Meaning of Market, Producers, market, consumer's market, Resellers's market, Value added reseller's market, Government Market.

1. Types of Market
Asst. Prof. Parasmani Jangid
SDJ International College

2. Types of Markets
• Consumer Market
• Industrial/Producer Market
• Resellers Market
• Government Market
• International Market(NIS)

3. Consumer Market
• According to Philip Kotler,
“The consumer market consists of all individuals & households
that buy or acquire goods & services for personal
consumption.”
• The market where consumers are buying their
requirements or essential commodities is known as
consumers market.”

4. Consumer Market
• It includes essential goods like, oils,
beverages, apparel, accessories, utensils,
toothbrush, tooth paste, soap detergent,
healthcare, entertainment, etc.

5. Characteristics
• Large Number of customers
• Purchase in small quantity
• Independent demand
• Scattered Buyers
• Elasticity of Demand
• Lack of Rationality in buying
• Forces affect the decision
• Immature buying quantity
• Long distribution channels
• Lack of personal Contact

6. Industrial Market
“Industrial or producers
market consists of all the
individuals & organizations
that acquire goods & services
to use in the production or
other products or services that
are sold, rented or supplied to
others.”
Industries like Agriculture,
mines, manufacturing,
construction, banks, etc.

7. Characteristics
• Fewer Buyers
• Large Buying
• Close supplier-customer relationship
• Dependent demand
• Inelastic Demand
• Fluctuating Demand
• Professional Purchases
• Short distribution channel
• Perfect rational Buying

8. Reseller Market
• “Resellers Market consists of all the
individuals & organizations that acquire goods
for the purpose of reselling or renting them to
others at a profit”.
• “Resellers market means a market of
intermediaries”.

9. • Here customers are called as
resellers which includes wholesalers,
distributors, agencies & retailers.
• They all don’t manufacture the
goods but after purchasing goods
from producers they sell the goods
to the end customers (consumers) at
a profit.
• They are no-one but the middlemen
between producer &
customers/consumers.

10. Characteristics
1. Derived/dependent demand
2. Profit oriented buying
3. Purchase in large quantity
4. Storage of goods
5. Variation in demand
6. Live contact between supplier(seller) &
reseller(customer)

11. Examples of VARs are computer retailers and service companies,
automobile dealerships, and furniture stores.

12. Four alternatives for Assortment
(quantity to keep for reselling)
• Exclusive assortment (specific e.g samsung tv)
• Deep assortment (one product from different
company)
• Broad assortment (related product for all
companies.)
• Scrambled assortment (unrelated products of
all the companies.)

13. Who can participate for buying?
• Purchase officer with extra ordinary authority
• And with Limited authority

14. According to Dickinson types of buyer
• Loyal buyer (regular buyer)
• Opportunistic buyer (long term/contract)
• Advertising buyer (buying for reselling but
earning at the same time through advertising e.g.
vivo, oppo)
• Creative buyer (new , additional)
• The chiseler buyer (concession on each
purchasing)
• Best deal buyer (at a particular time/short term)
• Nuts and bolts buyer (receiving value, quality,
utility.)

15. Government Market
Government market is a market in which we
observe Government & Govt. Institutes as
customers.
The customers include Taluka Panchayat, Dist
Panchayat, State Govt., Central Govt., Railways,
Govt. Companies, Govt. hospitals, Govt. Colleges or
Schools, etc.
Government make purchase from the finance
resources created through taxes collected from the
public.

16. List Of Industries To Be Reserved For
manufacture Of Items Exclusively in the Public
Sector
•Arms and ammunition and allied items of defence equipment
•Defence aircraft and warships.
•Atomic Energy.
•Coal and lignite
•Mineral oils.
•Mining of iron ore, manganese ore, chrome ore, gypsum, sulphur, gold and
diamond.
•Mining of copper, lead, zinc, tin, molybdenum and wolfram.
•Minerals specified in the Schedule to the Atomic Energy (Control of production
and use) Order, 1953.
•Railway transport.
Purchasing for these industries will clearly a part of government market.
Apart from these, Govt. market also includes stationary, gravel, cement for construction of
dams, roads, surgical tools & medicines for hospitals, food grains for fair price shops, etc.

17. Characteristics
• Wide market (large no. govt. officials buying in
huge quantity makes the govt. market wide)
• The use of public money (taxes)
• The objective of public welfare (at free of cost
or at reasonable/cheaper rate)
• Purchase in large quantity (because to whom
govt. serve is in large number)
• No direct interest (not for personal use, it is
the part of their duty)

18. • Buying as per specific policies, rules & procedures
(everything is decided well in advance)
• Effects of natural calamities (yes, it effects on
purchasing)
• Purchase within the budget (work in limit given by
senior)
• Less impact of advertising & packaging (buying
quantity do not change by advertisements)
• Short distribution channels (lack of intermediaries)
• Sales incentives ineffective (free samples, discounts,
etc.)

19. Type of buying in Govt. Market
• Open Bid Buying- lowest
quote wins the the contract of
the bid. Supplier has to
provide material as per
description and quantity
mentioned.
• e-Auction India is a platform
for govt. department to
conduct online auction for
purchase and sale. It removes
all barriers of geography,
presence, time, space and
small target audience.

20. • Reverse Auction

21. • Negotiated Buying- govt.
negotiate after having
enough specialized
knowledge to determine the
price. Price can cost plus
price. Fixed price & fixed
price plus incentives.
• In this market supplier collect
info about tentative demand
of govt. and then take
participation in tender.

23. Difference between Consumer,
Industrial and Government Market
Point of Difference
No. of Buyers
Demand Creation
Objectives behind buying
Back up support behind buying
Quantum of buying
Increase or decrease in demand
Observing rules & regulations of buying
Adopted distribution channel
Importance of advertisement & packing
Contribution of sales incentives
Who is important in buying decision

24. Thank You