MARKET FORCES

Market Forces

Market Forces

Xvz - Perfume is a timeless fragrance by Lady Gaga. Gaga uses different market segmentations to sell their product. First of all, there is a geographic segmentation. Perfumes are luxury products. Thus, they goal wealthier localities like North America, Western Europe, Japan, etc. Since Gaga is popular worldwide, we can obviously find it everywhere, but their market is based on these areas' needs. Then, they use demographic segmentation. They target adult women who have rather high incomes. Perfumes are certain thing not everyone can afford. (Burr, 2003, 45-99)

This fragrance can be damaged for any event, exceptional as well as regular; it is light but illustrates character and feminity. They are trying to get a intermediate to strong loyalty status. As for any perfume, if a woman likes it; she will likely buy it again. It is a very accessible product. Any store like Macy's, Nordstrom or Sephora in North America or “perfumeries” in Western Europe will sell Xvz - Perfume. The segment is very large, because numerous persons, even if they do not drop in one class, will purchase perfumes for exceptional events, like Christmas. This is a gift that always makes a woman happy, and Gaga develops its marketing around that. Indeed, throughout Christmas, they make a alallotmentment of boasts that combines a lotion with the perfume for example. Also, there are no distinct segments between women; all women desire to wear perfume. (Burr, 2004, 59)

We will use 4Ps of the trading mix approach that is applied in global marketing, but marketing decisions and applications are different in global marketing. A global marketing company launches a single product and makes changes to the same product depending on the demands of the different markets around the world. The logo and brand remains the same in all the regions, for example, Nike, Coca-Cola, Pepsi, Microsoft, and Apple. (Camps, 2000, 8)

Price is going to be different in every market. How the product is distributed is also a region-by-region decision that depends on the target market and competition in a specific region. Promotion is usually the most important P in the marketing mix in global marketing. Decisions as to whether the message will be the same or will be different in every country are made at this stage. In global marketing the biggest advantage is that companies can achieve economies of scale, increase and sustain their brand image ...