June 16, 2014
Segmentation and Target Market Paper Market segmentation is described as “the process of defining and subdividing a large homogenous, market into clearly identifiable segments having similar needs, wants, or demand characteristics. It’s objective is to design a marketing mix that precisely matches the expectation of the customers in the targeted segment” (Business Dictionary, 2010). This week’s assignment asked the student to select a company and examine that organization’s characteristics for market segmentation. Included is also the positioning statement regarding the company’s brand. As defined above, market segmentation allows organizations to categorize the consumer into small groups based on different characteristics. These characteristics are behavioral, demographical, psychographic, and geographical segmentation or differences. All consumers are not created equal. Consumers are different in many ways but by classifying similar desires or wants of consumers a target market is created. Market segmentation allows organizations to better understand the consumer and allows the consumer to be better educated or informed regarding a particular organization’s products (Mangement Study Guide, 2013).
Mary Kay Cosmetics Established in 1963 with only five thousand dollars, Mary Kay Ash and her son, Richard, Mary Kay Cosmetics was formed. Founded on the Mary Kay’s religious beliefs and belief that women’s lives needed to be beautiful, this company grew to become one of today’s top Fortune 500 companies. “Fortune magazine recognized the company as one of The 100 Best Companies to Work for in America and also named Mary Kay Inc. one of the best companies for women” and “with more than 2.5 million independent beauty consultants in more than 35 markets worldwide, the company continues to one of the greatest success stories in business” (Mary Kay Inc., Unknown). Mary
References: Business Dictionary. (2010). Market Segmentation. Retrieved June 14, 2014, from Business Dictionary: www.businessdictionary.com/definition/market-segmentation.html Mangement Study Guide. (2013). Need for market segmentation-why market segmentation. Retrieved June 14, 2014, from Management Study Guide: http://managmentstudyguide.com/need-for-market-segmentation.html Mary Kay Inc. (Unknown). Remembering her life. Retrieved June 14, 2014, from Mary Kay Tribute: http://www.marykaytribute.com/HerLife.aspx Summerer, L. (2014, June 15). Senior District Sales Consultant. (A. Escobar, Interviewer) Aurora, Colorado. Retrieved June 15, 2014 UK Essays. (2013, November). The marketing strategies of Mary Kay Cosmetics business essay. Retrieved June 14, 2014, from UK essays: http://ukessays.com/essays/business/the-marketing-strategies-of-mary-kay-cosmetics-business-essay.php?cref=1