The Six Markets Model/Framework illustrates an expanded view on where Marketing can be applied. It identifies Six Key market domains where organizations should direct marketing activity and where the development of detailed marketing strategies may be needed. Apart from existing and potential customers, those markets are: Referral markets; Supplier Markets; employer recruitment Markets; influence Markets; and internal Markets.
1. Customer Markets
Customer markets are characterized by long-term relations between buyers and sellers. Long-term relations evolve if buyers trust sellers to provide high quality and if sellers are trustworthy. However, changes in the terms of this implicit contract may antagonize customers and disrupt the relation. We experimentally show that mutually beneficial long-term relations frequently prevail in markets for experience goods, and that price rigidity after a temporary cost shock is much more pronounced if price increases cannot be justified by cost increases. Hence, long-term relations on customer markets mitigate market failure of the “lemons” type, but are prone to price stickiness.
Customer markets are the center of attention amongst the Six Markets Model. Customer should always remain the main focus in all marketing activities. The marketing activities needs to primarily directed at maintaining a relationship with customers, an importance on obtaining and building a long term relationships.
2. Referral Markets
The ‘referral’ market domain of the Six Markets Model consists of two main categories- customer and non-customer referral sources. Frequently, the best marketing is that done by an organization’s existing customers; which is why the creation of positive word-of-mouth referral, through delivery of outstanding service quality, is critical. Non-customer referral sources, which recommend an organization to prospective customers, are described by a number of terms. These include networks, multipliers, connectors, third party introducers, agencies and so on. It should be noted that these referral sources are also sometimes referred to as intermediaries. However, this can be a confusing term when applied to referral markets as it is more appropriately used in describing the role of channel members in the delivery of a product or service to the final consumer.
Referral marketing is to use word of mouth to spread information and recommendations about your business. It is one of the most effective ways to increase market share for small retailers / small businesses. This kind of strategy is best for those that have products in the mid or mid-high price ranges. You won’t have to spend much money for referral marketing and the results can be very good with the right approaches.
3. Influence Markets
The nature of the ‘influence’ market domain is such that it usually has the most diverse range of constituent groups. Illustrative of the wide range of constituent groups which comprise the influence market domain are: shareholders, financial analysts, stock brokers, the business press and other media, user and consumer groups, environmentalists and unions. Each of these constituent groups has the potential to exert significant influence over the organization and the relationships an organization has with them can be managed through the application of a strategic marketing approach.
4. Supplier Markets
Organizations’ relationships with their suppliers are undergoing some fundamental changes. The old adversarial relationship-where a company tried to squeeze its suppliers to its advantage-is giving way to one based much more on partnership and collaboration. There’s good commercial sense in this. Manufacturers in USA typically spend over 60 percent of total revenue on goods and service from outside suppliers.
Market analysis is the understanding of the dynamics and major trends of a specific supplier market (a given segment and geographic zone). It is part of the “core business “of a strategic purchasing function.
5. Recruitment Markets
Recruitment and selection policies of firms is a largely neglected, though important, research area which provides insights into the functioning of labor markets and the social reproduction of organizations.
In fact the scarcest resource for most organizations is no longer capital or raw material, but it’s the skilled labor which is the most significant area to be considered. Prominence needs to be given in the selection and retaining of experience and skill labor.
6. Internal Markets
Internal Marketing is recognized as an important activity in developing a customer focused organization. In practice, internal marketing is concerned with communication, with developing responsiveness, responsibility and purpose. Fundamental aims of internal marketing are to develop internal and external customer awareness and remove functional barriers to organizational effectiveness.