Posted in Marketing and Strategy Terms, Total Reads: 872
Definition: Consumer Markets
Consumer markets refers to the markets where people purchase products for consumption and are not meant for further sale. This market is dominated by the products which consumer use in their daily life.
Each time a consumer purchase a commodity for his own usage he is participating in a consumer market. Primarily there are four types of consumer markets; food and beverages, retail, consumer products and transportation. In consumer market purchasers make their own decisions to purchase the products and these products can be used for personal use or can be shared with others. Marketing plays a role of paramount importance in consumer markets by influencing customer’s preferences and purchasing decisions and educating them on the options available in the market. Brand loyalty of consumer plays a significant role in consumer markets. Consumer markets are different from business markets in the sense that in business markets products are sold to different businesses and intermediaries for further sale.
Marketing in consumer markets depends a lot on type of consumers. The type of consumer is segmented by their characteristics. The characteristics may be demographic, psychographic, behavioristic or geographic in nature. Demographic characteristics consider differences and similarities in age, gender, occupation, income and education. Companies identify these characteristics through markets surveys. Psychographic characteristics considers values, opinions, interests and attitudes. Companies understand these characteristics of consumers by conducting focus group discussions and use this information for the betterment of their marketing campaigns. Behavioristic characteristics of consumers include brand loyalty, consumer status and this information can be collected through market research. Geographic characteristics include region, market size and market density. For example; a company selling raincoats will be more active in tropical areas and less active in dry regions.
For example; if you are purchasing grocery from a retail store, you are participating in a consumer market.