It’s easier to find markets for consumer goods as ultimately goods and services are created for user’s consumption. However, finding a platform for businesses for secondary purposes is hard! The contacts and network is limited to our knowledge only. Then how do we increase the scope of increased opportunities in getting new clients in the business markets?
Before we continue about ‘hows’, let’s talk about ‘whats’ of the business markets. What is a business market, exactly? It is a market for businesses to buy and sell businesses. I might have made it sound very simple, but it isn’t that easy. Business markets are an entourage where transactions occur between two business parties. Firms purchase goods and services from secondary firms to create a final product that a consumer utilizes.
It’s also called as B2B market. While creating goods for a consumer is called the B2C market. Many people are finding it profitable to invest in B2B than B2C. The best example to understand B2B markets is – iPhone!
Anyone who has seen their Apple Product’s packaging must have noticed that its products are designed in California and manufactured from different parts of the world!
Companies from the US, UK, Switzerland, Poland, Germany, India, China, Japan, South Korea, etc., actively participate in manufacturing the iPhone’s pieces & then the warehouse in California assembles them. It not only builds business in different countries but also creates employment. iPhone is one classic example of Business Markets. Now, as mentioned above, the scenarios here are totally different from the consumer markets. Its facets differ as follows,
- Businesses spend more time on product creation than on marketing and other aspects of advertising. In return, it is profitable to the firms.
- The proportion of the number of buyers is lesser. However, the volume and demand are always high.
- Secondary businesses face minor losses when compared to B2C, as the market fluctuations rarely affect them.
- Customer concentration is limited. Thus, making it easier for the seller to transport the goods quite efficiently.
- The business market is professionally equipped as it consists of professionals only.
- A long-term relationship exists between the buyers and sellers as the market is relatively meagre.
There are different types of business markets. They are as follows,
Business to Business Market
As explained above, you sell your commodities and services to support other businesses to finish the product for final customer use. This kind of marketing includes a lot of to and fro communication with the buyer as the buyer wants to ensure it gets a quality product. Here, the concentration is more on building relationships between the buyer & seller than advertisement or PR.
Service Market
You call it a service market when the buyer obtains services from the seller for basic operations. The service provider need not hire professionals but, amateurs can work for menial pay. The best example of this is the services that security company gives to different office spaces around the city. The security company provides its workers to the companies to maintain security and WatchGuard potential threats.
Industrial Market
This market majorly focuses on providing raw materials to other companies that create finished goods. Companies here are called suppliers that supply semi-finished materials to the manufacturers.
Materials such as irons, wood, sand, etc., are semi-finished from their crude state and provided to the other manufacturers. It helps the corporations to create the goods however they want.
Professional Services Market
The corporations here provide professional solutions for businesses around the world. They are the experts in their given field and provide services as well as solutions to the issues that a company faces on day to day basis. Most of them are software solutions. Famously they are known as email finder tools. The most solid example for this is the website GetEmail.io. It is a website that provides email addresses of professionals around the world. Powered with AI, the website GetEmail.io helps an individual to find the official email address of the professionals.
Conclusion
There is a solution for every issue a company faces. There is always another company that supports and aids the prior. That is how the business ecosystem works and, the business market behaves as a platform wherein the companies get to meet each other.
Researchers say that this ecosystem has come into existence since the mid-19th century. However, more research has been done only for the past 25 years. It shows that we have just figured the science of marketing and, there is a long way to explore
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