Project Part 1
Current Marketing Situation
1) Marketing Description
According to investopedia.com, market segmentation means grouping prospective buyers into segments based on the buyers needs and their responses to the market. "Market segmentation attempts to isolate the traits that distinguish a certain group of customers from t
he overall market" (Kurtz, Principles…277). Effective market segments meet four criteria. The segment has to have adequate size and purchase power. Marketers stimulate the segment through promotions and advertisements, as well as spot segments that are substantial and sufficient. These segments are potentially profitable. The company must then search for segments with coinciding marketing capabilities. (Kurtz, Principles…276).
Segmentation can be demographic, as in gender, age, generation, ethnic group, family lifestyle stage, household type, or expenditure patterns. Geographic segmentation is primarily based on location, where as psychographic segmentation uses consumers' values and lifestyles to group people together. Product related segmentation is based on the consumers' relationship to the product. This type of segmentation may focus on the benefits people expect from a product, the amount of product people buy and use, or brand loyalty. The best segmentation happens when marketers combine many segmentation categories and are flexible to changes. (Kurtz, Principles… 277-295).
Proctor & Gamble have a vast variety of products allowing them to be a part of every segmented market group on al global scale. Geographically, P&G brands are found all over. They market their products through "mass merchandisers, grocery stores, membership club stores, drug stores, high-frequency stores, department stores, perfumeries, pharmacies, and salons in 180 countries" (CapitalQ, 2012). The company utilizes five different segments: beauty, grooming, health care, fabric and home care, and baby and family care (CapitalQ, 2012). The Venus razor line from Gillette is located under P&G's grooming segment. The grooming segment offers blades and razors, electronic hair removal devices, hair care appliances, and pre and post shave products. In the grooming segment, Gillette's siblings include Braun, Fusion, and Mach3 brand names (CapitalQ, 2012). With these brands and many products offered, the grooming segment of P&G stretches from male and female pre-teens to grown adults and covers a vast number of income levels.
b) Marketing Target Strategy
A market strategy joins all of a firm’s marketing goals into an extensive detailed procedure. This procedure is the back bone of a marketing plan (Murko, Marketing Strategy,
2013). A marketing strategy consists of marketers determining a target market and a marketing mix, while also being aware of the five dimensions of the marketing environment: competitive, political-legal, economic, technological, and social-cultural (Kurtz, Principles…47-50).
The definition of target market is the group of potential buyers in which a company directs its efforts, goods, and/or services to (Kurtz, Principles… 2012). A firm's target market ties into market segmentation, however, instead of the company as a whole, it allocates to just a product or line of products. Defining a target market helps a firm to simplify certain processes, such as pricing, promotion, and distribution of products. It is also more cost effective because the marketer is focusing all of the marketing activities in a single market or a few key markets. (Ward, 2012)
The target market for the Gillette Venus razor line of products is women, most likely under 40. This is derived from Venus's advertisements: young women flaunting around in bikinis, short dresses, or shorts. Older women usually dress more appropriately for their age. Also women under 40 are the most likely to...
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Small Business Notes
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