Due to limited resources the company feels that diverting resources to the rural areas will not be cost-effective. Pay attention and see if there are any similarities in the backgrounds of your customers. Market segmentation is when the market is divided into different groups of consumers based on their similarity. Income, occupation, and education: Students, working adults, and housewives are the main target of The Body Shop products. The main objectives of The Body Shop are to protect the environment and human and animal rights.
So having a target market is vital. Are they a certain age group? Examples include those who prefer an urban as opposed to rural or suburban lifestyle, or those who are pet lovers or have a keen interest in environmental issues. Doing Your Own Market Research These are all secondary sources of information others have conducted the research and compiled the information , You may also want to conduct your own market research use primary data. A segment will be less attractive if it has many strong competitors, substitute products, powerful buyers, and powerful suppliers. Find out why they visit the competition. © Copyright The Case Centre, 2019 The Case Centre is a not-for-profit company limited by guarantee, registered in England No 1129396 and entered in the Register of Charities No 267516. Apple feels that if you make enough money you should be able to pay at less 500 dollars for a computer.
But the company is confident that its product is different and will survive the market. A liquor vendor, for instance, might want to target their marketing efforts based on the results of Gallup polls, which indicate that beer is the beverage of choice for people below the age of 54 particularly in the 18-34-year-old age range while those aged 55 and older prefer wine. However, the objectives are not to just come up with a particular strategy, but rather to focus on providing value to your key market segments. Marital Status Are my target customers married or single? Community, housing, economic, and population surveys are also available. Asia Pacific including Australia and New Zealand. Since companies cannot satisfy all consumers in a given market, they must divide up the total market market segmentation , choose the best segments market targeting , and design strategies for profitably serving chosen segments better than the competition market positioning.
Step 5: Focus In On Demographics By now you should start to see patterns appearing. Geographic Segmentation Geographic segmentation involves segmenting the market based on location. This company, which is known by its natural based product, launched a new product which gives double benefits for the consumers. Gender: Most of The Body Shop products can be used for both men and women. There are also products which are specially designed to help people to moisturize the dry skin, for example, various types of body butter and body lotion. To succinctly define your target market, through polling or survey, ask members of your target market specific questions directly related to your products or services.
Market segmentation is when the market is divided into different groups of consumers based on their similarity. The toughest part is identifying your target market. You and other readers of your will need to know the sources of the statistics or opinions that you've gathered from others. The Body Shop noticed that nowadays people are trying to maintain a healthy lifestyle. A Bed and Breakfast business could target married Facebook followers with an ad for a romantic weekend getaway package, for example.
Each of them gives different sensation and scent with the same benefits. As such Marlboro cigarettes target the upper strata of society. Lifestyle What is their lifestyle like? For instance, The Body Shop targeted its products at teenagers and adults with middle-high income. There are also products which were made especially for babies, such as Buriti Baby Body Wash, Shampoo, Body Butter, Body Lotion, and several bath accessories. The chosen segment has to be able to make profit and return the investment.
Loyalty status, knowledge, and attitude toward products: The Body Shop is a quite well known brand over the world for its natural based ingredients and core values. Also, it is reported that revenues and profits of the body shop have increased after the iconic beauty business invested heavily in a corporate rebrand and new store format. Sometimes there are barriers for firms to sell their products to a particular consumer or at a particular area. The four main segmentation categories are geographic region of the country, type of environment e. To answer how important each of the afore mentioned marketing tools are, one must define what Marketing is and then take into account how each is applied and why if not applied in an organizations approach to selling could mean abrupt failure, or maybe that they do not matter at all.
Even if you intend on selling a product service only within your own community, you won't be selling that service to everyone who lives there. They have to analyze the size of the market segment based on the number of teenagers or adults with middle-high income in a certain area. On a trip abroad you might have noticed that people enjoy more outdoor activities than back home. Chapter 8 Segmenting and Targeting Markets Segmenting and Targeting Markets Characteristics of a Market 1 people or organizations with 2 needs or wants, and with 3 the ability and Chapter 8 4 the willingness to buy. Gender: Most of The Body Shop products can be used for both men and women. The product I chose is The New Body Butter Duo from The Body Shop.
Develop a longer lasting scent 2. By segmenting the market by its geographic location, the company can localize its product. The Body Shop targeted its market at urban areas with both cold and hot climate. Once they know their place, they can identify the competitive advantage that might be possible to achieve and also the disadvantages. It comes with four different variants; Sweet Pea, Vanilla, Floral Acai, and Macadamia. Support community fair trade 3. While Lush and Yves Rocher both sell their products in their own shops across Switzerland, Aveda sells their products in the common retail trade and in their own Aveda Spa Salons.