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Marketing 2018 19th Edition

Marketing 2018 (19th Edition)

Book Edition19th Edition
Author(s)Ferrell, Pride
PublisherCengage Learning
Chapter 8, End of Chapter , Discussion and Review Questions , Exercise 1
Page 250

Identify, describe, and give examples of the four major types of business markets.

Here is a tip:

Business markets refer to buying and selling of goods and services for business purposes.


The four types of business markets are as follows:

  1. Producer market: It refers to individuals or business organizations that purchase raw materials, semi-finished or finished goods for the purpose of using them to produce other products. For example, farmers are producer markets for farm machinery, fertilizer, seeds. Grocery stores are producer markets for paper and plastic bags, shelves, and counters.
  2. Reseller market: These are intermediaries like retailers or wholesalers, who buy finished goods to resell, rent, or lease to consumers or other businesses for profit. For example retail stores, distributors and wholesalers.
  3. Government market: The federal, state, county, and local governments that buy goods and services to carry out public objectives and to support their operations. For example, hospitals, universities
  4. Institutional market: Consist of not-for-profit organizations (NGOs), organizations associated with education, or other public service goals, and charitable organizations such as hospitals, churches, museums, private colleges.

Verified Answer

There are four types of business markets- 

  • Producer markets are buyers of goods and services to further produce other products, for example agricultural industry and forestry. 
  • Reseller markets refer to buyers who purchase products to resell, rent or lease, such as wholesalers or distributors. 
  • Government markets are government agencies which purchase to satisfy public requirements and run their operations. For example, government hospitals.
  • Institutional markets consist of buyers from non profit organizations, charitable organizations associated with public services such as churches, museums, private universities, etc.
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