The consumer market is a significant part of every country’s economy. In most developed countries, it makes up more than 50% of the GDP. In fact, it’s a major attractant for foreign companies, a motivator of startups, and a sustainer of existing companies. So, what else do you need to know on this subject? Consequently, this post hopes to enhance your knowledge of this subject. Some of the key takeaways from this post include: consumer market segmentation, characteristics, a consumer market vs business market analysis, and the major types.
Definition
If you have ever purchased any product or service without reselling it, then you are a consumer. So, in plain terms, it is a group of end-users, that do not vend purchased goods or services.
What Is the Consumer Market Made up Of?
It is made up of all clients who purchase things for their personal use and not for resale; therefore, it demands a whole new marketing strategy.
What Is an Example of a Consumer Market?
When you purchase a good or service, you participate in the consumer market. Whether you are purchasing a week’s worth of groceries or having your car washed, you are a part of this broader system. A consumer market is the mechanism that enables us to acquire goods, services, and products.
Why Is Consumer Market Important?
Consumer Markets are crucial to the marketing ecosystem since they are where the majority of consumer purchases occur. Marketing in consumer markets is highly dependent on customer demographics. Consumer types are categorized based on their attributes.
Types of Consumer Market
There are two broad types: Service, and physical goods consumer market, each type with its subtypes. Basically, the service type focuses on intangible products, while the physical goods type focuses on tangible products. It is important to know these because the marketing approach to each differs.
#1. Fast Moving Consumer Goods Market
This market is made up of high-volume goods but a traded in low values. Time is a huge factor that affects products under this type. So, if they are not traded on time, they can get stale and lose value. For example, perishable food items and media periodicals.
#2. Durable Goods Consumer Market
Goods here can maintain their value over a long period. Hence, they are low-volume and high-value products. For example, refrigerators, shoes, game consoles, etc.
What Is Consumer Marketing Strategy?
Consumer marketing is the promotion of a product or service for the personal use of individual customers. It focuses on attracting new consumers to sample a company’s products or services and retaining existing customers’ satisfaction and brand loyalty.
Read more: Download 500+ business plans for any business
Characteristics of Consumer Market
For a given attribute, like age, the difference among people in a consumer market stretches across a spectrum. So, businesses ought to do a proper segmentation of their consumer market. This is in order to enhance the achievement of their aim in the market. Consequently, this segmentation can be done based on the following consumer market characteristics.
#1. Demographic
Businesses should create a sort of biodata for their hypothetical customers. Because this will help attract the right people. And also, with fund management. Examples of attributes under this are age, sex, ethnicity, religion, education level, etc.
To get data for this, businesses can engage in a survey or even reach out to local demographic authorities for data.
#2. Geographic
If you run a multi-location business, data on different locations of your business will help in the smooth running of the business. For example, if you own a clothing line, co-operate wears will sell more in cities that have tons of co-operate businesses like banks and so on. On the flip side, casual wear will sell more in cities that mostly have clubs.
#3. Psychographic
Basically, psychographics is all about a person’s personality. So, you should know who your customers are in terms of their values, interests, and lifestyle. If your product goes against their personality the outcome might not really be favorable. For instance, selling burgers in a vegan community will be a big business blunder.
#4. Behavioral
This aims to group end-users is based on their reaction to previous offers. This helps customize offers to consumers.
Read Also: Market Segmentation: All you need to know with Examples
Consumer Market vs Business Market
While the consumer market is about consumers making non-resellable purchases from businesses. The business market is about businesses buying from other businesses. Other differences between the two are as follows.
#1. Size of the Market
This is one major difference between the two. Clearly, the consumer market is larger than the business market.
#2. The Purchasing Capacity of Consumers
A customer in the business market can make the same number of purchases as a thousand customers in the consumer market. For instance, a business can buy 10,000 units of a product from another business. However, a business in the consumer market might need a thousand or more customers to make the same amount of purchase.
#3. Customer- Business Relationship
In the business market, top-level members of the company are usually needed to close a deal from the customers. However, that might not be necessary for the consumer market.
What Is the Difference Between a Consumer Market & a B2B Market?
Consumer marketing is the process of selling goods to individuals and families who will use them themselves. The B2B market, on the other hand, is made up of companies that buy goods and services to make other goods and services that are sold, rented, or given to other businesses.
What Affects Consumer Behaviour?
Perspectives and Values. There are preconceived notions and values held by consumers that have a role in their purchasing behavior. The consumer’s behavior toward the product is influenced by their perspective. A product’s reputation in the market is greatly influenced by the way its consumers feel about it.
In Conclusion
A business market may seem like a more viable option for most business owners, but every option has its pros and cons. What gives you an added advantage is how satisfied you are with the information at hand. Let’s get your view about this on the comment section.
