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Submitted By sukhgill123
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P5. Explain how and why groups of customers are targeted for selected products.

In this unit, I’m going to explain how and why groups of customers are targeted for selected products. The main reason why organisations target a particular group of customers is to make profit, but there are a lot of other reasons why organisations choose to target customers. I’m going to describe Nike targeted customers and I’m also going to explain why and how they target customers.

Nike is a very big organisation; therefore it will have a large target audience. Nike specialises in sports wear such as trainers, tracksuits, bags etc. Nike produces football boots; they can choose to target customers, consumers and businesses. For example, Nike can make football boots for kids aged between 10-15years, so although the products were made for the kids, their target audience will mainly be the parents, because they know kids might not be able to afford the product. In this situation, the parents are the customers and the kids are the consumers, because they are the actual ones using the product. Their target audience for the football boots can also be sports men and women, in this situation the sports men and women are the customers and consumers, because they are the actual ones purchasing the product and using it. Nike targets businesses as well with their football boots, other businesses such as JD and sports direct may choose to buy football boots from Nike, in order to sell to their own customers.

Nike targets their group of customers through segmentation. Segmentation is all about identifying common needs and buying behaviour within the market. It also allows an organisation to develop plans, which will enable them to produce satisfactory products that will fit the needs of the customers more effectively. Nike aims their products at so many different target

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