Target Market Identification - Term Paper Example

Sunsilk addictive brilliant shine /Target Market Identification Report and Collage Table of contents 3.0 Target Market Identification 3 Geographic Segmentation 3.2 Demographic Segmentation 3.3 Psychographic Segmentation 3.4 Behavioural Segmentation 4.0 Target Market Collage 5.0 Completion of Discussion/Rationale of the Target Market Collage Images Chosen Table 6.0 Reference List 3.0 Target Market Identification 3.1 Geographic Segmentation In the context of marketing, geographic segmentation refers to the identification of those areas of the target market, which have similar characteristics, in terms of their geography/ climate and their structure. Through a similar point of view, geographic segmentation should be based on the principle that ‘people from different regions have different needs’ (Ranchhod and Calin 2007, 56). In Australia, geographic segmentation would lead to the following assumptions: a) the economic life of the country is mostly developed in urban areas, b) the performance of the Australian market is differentiated across the country – in areas where more cities exist, the rate of consumption is increased, leading to the increase performance of the local markets. In accordance with the above, for the needs of the particular marketing campaign, the geographic segmentation of the Australian market should be developed as follows: a) emphasis should be given on the urban areas – where the population is significant and where more perspectives exist for new products entering the particular markets, b) as noted in the map of Australia, the urban life is mainly developed in the country’s Eastern regions – where more of the cities are sited; therefore, a priority should be given to the promotion of the particular product in the Eastern regions of Australia; the promotion of the product in the country’s other regions could follow. 3.2 Demographic Segmentation The demographic segmentation of the Australian market should be based on the following facts: a) most of the population in Australia are migrants/ Europeans; natives, referring to aborigines, are about the 1% of the country’s population; this means that the consumption trends in the particular country would be similar to those in the Western countries; from this point of view, the particular product is expected to be welcomed in the Australian market, b) the socioeconomic status of the people in the country’s urban areas – main places of destination for the particular product – could not affect the performance of the product in the Australian market, since the price of the product is rather low, being accessible to people with different levels of income; in any case, the high percentage of people in Australia are of average and high financial status, which means they could easily afford to buy the specific product. The above view is in accordance with that of Wedel and Kamakura (2000) who noted that demographic and lifestyle information can have similar roles in market segmentation (Wedel and Kamakura 2000, 242). 3.3 Psychographic Segmentation In the context of the psychographic segmentation, the Australian market would be reviewed as of the criteria used by locals in order to buy specific products. These criteria will be developed under the influence of the local cultures and ethics but also the average socioeconomic status, which, in the case of Australians, can be characterized as satisfactory. Indeed, most people in Australia have a satisfactory income – the average net wealth of a household in Australia has been estimated to $348,000 – which means, they could easily afford to buy the specific product. Moreover, the involvement in a wide range of activities is a common practice for people in Australia; therefore, their social life is likely to be significant; thus, their look should be good, in the context of the common social patterns. Consumers in Australia would welcome the particular product as it could help them to improve the quality/ health of their hair. At this point, the following issue should be highlighted: because the Australian market is extended, the psychographic segmentation of this market would be difficult, taking into consideration the view of Blythe (2008) that ‘psychographic segmentation is difficult to measure consumers’ psychological attributes on a large scale’ (Blythe 2008, 372). The common behavioural characteristics of Australians, as described above, would be used for developing this market’s psychographic segmentation – in case that the acquisition of more accurate psychographic data on local population would face delays or barriers. 3.4 Behavioural Segmentation In the context of marketing, behavioural segmentation refers to the market segmentation in accordance with the attitudes and the knowledge of consumers on the products involved (Gilligan and Wilson 2009, 357). The level of knowledge of consumers on the qualities and the benefits of a product is expected to influence their response to the particular product (Gilligan and Wilson 2009, 357). In the case of the specific product, behavioural segmentation would be based on the following criteria: a) people in Australia are already aware of the quality of the products of Sunsilk – as a brand name, b) in the above context, marketers should try to emphasize on the benefits of the specific product, as part of the well-known brand, c) the responses of consumers to the other products of the firm as also to the similar products of competitors could be used for deciding the form of marketing campaign chosen in order to promote the specific product in the Australian market. 4.0 Target market collage Geographic 1 State 2 City 3 Climate 4 Density 5 Age (Demographic) Demographic 6 Gender 7 Income level 8 Education Behavioural 9 Socioeconomic status 10 Personality 11 Activities 12 Lifestyle VALS type Psychographic 13 Use of brand 14 Loyalty status 15 Readiness 16 Attitudes towards the brand 5.0 Completion of Discussion/Rationale of the Target Market Collage Images Chosen Table Target Market segmentation Number of image in the target market collage image How the collage images visually reflect the primary target market - explanations Geographic State 1 Urban life in Australia is highly developed; in fact, the country has many cities, most of which are cited near the Eastern coasts of Australia. Business activities are highly supported by the states and the entrance of new products in the local market is promoted, helping towards the reinforcement of the economy. City 2 In cities of Australia the consumption patterns are similar to those of Western countries; cosmetic products are welcomed by the locals who are likely to be involved in many social activities; in these activities the good look is mandatory. Climate 3 The climate of Australia is highly differentiated across the country; there are regions, which are quite dry, and others where humidity is at extremely high levels; the specific product could be used in order to protect the hair against the climate changes. Density 4 In Australian cities, the level of density is extremely high; the increased population in the country’s cities means that the number of potential buyers of the product is increased. Demographic Age 5 In Australia, age does not seem to influence the social life of people; elderly tend to participate, at the same level with young people, to social activities of various types; therefore, in addition to young people, elderly also are potential buyers of the particular product. Gender 6 One of the most important characteristics of the Australian society is the gender equality; women have equal access to work, as men; therefore, no barriers would exist for women to buy the particular product, since their income allows such initiative – taking into consideration the fact that the price of the specific product is rather low. Income level 7 The average income of Australians is rather satisfactory; the net average wealth of a household can reach the 348,000 (Living in Australia 2011) – if both are working. This means that most people in Australia could afford to buy the specific product. Education 8 In Australia, high emphasis is given on education; being aware of the climate threats and their health needs, people in Australia would prefer the specific product for the following two reasons: a) for its benefits, i.e. the recovery of damaged hair and the improvement of the quality of hair and b) for its price, which is rather low compared to its quality. Psychographic Socioeconomic Status 9 The socioeconomic status of people in Australia could not affect their buying power in regard to the specific product since its price is low, allowing people of various incomes to acquire it. Personality 10 Australia is characterized by the multi-culturalism and the support of freedom in all its forms. No barriers would exist for people of different cultural backgrounds to acquire this product. Activities 11 Social activities and sports of various types are highly developed in Australia; the need for good look is therefore increased, a target which can be achieved by using the specific product. Lifestyle VALS type 12 People in Australia give high emphasis on personal life; the particular product would be included in the cosmetics used daily both for work and for a person’s various social and family activities. Behavioural Use of brand 13 For consumers in Australia, brands are important but not decisive. Products of good quality are likely to perform well. Of course, the brand name can influence, up to a level, people in different regions of Australia. Loyalty status 14 Brand loyalty is at an average level in the Australian market; products of a well-known brand, which combine high quality and good price, as in the case of the specific product, are expected to be preferred on a long term basis by consumers in the local market. Readiness 15 People in Australia value the products/ services, which can help them to decrease time required for their daily social activities. The particular product, would be welcomed by the consumers in Australia at the level it helps to improve the quality and the look of hair within a short period of time. Attitudes towards the brand 16 In Australia, brand is important but only if combined with a good quality of the product/ service involved. However, for firms, which have been present in the local market for quite a long period of time, like Sunsilk, no trial period would be required by consumers to test the products involved. In such cases, emphasis would be given on the product as related to a specific company and not so much on the product’s qualities or characteristics. 6.0 Reference List Blythe, Jim. 2008. Consumer behavior. Belmont: Cengage Learning, 372 Gilligan, Colin and Richard, Wilson. 2009. Strategic Marketing Planning. Oxford: Butterworth-Heinemann, 357 IBIS World. 8 October 2010. Cosmetics, Perfume and Toiletries Manufacturing in Australia. Web. Accessed at 8 April 2011. Living in Australia. 2011. Online. Accessed at 8 April 2011. < http://www.livinginaustralia.org/Results_Income.htm> Ranchhod, Ashok and Calin, Gurau. 2007. Marketing Strategies: A Contemporary Approach. Essex: Pearson Education, 56 Wedel, Michel and Wagner, Kamakura. 2000 Market segmentation: conceptual and methodological foundations. New York: Springer, 242 Read More