Segmentation and Target Marketing Paper
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 Kay’s direct selling to its consultants and to customers has allowed Mary Kay to become a major competitive force in the cosmetics industry. Mary Kay focuses on skin care for the whole body, make up, fragrances, and sun care. Demographically, Mary Kay focuses on women ages 25-55 years old and teenagers aged 14 and above. This organization also provides products for men. Geographically, Mary Kay is available in the United States, Canada and 30+ other countries worldwide. Online sales make this company successful while allowing the consumer to shop easy. “Because Mary Kay practices direct selling, building a loyal consumer base is a vital factor in determining financial success” (UK Essays, 2013). Since all online sales are directed back to the local sales force, this allows for consultants to build his or her customer base easily, creating a win-win situation for all parties.
Mary Kay’s psychographic segmentation does not specifically gear itself to any particular social class, lifestyle, or personality. The organization does focus on allowing women to try products in the comfort of one’s home. The primary focus of Mary Kay is that women have confidence that her skin is looking and feeling good inside and out, which leads the women to feel confident in their personal and professional lives.
Often women will book Mary Kay makeovers for special occasions such as graduations or weddings. Since Mary Kay offers a complete refund on their quality products, women have a greater confidence in the products available. Typically, an average in-home class will consist of six women. The theory behind this is that “two women will be unaware of the product and probably will not purchase product, two women will be informed and ready to purchase a few products, and finally two women will buy whatever products they want” (Summerer, 2014).
Mary Kay’s marketing mix allows the independent consultant to advise each customer of his or her skin type and what...
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
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