P5- Explain how and why groups of customers are targeted for selected products
In this task, I will be explaining how and why groups of customers are targeted for selected products.
I will also be explaining what Market segmentation is and why it is important to organisations. I will
also be discussing how customers are identified within consumer markets and how business markets
are segmented.
How to identify customers in a consumer market?
In consumer markets, businesses attract different customers by using different ways of market
research and this could be from doing primary and secondary research. Primary research is research
which is done by businesses by themselves and secondary research is research which has already
been done by another business or person who has published the information online for other
people/businesses to use. This is how businesses find out specific information about their customers
who could be located in their local,national or global community. Businesses can also use socio-
economic climate which looks at the information that the business have found out about their
consumers which enables them to put the customers that they are targeting into different
categories which is also known as Market segmentation. Another method that
businesses/organisations can find out their customers is by using geographical information which
has information about where their customers/consumers are located so that the business can locate
as close as possible with their potential customers.
What is Market Segmentation and why it is important to businesses?
Market Segmentation is the process in which businesses must undertake which divides the market
into small groups and these groups are made up of people who have the same needs/demands. This
is so that the business can find out what customers like and which type of customers are likely to
buy their products/services. This is very important for organisations because it helps them to get a
full understanding of what their customers want/need. This is done through marketing agencies that
are based on the internet who help businesses to gain a higher amount of profit which will only
come from an increase on the sales that the business gets.
Understand the customers
Businesses must be able to understand their customers as they can have many needs and they will
be the reason for the sales and profit that the business gains so the business would need to do to
ensure that they understand their customers is by ensuring that the products that they sell is
actually for the customer and they buy this as all businesses have competitors and they would need
to give customers reasons to buy their products rather than going out to the competitors and buying
the same or a similar product. Using market segmentation, this will ensure that the business gets a
full understanding of the different types of customers that will come and purchase products from
them and then they can use the market segmentation details to ensure that they make the best
possible product for the customers that they are targeting.
Maximising the potential product that is going to be sold in the business
Businesses must ensure that they segment their target markets problem as this will allow the
business to get an understnading of how the product is actually going to be used by the different
In this task, I will be explaining how and why groups of customers are targeted for selected products.
I will also be explaining what Market segmentation is and why it is important to organisations. I will
also be discussing how customers are identified within consumer markets and how business markets
are segmented.
How to identify customers in a consumer market?
In consumer markets, businesses attract different customers by using different ways of market
research and this could be from doing primary and secondary research. Primary research is research
which is done by businesses by themselves and secondary research is research which has already
been done by another business or person who has published the information online for other
people/businesses to use. This is how businesses find out specific information about their customers
who could be located in their local,national or global community. Businesses can also use socio-
economic climate which looks at the information that the business have found out about their
consumers which enables them to put the customers that they are targeting into different
categories which is also known as Market segmentation. Another method that
businesses/organisations can find out their customers is by using geographical information which
has information about where their customers/consumers are located so that the business can locate
as close as possible with their potential customers.
What is Market Segmentation and why it is important to businesses?
Market Segmentation is the process in which businesses must undertake which divides the market
into small groups and these groups are made up of people who have the same needs/demands. This
is so that the business can find out what customers like and which type of customers are likely to
buy their products/services. This is very important for organisations because it helps them to get a
full understanding of what their customers want/need. This is done through marketing agencies that
are based on the internet who help businesses to gain a higher amount of profit which will only
come from an increase on the sales that the business gets.
Understand the customers
Businesses must be able to understand their customers as they can have many needs and they will
be the reason for the sales and profit that the business gains so the business would need to do to
ensure that they understand their customers is by ensuring that the products that they sell is
actually for the customer and they buy this as all businesses have competitors and they would need
to give customers reasons to buy their products rather than going out to the competitors and buying
the same or a similar product. Using market segmentation, this will ensure that the business gets a
full understanding of the different types of customers that will come and purchase products from
them and then they can use the market segmentation details to ensure that they make the best
possible product for the customers that they are targeting.
Maximising the potential product that is going to be sold in the business
Businesses must ensure that they segment their target markets problem as this will allow the
business to get an understnading of how the product is actually going to be used by the different
