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Who is in the Business Market. Who Makes Up the Business Market

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There are millions of organizations worldwide selling their products and services to other businesses. They operate in many industries and range in size from huge multinational companies with thousands of employees to one-person small businesses. With such a large number of organizations and industries contained within the business market, a marketer can obtain (отримати) a better picture of who is involved by looking at popular business classification systems set up by international governments, such as the North American Industrial Classification System (NAICS), which covers Canada, Mexico and the United States and the International Standard Industrial Classification (ISIC), which is widely used in Europe. These reports provide descriptions of hundreds of industry classifications.

 

We break the business market down into two broad categories – Supply Chain Members and Business User Markets.

 

Supply Chain Members = Канали постачання на ринку

The supply chain consists of mostly for-profit companies engaged in activities involving product creation and delivery. Essentially (По суті) the chain represents major steps (етапи) needed to manufacture (виготовляти) a product that will eventually (врешті-решт) be sold as a final product. Each member of the supply chain purchases products and services enabling (що дають можливість їм) them to carry out(виконувати, завершувати) its business objectives. When making purchase decisions supply chain members may be motivated by such factors as: product cost, return on investment (i.e., benefits obtained exceed price paid=вигода отримана від перевищеної ціни), assurance(гарантія) of consistent supply (i.e., product is available and delivery is on-time), reciprocity(обмін, взаємність) with supplying firm (i.e., we buy from you and you buy from us), and much more. Examples of purchasing occurring in the supply chain include: manufacturing and plant equipment, information technology, office supplies, professional business services, etc.

 

 

Business User Markets = Комерційні споживачі

Besides selling final products and services to supply chain companies, several additional(додаткові) user markets also make purchases either for their own consumption (користування) or they buy with the intention of redistributing to others. In these purchase situations the buyer generally does not radically change the product from its form when it was purchased from a Product Manufacturer. While technically these markets are also part of the supply chain, members of the business user market do not, in most cases, engage(не залучаються) or directly assist in production activities.


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