Knowing Your Market

• Market categories for products can significantly influence various aspects of a product's lifecycle, from production to pricing strategy, target customer base, and performance across economic cycles. Understanding these categories helps businesses tailor their approach to product development, marketing, and sales strategies. Here are some common market categories and how they affect these elements:

  • Luxury Products

    • Production Volume: Often lower, as the focus is on exclusivity and high-quality craftsmanship.

    • Pricing Strategy: Higher price points due to the perceived value, brand prestige, and quality.

    • Target Market: Aimed at affluent consumers willing to pay a premium for exclusivity, status, and superior quality.

    • Economic Performance: Tend to be more resilient during economic downturns as the target market is less sensitive to economic changes. However, they can still see reduced sales as even wealthy consumers become more cautious with their spending.

  • Consumable Products

    • Production Volume: Generally high, as these products are used regularly and need to be replenished.

    • Pricing Strategy: Competitively priced to encourage frequent purchases and loyalty.

    • Target Market: Broad, as consumables are needed by a wide range of consumers.

    • Economic Performance: Often considered recession-proof, as they include essential goods. However, consumers may switch to cheaper alternatives during tough economic times.

  • Technology Products

    • Production Volume: Can vary widely. High for consumer electronics aimed at a broad market, lower for specialized tech products.

    • Pricing Strategy: Varies. Premium pricing for innovative, high-end technology; competitive pricing for more commoditized tech products.

    • Target Market: Can range from tech enthusiasts and professionals to the general consumer, depending on the product.

    • Economic Performance: Sensitive to economic cycles, with luxury and non-essential tech products seeing reduced demand in downturns, while essential or competitively priced tech can maintain steadier sales.

  • Fast Moving Consumer Goods (FMCG)

    • Production Volume: Very high, as these products have a short shelf life and high turnover.

    • Pricing Strategy: Typically low to medium, focusing on volume sales.

    • Target Market: Mass market; these are everyday items that most consumers need.

    • Economic Performance: Relatively stable, as they include necessities. However, brand preferences may shift during economic downturns towards more affordable options.

Niche Markets

Cultural Markets