The industrial market is a business-to-business market that involves the sale of goods, commodities, and services. It focuses on supplying goods and services for the production of a separate final product, and benefits from selling raw materials and providing expertise to other firms. The market’s major advantage is its size, as it targets specific business models, making product refinement and communication with buyers easier.
An industrial market involves a business trading goods or services with another business rather than a consumer base. Also known as a business-to-business market, this market comprises three distinct variants including companies that sell goods, companies that sell commodities, and companies that sell services. Each of these three happens in a variety of individual businesses. There are many advantages of this type of market over the traditional consumer market.
The industrial market focuses solely on goods and services supplied for the production of a separate final product. This is an organizational market with its own advertising, distribution and sales. From automobiles to food to clothing and more, consumer industrial products would not be available without the first use of the industrial market.
Many companies within an industrial market specialize in selling goods to other industries to help them produce a final product. These companies usually don’t offer these products to the general public, because they think it would be of little use to an individual consumer. A company that makes an industrial loom to create garments would be an example of a company that uses this market. Computer programs are another example, especially specialized networks or programs that aid in the production of goods and services.
The industrial market equally benefits from groups that sell raw materials to other companies who use them to create final products. Sales companies tend to have some products that would be beneficial to individual consumers, but generally sell goods in large quantities that are impractical for consumers. Some of these companies focus a small portion of their business on consumer goods, but typically only conduct business-to-business transactions. An excellent example would be selling raw wool to the same company that bought industrial looms, with that company using wool and looms to make sweaters, socks and scarves.
The third type of industrial market concerns only the sale of services to other firms. These groups do not provide any physical goods but provide manpower and expertise in particular industries. This can be a physical act, such as cleaning up hazardous materials produced by industrial machinery. It can also be more data-driven, such as providing business accounting for businesses.
Size is the single major advantage the industrial market has over the consumer market. This does not refer to the size of the product but to the pool of potential outlets. Unlike consumer products that need to be marketed to fit many lifestyles and preferences, these products and services target a handful of specific business models. This makes refining a product and communicating with buyers much easier.
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