P5 Explain how and why groups of customers are targeted for selected products

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Task 8

P5: Explain how and why groups of customers are targeted for selected products

The difference between customers, customers and buyers

Customers and consumers

A customer is a person who buys a product, e.g. you are a customer when you buy any product from a store for example. Whereas a consumer is a person who consumes a product bought for example you are a consumer if you eat a chocolate that has been bought.

A customer can also be a consumer sometimes, for if someone buys some sweet and eats them, this person will be a consumers as well as a customer


A Buyer is anyone who has the abilities to buy products or services and since customers are people who buy products, they can be called buyers unlike consumers.

Importance of identifying who has influence over purchasing decisions

It is really important for marketers to be able to know what customers want by identifying their behaviours because when they know what the customers want then they will be able to target them better and to satisfy customer’s needs with their products.

When identifying buyers’ behaviour it is also important to know the needs of the customers because it is what helps to better identify the buyers behaviour.

Targeting individuals who have the influence over the purchasing decision, for example for a charismas present for children, it is the parents who will be targeted as they have the influence over the purchasing decision.

How markets are segmented for a product or a service

The segmenting is a method used for marketing for products or services, there are four main methods used to do so and these methods are geographic, demographic, psychographic and lifestyle. Segmentation is a method used by organisations to allow them to develop products and plans that will fit the needs of customers more effectively.

When segmenting a market, the general categories to consider are demographic, psychographic, lifestyle and geographic

Psychographic –

This segmentation refers to the lifestyle or the beliefs of customers. For example if the product being marketed has a belief attached to it you will need to identify the corresponding audience who have that belief

Geographic –

This segmentation depends on the location of the customers. These customers might be divided into national or regional group.

Demographic –

The demographic segment refers to the age, sex, gender of customers. For example beauty products are mostly aimed at women first  

Socio- cultural

This refers to different classes, it can also include things like education, income etc... People in society are classed into different classes depending on their jobs, from A which is Upper middle class to E which is lowest class.

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Uses of geo-demographic systems to identify and reach target groups-

Geo-demographic systems are used by businesses when they decide to target their customers on a geographical level. There are two neighbourhood classifications that are used by businesses to do so, and these are ACORN and MOSAIC


ACORN is a go-demographic instrument used by organisations to identify and understand the UK population and the local demand for different products and services. This system uses demographic statics and lifestyles to divide the UK postcodes and this is used as a guide by businesses to differences between geographical regions. This ...

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