Page 67 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes So the non-behavioural correlate, that explain the nature of consumer by identifying factors that
explain the consumer’s state of being like age, sex, income, occupation as well as the behavioural
correlate that explain his past behaviour, current consumption pattern and intended behaviour
influence the consumer decision making process. Marketing managers need to understand and
acquire adequate knowledge on both non-behavioural and behavioural correlate of consumers
for better managerial decision making. Consumer’s buying is also influenced by various
situational factors viz. location of the store, crowd in the store, distance of the store from the
residence of consumers, type and number of stock keeping units available in the store, nature
and frequency of advertising, effects of sales promotion and public relations. In this unit, you
will about different aspects of consumer’s behvaiour and the major factors that affect an individual
consumer.

3.1 Types of Markets

When the final output of the firm goes for the consumption of individual consumers, we can call
this as a consumer market. Demand of end consumers decides the level of production and the
marketing effort of a firm.
Consumer markets can be categorised in several ways:

Fast-moving consumer goods (FMCG) Market: In this market, the products are of low unit
value and there is fast repurchase. High volume is one of the distinctive features of this
market.

Example: FMCGs include Soaps, Juices, Grocery, Chocolate, etc.
Consumer durables Market: This is a low volume but high unit value market.

Example: Consumer durables include television, dishwasher, DVD player, Gaming
console, etc.
Soft goods Market: Soft goods are similar to consumer durables, except that they wear out
more quickly and therefore have a shorter replacement cycle.

Example: Clothes, shoes, etc.
Services Market: market dealing in intangible products.

Example: Teaching, parlours, childcare, etc.
Apart from these, we can also categorise markets on the following basis:
1. Markets based on area: When area is used as a basis of market classification, we categorise
markets into local markets, regional markets, national markets and international markets.
It depends on the manner in which the buyers and sellers are located in a particular place.
2. Markets based on nature of transactions: We can classify the markets on the basis of
nature of transactions into two broad categories: the spot market and the futures market.
3. Markets based on volume of business: On the basis of the volume of business, the markets
are broadly classified into wholesale and retail markets.

4. Markets based on time: Sometimes the time element is used to classify the markets. The
time is classified as very short period, short period and long period. Accordingly we have
very short period markets, short period markets and long period markets.

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