A Quintessential Guide to Consumer Markets Examples

The consumer market entails the widespread buying of products and services from merchants in various sectors. Whether you purchase goods or services for personal use or for others, you participate in this extensive, connected market. Countries like China and the United States have some of the largest consumer markets globally.

Characteristics of consumer markets

Businesses use market segmentation to analyze characteristics of consumer markets. This information makes it easier for brands to implement effective marketing plans. For instance, companies glean insights from the data to target young adults aged 18 to 25 for a clothing or smartphone range. The targeted group may have other qualifying characteristics, such as interests and income level.

Some examples of essential consumer traits include:

• Psychographic
• Behavioristic
• Geographic characteristics
• Psychographic (attitudes, interests, values, opinions and activities)

Brands can target consumers based on specific or general opinions. Focus group interviews or surveys enable businesses to understand consumers’ attitudes and opinions.

Gender plays an essential role in market segmentation. For example, marketing campaigns promoting sanitary napkins need to focus on female buyers. By targeting the dominant user base, merchants maximize the return on investment (ROI) of their campaigns. As such, campaigns aimed at females employ language and imagery that appeal to this market segment.

Age also influences how marketers communicate with potential customers and the type of products involved. For instance, parents and grandparents are the ideal targets for a toy campaign. Brands also direct the marketing messages to children who, in turn, ask the adults to purchase the items.

Market research can also uncover behavioristic characteristics like brand loyalty, desired product benefits, usage rates and user status.

Consumer markets examples

Consumer markets examples include products in categories like fast-moving consumer goods and consumer durables. Commercial activities in this market involve individuals purchasing goods and services for personal use. Individuals typically purchase electronic items, food and beverages, recreational services, clothing, transportation and financial services.

Consumer durables are high-value items that fall either under the white or brown goods sub-categories.

• Brown goods include:
• Gaming consoles
• Televisions
• Computers
• Audio equipment
• Digital media players

White goods include:

• Tumble driers
• Freezers
• Washing machines
• Dishwashers
• Refrigerators
• Stoves (or cookers)

The differences and similarities of white and brown goods: Most white goods are kitchen appliances and not portable and, in the past, there were almost exclusively painted white. On the other hand, brown goods are generally portable, excluding some audio equipment. Both brown and white items require electrical power to function.

Marketers value the role played by consumer markets due to the high volume of purchases. Unlike the consumer market, the business market purchases goods and services to use in production processes. The aerospace industry is an example of the business market as it buys raw materials and components to build airplanes.

Conversely, reseller markets focus on buying merchandise for reselling. Participants in this market include pharmacists, specialty stores and supermarket chains. Additional markets include international and government markets.

Types of consumer markets

A consumer market is a type of customer market consisting of multiple subtypes. Each variant has distinct characteristics linked to the value of the goods, sales volumes and other factors.

1. The fast-moving consumer goods (FMCG) sector

Also known as the consumer packaged goods (CPG) market, the FMCG sector is one of the largest sub-categories in the consumer market. Consumers generally purchase low-value items regularly, and the goods come with a relatively shorter shelf life. Merchants offset the low profits by distributing large volumes of the merchandise.

Popular multinational companies active in this sector include Coca-Cola, Unilever, and Johnson & Johnson. Manufacturers and retailers sell a wide selection of consumer products that fall under categories. These include:

• Personal care products
• Foodstuffs
• Beverages
• Home care items

Price competition: Price competition can be intense in this market due to the similarities between products. To boost customer loyalty, merchants employ various marketing approaches. Once a given product earns a considerable base of loyal customers, brands find it easier to increase prices.

Resilience: In an economic downturn, players in this sector leverage the immunity offered by most consumer goods. Consumers often reduce expenditure by cutting down on luxury items. The food sub-category is one of the largest markets for manufacturers and retailers. However, the sub-sector encompasses highly perishable items like vegetables, meat, fruits and dairy products.

Marketing: Companies often hire marketing firms specializing in FMCG campaigns to achieve the desired results. On the other hand, suppliers need to invest in research and development to create innovative product ideas that meet consumers’ changing needs.

The food and beverages market

Since food and beverages are essential items, marketers find it easier to convince consumers to purchase products. Brands work tirelessly to attract loyal customers using various techniques. These include:

• Quality packaging
• Social media marketing
• Television ads
• Mobile marketing

Convenience: Convenience is an essential component of packaging that enhances the appeal of a particular product to consumers. Hence, many companies invest a significant amount of money to introduce innovative packaging, such as easy-open cartons for quick-eat food and beverages.

Competition: Intense competition necessitates the involvement of consumers in the innovation process. This approach elevates the chance of successful packaging innovation. The ideal designs meet consumers’ needs without inflating production costs.

Co-creation enables designers to consider consumers’ views during the design process. Many companies interact with consumers via social media to enhance designs.

To make your mark in product innovation, marketing and other disciplines in the food and beverages market, find the right job opportunities on Indeed.com.

2. Consumer durables

When looking at examples of consumer markets, you should familiarize yourself with consumer durables. In recent years, this sector has been experiencing significant growth spurred by several factors. These factors include:

• Increased disposable income
• Retail boom
• Growth in vehicle sales

Vehicle sales is a key growth driver in the market. Computers and other electronics also contribute significantly to the sector’s overall performance. The market has two main segments: consumer appliances and electronics.

Prices: Manufacturers and retailers charge relatively higher prices than fast-moving consumer goods (FMCG). The items last for a minimum of three years. Durable goods are a key component of the retail sales data. Economists use the data to gauge the overall strength of the economy. In the United States, consumer merchandise purchases translate to over 68 percent of the gross domestic product (GDP).

Capital goods: Individuals preserve wealth by investing in wide-ranging durables, investments and capital goods. The items retain economic value for extended periods. The goods are available in three categories: services, durable and non-durable goods.

Characteristics of a consumer

Consumers drive the economic activity of a country, and companies develop a wide selection of products and services to satisfy specific consumers’ needs. Although economists traditionally viewed consumers as an aggregated commodity than individuals, a new trend is emerging in the marketing ecosystem. Marketers now conduct research and market analysis by individualizing consumers’ profiles.

They analyze various market segments, including demographic and psychographic profiles, intending to personalize marketing material. Additionally, they increasingly focus on mass customization and permission marketing.

Brands formulate powerful marketing strategies that capture the target audience’s imagination by focusing on the following key aspects:

• Consumers’ behaviors
• Motivations
• Attitudes
• Customers’ needs

In turn, consumers gain access to the relevant and reliable product or service information, making it easier to satisfy specific needs.

The role of marketing campaigns: Companies engage in constant marketing campaigns to inform consumers about service and product options on offer. Consumers rely on this information to make informed purchasing choices. Intense competition between businesses yields significant benefits for consumers, including cost savings, improved customer experience, and quality products.

Market research: Competition is a hallmark of a vibrant free-market system. On the other hand, market research enables brands to make informed decisions and gain a competitive advantage. Hence, companies eliminate uncertainty regarding consumers and marketing variables, enabling them to predict customer response to campaigns more accurately. This approach applies to various consumer markets examples like financial services, retail, transportation, and recreational services.

While many purchasing choices directly link with personal gratification, social influences can also play a part in the decision-making process. For instance, teenagers often opt for smartphones, apparel, and other consumer items based on their collective brand or style perceptions.

Price considerations: Price considerations also influence the choice of products bought by consumers. In many cases, buyers opt for an item because it helps save a significant amount of money. Health is another key factor that determines the right product option.

The decision-making process

The decision-making process associated with consumer markets examples like financial services and retailers, entail varying degrees of intensity or involvement. When you enter a grocery store to buy essential items like foodstuff, you decide to buy with minimal involvement. Conversely, the process of signing up for financial products demands a more involved decision-making approach.

Likewise, the choice to buy a vehicle or a residential property requires careful consideration. You may need to weigh your options for several weeks or months before selecting the right property or vehicle. Items with a lower price tag typically fall under low involvement purchases because there is minimal risk associated with your final choice.

On the other hand, some consumers find items like clothing trickier to take a decision lightly. Thus, such items lie in the middle lane between low and high involvement purchases.

Consumer direct marketing

Companies display direct marketing messages in various ways, including on billboards and other signs posted in public places. In doing so, they boost brand and product awareness, enabling consumers to identify products and services that satisfy specific needs.

Brands also employ direct mail as a marketing strategy to ensure the visibility of products and services. You may have noticed coupons and other marketing materials delivered to mailboxes and doorsteps.

The widespread use of digital platforms has enabled businesses to publish marketing messages via social media networks, search engine results pages, and other web portals. Small and large companies take advantage of the online platforms to compete for market share. They deliver consumer direct marketing messages via video, text, audio, and images.

Print campaign materials are also popular with businesses of varying sizes. Marketers distribute materials, such as pamphlets, in various places for collection by consumers.

Smaller businesses like auto repair shops often place flyers on vehicle windshields, distribute the materials directly to passersby or pin them on bulletin boards. In some cases, business people present prospects with a business card. This approach qualifies as direct consumer marketing.

Low and high involvement purchasing

Businesses selling products and services requiring high involvement decisions need to provide comprehensive information to convince customers to purchase.

With the high involvement purchases, you are more likely to undergo multiple phases. The first stage involves identifying a need for a particular service or product. Subsequently, you kickstart the research process to assess the available products or services capable of filling the need. You conduct the research in-person or online.

At the end of the research phase, you evaluate the available options by matching your needs with the right product or service. During this phase, you may check customer reviews or word-of-mouth sources to narrow down the options.

Eventually, you reach the final decision and purchase the product. However, consumer behavior persists long after the purchase as you evaluate the product to determine its reliability, performance and overall quality. The evaluation influences future purchasing decisions.

Consumer research techniques

Marketers employ various research techniques to gain an in-depth understanding of consumer behavior, attitudes, and interests. Depending on the techniques involved, they may survey participants using specific or broad questions. Qualitative approaches focus on particular cases to understand behavior, while quantitative research techniques help identify patterns and predict consumer responses more accurately.

Qualitative researchers strive to uncover factors that govern human behavior by evaluating the why and how. As such, researchers concentrate on smaller samples than larger ones, which play a central role in quantitative research. They employ

both techniques to gain valuable insights in various consumer markets examples, such as healthcare, retail and hospitality.

Key qualitative research methods include:

• Participant and non-participant observation
• Document analysis
• Structured, semi-structured and unstructured interviews
• Reflexive journals
• Gathering field notes

When it comes to focus groups, researchers explore consumers’ beliefs, perceptions, attitudes, and opinions about brands, products, or services. They can also conduct surveys about packaging, specific marketing messages and product ideas or concepts.

Comprehensive consumer research programs help shape a brand’s new product or service launch. It can also determine the contents of business plans and help optimize existing offerings to boost the brand’s market positioning. In-depth insights gleaned from the data make it easier to expand operations into new markets.