Markets And Industry

The diagram below demonstrates the interaction among the 5 types of markets in a modern economy, ie resource, manufacturer, government, consumer and intermediary

(source: Kotler & Keller as quoted by Albert Carniel, 2019)

1. Resource (provide the raw materials for the manufacturer to make products and/or service)

2. Manufacturers (buy resources like raw materials, labour, money, etc and transform them into products and/or services; selling them on to customers)

3. Intermediary (often customers of manufacturers, like wholesalers and/or retailers, etc who on-sell to their customers; these businesses can be impacted by e-business)

4. Customers (spend money to buy products and/or service)

5. Governments (collect taxes and use them to pay for products and/or services from the other 4 markets to provide public service)

Basic marketing system (see below diagram)

(source: Kotler & Keller as quoted by Albert Carniel, 2019)

"...this relationship is represented by an exchange of sellers' goods, services and communications (like ads or direct mail) for people's money and information (like customer behaviour or sales data). The internal loop portrays that flow between money and products/services, and the external loop shows stream of information..."
Albert Carniel, 2019
(for more detail, see frameworks in the Knowledge Base)