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After reading this page you should turn to your notes and:
- Write out, in your own words, a definition of industrial market, without looking at the computer screen
- Make a note of at least two more examples of an industrial market
- Think of at least one other problem that a business operating in an industrial market might face
Definition:
Industrial markets deal with products (goods and services) for the business market. The business buyer will use up the product to help it make new products.
Examples:
- The market for filter coffee sold to restaurants is an industrial market
- The market for magazines sold to businesses (e.g. specialist market reports) is an industrial market
Relevance to Business:
Industrial markets (which include capital markets) are the “consumer markets” of the business world – you are selling your product to a business rather than a final consumer. The same problems faced within capital markets apply here – sell a quality, low price service to a business (e.g. a cleaning service) and you will do well. However, your service might be the first thing to go if businesses have to make financial cut backs to reduce costs. Companies like Marconi – who sell microelectronics products in the industrial market – have faced many problems in recent years when they changed the type of products they sold and found that the new industrial market they entered was facing a recession.
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