Categories of Market Sectors
- To succeed in the market, you must understand the differences between market sectors and design accordingly.
- They help designers and businesses identify and target specific groups effectively, and there are two key ways to classify market sectors: geographical sectors and client-based sectors.
Market sectors
Market sectors are divisions within a broader market, categorized based on shared characteristics.
Geographical Sectors: Values, Culture, and Purchasing Behavior
- Geographical sectors segment markets based on location.
- But it’s not just about geography—it’s about the cultural, social, and economic values that shape consumer behavior in those locations.
- For example: :
- Values and Culture
- Consumers in one region may prioritize sustainability, while others may value luxury and status.
- A company designing eco-friendly packaging might find more success in markets where environmental awareness is high.
- Purchasing Behavior
- Average income levels, access to technology, and regional trends influence what people buy and how they buy it.
- For instance, online shopping is more prevalent in urban areas with widespread internet access.
- Values and Culture
- Consider Coca-Cola’s strategy: In some countries, the company emphasizes its classic branding, while in others, it tailors marketing to local festivals or traditions.
- This geographical adaptation ensures relevance across diverse markets.
Client-Based Sectors: Consumers, Industrial, Public, and Commercial
- Client-based sectors categorize markets by the type of client being served.
- These include:
- Consumers: Individuals or households purchasing products for personal use, such as smartphones or clothing.
- Industrial: Businesses buying products for manufacturing or operational purposes, like machinery or raw materials.
- Public: Government entities or organizations purchasing products to serve the public, such as infrastructure materials or medical supplies.
- Commercial: Businesses buying products for resale or day-to-day operations, such as retailers or service providers.
LG designed specialty Kimchi fridges to accommodate for local consumer preferences, helping to keep the fermented foods at optimal temperature. Such a product has strong demand domestically, but minimum demand internationally.
NoteDesigners must consider the unique priorities of each client-based sector. For example, industrial clients may prioritize durability and cost-efficiency, while consumers may focus on aesthetics and user experience.
Influence of Market Sectors on Design
- Think about designing a chair:
- For consumers, the focus might be on style, comfort, and affordability.
- For the industrial sector, the chair might need to be stackable and durable for use in factories or workshops.
- For the public sector, such as schools, safety and ergonomics may take precedence.
- For the commercial sector, like restaurants, ease of cleaning and modularity might be important.
Understanding the end user’s needs within a sector allows designers to make informed decisions about materials, features, and aesthetics.
Impact on Manufacturing
- Market sectors also influence production methods. For instance:
- Mass production is suitable for consumer products targeting large markets.
- Batch production might cater to commercial clients requiring moderate quantities.
- Custom production could serve public or industrial clients with specific requirements.
Production methods vary based on market demand and sector requirements.
Common MistakeIgnoring the unique demands of a market sector can lead to product failure. For example, a luxury product designed for a cost-sensitive market may struggle to gain traction.
