Marketing Principles Demographics Segmentation

Question: Discuss about theMarketing Principlesfor Demographics Segmentation. Answer: Analysis of Segmentation Variables In order to approach to the target customer appropriately, the management of Hamilton sunscreen group needs to use segmentation marketing strategy. There are five types of market segmentation variables such as demographics, psychographics, geographic, usage- rate and benefit segmentation (Kumar 2015). These five types of segmentation variables can be applied for this sunscreen product so that it can be offered to a huge range of Australian population. Demographics Segmentation The demographic segmentation is done by the business organizations based on the demography or the individual qualities of the inhabitants of a locality. Summer has been the prime season in Australia, therefore, the inhabitants also need to protect their skins from the harmful ultra-violate rays of the sun (Grnroos and Gummerus 2014). As this company offers various sunscreen lotions in accordance with the skin types, it can rightfully segment their consumers in different categories based on their skin types. Psychographics Segmentation Psychographics segmentation refers to the strategy to differentiate target customers as per their common interest and community activities. Hamilton sunscreen product can effectively approach to the Australian consumers with their assurance to soothe the sunburn skins (Moriarty et al. 2014). Geographic Segmentation Geographic marketing segmentation suggests to the geographic divisions. Hamilton sunscreen products have the potential to approach to almost every state of Australia. Usage-Rate Segmentation In order to do usage rate segmentation for Hamilton sunscreen products, the management needs to identify the heavy, light and non-users of their product so that they can make suitable promotional strategy for their heavy consumers (Kubacki et al. 2015). Benefit Segmentation Benefit segmentation is done by providing the consumers enough beneficial reasons to buy a product. As this sunscreen product sooths the sunburn skin along with moisturizing it, it can easily do this benefit segmentation among Australian consumers based on their skin type (Challagalla, Murtha and Jaworski 2014). Analysis of Targeting Strategy Among the four specific targeting strategies such as undifferentiated marketing, concentrated marketing, differentiated marketing and customized marketing, Hamilton Sunscreen Company can utilize differentiated marketing. This type of marketing strategy allows the organizations to develop suitable marketing mix for their multi-segmented consumers. In such cases, the organizations aim to approach all or some of their segmented market (Moriarty et al. 2014). In the case of Hamilton Sunscreen Company, it aims to approach to all their segmented consumers, so that they can increase their sales rate by increasing their popularity among Australian people (Pike, 2015). Therefore, they need to develop five different marketing mixes so that they can effectively approach to their five segmented consumers. In such case, separate brands also need to be developed for their each selected segmented market. This targeting strategy seems to enable this organization to increase their sales along with the profit rate, manufacturing costs of the products and also the helps to increase the market share (Challagalla, Murtha and Jaworski 2014). However, for this reason, this organization needs to increase their productivity; marketing costs and also needs to improve their innovative strategies for the product, promotional strategies and marketing research. As this strategy requires, a huge hike in the productivity, this organization needs to increase their production costs (Kumar 2015). Before using this targeting strategy, they also need to calculate their gross profit and loss amount if they use it for the marketing of their product. In this way, they can ensure a hike in their profit and sales rate by reducing the chances of any financial loss in near future. Analysis of Positional Bases From the viewpoint of Pike (2015), positioning of a product in the business market bases depends upon the certain factors such as price and quality of the product, attribute, product user, application, class of the product and competitor. In order to hold a prominent market position, Hamilton Sunscreen Company needs to maintain the quality of their product along with controlling the price. In this way, they can acquire maximum consumers (Moriarty et al. 2014). This factor will automatically come under the attribute. Figure 1: Positioning bases (Source: Challagalla, Murtha and Jaworski 2014) This organization needs to ensure that their product has a smooth application procedure by evaluating the feedbacks of their consumers. On the other hand, by evaluating the user rate of their product, this organization can identify the class of their product in the cosmetic market of Australia (Challagalla, Murtha and Jaworski 2014). In order to understand the user rate, this organization needs to conduct a market survey with which they can successfully identify their market positioning. This understanding will help them to determine their required marketing strategy with which they can earn more profit rate (Kumar 2015). On the contrary, by benchmarking the sales arte of their competitors, Hamilton Sunscreen Company can understand their current market position. For example, it faces tough competition from LaRoche-Posay which offers SPF 60 with oil-free and dry touch sunscreen feature. Therefore, if this organization improves their product by following the special attributes of other organizations, it will be able to approach the consumers in a better way (Kubacki et al. 2015). Reference List Challagalla, G., Murtha, B.R. and Jaworski, B., 2014. Marketing doctrine: a principles-based approach to guiding marketing decision making in firms.Journal of Marketing,78(4), pp.4-20 Grnroos, C. and Gummerus, J., 2014. The service revolution and its marketing implications: service logic vs service-dominant logic.Managing service quality,24(3), pp.206-229 Kubacki, K., Rundle-Thiele, S., Lahtinen, V. and Parkinson, J., 2015. A systematic review assessing the extent of social marketing principle use in interventions targeting children (2000-2014).Young Consumers,16(2), pp.141-158 Kumar, V., 2015. Evolution of marketing as a discipline: What has happened and what to look out for.Journal of Marketing,79(1), pp.1-9 Moriarty, S., Mitchell, N.D., Wells, W.D., Crawford, R., Brennan, L. and Spence-Stone, R., 2014.Advertising: Principles and practice. Pearson Australia Pike, S., 2015.Destination marketing. Routledge