Definition of Consumer Groups


Consumerism is at the heart of our country's economy. Consumers are people who purchase goods and services from other people who are the sellers of those items. The goods and services span the gamut from intangibles like stocks and bonds, to tangible items like cars and refrigerators, to consumables like a Big Mac sandwich. The transaction between consumer and seller is an exchange of value. The buyer freely exchanges the monetary value of the item being purchased while the seller exchanges the perceived value inherent in the object being bought.

General Market

  • Most marketers refer to the huge group of all possible consumers as the general market. Within the general market, groups get further defined to help marketers zero in those people who would be considered in their particular consumer franchise. Marketers use demographic definers to understand the unique nature of their consumer franchise. The most common demographic is gender, male or female. Age is another major definer of a consumer group. Other definers include geography, number in household and income.

Consumer Profiles

  • A standard axiom in marketing planning is to know your consumer. Marketers will develop profiles of their consumer franchise, first on demographic measures and secondarily on psychographic measures. Psychographics could be determined from conducting market research studies that ask questions that reveal the psychology of the consumer. Instead of asking a consumer's real age for example, a marketer might pose a question such as "What do you consider your ideal age?" The difference between a consumer who is 60 years old but feels like he is 26 is vast in terms of tastes, preferences and product selection.

Market Segmentation

  • Market segmentation is the practice in marketing that advocates defining groups within a consumer franchise and developing appeals specifically for that group. A simple segmentation would be to create advertising for a generic car brand that would appeal to males on one hand and females on the other. For men, the advertiser might decide to use a beautiful model to draw attention to the car from men. For women, the advertiser's message might be ease of parking or rear seat safety features.

Multicultural Consumer Groups

  • The past few decades have seen a remarkable shift in the character of the general market as U.S. minority groups (African Americans, Hispanic Americans and Asian Americans) have grown in size, affluence and influence. Marketers have taken notice and develop messages specifically targeted to those groups. In the case of Hispanics and Asians, there may be a number of different ethnic groups within those larger groups. The Asian market might include Chinese, Japanese, Korean and Vietnamese consumers. Ideally, a marketer desiring to reach those groups effectively would need to develop separate in-language messages.

Related Searches


  • Photo Credit Jupiterimages/Brand X Pictures/Getty Images
Promoted By Zergnet



You May Also Like

  • What Is Consumer Research?

    Consumer research, sometimes known as market research, is a valuable business tool that can help you understand your customers and what makes...

  • Definition of Licensing & Franchising

    Licensing, in the business world, is a contractual agreement to use a brand name, patent or property that is owned by another...

  • Definition of Consumer Attitude

    Consumers are individuals with likes and dislikes. When the preponderance of people in a particular group feel one way or another about...

  • Definition of Consumer Motivation

    Consumer motivation is an internal state that drives people to identify and buy products or services that fulfill conscious and unconscious needs...

  • How to Define a Demographic for Marketing

    Effective marketing is about targeting the right people with the right sales pitch. This includes the design of the marketing material, such...

  • Group Influence on Consumer Behavior

    Humans are social animals. Their actions, behaviors and aspirations are significantly influenced by those of their reference groups. This is particularly true...

  • Difference Between a Buyer and a Consumer

    When you formulate a business and marketing plan you must take the time to identify your ideal target market. The target market...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!