Marketing Case
MARKET SEGMENTATION
P & G makes eleven brands of laundry detergents, eight brands of hand soap, tooth pastes, 3 brands of floor cleaner, toilet-cleaner, two brands ofdeoderant.
These brands compete with one another on the same super market shelves.
But, why P 7 G introduces several brands in one category instead of concentrating its resources on a single brand?
The answer lies in the fact that different people want different MIXES OF BENEFITS from products they buy.
For EG; People buy laundry detergents to get their clothes clear – but want other things such as economy, bleaching powder, fabric softening, fresh smell, etc.,
But to some people feel that bleaching powder is important than fabric softening matters or others
Thus, there are groups – segments – of buyers and each segment seek a special combination of benefits. Organizations that sell to consumers and business markets that they can’t appeal to all buyers in the markets or at least now to all buyers in the same way.
Buyers are too numerous, too widely scattered, too varied in their need and buying practices. (i) Different companies vary widely in their abilities to serve different segments of the market
(ii) Rather than trying to compete in an entire market, sometimes against superior competitors – Hence, each com-any must identify the parts of the market that can serve best.
Most companies are moving away from Mass marketing – to – Target Marketing
“Identify market segments, selecting one or more of them, developing products and market mixes tailored to each”- In this way sellers can develop right products for each target market and adjust prices, distribution channel, advertising to reach target markets, instead of scattering their marketing efforts”
There are 3 major steps in Target Marketing. They are:
MARKET SEGMENTATION
‘Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviour who might
P & G makes eleven brands of laundry detergents, eight brands of hand soap, tooth pastes, 3 brands of floor cleaner, toilet-cleaner, two brands ofdeoderant.
These brands compete with one another on the same super market shelves.
But, why P 7 G introduces several brands in one category instead of concentrating its resources on a single brand?
The answer lies in the fact that different people want different MIXES OF BENEFITS from products they buy.
For EG; People buy laundry detergents to get their clothes clear – but want other things such as economy, bleaching powder, fabric softening, fresh smell, etc.,
But to some people feel that bleaching powder is important than fabric softening matters or others
Thus, there are groups – segments – of buyers and each segment seek a special combination of benefits. Organizations that sell to consumers and business markets that they can’t appeal to all buyers in the markets or at least now to all buyers in the same way.
Buyers are too numerous, too widely scattered, too varied in their need and buying practices. (i) Different companies vary widely in their abilities to serve different segments of the market
(ii) Rather than trying to compete in an entire market, sometimes against superior competitors – Hence, each com-any must identify the parts of the market that can serve best.
Most companies are moving away from Mass marketing – to – Target Marketing
“Identify market segments, selecting one or more of them, developing products and market mixes tailored to each”- In this way sellers can develop right products for each target market and adjust prices, distribution channel, advertising to reach target markets, instead of scattering their marketing efforts”
There are 3 major steps in Target Marketing. They are:
MARKET SEGMENTATION
‘Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviour who might