Marketers use various approaches to target consumers depending on the type of product they are selling. When consumers buy products for their own use, those products and services are considered to be part of the consumer market.
Understanding which type of consumer market your products and services fall into can help you develop the best strategy for reaching your target audience.
What is the Consumer Market?
The consumer market refers to the market in which people buy goods and services for personal consumption rather than resale. This market is dominated by products that consumers use on a daily basis. When a consumer buys a commodity for his or her own use, he or she is participating in a consumer market.
The term "consumer market" refers to both products and services. Because the product or service being purchased is for personal use, the consumer has a lot of clout. Consumer markets have traditionally been thought to be offline, but with the advent of eCommerce, consumer markets can now be online as well.
Importance of Consumer Market
Consumer markets are important in the marketing ecosystem because they are where the majority of customer purchases are made. Marketing in consumer markets is heavily influenced by the type of consumers. Consumers are classified based on their characteristics. The characteristics can be demographic, psychographic, behavioral, or geographic.
Demographic characteristics take into account age, gender, occupation, income, and education differences and similarities. Market surveys are used by businesses to identify these characteristics. Values, opinions, interests, and attitudes are all factors to consider when determining psychographic characteristics.
Companies gain a better understanding of these consumer characteristics through focus group discussions and use this information to improve their marketing campaigns. Brand loyalty and consumer status are examples of behavioral characteristics of consumers that can be gathered through market research.
Region, market size, and market density are all geographical characteristics. A company that sells raincoats, for example, will be more active in tropical areas and less active in dry areas.
Also Read | Market Research Analysis
Characteristics of Consumer Marketing
The consumer market refers to buyers who buy goods and services for personal consumption rather than resale. However, not all consumers have the same tastes, preferences, and purchasing habits because of various characteristics that distinguish certain consumers from others.
These specific consumer characteristics include a variety of demographic, psychographic, behavioral, and geographic characteristics. Market segmentation, the process of separating and identifying key customer groups, is typically used by marketers to define these consumer market characteristics.
Demographic Characteristics of Consumer Markets
Demographic differences in consumer markets include gender, age, ethnic background, income, occupation, education, household size, religion, generation, nationality, and even social class.
The majority of these demographic categories are further defined by a range. Companies, for example, may categorize their customers' ages as 18 to 24, 25 to 34, 35 to 54, 55 to 65, and 65+.
Companies frequently identify these demographic characteristics through market research surveys, which are used to determine which demographic groups make up the majority of their customer base.
Businesses can then target their advertising to these demographic groups. For example, a new cell phone could be marketed to 18 to 24-year-olds with incomes ranging from $25,000 to $50,000.
Consumer Markets' Geographical Characteristics
Geographical characteristics of consumer markets vary as well. These geographic characteristics are frequently based on market size, region, population density, and even climate.
A small retailer may discover opportunities in a niche market where larger competitors are uninterested. Beachwear companies will most likely sell more products in warmer climates. Consumers in different parts of the country have varying food and fashion preferences.
Consumer Markets' Psychographic Characteristics
Psychographic characteristics of the consumer market can also exist. Consumer psychographic characteristics include interests, activities, opinions, values, and attitudes.
Many magazines cater to the interests of their readers. Prenatal magazines, for example, are aimed at expectant mothers who want to learn more about caring for a baby.
Participation in martial arts or basket weaving can also be included in consumer activities. Opinions and attitudes can be specific or general in nature.
After conducting a focus group, a company may gain a better understanding of consumer opinions and attitudes, which it can then use to tailor advertising or marketing campaigns. Consumer values can refer to how a group of people feel about specific social issues that are of interest to non-profit or charitable organizations.
Consumer Market Behavioral Characteristics
Marketing research can also be used to elicit behavioral characteristics. Product usage rates, brand loyalty, user status or how long they have been a customer, and even benefits that consumers seek are behavioral characteristics of consumer markets. Businesses want to know how frequently their customers visit their restaurants, shops, or use their products.
Typically, company marketing departments attempt to differentiate between heavy, medium, and light users, whom they can then target with advertising. Marketers want to know which customers are brand loyalists because they only buy the company's brand.
Also Read | Types of Advertising
Difference between Consumer Market and Business Market
A good B2C marketing strategy fosters customer relationships by personalizing interactions and identifying the critical moments in the marketing life cycle. By combining data, you can create a picture of who your customers are and respond to them accordingly.
Your consumer marketing strategy can include both traditional channels like TV and newer platforms like social media, YouTube, streaming services, email, and mobile apps. Consumer brands can also use industry events to reach their target audiences.
Whatever channel you use to spread your message, remember to strike a balance between frequency and reach. How often can you reinforce a positive brand perception in the eyes of the majority of people?
It is critical to understand how your brand is currently perceived. To that end, your company can conduct a process known as "brand sentiment analysis."
Marketing teams can use AI to sift through thousands of brand mentions on social media to paint a picture of the emotional resonance your brand has with customers. You can use market research to strengthen your customer relationships.
Consumer Market Strategies
A good B2C marketing strategy cultivates customer relationships by personalizing interactions and identifying critical moments in the marketing life cycle. You can paint a picture of who your customers are and respond to them accordingly by combining data.
Traditional channels like TV can be combined with newer platforms like social media, YouTube, streaming services, email, and mobile apps in your consumer marketing strategy.
Consumer brands can also reach out to their target audiences by attending industry events. Remember to balance frequency and reach when disseminating your message via any channel.
Also Read | B2C Marketing
The fast-moving consumer goods (FMCG) Industry
A consumer market is a type of customer market that includes several subtypes. Each variant has its own set of characteristics:
Because of the similarities between products, price competition can be fierce in this market. Merchants use a variety of marketing strategies to increase customer loyalty. When a product has a large number of loyal customers, brands find it easier to raise prices.
The fast-moving consumer goods (FMCG) Industry
The FMCG sector, also known as the consumer packaged goods (CPG) market, is one of the largest sub-categories in the consumer market. Low-value items are frequently purchased by consumers, and the goods have a relatively short shelf life.
Merchants compensate for low profits by distributing large quantities of merchandise, such as Personal care items, Foodstuffs\ Beverages and Items for home care
To achieve the desired results, businesses frequently hire marketing firms that specialize in FMCG campaigns. As a result, suppliers must invest in research and development to create innovative product ideas that meet the changing needs of consumers.
Large beverage companies and pharmaceutical organizations are examples of well-known multinational corporations active in this sector. Manufacturers and retailers sell a diverse range of consumer goods in categories such as:
Consumer durables are products that are intended to last a long time and thus are purchased less frequently. Perishables, such as milk and produce, are the polar opposite of consumer durables because they have a short shelf life and their economic value is consumed soon after purchase.
Consumer durables include the following items:
- Sports equipment
- Vehicle components
- Furniture for the home and office
Several factors have contributed to the significant growth in the consumer durables sector, including:
- Increased discretionary income
- Retail is booming.
- Vehicle sales are increasing.
Consumer Non Durables
Nondurable consumer goods are items purchased for immediate use. These items have a lifespan ranging from a few minutes to three years. Consumer nondurables include the following items:
- Laundry detergent
- Bulb lights
- Products made from paper
- Dishwashing liquid
Consumer behavior toward these nondurables is typically consistent because they are products that must be purchased regardless of a country's economic state. Consumers, for example, must still buy groceries, soap, laundry detergent, and gasoline regardless of economic conditions.
Also Read | Factors influencing consumer behavior
7 Consumer Marketing Tactics
7 Consumer Marketing Tactics
Below are some consumer marketing tactics :
Create an Emotional Bond
When information is linked to emotions, people remember it better. While people are interested in how your product works on some level, they are more interested in how it will improve their lives.
In other words, the advertisement depicting a happy family enjoying a birthday dinner at home will have a greater impact than the advertisement for the stove and oven that lists all of its features.
In Still Fear of Missing Out
Fear is an emotion that elicits a response. You do not, however, have to make people fear for their lives. The fear of missing out on something good can be extremely powerful. Missing out on a big sale or a new, limited-edition product can be an effective consumer marketing campaign focus.
Everyone wants to feel important, as if they are part of a select group, and advertising that taps into this desire can be extremely effective. Promoting your product as the preferred choice of the discerning parent, car owner, or woodworker invites people into a world that is slightly different from the everyday. It gives them the impression that they have "arrived."
Collaboration with Other Brands
Creative marketing collaborations can be a great way to kickstart a consumer marketing campaign. A great partnership will generally bring out the best efforts from both parties (if for no other reason than competitiveness), while also exposing your brand to a new audience. During "wedding season," a clothing brand might collaborate with a musician, or a bakery might collaborate with a florist.
Create a Solid Social Media Strategy
Posting to Facebook and Twitter should not be an afterthought for your brand, as a strong social media strategy can be extremely beneficial to brand development. Choose two or three platforms to concentrate your efforts on, develop an editorial schedule for posting, and stick to it.
Most platforms provide extensive analytics, allowing you to learn what works and who your audience is right away. Because of the powerful targeting tools available on social media platforms, knowing your audience is especially important if you do any paid social media marketing.
Don't be afraid to be Amusing or Eccentric
While some products or services will never be amusing, the majority are, at least some of the time. Brands that can laugh at themselves as well as their customers often gain a lot of goodwill from their customers.
Whether it's the Old Spice guy on a horse or Cat construction machines playing a massive game of Jenga, the amusing and unusual can be a welcome distraction for most customers.
Pay Attention to Existing Customers
Special promotions to attract new customers are nothing new, but when was the last time you did something special for your long-term loyal customers?
Consumer marketing has entered a new era, thanks to the internet, social media, and mobile devices. Because digital advertising makes it so simple to collect data, it is also simpler to plan consumer marketing campaigns based on tried-and-true tactics that are proven to work. Ultimately, all of these strategies are about establishing and maintaining a connection with customers.
Lastly, Consumer marketing is the sale of goods or services to individuals for their personal use, as well as the promotion of these goods and services through various marketing strategies, such as the use of consumer data for personalized experiences. Consumer markets are important because this is where the majority of purchases are made by consumers.