By Naidong Zhai(Davies) - Jetek Staff
Individuals and business organizations that purchase products for the purpose of making a profit by using them to produce other products or using them in their operations are classified as producer markets. Producer markets include buyers of raw materials, as well as purchasers of semi-finished and finished items used to produce other products. For example, manufacturers buy raw materials and component parts for direct use in product production.
Reseller markets consist of intermediaries, such as wholesalers and retailers, who buy finished goods and resell them for profit. Aside from sometimes making minor alterations, resellers do not change the physical characteristics of the products they handle. Wholesalers purchase products for resale to retailers. Retailers purchase products for resale to final consumers. Some retailers Bunnings and Woolworths, for example – carry many items. The product that retailers offer to the consumer market includes the assorted range made available to consumers on the retailer shelf. Shelf space is limited and highly competitive.
Federal, state, and local governments make up government markets. These markets spend billions of dollars annually for a variety of goods and services. Government purchases range from office supplies and healthcare services to vehicles, heavy equipment, and weapons. These purchases are made to support their internal operations and provide citizens with products such as highways, education, water, energy, and national defense.
Organizations with charitable, educational, community or other non-business goals constitute institutional markets. Members of institutional markets include churches, some hospitals, charitable organizations, and private education institutions. Institutions purchase millions of dollars worth of products annually to provide goods, services, and ideas to congregations, students, patients, and others. Because institutions often have different goals and fewer resources than other types of organizations, marketers may use special marketing efforts to serve them.