The market in which companies offer their goods and services for sale is known as the sales market. This usually involves several buyers and sellers. Sales markets can be categorized and differentiated according to various criteria.
In the following you will find out what defines a sales market. Then you will learn how these can be structured and why dealing with the topic of sales markets is relevant for companies. At the end, a few exercise questions round off the topic and consolidate what has been learned.
English: key market | sales market | business market
Why should a company know what an outlet is?
In order for companies to gain a competitive advantage over the competition, dealing with the topic is eminently important. Marketing measures that affect the sales market can be specifically defined and monitored as part of the marketing mix.
The preoccupation with market segmentation allows the exact addressing of target groups, whereby a decisive contribution to the achievement of the company goals can be made.
What is a sales market
According to ablogtophone.com, the sales market is downstream of production and is used to sell goods, goods or services of a company. The opposite is the procurement market, which is therefore the sales market for suppliers. As a rule, several suppliers and buyers compete with one another in sales markets.
Sales markets are differentiated according to different criteria: They can be differentiated according to their geographical allocation, but also according to the basis of the offer or according to the parties involved in the transaction.
Classification criteria of sales markets
Differentiation according to spatial criteria
The differentiation of sales markets according to geographical features aims at where the buyer meets his demand.
Sales market: Local to worldwide sales markets
In the case of purchases in the immediate vicinity, the question of effort and benefit must be answered. Above all, groceries or other items that should be available quickly and are not very priced are primarily bought in the local area. On-site service, which is not available on international markets, is also essential for some products.
Purchases of price-intensive goods that do not have to be made available on the same day are often made on national or international markets. TVs do not necessarily have to be bought in the home town, unless local customer service is important.
However, there are some issues that should be considered when sourcing on national or global markets. Shipping and delivery costs can be considerable, depending on the origin of the goods. When purchasing from abroad, customs clearance may become relevant. In addition, some products may not be obtained from abroad due to import restrictions.
Differentiation according to the parties involved
With this division of the sales markets, the focus is on the relationship between the seller and buyer.
- Business-to-consumer market (B2C): This type of sales market is used when commercial providers sell goods or services to private consumers. A prominent example of this is the sale of a car by a dealer to a private person.
- Business-to-business market (B2B): If a company buys from a commercial dealer, it is referred to as a B2B market. This is the case, for example, when a company buys a machine directly from a manufacturer.
- Consumer-to-consumer market (C2C): When private sellers meet private buyers, this is a C2C market. The private sale on eBay is an example of this. In the economy, the importance of a C2C market plays a rather subordinate role.
Differentiation according to the basis of the offer
If sales markets are considered on the basis of the goods they offer, one arrives at the following classification:
- Consumer goods markets: These include goods and goods that are sold to private households. Food or drugstore items are examples here.
- Capital goods markets: These markets are aimed at private or public interested parties. Capital goods are, for example, machines and systems. In this context, one can often read of industrial goods markets.
- Service markets: Services such as tax advice, medical care or transport services are traded on this market.
- Real estate markets: If real estate and land are traded instead of goods or services, then one speaks of the real estate market. These markets are divided into consumers from the private and commercial sectors.