Preview

Skin Care Segmentation

Powerful Essays
Open Document
Open Document
1488 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Skin Care Segmentation
Why Segmentation?
Introduction and Definition
When it comes to marketing strategies, most people spontaneously think about the 4P (Product, Price, Place, Promotion) – maybe extended by three more Ps for marketing services (People, Processes, Physical Evidence).
Market segmentation and the identification of target markets, however, are an important element of each marketing strategy. They are the basis for determining any particular marketing mix. Literature suggests the following steps: [pic]
Adapted from Kotler and Doyle
The importance of market segmentation results from the fact that the buyers of a product or a service are no homogenous group. Actually, every buyer has individual needs, preferences, resources and behaviors. Since it is virtually impossible to cater for every customer’s individual characteristics, marketers group customers to market segments by variables they have in common. These common characteristics allow developing a standardized marketing mix for all customers in this segment.
|Definition: |
|Market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, |
|communication, pricing and other variables of the marketing mix. Market segments should be formed in that way that differences between |
|buyers within each segment are as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix. |

Criteria for Market Segmentation
There are a huge number of variables that could be used for market segmentation in theory. They comprise easy to determine demographic factors as well as variables on user behavior or customer preferences. In addition, there are differences between private customers and businesses. The following table shows the most important traditional variables for segmentation.

You May Also Find These Documents Helpful

  • Better Essays

    “Market segmentation is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2011, p. 92). To complete successful market segmentation an organization must gather information on potential customers, divide the population into various market segments, estimate the most profitable segments, and rank the market segments by potential sales. This process is imperative during the marketing process because it distinguishes…

    • 1524 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    2. Market Segmentation involves dividing a large market into subgroups of customers with similar needs and requests for goods and services. These subgroups are identified by many demographic situations, depending on what it is that the marketer is segmenting them for. Marketing campaigns can then be developed around the needs and wants of the subgroups. The main and basic reason for market segmentation is to help a company understand what the needs are of its customer base. Often by segregating consumers by specific criteria a company can identify other functions for their products that may or may not have been recognizable before. Identifying these other ideas for use of goods and services may help the company target a larger segmentation in that same demographic classification and thus increase market share among a specific sub market…

    • 300 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The fundamental component of Market segmentation is a market-based strategy. A market segment is a purchase behaviors and different descriptive characteristics and specific group of customers with distinctive customer needs (Baker M.J, 1995) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the other requirement and technical requirements of each of these, organizations may be able to secure big competitive position than if they attempted to satisfy the fundamental requirements of the market as a whole. In market segmentation there are four criteria that have to be satisfied in order for market segmentation to be effective. A market segment should be accessible, identifiable, substantial, and stable. In Identifiable, there should be indicators of observable that enable the segment to be defined and quantified (Baker M.J, 1995). Accessible, that is, it should be probable to target specifically the segment using distribution channels and existing communication. In Substantial, that the segment should be of enough size to make the effort involved in segmentation worthwhile. In the Stable, the segment there should be capitalized by sufficient time on the investment implicated in segmentation (Baker M.J, 1995).…

    • 1889 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Market Segmentation -Hmv

    • 1861 Words
    • 8 Pages

    Market segmentation is the fundamental component of a market-based strategy. A market segment is a specific group of customers with distinctive customer needs, purchase behaviours and different descriptive characteristics. (Best, 2000) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the technical and other requirements of each of these, organisations maybe able to secure greater competitive position than if they attempted to satisfy the general requirements of the market as a whole.…

    • 1861 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Market segmentation is one of the central pillars of modern marketing and is found at the very core of the marketing process. Some writers suggest that segmentation is the most important activity within modern marketing. This claim is debatable but what is true is that the general principles and processes of market segmentation are absolutely vital to effective marketing strategies for the vast majority of firms operating in today’s highly competitive economy.…

    • 4588 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Customer segmentation consists of dividing the market into various parts based on factors that can be commonly associated with customer base. For example age, gender, sex, income and other factors can influence creating a market segment. Marketing is becoming an important factor within business operations and growth. Value is defined as the customer’s perception of all the benefits of a product or service weighed against all the costs of acquiring and consuming it. Benefits include functional, experiential and/or psychological. Market segmentation is composed of two distinct groups, 1) have coming needs and 2) will respond similarly to a marketing action. Market segmentation could be based on various different factors. Geographic segmentation is consists of dividing the market into geographic units. Dividing the market on the basis of demographics variables such as age, sex, family size, education, income and social class is called demographic segmentation. Dividing the market on the basis of personality and/or lifestyle is referred to as psychographic…

    • 1737 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Market Segmentation

    • 354 Words
    • 2 Pages

    Market segmentation is an essential part in today's business world. It is because not all customers have the same requirement and a market strategy which does not recognize this fact will result business failure. Market segmentation is the process of splitting customers, or potential customers within a market into different groups, or segments, within which customers have the same or similar requirements satisfied by a distinct marketing mix. Nike has been successful in market segmentation for selling their soccer boots, which resulted in a significant market share in that particular product category in recent years.…

    • 354 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Segmentation as known as a process of distinguish buyers which differ in several ways into groups regarding to their needs, characteristics or behaviour. Market segments exist within feckly market. As a marketer, they have to try to different segmentation variables, alone and in combination to find out the best and most meaningful way to identify and analyze the market structure so it is more easily for marketer to achieve in business market ( Kotler. P et al.2006, 218 ). A seller will create a separate marketing program for each buyer as classifying according to their personal preference. Market segmentation comes before the second step and third step, which is market targeting and market positioning in develop idea of targeting market. There are four main major variables to observe in order to analysis consumer market segments, which is:-…

    • 1609 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Market Segmentation

    • 433 Words
    • 2 Pages

    Market segmentation is the division of the total market into smaller, relatively homogeneous groups. It is necessary to segment or classify the various people or institutions in order to identify those with sufficient purchasing power, authority, and willingness to buy. Because no single marketing mix can satisfy all marketing segments, it is important to establish target markets and apply the appropriate marketing strategies in order to maximize market share.…

    • 433 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Marketing Segmentation

    • 1012 Words
    • 5 Pages

    Market segmentation is the process of dividing the market into dissimilar, distinctive groups of people who have similar needs to be satisfied, alike wants and behavior, or might want some products and services. Markets can be divided depending on a number of wide –ranging criteria. They are: geographic (region, county, climate etc.), demographic (age, gender, family size, religion) psychographic (personality, life style, attitude etc.) behavioral (benefit sought, brand loyalty, decision making until etc.)…

    • 1012 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    A market segment consists of a group of customers who share a similar set of needs and wants. Market segmentation is important not only for creating consumers but also for satisfying them. Market segmentation helps matching of market opportunities to the resources of the company and enables them to face market competition effectively. It raises marketing efficiency through proper adjustment of marketing mix for each market segment. Market segmentation is one important element of marketing management where the company can decide which one(s) to target.…

    • 2833 Words
    • 12 Pages
    Powerful Essays
  • Best Essays

    Nivea Marketing Research

    • 1345 Words
    • 6 Pages

    Market segmentation is the key strategic concept in marketing today (Michael N. Tuma, 2011). It is shows as the attempt to distinguish 'homogeneous groups of customers who can be targeted in the same manner because they have similar needs and preferences'. (Wedel & Kamakura, 2002). Good market segmentations helps in understanding the market, the ability to predict buying behaviour accurately and increased profit of companny.…

    • 1345 Words
    • 6 Pages
    Best Essays
  • Good Essays

    Stp Market Segmentation

    • 6064 Words
    • 25 Pages

    Segmentation is the basis for developing targeted and effective marketing plans. Furthermore, analysis of market segments…

    • 6064 Words
    • 25 Pages
    Good Essays
  • Satisfactory Essays

    Market Segmentation

    • 913 Words
    • 4 Pages

    Few companies are big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle. Four basic factors that affect market segmentation are (1) clear identification of the segment, (2) measurability of its effective size, (3) its accessibility through promotional efforts, and (4) its appropriateness to the policies and resources of the company. The four basic market segmentation-strategies are based on (a) behavioral (b) demographic, (c) psychographic, and (d) geographical differences.…

    • 913 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Marketing Communications

    • 3464 Words
    • 11 Pages

    References: 1) Armstrong, G., P, Kotler., V, Wong (2008). Principles of Marketing. Essex: Pearson Education Limited. pp692.…

    • 3464 Words
    • 11 Pages
    Powerful Essays

Related Topics