Outline the four components of the business market. Cite examples of each.Four basic categories define the business market: 1.the commercial market2.trade industries3.government organizations4.institutionsCommercial markets include individuals and firms that acquire goods and services to support, directly or indirectly, production of other goods and services.Example:When Lufthansa buys aircraft built by the European consortium Airbus Industry, when Sara Lee purchases wheat to mill into flour for an ingredient in its cakes.Trade industries include retailers or whole sellers that purchase products for resale to others.Example: retail meat markets may carry out bulk purchases of sides of beef and then cut individual pieces for their customers.Institutions include a wide range of organizations, such as hospitals, churches, nursing homes, colleges and universities, museums and not-for-profit organizations.Example: state universities. Government organizations include domestic units of government- federal, state, and local as well as foreign governments.Example: national defense or pollution control.Q2. What are the characteristics of the commercial market? Show how each characteristic affects the marketing strategies of firms serving that market.The commercial market is the largest segment of the business market. It includes all individuals and firms that acquire goods and services to supports directly or indirectly, production of other goods and services. Some products aid in producing another good or service. Others are physically used up in the production of a good or service. Still others contribute to the firms day to day operations.Q3. What are the SIC codes? How do the marketers use these codes?Standard Industries Classification codes are the US government classification system that subsides the business market place into detailed market segments. Businesses use SIC code data for more then segmentation. These codes also help them to...
