Table 4.1.1 Market Diversity
| Level | Description |
| 1 |
A single market where customers or clients make similar use of the
product or service provided, eg a supermarket or newsagent where
clients use the products purchased for similar purposes; or a
service provider such as an investment adviser, or an electrical
distribution network supplying electricity to only households, or
a psychiatric hospital. Single market also applies where the
market is captive, irrespective of the diversity of products or
services provided. Here, the customer has no alternative but to
use the services or products of the organisation. Examples include
government departments at all levels; or an in-house service provider
where other parts of the organisation purchase the services or
products provided and are restricted by policy to only use those
products or services. In other words, the provider has, through
policy, no competition. |
| 2 |
A diversified market where customers or clients make somewhat
different use of the product or service provided, eg the supplier of
a raw material such as steel where one customer may use it to produce
nails, another to make reinforcing rods. Alternatively, where the
clients or customers are of somewhat differing types, eg private
individuals and businesses. Alternatively, where the market is
distinctly segmented and the differing segments are catered to
differently: eg fast food outlet versus restaurant, or in the
provision of services where clients are distinctly segmented say
on income or education level, or level of some need. |
| 3 |
A highly diversified market where the customers or clients are
from distinct cultural or language groups. Alternatively, where
differing commercial and civil laws, values and ethics apply.
Alternatively, where the clients or customers are of widely
differing types, eg both private individuals, corporations,
and governments. Or, where the customers or clients make
vastly different use of the product or service provided,
eg the supplier of a raw material such as sand where one
customer may use it as an ingredient in the manufacture of
concrete, another to make glass, and another to landscape a
golf course.
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