in this lesson, we'll learn what a market is. And we'll discuss the idea of business to business and business to consumer markets. We'll also talk about how marketing is different for services. So let's get started.

What is a market? This is any person or group that is wanting or needing what you are offering and has the ability to buy. The interaction between this buyer and the seller is a market. While there are many different types of markets, most can be broken down into two broad groups-- the consumer market or the business market, often referred to as business to consumer or business to business.

But a provider of goods or services is not limited to only one of these markets. For example, magazines can sell directly to consumers with fashion, sports, cooking magazines. But they also sell advertisements within the magazines to other businesses. And furniture companies will sell to consumers but may also sell larger orders to businesses.

When a consumer buys a product, this is known as consumer goods. These are the goods that are purchased by individual end users and not the producer. But there are also industrial goods that are purchased to be used in manufacturing and construction, such as the fabric to make a shirt, the sugar in Coke, and the parts in an automobile.

And those industrial goods and equipment can be broken down into two categories; expense items-- these are the materials that go into the product-- and capital items-- this is the production equipment and tools used to make the product. But there are more than just products in a market.

Marketing can also address services. Services are mercantile activity where the consumer does not receive ownership of the thing bought. In fact, in the modern world of technology, service marketing has grown significantly. Web pages have allowed many people to market services at costs much lower than they were before.

Some of the elements that distinguish service marketing are more a customer service focused. Since service is the product, all interactions with the customer must be smooth. This is one place where service and product marketing are similar. Both are greatly concerned with customer interaction, though products worry more about the purchasing process.

Use of time. When a service saves time, that is often the focus of the marketing. Some products offer this too, but it is rarer than services. Expertise of the service provider. One way to distinguish a service in the market is by outlining the qualifications of the person providing the service. Products, on the other hand, are differentiated by the differences in the products quality.

An emphasis on subscriptions or packages. Service marketing focuses on ways to continually use the product instead of focusing on only one sale of a product. And the relationship between provider and user. This is sometimes called the trust market, because consumers make choices based on their trust for the service provider. While those that sell products are beginning to do this also, those that market services must do this to succeed.

All right. Nicely done. In this lesson, we learned what a market is and about the business to business market and business to consumer market. We talked about the difference between consumer and industrial goods. We also discussed marketing for services and how it compares to product marketing Thanks for your time, and have a great day.