What's the difference between consumer market and producer market?

There are three differences between consumer market and producer market (also called industrial market):

First of all, the essence of the two is different:

1, the essence of consumer market: refers to the market composed of goods purchased by all individuals and families to meet their own needs.

2. The essence of producer market is composed of individuals or organizations that buy goods and services and use them to produce other goods and services for sale and lease to others.

Second, the composition of the two is different:

1. Composition of consumer market: Consumer market mainly includes producer market, middleman market and government market.

2. Composition of producer market: The producer market is mainly composed of the following industries: agriculture, forestry, fishery, mining, manufacturing, construction, transportation, communication, public utilities, banking, finance, insurance and service.

Third, the characteristics of the two are different:

1, characteristics of the consumer market:

(1) From the perspective of traded goods, it is more influenced by personal factors such as consumers' cultural literacy, appreciation habits and income level; The products have diverse colors, complex varieties and short life cycle; Commodities are not professional and technical, and there are many substitutes, so the price demand elasticity of commodities is greater, that is, price changes have a greater impact on demand.

(2) From the perspective of transaction scale and mode, there are many buyers in the consumer goods market, and the market is scattered, with frequent transactions, but sporadic transactions. Therefore, most goods are sold through middlemen, which is convenient for consumers to buy.

(3) From the point of purchase behavior, consumers' purchase behavior is highly induced.

2, the characteristics of producer market:

(1) The number of buyers is small and the scale is large: in the consumer market, the buyers are individuals and families, and the number of buyers is large, but the scale is small. Most buyers in the producer market are enterprises and institutions, and the purpose of purchase is to meet the needs of their production and business activities of a certain scale, so the number of buyers is small, but the purchase scale is very large.

Due to the concentration of production and economies of scale, to achieve a certain production batch, a large purchase volume is inevitable. However, within the producer market, the size of buyers and the distribution of purchase batches are unbalanced.

(2) Regional concentration: due to the influence of national industrial policies, natural resources, geographical environment, transportation, social division of labor and cooperation, and the location of sales markets on the spatial distribution of productive forces, it is easy to lead to the concentration of production distribution. China's modern large-scale industries are mainly concentrated in the northeast, north China and southeast coastal areas. Because of this, the cost of selling production materials to enterprise buyers can be reduced.

(3) The demand of producer market is derived demand: Derived demand is also called extended demand, that is, the demand of producer market is derived and extended from the demand of consumer market. For example, the demand of consumers for TV sets leads to the demand of TV manufacturers for TV production materials.

Derived demand requires enterprises in producer market to know not only the demand of direct customers, but also the demand trend of joint consumption market. At the same time, enterprises can also promote the sales of their products by stimulating the demand of final consumers for final products.

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