Industry vs Market
The key difference between Industry and Market lies in the fact that the industry is a business model regulated by governance, while a market is driven by the demographics, customer preferences, and correlating distribution channels.
Both Industry and Market are often construed. The market works on the principle of demand and supply while the industry is a component of the market that renders specific services depending on the trends, accessibility, and choices.
To simplify, the market is a place where the buyers and sellers can operate and function in a systemic pattern of negotiating and cracking deals.
The industry is the producer of specific goods, services, commodities that are to be transacted in the market. Both are driven by consumerism and demands.
Comparison Table Between Industry and Market (in Tabular Form)
|Parameter of Comparison||Industry||Market|
|Concerned with goods||One particular market or firm||Various good, products are purchased|
|Presence||In Actuality||Can be virtual, E-selling and in Actuality|
|Competition||Among various other industries||Exists between various industries, buyers and sellers.|
|Classification||Maximize sales and profit||Product and Factor Market|
What is Industry?
The industry is an operational chain of firms, more or less similar to each rendering services through offering, goods, services, commodities.
An industry is a distinct group that acts as a producer, manufactures of products through labor and creative processes.
For example, Automobile, banking, agriculture, aviation, textiles are all called industries; an overarching umbrella term.
What is Market?
A market is a place where the buyer and seller sell or exchange goods on agreed deals and monetary exchanges. The parties involved in the market can be more than two.
For example, a fruit vendor might reach out to someone in the Uttarakhand region to buy beetroots and reach a vendor in south India to buy fresh coconuts.
There are also various market strategies and this would be an interesting self-study material.
Main Differences Between Industry and Market
Producers and Consumers
An industry is a place where products are produced. Companies like Tata cement, Ambuja cement are producers or cement and both deal with the same business activities. They deal with the cement industry.
They produce cement. While the same cement would reach out to different geographical places through different transportation, wholesaler, retailers, warehousing, shop channels. Industry deals with products, commodities while the market is a dealer in those accessibilities.
The dealing of industry functions on market demands. Read about market demand HERE.
Goods and Services
An industry creates products that constantly need to compete, roll out, marketed in different locations, portals but are restricted to a zone or a category of products.
For Example, a pharmaceutical industry will be many in numbers and all will only make medicines and not produce confectionary.
An industry has to be stationed while the market can move, shift and thrive through the means of digitalization.
In our own local markets, we find the pharmacy, grocery, retail shops, jewelry store and the list of the market is endless.
Classification and Approach
The industry is narrow while the market is huge. The industry requires cores of investment while the market survives on the neck to neck sale.
By neck to neck, it connotes to sellers giving of products on a lesser profit margin to retain the goodwill and customers.
The industry’s approach is restricted to ownership, profits, visibility through advertising, marketing, publishing, etc.
The market mainly wants to sell their products either on wholesale or retail by understanding the pulse of what the local customers needs, like, use, eat, buy.
Market stresses on understanding the factors that incline customers to come back. It can be a competitive price, accessibility, varied choices, market locale and more.
Presence and Competition
Both Industry and Market compete to sustain and survive. But the competition in the industry has high hazards as a lot of monies are at stake.
For example, Airlines like Kingfisher closed down and incurred losses not just to the owner but to the nation as well.
The same goes for Air India. Both airlines failed the aviation industry.
Industry be it private or of the public sector in nature, they do affect the overall economy of the country Markets like travel agencies, online portals, and home-based ticketing agents didn’t close down.
They did have other airlines to sell and market them.
Presence and competition both go hand in hand. It’s right to say that the competition is harder to sustain in industry and relatively easy in the market.
How to Remember the Difference Between Industry and Market
Time Needed : 2 minutes
Remembering the differences is very simple, just follow our mind mapping guide given below:
- Associate the first word with a thing or item which you see daily
For e.g.: Middle line in letter H for Horizontal.
- Associate the second word with a thing or item which you see daily
For e.g.: The two lines in letter V for Vertical.
- Recall the two words daily two times
During morning and evening bring up the two words in front of you and then recall the things that you had associated with each word.
- Repeat for 7 days
Repeating this process for a week will help you remember the difference between words for a long time.
Frequently Asked Questions (FAQ) About Industry and Market
- What are the 4 types of the industry?
There are 4 types of industries, namely:
a) Primary – includes all the industries that get the raw material
b) Secondary – includes industries that manufacture goods
c) Tertiary – includes industries that provide services
d) Quaternary – only include industries that focus on research and development
- What is an example of a market?
A market is a place where goods are sold by manufacturers or distributors. A market can be a shop, a website or a similar entity where purchases and transactions take place.
One of the most common examples of a market is a local market where one can find a lot of shops. In such markets, sellers sell their products directly to consumers after purchasing them from distributors or retailers.
- What are the types of the market?
Four types of market exist:
a) Perfect competition – all sellers sell their goods at a fixed price
b) Monopolistic competition or imperfect competition – multiple small firms sell almost similar products with slight differences which result in higher prices for certain products
c) Oligopoly – when only 3-5 firms compete against each other and dominate the entire market
d) Monopoly – the entire market is controlled by a single firm and consumers have no second option
- What is an example of a sector?
A sector is a broad group of industries and markets that have similar characteristics. It is the area of the economy in which multiple businesses or industries share a similar product or a service.
One good example of a sector is – healthcare.
- How do you do a market analysis?
There are several methods of doing a market analysis but they generally consist of the same steps.
Here are the steps to do a market analysis:
• The purpose of your analysis must be clear to you.
• Understand your industry and its current outlook.
• Find the target market and pinpoint it.
• Conduct thorough research on your competitors.
• Research and try to get additional data
• Go through all your findings and eliminate any irrelevant or useless data.
• The final step includes deciding the pricing and makes a sales forecast.
- What are the market analysis tools?
There are a lot of great market analysis tools.
Some of the most commonly used marketing analysis tools are:
• R Programming
• Apache Spark
Learn More With the Help of Videos
The industry can be large scale and small scale. The market is primary and secondary. Summing up, Industry is merely a group-specific to certain firms that engage in similar activities.
On the contrary, the market is a medium where the industries can flourish through buying and selling activities of produces.
The process of facilitation helps in connecting, exchanging, fair dealing of the current needs of people.
Reiterating, Industry is a one or a group of companies producing same or similar services and the market is a place where buyers and sellers connect, network and build clientele bonds.
Monetary holding, governance, rules and regulations, policies are crucial for both; industry and markets survival.
The success, creations, product cost marketing, negotiations, dealing rests on reliability, resource-ability and most importantly usability and buying power of the masses.
Word Cloud for Difference Between Industry and Market
The following is a collection of the most used terms in this article on the Industry and Market. This should help in recalling related terms as used in this article at a later stage for you.