Market And Business

Also Read: What is a Market? Definition and Types Explained

Consumer Markets Vs Business Markets

Consumer Market is where businesses sell their products and services to the tail-end consumers. As compared to the buyer market, the consumer market has many sellers and the selling market is very competitive.
Business buyers would buy the products or services to produce some new products for sales. The business won’t buy the next shipment until the sale of already prepared products.
Unlike the temporary relation of the consumer market, the business market involves a long term interaction of buyer and seller. That’s what makes the relationship very stable and volatile at the same time. It’s good if it keeps working well.
The consumer market is very precise about the demography of its targeted audience like age, gender, beliefs, social status, attitude, and behavior. All of those factors vary in terms of geographical regions, it’s because people in different regions have different preferences, likes, and dislikes.

Characteristics of Business Market

Some of the characteristics of business markets are given below, we’ll discuss them one by one. Here it follows;

Market Structure and Demand

Business markets contain fewer but larger buyers. When it comes to the customers in the business market, then it has very few customers. Those business buyers won’t buy your product or service in small quantities. They’ll buy in large quantities, their orders are big.

Business Markets – Definition, Characteristics, Types & Examples

Business markets have been expanding and people are investing more money and resource in the business market than the consumer markets. For example, Tesla is planning to invest US$ 5 billion in its new electric car and battery, “Gigafactory” in Europe. After that various suppliers will engage to provide parts and accessories, and then Tesla will be able to offer the finished product to consumers.
Now, the question is what the business market is.