MARKETING

Marketing

Marketing

Market Segmentation is the process of dividing a market into direct groups of buyers who might require separate products or marketing mixes. There are several major bases for segmenting the market; they are geographic ? demographic ? psychographic and behavioral variables. The product we have chosen is cosmetics. (Kotler 2004)

Geographic segmentation calls for dividing the market into different geographical units such as nations ? regions ? states ? countries ? cities or neighborhoods. In this way of segmenting market ? a company should produce and sell the right products in the right geographic areas at the right times.

Demographic segmentation is the process of segmenting market based on variables such as gender ? family size ? family life cycle ? income ? occupation ? education ? religion ? (Schultz ? Tannenbaum and Lauterborn 1993) race and nationality.

Psychographic segmentation is the process of segmenting a market into different groups based on social class ? lifestyle or personality characteristics. People in the same geo-demographic group can have different psychographic profiles. (Pickton and Broderick 2005)

Behavioral segmentation divides buyers into groups based on their knowledge ? attitudes ? uses or responses to a product. Many marketers believe that behavior variables are the best starting point for building market segments.

Biocatalyst Tonic

Purpose: Finishes cleansing and leaves skin perfectly clean. Relieves ? soothes and softens skin. Reactivates the physiologic epidermis' functions. Prepares the skin for make up. Hydrates the entire upper layer of epidermis.

Primary ingredients: Corallina officinalis contains trace elements of marine minerals and in excess of 300 enzymes. They promote elasticity of the dermis' structural fibers (keratogenesis). This ingredient prepares the skin for cosmetics. Critmum maritimum extract adds purifying and regenerating properties. Rose water contributes a relaxing effect. (Masterson and Pickton 2004)

Price Elasticity

If the price elasticity of demand for the given products is estimated to be about 0.4 this means that the demand is mostly inelastic because the elasticity demand is less than one. Being mostly inelastic means a percent change in price leads to a less than proportional percent change in quantity demanded. So if there is a 20% increase in price ? (Kotler 2004) it will lead to a 8% decrease in quantity demanded.

If the price of the given products in increases ? given its inelastic demand ? the suppliers' income will increase. This is proved to be true because mostly inelastic demand and total revenue are directly related. When the price is raised on the given products in the percentage changed of quantity demanded is less than the percentage changed for the price in turn raising the total revenue of the given products in dealers. (Fill 2002) The buyers need to have the product and will pay almost anything to get it. So when the demand is this high ? crimes and other negative factors will increase when the price of that product increases for the fact that more money is now up for grabs.

More intensive distribution in less developed countries will help to promote the Coca-cola brand and its logo as well as ...