Know Your Customers - Customer Groups Flashcards
What does marketing begin with?
Marketing begins with customers.
What is the aim / purpose / objective of marketing?
To satisfy customers’ needs and wants.
Can customers’ needs and wants be satisfied with a single product?
No. The needs and wants of customers may not be satisfied by a single product as different customers have different needs and wants.
Can customers with similar needs and wants be grouped together? What is the advantage of grouping customers with similar needs and wants together?
Yes. Businesses can then offer different products to different groups of customers to better satisfy their needs and wants.
What are some of the common bases / ways used by businesses to group customers?
- Age - which age group do they belong to?
- Gender - Male or female?
- Income - How much do they earn?
- Occupation - What do they work as?
- Geographic location - Where do they live or work?
- Lifestyle - What are their interests and attitudes?
- Social group - Who do they mix with?
- Benefits sought - What do they want from the product?
Learning Tip / Learning Tool:
How can I remember the eight common ways of grouping customers?
By remembering “BIG GOALS”. The first letters of the different ways for grouping customers make up “BIG GOALS”.
What is a ‘target market’?
A target market is a group of customers with similar needs and wants that a business chooses to serve.
Give some examples of how a business may use more than one way to group customers.
Example 1: A clothes retailer may choose males aged between 18 and 25 years old as its target market. This retailer has used gender and age to identify its target market. The retailer then sells clothes that will appeal to this target market.
Example 2: Another clothes retailer may use gender and occupation to identify its target market. For example, a clothes retailer may choose female office workers as its target market. The clothes it sells will be ladies’ office wear.
