Fields can be divided into various specific types from different perspectives. Among them, the market can be divided into general commodity market and special commodity market according to the attributes of commodities. "Special commodity market" refers to the market provided to meet people's needs for funds and various services, including financial markets (or capital markets), labor markets, and technical information markets. "General commodity market" refers to the commodity market in a narrow sense, also known as the goods market, that is, the consumer goods market and the industrial goods market. These two markets are the markets that marketing should focus on. We will analyze them later.
1. Consumer Goods Market
The consumer goods market, also known as the final consumer goods market, the consumer market or the daily necessities market, refers to the market where individuals or families purchase or rent goods to meet their daily needs. , it is the foundation of the market system and the market that plays a decisive role.
(1) Characteristics of the consumer goods market
Compared with the market, the consumer goods market has the following characteristics: From the perspective of traded goods, because it is a product for people’s final consumption, purchasing The consumer is an individual or a family, so it is more affected by the consumer's personal factors such as cultural accomplishment, appreciation habits, income level, etc.; the products have diverse designs and colors, complex varieties, and the product life cycle is short; the professional technology of the product is not Strong, there are more substitutes, so the price elasticity of demand for goods is greater, that is, price changes have a greater impact on demand. Judging from the scale and method of transactions, there are many buyers in the consumer goods market, the market is fragmented, and the number of transactions is frequent, but the number of transactions is sporadic. Therefore, most products are sold through middlemen to make it easier for consumers to purchase. From the perspective of purchasing behavior, consumers’ purchasing behavior is highly inducible. This is because when consumers decide to purchase, they are not often restricted by production characteristics and affected by national policies and plans like purchasing decisions in the producer market, but are spontaneous and emotionally impulsive; second, the consumer goods market Most of the buyers lack corresponding product knowledge and market knowledge, and their purchasing behavior is non-professional purchasing. Their choice of products is greatly affected by advertising and publicity. Due to the inducibility of consumer purchasing behavior, production and business departments should pay attention to the promotion and advertising of products and guide consumption. On the one hand, they can serve as good advisors to consumers, and on the other hand, they can also effectively guide consumers' purchasing behavior. From the perspective of market dynamics, due to the complex needs of consumers and frequent contradictions between supply and demand, coupled with the increasingly frequent exchanges between urban and rural areas, inter-regional exchanges, the development of tourism, the increase in international exchanges, the mobility of the population is increasing, and the purchasing power of the population is increasing. Therefore, enterprises must pay close attention to market dynamics and provide marketable products. At the same time, they must pay attention to adding shopping outlets and creating larger-scale shopping malls in transportation hub areas to adapt to the needs of mobile purchasing power.
(2) Factors influencing the purchase of consumer goods
According to consumer purchasing habits, consumer goods purchase objects are generally divided into three categories, namely convenience goods, optional goods, and special goods. Taste. Convenience goods, also known as daily necessities, refer to goods that consumers need in daily life and need to be purchased repeatedly, such as food, drinks, soap, washing powder, etc. Optional goods refer to goods that are more expensive than convenience goods, and consumers are willing to spend more time comparing many products before deciding to buy them, such as clothing, home appliances, etc. Special products refer to products that consumers have special preferences for and are willing to spend more time purchasing, such as televisions, refrigerators, cosmetics, etc. According to the durability and frequency of use of the goods, consumers’ purchase objects can be divided into durable goods and non-durable goods. Durable goods refer to goods that can be used multiple times and have a long life, such as televisions, refrigerators, stereos, computers, etc. Consumers make more cautious decisions when purchasing such goods. Non-durable goods refer to goods that are used less frequently and that consumers need to purchase frequently, such as food, cultural and entertainment goods, etc.
Consumer purchasing behavior is the selection process when consumers obtain the goods or services they need through expenditure (including money or credit). The formation and development of this process are affected by many factors, among which The main factors are economic factors, psychological factors and social factors.
The family is the cell of society and the basic consumption unit of society. Family members have a direct and subconscious influence on consumers' purchasing behavior. The impact on consumer purchasing behavior is different in different types of families. Some people divide families into four types, namely, the husband-determined type, the wife-determined type, the wife-determined type, and the independent-determination type. In addition, the influence of family members is also different in the purchase of different commodities.
(3) Consumer Goods Purchasing Decision
Participants in purchasing decisions: Although consumer consumption is based on a family, usually not all members of a family participate in purchasing decisions. Many times it is one or several members of a family, and the purchasing decision-making layer composed of several family members also plays different roles. People may play the following roles in a purchasing decision process: initiator, influencer, decider, buyer, user.
Types of purchasing behavior: (1) Complex purchasing behavior. When consumers first purchase products that are expensive, rarely purchased, risky, and highly self-expressive, they are highly involved purchases. 2) Purchase behavior that reduces the sense of dissonance. When consumers are highly involved in the purchase of a certain product but cannot see the differences between brands, they often feel dissonance with the purchased product. (3) Extensive selection of purchasing behavior. If a consumer buys goods that vary greatly between brands but there are many brands to choose from, they do not spend too much time choosing a brand, nor do they focus on a certain product, but often change varieties. (4) Habitual purchasing behavior. Consumers sometimes buy a certain product not because they particularly prefer a certain brand, but out of habit.
Purchasing decision-making process: A typical purchasing decision-making process generally includes the following aspects: (1) Understanding needs. Understanding needs is the starting point of the consumer purchasing decision-making process. (2) Collect information. When consumers have a purchasing motive, they will start to carry out activities related to the purchasing motive. (3) Choice judgment. After consumers obtain relevant information from different channels, they analyze and compare the available brands, evaluate the products of various brands, and finally decide to purchase. (4)Purchase decision. When a consumer has a favorable impression and purchase intention towards a certain brand, but actually turns the purchase intention into a purchase action, it will be affected by two aspects: ① the attitudes of others and ② unexpected circumstances. (5) Post-purchase actions. After consumers purchase goods, they will have a certain degree of satisfaction or dissatisfaction with the goods they purchased through their own use and the evaluation of others. If consumers' expectations are consistent with the actual utility of the product, they will be satisfied; if the actual utility of the product is greater than what consumers expected, they will be very satisfied; otherwise, they will be disappointed or dissatisfied.
2. Industrial Market
The industrial market is also called the industrial product market or the production means market. It is an integral part of the organizational market and refers to the production of other products to meet the needs of industrial enterprises. The market that provides services and products. The main industries that make up the industrial market are agriculture, forestry, fishery, mining, manufacturing, construction, transportation, communications, public utilities, finance, and services.
(1) Characteristics of the industrial market
Compared with the consumer goods market, the industrial market has the following characteristics: From the perspective of market demand, the demand of the industrial market has two distinctive characteristics. . The first is the derivation of demand, that is, the demand for production materials comes from the demand for consumption materials, and the demand for consumption materials determines the demand for production materials. Second, the elasticity of demand is small, that is, within a certain period of time, the variety and quantity of demand will not change greatly due to price changes. From a product perspective, the products and services in the industrial market are used to manufacture other products or provide services and are non-final consumer products; moreover, these products are highly technical and many of them are expensive. From a purchasing perspective, the industrial market has several outstanding features: First, because the products are highly technical, buyers must have relevant product knowledge and market knowledge. The second is direct procurement. The procurement of production materials generally rarely goes through middlemen (except for standard products), but purchases products directly from manufacturers.
Third, the purchase volume is large and the number of buyers is small. Since the company's main equipment is purchased only once every few years, raw materials and spare parts are supplied regularly according to the supply contract.
(2) Factors affecting purchases in the industrial market
The types of purchases in the industrial market can be divided into three types: direct repurchase, revised repurchase and new purchase. Like consumer purchasing behavior, producer purchasing behavior is also affected by various factors. Webster and Wind in the United States summarized the various factors that affect producers' purchasing behavior into four main factors: environmental factors, organizational factors, interpersonal factors and personal factors. Environmental factors: Among the many factors that affect producers' purchasing behavior, the economic environment is the main one. Buyers of production means are severely affected by current and expected economic conditions. When the economy is sluggish or the outlook is poor, producers will reduce investment, reduce purchases, and compress the inventory and purchase of raw materials. In addition, buyers of means of production are also affected by technological, political, and competitive developments. Marketers should pay close attention to the role of these environmental factors and strive to turn problems into opportunities.
?Organizational factors: Each enterprise’s procurement department will have its own goals, policies, work procedures and organizational structure. Industrial marketers should understand and grasp the status of the purchasing department within the buyer's enterprise - whether it is a general staff department or a professional functional department; whether their purchasing decision-making power is centralized or decentralized; in decision-making In the purchasing process, who participates in the final decision-making, etc. Only by being aware of these issues can you make your marketing targeted.
?Interpersonal factors: This is the factor of human relations within the enterprise. The decision to purchase production materials is made by the "purchasing center" composed of personnel from various departments and levels of the company. The members of the "Procurement Center" are composed of quality managers, procurement applicants, financial managers, engineering and technical personnel, etc. These members have different statuses, different powers, different persuasiveness, and different relationships between them. They also play different roles in the purchase decision of production materials. Therefore, the purchase decision presents a more complicated interpersonal relationship. relation. Production material marketers must understand the main people who make users' purchasing decisions, their decision-making methods and evaluation standards, the degree of mutual influence among members of the decision-making center, etc., in order to take effective marketing measures to obtain users' visit.
?Personal factors: Although purchasing behavior in the industrial market is a rational activity, those who participate in purchasing decisions are still specific people, and everyone is inevitably affected by factors when making decisions and taking actions. The influence of their age, income, education, position and personal characteristics and attitude towards risk. Therefore, marketers should understand the personal situation of industrial market buyers in order to adopt "individual-specific" marketing measures.
(3) Purchasing decisions in industrial markets?
Participants in purchasing decisions: The purchase of production materials is generally composed of full-time buyers and non-full-time buyers. "Purchasing" center" . The "purchasing center" of an enterprise is generally composed of the following five types of people: users, influencers, purchasers, decision makers, and controllers. It should be pointed out that not all companies require the above five types of personnel to participate in decision-making when purchasing any product. The size of an enterprise's purchasing center and the personnel involved will vary depending on the type of products to be purchased, the size of the enterprise itself, and the organizational structure of the enterprise. ?
The process of purchasing decision-making: Buyers of production materials, like buyers of consumption materials, also have a decision-making process, but there is no unified format that governs the actual purchasing process of all buyers of production materials. It is generally believed that the purchasing process of users of production materials is divided into eight stages: (1) Putting forward needs. (2) Determine needs. Refers to determining the quantity and specifications of the required product. (3) Product specifications. It means that professional and technical personnel will make a detailed analysis of the specifications, models, functions and other technical indicators of the required products, and provide detailed explanations for the reference of purchasing personnel. (4) Find suppliers. In order to purchase satisfactory products, purchasing personnel must look for suppliers with considerate services, high product quality, and good reputations through industrial and commercial enterprise directories and other channels. (5) Ask for suggestions.
For the multiple candidate suppliers that have been identified, buyers should ask them to submit supply proposals, especially for high-value and expensive products, and also require them to write detailed descriptions. For the suppliers that remain after screening, Ask them to provide a formal explanation. (6) Select suppliers. After receiving relevant information from multiple suppliers, the purchaser will select a more satisfactory supplier based on the information. (7) Issue a formal order. After the suppliers are selected, the company will issue them a formal order form containing the required product specifications, quantity, delivery date, returns, warranty, etc. (8)Performance evaluation. After purchasing a product, the purchaser will promptly learn from the user about their evaluation of the product, examine the performance of each supplier, and decide whether to continue to purchase products from a certain supplier in the future based on the results of the understanding and examination.
3. Government Market
The government market consists of various federal, state, and local government units that purchase or lease goods to perform the main functions of the government. In many countries, government organizations are the primary purchasers of goods and services. In the United States, in 1980, government units purchased goods and services worth US$535 billion, accounting for 20% of the gross national product, making it the largest customer in the United States. Among government units at all levels, the federal government Procurement expenditures account for approximately 35% of total expenditures.
(1) Government Procurement
Government procurement is based on the products and services that voters entrust government agencies to obtain to achieve public goals. Government agencies purchase a staggering range of products and services. They purchase bombers, sculptures, blackboards, furniture, plumbing fixtures, clothing, material handling equipment, fire extinguishers, automotive equipment, fuel, and more. In 1980, federal, state, and local government units collectively spent approximately $143 billion on education, $1,490 on national defense, $64 billion on public welfare, and $44 billion on For health care, US$33 billion was used for highway construction, and US$35 billion was used for natural resource development. In addition, a small amount of expenditure was spent on postal construction, space research, housing and urban reconstruction. Each level of government unit has a different expenditure mix. In terms of the federal budget, it is mainly used for defense expenditure, accounting for 33% of the federal budget. In terms of state budgets and local budgets, education expenditures account for 37%. No wonder the government market is a huge market for any manufacturer or reseller.
Government procurement has many characteristics. Because their procurement decisions are subject to public scrutiny, they often require reams of paperwork from suppliers, who are wary of the extra paperwork, bureaucratic and unnecessary rules, delayed decisions and frequent staffing Replacement and so on are quite subtle. At this time, suppliers should understand and master these rules as much as possible and try to find shortcuts to break through the cumbersome procedures. For government departments, they often provide detailed guidance to potential suppliers, providing them with some guidelines on how to sell products to the government, etc. Another feature of government procurement is that suppliers are often required to submit competitive bids. In most cases they choose the one with the lowest price, and sometimes choose those suppliers who can provide high-quality products or have a reputation for timely performance. The third characteristic of government procurement is that they tend to favor domestic companies. Therefore, many multinational enterprises always bid jointly with suppliers in the host country.
(2) Government procurement procedures and influencing factors
Government purchasers are affected by environmental, organizational, interpersonal and personal factors. The unique feature of government procurement is that it is affected by the external public watch closely. Because government spending decisions are subject to public comment, government organizations do a lot of paperwork and must fill out and sign detailed forms before approving purchases. The role of non-economic standards in government procurement is increasing, requiring government purchasers to support depressed industrial and commercial enterprises and regions, small industrial and commercial enterprises and those industrial and commercial enterprises that have abolished racial, gender, and age discrimination. Sellers are deciding to do business with the government These factors need to be kept in mind.
Government procurement procedures are divided into two types, public bidding and procurement and agreement contracts.
Open bidding procurement means that the government procurement office invites qualified suppliers to bid for goods items carefully described by the government. Generally speaking, the supplier with the lowest bid is awarded the contract. The supplier must consider whether it can meet the various specifications of the product. and conditions for acceptance. For daily necessities and standard products, various specifications are not an obstacle, but for non-standard products, this may be an obstacle. Government procurement offices are usually required to operate on a winner-takes-all basis. Award the order contract to the bidder with the lowest price. In some cases, government procurement offices will grant discounts because of the supplier's superior product or reputation for completing the contract. In the procurement of an agreed contract, the procurement agency contacts one or several companies and directly negotiates with one of the companies regarding the project and transaction conditions. This type of procurement mainly occurs in transactions related to complex projects, often involving huge research and development costs and risks, or in the absence of effective competition. There are various contract methods, such as cost-plus pricing, fixed price, fixed price and incentive method. When a supplier's profits appear to be too high, contract performance can be publicly reviewed or renegotiated.
For a variety of reasons, many companies that sell to the government do not exhibit marketing inclinations. Government departments have emphasized price standards in their procurement policies and will guide suppliers to make efforts to reduce costs. In addition, since the characteristics of the product have been strictly set, product differences are not a factor that can be exploited in marketing, and even advertising and personal selling cannot play a big role. However, some companies have begun to establish marketing agencies specifically targeting government departments.