To the Future Creators and Business Builders

Have you ever thought about opening up your own business? If yes then most likely you have fantasized about your product and how amazing it would be and how consumers would flock to get your latest must-have…this is great and it’s always good to THINK BIG!, but the development of the 21^st century consumer has meant that suppliers and businesses have had to change their conceptual understanding of their previously easy-to-categorise demographic.

Consumers are now harder to understand, categorize or please than ever before. Why? At the top of our list are the major changes that we have seen in digital technology, the way suppliers and consumers communicate, and how their expectations are always changing and beginning to vary more and more.  Many companies are finding it hard to adapt their business and products to ever changing demands of these consumers.

Now ask yourself…as a consumer what affects your purchasing habits, preferences and what is it about that product that appeals to you?

It might seem odd that businesses are finding it harder to profile their target demographic when consumers of the 21^st century give away more information about themselves than ever before. If you think about social blogs/networks alone, the amount of information that gets passed around is fascinating…what people like and what people want. However, it seems the more suppliers know the harder it seems to pin point or have a clear understanding of their consumer’s needs.

 

Product development, communication, advertising, branding and sales are shaped around a company’s target demographic, this is called “Market Segmentation”, a way of being able to identify your target consumer and then cater to their demands. Sounds easy, and it once was but ever since the financial turmoil caused by recession and the impact of the digital technology, consumer behaviour and patterns have changed.  It’s understandable that the effect of the recession would have a lasting impact on market segmentation; people are not as willing to spend their well-earned money.

The recession has made it sensible for the financially comfortable to buy cheaply and the internet has made it fashionable. Shopping is now competitive, the better deal you get the “cooler” you are.  Although most businesses or product developers would prefer the traditional market segmentation, however the 21^st century contradictory consumer preferences are highly important for new development and designing new products in order to adapt to a wider audience.

Now, back to the previous question about what affects your shopping preferences? People trust friends and family much more than a well-executed or put together ad campaign. This trust, with the help of digital media, has spread to people outside of the trust circle and views are shared online, whether good or bad.  Bloggers have had a major impact on this sharing of information; their posts are able to influence viewers/subscribers thoughts and actions on purchasing certain products.

Online media in the last ten years has managed to sneak its way to the top with us not realising how dependent we are on technology. When a brand gets online and aces the marketing their ultimate goal can be achieved with consumers marketing on their behalf. However the more digital media clued up consumers can sometimes see right through your marketing campaign and so we add marketing to the list of questions that new businesses would seriously need to consider and brainstorm. How do you promote your product without trying to hard?

 

Digital technology in general shouldn’t be seen as a negative because it has turned the once simple consumer into a “unicorn”, they probably exist but how, where and when? Digital technology has given consumers the tools to find their own personal preferences making it difficult for business to cater to every individuals demands rather than a group (demographic).

We may live in a global village but villagers will always have different tastes, and as a supplier regardless of how difficult it should always be the consumer at the centre of every thought, plan or campaign…what they need, what they like and what they want.

Written by: Kristen Lucas