Page 208 - Foundations of Marketing

Business Markets and Buying Behavior | Chapter 7 175

Table 7.1 Number of Establishments in Industry Groups

Industry Number of Establishments
Agriculture, forestry, fi shing, and hunting 21,691

Mining, quarrying, and oil/gas extraction 27,092

Construction 682,684
Manufacturing 299,982

Transportation and warehousing 208,474

Utilities 17,600
Finance and insurance 473,494

Real estate 287,782
Source: Statistics of U.S. Business, all industries, U.S. Bureau of the Census, www.census.gov/econ/susb/ (accessed
February 8, 2013).

classified as producer markets . Producer markets include buyers of raw materials, as well
as purchasers of semifinished and finished items, used to make other products. Producer
markets include a broad array of industries, including agriculture, forestry, fisheries, min-
ing, construction, transportation, communications, and utilities. As Table 7.1 indicates, the
number of business establishments in national producer markets is enormous. For instance,
manufacturers buy raw materials and component parts for direct use in product creation.
Grocery stores and supermarkets are part of producer markets for numerous support prod-
ucts, such as paper and plastic bags, shelves, counters, and scanners. Farmers are part of
producer markets for farm machinery, fertilizer, seed, and livestock. Typefaces are something
that many people do not consider as a product, but they too are part of producer markets.
Take a look at the advertisement for Hoefler & Frere-Jones’ new font, Idlewild. Creating
a distinctive brand, logo, and labeling can be very important for firms. Selecting a unique
and recognizable typeface is an integral part of this. Firms such as Hoefler & Frere-Jones
can help other businesses create an interesting logo that is used for goods and in marketing
materials, packaging, and labeling.
Historically, manufacturers have tended to be geographically concentrated. More than half
were located in just seven states: New York, California, Pennsylvania, Illinois, Ohio, New
Jersey, and Michigan. However, this profi le has changed as manufacturing processes are out-
sourced and factories close in some places and open in others. Manufacturing now also plays a
vital role in the economies of states such as Wisconsin, Tennessee, and Kentucky. The United
States is also not the manufacturing powerhouse that it once was. In fact, the country has lost
28 percent of its high-tech manufacturing jobs since 2000. Most of this loss is attributable to
outsourcing, cutbacks on funding for research and development, and increasingly competitive
workforces in other countries, primarily in Asia. 4
producer markets
Reseller Markets Individuals and business
organizations that purchase
Reseller markets consist of intermediaries, such as wholesalers and retailers, which buy fin-
products to make profits by
ished goods and resell them for a profit. Aside from making minor alterations, resellers do using them to produce other
not change the physical characteristics of the products they handle. Except for items produc- products or using them in their
ers sell directly to consumers, all products sold to consumer markets are first sold to reseller operations
markets.
reseller markets
Wholesalers purchase products for resale to retailers, other wholesalers, producers, gov- Intermediaries that buy finished
ernments, and institutions. Wholesalers can also be geographically concentrated. Of the nearly goods and resell them for a
414,000 wholesalers in the United States, a large number are located in New York, California, profit

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