P1: Describe customers in four different contexts:
A Market:
A market is a place where demand and supply operate. Buyers and sellers interact to trade their good and services. (What is a market? , n.d.) When developing a new product or service to sell to the public, it is good for a business to consider whether there is a market. If there is, it could determine if the product or service will be successful. It is likely that businesses will have competitors within the same market competing to sell their goods to customers as well.
Market Share:
Market share is the percentage of what the business has in the overall market. The competitors make up the rest of the market. Market share is used to measure how well they are doing compared to
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These are explained below.
B2B’s and B2C’s are both communications directed to people. Whether this be towards a business or to a customer, they are trying to market their products and services to their desired target audience. Another similarity is B2B’s and B2C’S both need to build a brand. If a brand has a good reputation, customers and businesses, are more likely to purchase that brand. Examples include logos and packaging. (B2B and B2C Similarities and Differences , n.d.) These need to capture the attention of their customers because businesses have competition and therefore need to stand out.
Marketing strategies may differ between B2B’s and B2C’s. B2C transactions are likely to use marketing such as advertising, direct and Internet selling to market their products and services. They may also use discounts and loyalty programs to attract prospect customers as well as retaining repeating customers. B2B’s have a different marketing strategy. As stated above, B2B’s have a longer buying process compared to B2C’s. Because of this, B2B marketers need to focus on building a relationship with its business prospects and taking into account the buyer's specific
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An example of demographic segmentation is being used in the automobile market. This is done on the basis of income from a household. Suzuki has a low-price bracket for their cars whereas BMW have a high price bracket so it targets high end buyers who are willing to spend more money. BMW have segmented a market by differentiating their products. Comparing it to Suzuki, BMW allow customers to design their car such as the seat material, colour, wheels and engine. Due to the personalisation, BMW can charge a higher price for their cars which means customers with a high level of income can purchase these cars.
Geographic segmentation is when a business divides its market based on their geographical location. Examples include towns and countries. Multinational clothing companies such as ‘Next’ would use geographical segmentation to market their products to its customers. Clothes that Next would sell in the UK are not necessarily the same clothes that they sell in Asia and the Middle East. This could be due to the climate or the culture. Next have used geographic segmentation so that they are able to sell their products in more countries and can make more