What are the fundamental differences between consumer markets business markets and reseller markets

Have you ever wanted to sell your products directly to end consumers without any resellers showing up? Well, we call this the consumer market.

We define it as all those customers who buy products for their own consumption and not for resale, so it requires a completely different approach from a marketing point of view.

Have you ever bought tomatoes, a pizza or a new vehicle? Well, already with this action you participate in the consumer market.

The truth is that it’s very important that you take this into account, because these consumers have multiple options when it comes to buying, so you must create an appropriate strategy to maintain loyalty. 

Would you like to know how to achieve this? Let’s find out together everything you need to know: 

Table of Content

• What is the consumer market?
• Types of consumer markets
  • 1. B2B
  • 2. Professional services
  • 3. Industrial sales
  • 4. B2C
  • 5. Consumer products
  • 6. Food and Beverage
• How is the consumer market segmented?
  • 1. Demographic
  • 2. Gender
  • 3. Age
  • 4. Income
  • 5. Social class
  • 6. Geographic
  • 7. Climate
  • 8. Density

What is the consumer market?

The consumer market is the one in which the buyers of the product are the consumers themselves. It may seem obvious, but the reality is that not everyone who buys an item does so for their own use. 

We can therefore say that this is the basic level of any market and that we find it in establishments as simple as supermarkets, grocery stores, car sales…

However, in this market customers differ according to their tastes and needs, so you as an entrepreneur must identify your target niche very well in order to offer them what they require when they require it. 

Even so, knowing that the product will not be resold gives you more room for maneuver, since you can focus on creating a quality product at an affordable price for your target audience. 

Types of consumer markets

Currently the consumer market is divided into several types depending on the type of customer you are targeting in your project. Some of them are: 

1. B2B

First of all, there is the famous Business to Business.

This is a model in which companies sell to companies, not to individual customers. But of course, since we are in a consumer market, that company will use what you sell, and not ever resell it. 

This model is characterized by obtaining larger orders from fewer customers, which helps you eliminate costs and operate on a large scale, which translates into greater profitability.

An example would be raw material wholesalers, who market those elements needed to create a product from scratch. 

2. Professional services

Businesses need not only raw materials, they also need training or consulting in multiple areas to achieve their goals. 

This is where professional services come in. We are talking about companies that provide services to other companies in interesting areas such as marketing, technology, sales, human resources training and more. 

In most cases, this is done in a consulting format, although nowadays there are also training programs, group lectures, masters… 

3. Industrial sales

These are the sales of all the equipment that is permanent over time and has a fairly long useful life. 

This includes working machinery, chemical products, raw materials, office equipment, plastic materials and much more. 

4. B2C

B2C is the model called Business to Consumer. As you can guess, these are companies that sell their products and services to individuals, not to companies.

In most cases it’s made up of businesses such as supermarkets, department stores, pharmacy chains, franchises, among others.

The growth potential is very interesting, but the profit margin is usually low per product sold. However, its potential lies in the volumes you can move, since that’s where the big revenues come from. 

5. Consumer products

Consumer products are used on a massive scale. They are characterized by fairly voracious competition, so you must constantly work to gain the loyalty of your customers.

Users in this niche tend to switch brands very easily because there is always a cheaper product that provides similar benefits. 

Is it cost-effective? Yes, but it can be one of the most complex sectors to participate in.  

6. Food and Beverage

All those products that are intended for consumption by the body. They usually have multiple regulations to ensure that the person acquires high quality items, since at the end of the day it is something that goes directly to your body.

It’s essential to know your target audience and their lifestyle very well, since in a very short time they can change brands without giving practically any sign of it. 

How is the consumer market segmented?

In order to position each product, a market segmentation is made to focus efforts on those niches that are interested in your product. 

Let’s see which are the most relevant segments today:

1. Demographic

Demographic segmentation divides markets into specific variables such as gender, family size, age range, religious beliefs, occupation, among others. 

2. Gender

Yes, we’re talking about whether it’s a man or a woman, and in some cases we even find brands that are interested in the sexual tastes of their customers. 

The companies that use this type of segmentation the most are clothing brands, cosmetics companies and the media, since there are topics that are more consumed by men and topics more consumed by women. 

3. Age

This is one of the most used variables when segmenting a market. 

Each age group has different expectations and needs. That is why it’s important for you as a company to know who your target customer is in order to offer them what they are looking for.

4. Income

We mean the buying power of your target audience. It’s important to know approximately what your user’s income is in order to know if they have the capacity to purchase your product. 

You know, social class is divided into high, middle and low class. Each company makes products for a certain social stratum, so it’s time for you to know which one is yours. 

There’s everything from furniture for the upper class to smartphones for the lower class, which shows the importance of this segmentation. 

6. Geographic

In this case you divide a market into different geographic sections, whether it is a country, state, department or even neighborhood. 

7. Climate

It’s essential to know what the average weather is like, where your user lives. You cannot sell beach products to someone who lives in an area surrounded by mountains.

8. Density

The number of people living in a place will influence their needs.

You must keep this in mind before making a first offer, since they are usually people who are very busy due to the lifestyle in big cities. 

The consumer market is one of the most important markets today. It reflects the economic health of a country and the characteristics of its inhabitants according to some of the segmentations we saw in the article. 

It’s time to pay attention to it and focus your efforts on those niches that are willing to buy your product or service. 

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