“All production is for the purpose of ultimately satisfying a consumer” said John Maynard Keynes, a British economist, whose ideas fundamentally changed the theory and practices of macroeconomics.
The firm’s ultimate goal is to fulfill its consumer’s need and that could only be possible if the firm understands its consumer’s preferences and acts accordingly in terms of its market strategy. The game is not only limited to knowing the target audience but to expanding it gradually and providing exactly what consumer wants.
Today in this digital age, when the consumers are more powerful than ever, it’s still a catch for the producers to anticipate consumer’s need and deliver beyond expectation.
Knowing your target customers and segmenting them based on their shared interests is the process of what we call market segmentation. It includes your existing as well as potential consumers and helps to set your market strategy accordingly. Suppose a firm is into stationary sale then it must target the customers of age group 4-18 mainly and then place the services and products accordingly.
Whether it’s an online platform or a physical store, greater involvement of the firm with its consumers leads to faster gain of trust. The feedback of consumers could help the firm to understand the consumer’s need and the pattern of purchase they make.
For ex.: if that stationary shop owner provides the good according to certain customer’s affordability and received feedback rather than luring him/her into something much costlier, the shop might never lose that customer.
Today in the day and age of social media, it’s not difficult to know your consumer’s preference and the way in which they make a purchase. The e-commerce sites are making the most of it by changing their suggestion algorithm accordingly but the physical stores can also conduct the survey and research among their target consumers to find out the latest preferences and pattern.
Ex: the stationary shop may find the trending stationary items being used through certain social media platforms and include it in their store.
Only way to anticipate the consumer needs or wants even before they know is to anticipate the market trends, observing the current developments as the giants like amazon or apple did.
Ex.: the stationary shop might provide the service of home delivery in the recent wake of pandemic and make the shop available digitally to increase the buzz of the enterprise.
Everyone is not a producer but everyone is a consumer for sure. Looking from a consumer’s point of view makes everything clear regarding what and how commodities should be marketed and it might also lead to suggest some additions and reductions one need to make in the enterprise.
Ex.: The stationary shop might add candies or complementary erasers for each purchase of certain value for the customers of age group 4-12 years to lure more consumers of that age group.