importance of consumer markets

1. Consumer Market Meaning,
Importance, Types & Example
• What is Consumer Market
Consumer market refers to the market where people purchase
products/services for consumption and are not meant for further
sale. This market is dominated by the products which consumers
use in their daily life. Each time a consumer purchases a
commodity for his own usage he/she is participating in a
consumer market.

2. Consumer Market Types
• Primarily there are four types of consumer markets;
• 1. Food and beverages,
• 2. Retail,
• 3. Consumer products
• 4. and Transportation.
• 5. Online markets
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.

3. Importance of Consumer Markets
• Consumer Markets are very important in the marketing
ecosystem as it is the place where maximum buying by a
customer is done. 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.

4. Consumer Market Example
• If you are purchasing grocery from a retail store in your area,
you are participating in a consumer market. In this market, the
buyer is the end consumer who is buying the products for
his/her own consumption and not for further selling unlike a
wholesale market where buying can be done for further selling.

5. Significance of Consumers
The consumer market is comprised of consumers, and when they keep
consuming products and services. The businesses flourish because of it; the
economy of the country grows as a result.

6. Types of customers.
• There are seven types of customers.
1. Loyal customer. This is your most important customer
2. Need-based customer
3. Impulsive customer
4. New customer
5. Potential customer
6. Discount customer
7. Wandering customers