INDUSTRIAL MARKET: CHARACTERISTICS, SEGMENTS AND STRATEGIES - CULTURE VOCABULARY - 2025

The industrial market is made up of users belonging to organizations that buy goods and services to produce other types of products. In this market, the manufacturer is the one that makes the acquisition of, for example, a group of chemical substances from which it will produce fertilizers that are intended for the agricultural market or also for private individuals who will use it in their gardens.

An industrial user is known as that person who, within that market, makes the purchase of their products. For example, sites that purchase floor cleaner from a company.

There is thus an environment in which this market develops on a large scale. The products sold are manufactured in large quantities but have a select number of buyers. In fact, manufacturers take into account all of their users who are also within the industrial environment.

Products are purchased to expand the variety of goods and services, resell them to other customers and carry out operations that concern the company. Given the vast amount of products in circulation, companies need each other to make their products.

For this reason, the industrial market, although competitive, can lend itself to cooperativity, since the same object needs different types of raw material for it to go on sale. This type of market is made up of a multitude of companies and corporations that go from the primary sector to the tertiary sector of the economy.

Characteristics of the industrial market

The industrial market is characterized by six fundamental aspects:

Few buyers

The industrial market is not oriented to a large number of buyers as one might suppose, but it focuses on the most suitable buyers and on those who can give immediate use to the product.

Therefore, the clients are selected, chosen strategically, in order that the sales are fruitful.

Geographical distribution

It tends to be concentrated in very specific urban or rural areas. The industrial market is not omnipresent, but it is in specific places where there may be a large volume of production, which in turn requires a large number of personnel to move around the factory.

Future vision

The industrial market does not pursue so much the satisfaction of immediate needs of users; Rather, you want to think outside of the box and therefore make long-term plans that are not susceptible to price sensitivity.

In this way, this type of market always tries to renew itself and reinvent its products, in order not to be left behind.

Reduced impact on demand

Specifically in the final lawsuit. The industrial market stands out for not having much influence on what users want to buy, since they already have established requirements that must be met by the manufacturer.

High purchasing power

The industrial market is capable of concentrating a lot of purchasing power due to the simple fact that it has a high budget in which you can have more with less, as happens with wholesale companies.

Rationalism

The purchase of the products is not made according to subjective criteria, but according to objective elements. As acquisitions in the industrial market move a lot of money, it is necessary to know what to buy, when and from whom, in order not to lose money.

Segments

The industrial market segments are many, but traditionally they are grouped into four:

Agricultural market

It is the most indispensable of all, since it is the one that supports millions of people and on which there is more pressure, since in the face of the growing demand for food it is necessary to increase production.

In addition, this type of market is affected by the constant conflicts that revolve around the possession of the land and the latifundia.

Reseller market

It focuses on the presence of intermediaries through which a resale is made of products whose profit margin is higher than the initial price of sale to the public.

While it is true that it can lend itself to scourges such as speculation and hoarding in times of scarcity, the reseller market is used to increase factory sales and to generate indirect jobs.

Official sector market

It is the one in which the government apparatus and its respective dependencies that come under its jurisdiction are dealt with. Business with the official sector market can be beneficial as long as there is good marketing knowledge, but also if there is a bureaucratic and political climate that favors finance.

Non-profit business market

It refers to a market of heterogeneous companies that cannot produce money on the same scale as other markets, since their funds come from charity or donations from individuals (political parties, religious congregations, NGOs, etc.).

Your marketing problems are bigger, because your clientele is not easily attracted.

Strategies

The industrial market, like any other, can be nurtured by various strategies that can help it grow.

Many of them prioritize the products to sell, while others focus on adapting to the segment to which the company belongs.

There are some that draw a mixed methodology that does not neglect supply and demand, but neither does consumer prices and other associated factors, such as distribution and sales means.

Industrial market examples

Based on the above, the industrial market is large, something that translates into its great scope.

This fact is observed in mining, fishing, agriculture, construction, transportation, wholesale and retail trade, real estate, various services, government bureaucracy and non-profit organizations, among many more.

In order for this entire commercial circuit to work, a logistics network based on industrial segments and strategies must move.

References

1. Hague, Paul N. (1985). The Industrial Market Research Handbook. London: Kogan Page Ltd.
2. (2002). Market Research: A Guide to Planning, Methodology & Evaluation. London: Kogan Page Ltd.
3. Rutherford, Donald (2002). Routledge Dictionary of Economics, 2nd edition. London: Routledge.
4. Sabino, Carlos (1991). Dictionary of economics and finance. Caracas: Editorial Panapo.
5. Webster, Frederick E. (1995). Industrial Marketing Strategy, 3rd edition. New Jersey: Wiley.