One of the most prominent reasons why startups fail is because business owners underestimate the value of researching business markets before finalizing their choice of product or service. Comprehending the demographics of a market is vital to understanding the needs and wants of consumers. Without knowing your target audience, you cannot produce a quality product or service that will generate revenue, nor can you establish an effective marketing strategy.
However, you need not worry as Maxwell Drever will help you understand the different types of business markets and what kind of services they can offer.
Maxwell Drever‘s Guide to Business Markets
Business to Business Market
A business market is where businesses offer goods and services to other businesses. The main purpose of a business market is to enable trade between companies so they can fulfill their requirements. For example, a company that manufactures mobile phones will need to buy different parts from different suppliers in order to create a final product. Business markets are usually categorized by the industries they supply, such as the automotive or food and beverage markets. Some examples of the B2B market include:
-Industrial market: businesses that deal with products and services used in manufacturing
-High-tech market: businesses that deal with cutting-edge technology products
-Raw material market: businesses that supply other companies with the raw materials they need to manufacture their own products
Business to Government Market
A business-to-government market is when a company provides goods or services to a government entity. Businesses need to be aware of upcoming tenders to bid on them. B2G markets are considerably different from B2B and B2C markets because the decision-making process is usually slower due to the involvement of many people. In addition, there are usually stricter regulations that businesses need to adhere to. Some examples of B2G markets include:
-Defense market: businesses that provide the government with products or services related to national security
-Infrastructure market: businesses that help build or maintain the infrastructure of a country
-Environmental market: businesses that provide goods or services related to environmental protection
Business to Consumer Market
A business-to-consumer market is when a company sells its products or services directly to individuals. This is the most common type of market and usually the easiest to break into. However, Maxwell Drever emphasizes that this market is also the most competitive. In order to succeed in a B2C market, businesses need to have a good understanding of their target consumers and what they are looking for. Some examples of B2C markets include:
-Clothing market: businesses that sell clothes to individuals
-Food and beverage market: businesses that sell food and drinks to individuals
-Retail market: businesses that sell products to individuals through brick-and-mortar stores or online shops
Business to Employee Market
A business-to-employee market is when a company provides goods or services to its employees. This type of market is usually only applicable to large corporations. The purpose of a B2E market is to improve employees’ productivity by providing them with the tools and resources they need to do their job effectively. Some examples of B2E markets include:
-Training and development market: businesses that provide training and development programs to employees
-Recruitment market: businesses that help businesses find the right employees for their needs
-Benefits and perks market: businesses that provide benefits and perks to employees such as health insurance or gym memberships
Maxwell Drever believes that the key to a successful startup lies in fully understanding the different markets, their target audience, and their needs. Understanding that all business markets are unique and require a different approach is vital.