It is important to monitor consumer trends and maintain good customer relationships. Consumer trends are monitored to recognize the market necessities and introduce new products.
What is a customer?
A customer is the one who buys the product. It refers to the group of people who possess the purchasing power and is willing to spend money on a product. There are two types of customers.
Resell customer
They buy products to sell them further in the market and draw profit. They are not the end-users but they add value to sell it further in the market. Wholesalers, manufacturers, trade customers are a few of the resell customers.
Final customer
These types of customers buy products for themselves. They do not intend to sell the product for monetary gains.
The customer plays a crucial role in any business, they are the ones driving the sales and bringing profit. A business needs to cater to its customers. According to the needs and behavior of a customer, a customer can be
Loyal Customer- they are highly valued, few customers. Loyal customers are considered an asset for a business to rely on. These customers are loyal to a certain brandDiscount Customers- They are considered regular visitors, but are more thriftyImpulsive Customers- These customers are difficult to please and will buy a product for instant gratification or that suits their needs at a particular timeNeed-Based Customers- These customers have a set priority and will buy a product according to the needWandering Customers- these customers are least valued as they are difficult to please and are themselves unsure of what they want to buy
What is a consumer?
The definition of a consumer is subjective and can be often confused with a customer. Though a consumer can be a customer at times, for marketing a clear distinction is needed to devise strategies for providing better products and services
A consumer is a person who ultimately, uses the product or service. A customer can be a consumer at times, but not always. A consumer cannot resell the product further and comes at the end of the supply chain.
A good example, of a customer, will be a father buying ice cream for their kids. Here, the father is the customer but the consumer is the kids who will ultimately, consume the product.
A customer will pay the price, but a consumer does not necessarily pay for the product, they are a key factor in driving sales. There can be a different types of consumers that a business can recognize with:
Commercial Consumer- they buy products or services in bulk, depending on the requirement of the consumer. Discreet Consumers- They have unique buying habits and a penchant for certain items like jewelry, apparel, shoes, cosmetics. These customers can splurge on products and itemsExtroverted Consumer- they are considered loyal customers and prefer buying good quality products for themselves irrespective of the price point. Inferior Goods Consumer- they are thrifty, and might belong to the lower-income group and prefer buying poor quality products.
why is it important?
A business needs the consumer to thrive and make draw profits. For a business to flourish, a deep, insightful knowledge of the consumer trends is needed
It helps in maintaining the supply-demand chain. as supply is directly proportional to the demand. If the demand for a product increases, the company has to increase its supply. Thus, they play a vital role in creating demandservices and goods that can be altered according to the consumer trends, or meet the needs of the target population. Biodegradable, eco-friendly products are coming up in the marketto devise marketing strategies, it is important to recognize your target niche and advertise your product that can reach out to the target population.
Relationship between customers and consumers
A consumer may not necessarily be a customer, but a customer can be a consumer if they use the product for themselves. They play a vital role in purchasing the product.
For instance, a person buys groceries for his home. Here, the person is a customer who has the monetary advantage of purchasing a product. He is the one driving sales. At home, the groceries are used by his family. Ultimately, making them the consumer.
Conclusion
Consumer Vs Customer
