0
There are two groups of "target consumers" in the commodities market.
The first is the companies that use those commodities, and certainly the list of companies changes depending on the commodity in question. Companies that use sugar and wheat probably don't use lead. Or, at least, you'd hope they don't.
The other group are investors who attempt to profit by purchasing commodities futures then selling them to users before the settlement date. This is a good way to lose your shirt, because there is no guarantee you're going to make money.
Let's throw out a real quick example: You are a baker and are buying wheat futures, as all large bakeries do. You use 10,000 bushels of wheat per month, so once a year you buy 24 wheat futures contracts--a wheat futures contract is for 5,000 bushels of wheat, so you buy two contracts per month. Your March 2012 contracts closed today at 767.0--$7.67 per bushel. Now you know that wheat will show up at your milling plant in March 2012 and it's going to cost $7.67 per bushel. Now, most of the risk has been taken out of the equation. (You will also buy futures for the other ingredients in your products.)
I am a speculator. I decide to buy a wheat futures contract. This is a bet that needs two conditions to come true to make money: that the "spot price" of wheat--what you'll pay if you just call ADM or someone and order a truckload of wheat--is higher than the settlement price on the futures contract, and that when this contract nears settlement date, a user will need the wheat. (Note: the amount of wheat you get with one futures contract shows up in either seven trucks or two rail cars.) If I'm right I make quite a bit of money. If I'm wrong--and commodities speculators usually are--it's going to cost me a fortune.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Why are the consumers who make up the target market for a product referred to as potential customers?
because market
Why are the consumers who make up the target market a product referred to as potential customers?
because market
How do you get info about consumers in order to identify a target market?
Conduct a survey.
What is selective perception and how does it influence consumer behavior?
Selective Perception is an excellent marketing tool utilizing a focus target market in order to gain a greater share of the wealth from a market by incorporating stimuli that is focused on the trigger or triggers the consumers of the focus target market share. The commonality among the consumers is what the marketer benefits from as the consumer or consumers view the trigger or triggers as a current or potential demand or need.
What is a target audience or target market?
A target market or target audience is something/someone your aiming to appeal to, such as the target market for a stuffed animal is kids or toddlers
Who is the target market for Chevrolet?
Middle-class consumers.
Why are the consumers who make up the target market for a product referred to as potential customer?
because market
Why are the consumers who make up the target market for a product referred to as potential customers?
because market
Why are the consumers who make up the target market a product referred to as potential customers?
because market
How do you get info about consumers in order to identify a target market?
Conduct a survey.
Is the Norelco 8150xl the shaver on the market right now?
Yes it is currently on the market and available to consumers at walmart and target.
Why does a commodity futures market exist within the broader commodities market?
The commodity futures market was invented to stabilize the market for consumers of bulk commodities. If you make breakfast cereal and you use a million bushels of wheat a year, it's nice to know you can get the wheat you need and nicer to know what it will cost. Futures eliminate uncertainty.
Why a commodity futures market exists within the broader commodities market?
The commodity futures market was invented to stabilize the market for consumers of bulk commodities. If you make breakfast cereal and you use a million bushels of wheat a year, it's nice to know you can get the wheat you need and nicer to know what it will cost. Futures eliminate uncertainty.
Who are BMW target market?
High-income consumers who like fast, agile cars.
Which of these is the term that refers to a specific group of consumers toward which a company aims its products and services?
target market
What is the term that refers to a specific group of consumers toward which a company aims its products and services?
target market
What is selective perception and how does it influence consumer behavior?
Selective Perception is an excellent marketing tool utilizing a focus target market in order to gain a greater share of the wealth from a market by incorporating stimuli that is focused on the trigger or triggers the consumers of the focus target market share. The commonality among the consumers is what the marketer benefits from as the consumer or consumers view the trigger or triggers as a current or potential demand or need.
