Reezikassan Rameshkumar 40104702 Unit 3 Task 4 Group B
Explain how and why groups of customers are targeted for selected products.
In business customers, consumers and buyers all do have different meanings. A customer
can be organisation or an individual who buys a good or service from a shop or business. A
consumer is an individual that buys goods or services that is for personal use. A customer
can become a consumer if they use the product. Whereas a buyer can be a group or an
individual who agrees to have ownership for a good, or benefit from a service that involves
the exchange for money. The difference between them is that a buyer is when a business or
individual make a purchase. But, a consumer is when they buy the good or service and use
it. The consumer are also known as a ‘end user’ this is when the user of the product usually
don’t have to buy the product as a customer could have bought it for them.
The use of a market segmentation is that it splits up the market into different types groups or
segments to allow a business to target its products to their most relevant and relatable
customers. The benefits the businesses make from segmenting their markets one can be
that the business can match its customer’s needs, as customers differ by creating products
that are suitable for each different segment would make sense. This is because a group of
young people realistically won’t have the same liking compared to an elderly person. So the
business has to make products that should match many different groups that fulfils the
individuals.
Explain the 4 types of customer segmentation and the DMU
Market segmentation is a marketing strategy that has to process to divide its market target
audience into different groups or segments but it is just based upon their characteristics,
such as age, gender, race or culture. The segments are there to study which customers
share the same traits and those who are quite similar when it comes to lifestyle, interest,
location or beliefs.
Geographic - Is very important especially for multi-national businesses, this is because they
would want to have so many branches around suitable areas to promote their product, and
to also look at the location of their right customers who would actually buy their product. E.g.
there can’t be a plumber that drives all the way to the countryside just to one job, so it has to
be somewhere local.
Psychographic - This refers to the marketing strategy that divides the customers in a group
that is based on lifestyle and beliefs. This type of segment allows marketers to study the
different influences and attitudes on certain goods and services. E.g. If a person goes to a
gym to become healthy it is their lifestyle, but they would want to buy clothes that are
suitable to wear for gym such as tracksuits, so they would want the best quality clothing from
brands like Nike or Adidas.
Socio-cultural - This involves a range of factors such as religious beliefs, education level and
income level. The customers would have different religious beliefs such as for restaurants
there are people who eat halal meat, this means that most restaurants would have to offer
this to the customers. The education level would look at the different qualifications such as
high school or university. But, the income level would see which customers have the
incentive to spend money on expensive goods such as a rolex.
Demographic - Is a group that has a mixture of variables such as gender, age, race income
and nationality. It makes the company’s job more easier if customers are broken down and
separated into groups that related to the demographic variable. This is because, if they
groups teenagers and adults as two groups it can mean that most teenages can relate to
each other which means that they might have similar buying habits.
Decision Making Unit
The decision making unit (DMU) is when there are a group or different individuals who are
involved in a purchasing process in a business, this is here to identify customers in business
to business markets. The DMU can be broken down into five different groups:
Influencers - Theses are people who have a persuasive role as they are the ones who are
making recommendations based on the experience and knowledge of the goods and
services. An example of this can be that a organisation would want to employ consultants as
they are the ones who work alongside with the deciders to come up with the final decision.
Gatekeepers - Are individuals who are very proactive when it comes to searching for
information and also having to deliver some recommendations to the deciders that are
further down the line. The gatekeepers also do stall the process until everything little bit has
Explain how and why groups of customers are targeted for selected products.
In business customers, consumers and buyers all do have different meanings. A customer
can be organisation or an individual who buys a good or service from a shop or business. A
consumer is an individual that buys goods or services that is for personal use. A customer
can become a consumer if they use the product. Whereas a buyer can be a group or an
individual who agrees to have ownership for a good, or benefit from a service that involves
the exchange for money. The difference between them is that a buyer is when a business or
individual make a purchase. But, a consumer is when they buy the good or service and use
it. The consumer are also known as a ‘end user’ this is when the user of the product usually
don’t have to buy the product as a customer could have bought it for them.
The use of a market segmentation is that it splits up the market into different types groups or
segments to allow a business to target its products to their most relevant and relatable
customers. The benefits the businesses make from segmenting their markets one can be
that the business can match its customer’s needs, as customers differ by creating products
that are suitable for each different segment would make sense. This is because a group of
young people realistically won’t have the same liking compared to an elderly person. So the
business has to make products that should match many different groups that fulfils the
individuals.
Explain the 4 types of customer segmentation and the DMU
Market segmentation is a marketing strategy that has to process to divide its market target
audience into different groups or segments but it is just based upon their characteristics,
such as age, gender, race or culture. The segments are there to study which customers
share the same traits and those who are quite similar when it comes to lifestyle, interest,
location or beliefs.
Geographic - Is very important especially for multi-national businesses, this is because they
would want to have so many branches around suitable areas to promote their product, and
to also look at the location of their right customers who would actually buy their product. E.g.
there can’t be a plumber that drives all the way to the countryside just to one job, so it has to
be somewhere local.
Psychographic - This refers to the marketing strategy that divides the customers in a group
that is based on lifestyle and beliefs. This type of segment allows marketers to study the
different influences and attitudes on certain goods and services. E.g. If a person goes to a
gym to become healthy it is their lifestyle, but they would want to buy clothes that are
suitable to wear for gym such as tracksuits, so they would want the best quality clothing from
brands like Nike or Adidas.
Socio-cultural - This involves a range of factors such as religious beliefs, education level and
income level. The customers would have different religious beliefs such as for restaurants
there are people who eat halal meat, this means that most restaurants would have to offer
this to the customers. The education level would look at the different qualifications such as
high school or university. But, the income level would see which customers have the
incentive to spend money on expensive goods such as a rolex.
Demographic - Is a group that has a mixture of variables such as gender, age, race income
and nationality. It makes the company’s job more easier if customers are broken down and
separated into groups that related to the demographic variable. This is because, if they
groups teenagers and adults as two groups it can mean that most teenages can relate to
each other which means that they might have similar buying habits.
Decision Making Unit
The decision making unit (DMU) is when there are a group or different individuals who are
involved in a purchasing process in a business, this is here to identify customers in business
to business markets. The DMU can be broken down into five different groups:
Influencers - Theses are people who have a persuasive role as they are the ones who are
making recommendations based on the experience and knowledge of the goods and
services. An example of this can be that a organisation would want to employ consultants as
they are the ones who work alongside with the deciders to come up with the final decision.
Gatekeepers - Are individuals who are very proactive when it comes to searching for
information and also having to deliver some recommendations to the deciders that are
further down the line. The gatekeepers also do stall the process until everything little bit has
