Introduction
Today the businesses are aimed at expansion and globalization, so they are to examine foreign countries and their markets to select those that are likely to bring the most benefit. Companies gather lots of various information to make sure that the market segments they chose are decent targets. To do this, they consider the peculiarities of consumer, industrial and government markets (Gaspar et al., 2013).
Consumer Markets
Consumer markets are the markets that provide the general public with various products and services. The companies that refer to these markets often need to deal with the problems that occur due to the alterations in clients’ loyalty and the lack of certainty when anticipating what will be preferred by the customers.
These markets are segmented considering the main customer groups in regard to “various demographic, psychographic, behavioristic and geographic traits” (Suttle, 2015, para. 1). These markets include fast-moving consumer goods that are not very valuable but are needed in everyday life and can be repurchased very quickly, for example, packed meals and newspapers, etc.
Consumer durables are markets that present low volume goods that are relatively costly, such as refrigerators and personal computers, etc. Consumer markets usually consider a particular population and provide aggressive advertising. The companies that are operating in it are focused on innovation, as they need to attract the customer’s attention to their products when there are lots of similar to them. An example of these markets can be ready meals.
Industrial Markets
Industrial markets are also known as business ones. They are different from the consumer markets, as they do not provide the customers with their products directly. Industrial markets sell goods and services to other businesses that are more tightly connected to clients. That is why these markets are not targeted at the general public and have a small number of buyers.
There are three types of industrial markets. The first one is focused on selling finished products. It can provide furniture or some technological systems. Another example includes such markets as the metal industry. They deal with raw materials and parts of the products.
The third type of industrial market focuses on selling services to other businesses. It can be the market that provides legal services, disposes waste, etc. As a rule, industrial markets are characterized by long-term relations and large amounts of the products that are purchased (Riley, 2012).
Government Market
Government market also differs from the previous ones in terms of its customers. These are local, state and federal authorities. They buy the products offered by the private sector to produce and transfer them to the public sector. The variety of goods and services is very large; it includes good, medicine, computer equipment, etc. The market is characterized by political sensitivity and bureaucratic barriers.
It is also limited in finances and is to create numerous reports, which presupposes lots of paperwork (Government market, n.d.). Government market utilizes the products that are purchased in the industrial market to construct roads or clean the water. It considers military operations as well. Postal services can be an example of government market (Gaspar et al., 2013).
Conclusion
Thus, it can be concluded that the businesses that want to expand abroad are to investigate consumer, industrial and government markets. Utilizing gained information, they can define the potential customers and their needs and to target the products at the particular population.
References
Gaspar, J., Arreola-Risa, A., Bierman, L., Hise, R., & Kolari, J. (2013). Introduction to global business: Understanding the international environment & global business functions. Mason, OH: Cengage Learning.
Government market. (n.d.). Web.
Riley, J. (2012). Types of market. Web.
Suttle, R. (2015). Characteristics of consumer markets. Web.