Types of Markets in Marketing

Organisational or business markets
Organisational markets and business markets are the same concepts; they both refer to groups or businesses that provide a good or service to other businesses. They can seem similar to consumer markets because they involve how retailers and consumer-facing markets are structured. Check this example below for clarity on the difference.
Retailers can engage in both business markets and consumer markets. When retailers buy from several manufacturers intending to sell the goods, they engage with business or organisational markets. The retailer then compiles various goods and presents them to the buyer who will consume the good, which is a consumer market. They operate in the middle of both markets; that is why they are often referred to as middlemen.
Why do organisational markets exist? For certain manufacturers, it's easier to let another company handle the various steps of the journey of a product to consumers. In the same way that factories experience economies of scale, transportation costs are similar; that is why 3rd party shippers pick up many factory products. A recent study correlates this as it shows only 40%¹ of producers sell directly to customers, though that number is trending upwards.
Organisational markets tend to be inelastic, meaning not as responsive to changes in price. This is because the organisational market products are a piece of the recipe for providing consumer goods. This is known as derived demand. Manufacturers only demand input materials because of consumer demand for the final product.
Products sold in organisational or business markets have distinct features that aren't as important in other markets. One of the most prominent features is an emphasis on return on investment (ROI). Another feature is that generally, products are purchased in large quantities to minimise cost. Additionally, these products don't require special packaging.
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