Theory question 106
MarketsAbu Company Ltd manufactures and sells hospital equipment to organizational markets. (a) State four features of the markets the company sells its products to. (b) List and explain three types of the market the company sells to.
Show the model answer
(a) Any four: few but large buyers; large purchases; buying done by trained professionals/committees; derived and fairly inelastic demand; formal buying procedures (tenders); close, long-term buyer-seller relationships; geographically concentrated buyers; direct buying from producers.
(b) Any three, explained: government market (government hospitals and health ministries); institutional market (private hospitals, clinics, schools, NGOs); industrial/producer market (firms that use the equipment to provide services, e.g. diagnostic centres); reseller market (medical equipment dealers who buy to resell).
Give each point as a full sentence, with an example where possible.