Marketing has many different definitions: ‘Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably. ’ (The Chartered Institute of Marketing /CIM/). Marketing try to send that massage, the customer’s satisfaction is the focus point of all business activities, what been driven by managers passionate about to delight their customers. The truth is marketing has one measurement that matters: how much product been sold. The marketing concept is about matching the company’s capabilities with customer wants and it has a strong impact on sales.
Effective implementation of the marketing concepts requires involvement of employees from all departments at all levels of the business. Employees must be motivated to achieve the common goals of maximum customer satisfaction and profitability. Nowadays nobody can avoid marketing’s influence. It has direct /e. g. advertising/ and derivative /e. g. group mentality and recommendation/ impact upon us. As a woman, who is in daily contact with skincare and beauty products, I would like to present two marketing concepts trough on this product range. Market segmentation, targeting (Section1. 2) and marketing mix (Session 4).
The businesses have several important reasons, why should attempt to segment their markets carefully. The main goal is to better match their customer needs. Customers’ needs differ. Creating separate offers for each segment makes sense and provides customers better solution. Another reason is, businesses want to enhance profit. The customers have different disposable income, therefore different in how sensitive to price. By segmenting markets, businesses can raise average prices and subsequently enhance profit. To achieve a steady profit, companies want to build long-term relationships with their customers.
Often people’s circumstances change, for example they grow older, form families, change jobs or get promoted these will change their buying patterns. With segmentation, business can retain customers who might otherwise switch to competing products and brands. If the market is too broad, there is a strong risk that the key customers missed the marketing message and the cost of communication becomes too high. To be able to find the actionable segments on the market, need to use market research, which focuses the four main segmentation methods: geographic, demographic, psychographic, and behavioural.
Thanks to the development of information technology and the improvement of the transport, it is easier to share information and travel around the world. Firms are able to become more global and act in more than one continent. Personal care products are a highly standardised range. On this case when marketing makes the geographic segmentation, they can decide to use the product adaptation or give the standardized solution. In the EU, we can buy exactly the same products everywhere, but sometimes the package and the name a bit different e. . deodorant Sure is the same, what we have in Hungary called Rexona, Bodyform in UK, Libresse in Hungary, that is adaptation. Standardized product offering /e. g. perfumes; Gucci/ the same smell and package everywhere. This could be profit and brand identity reason that stayed with this choice. Demographic segmentation consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality. Skin care products segmented the market by age and skin types.
The famous face lifting, anti ageing and anti cellulite creams take aim at over 30’s, but also people already been targeted just over 13’s with the spot creams. Psychographic segmentation devide the market by social class, lifestyle and personality type. Facial creams can be found in the wide variety of price range. The most expensive moisturising cream could cost a few hundred pounds. People can make prestige about what brand of product they use. Cosmetics companies make advantage on this, as often the high price product contains exactly the same ingredients as the cheap Tesco versions / e. g. aby bath products, makeup removal creams/. Behavioural segmentation divides customers into groups based on the way they respond to, use or know of a product. Hair styling Swartzkopf advertises Taft as an all occasion / every day all year around/ ‘perfectly held, soft to touch hair – all day long, whatever the weather’. Marketing mix is putting the right product in the right place, at the right price and time. The first element in the marketing mix is the product. Especial with beauty products costumers buy them, because of the core benefit what can provide /e. g. skin, like an18 years old, smell, like an irresistible diva/.
Perfume companies greatly emphasize that the perfume’s bottle /its colour and shape/ has to suggest its smell. That is called product features or characteristics. Product development is a key factor in beauty industry, as people are more ‘perfect orientated’ /everybody wants to be forever young and beautiful/. The second element in marketing mix is the price. Cosmetics products generally highly overcharged as companies count on women’s vanity. They can achieve this with their clever advertising campaign, giving the illusion beauty is just the question of money: ‘To get the perfect result use the same shampoo, conditioner and gel together! The third element is the promotion-communication process. Dove’s famous ‘real woman’ campaign, which convicted plastic surgery and retouching for normal bodies and flattering lighting, caused a minor sensation in the process. Sales of Dove’s skin-firming lotion increased by 700%! The fourth element of the marketing mix is place. Nowadays mail-order catalogue companies give us a chance to get high value luxury products available. They able to offer these products for much lower price and sometimes order comes with ‘gift’ /promotion samples and obsolete products/.
These companies do not have transport cost, as the buyer pays post and package. They also do not need to add extra cost /wholesaler, retailer/, as get the stock directly from the factory. Ethical marketing is an honest and factual representation of a product, delivered in a framework of cultural and social values for the consumer (Wikipedia). Hoewer, beauty is at the heart of L’Oreal and while the company makes no apologies about that, it fails to confront the consequences. L’Oreal is using cellular and molecular technology to try to cure baldness and wrinkles.
It is fascinating, but fails to address the ethical implications of manufacturing youth and ‘playing God’. For example, although L’Oreal is involved in controversial practices such as stem cell research, it fails to acknowledge concerns many people have about this, or whether it is appropriate to use human stem cells for cosmetic purposes. Similarly, other ethical question: appropriate to develop potions that disturb the body’s natural aging process? Is the beauty a great enough end to justify the means? Finally a sad data of L’Oreal’s management: only 2 females on the executive teams of 13 – for a cosmetics company?
In addition, not to mention the overly thin models and fake eyelashes in the mascara’s ‘long lasting’ campaign…. We just cannot resist marketing. Too many manipulative tricks gone on so long, that there many practices are simply accepted. Advertisers think that most of women are innocent fools, but we been using cosmetics since we were 14, as most women have, so we know perfectly well what it can do and can’t do. To assume anything else is insulting. Marketing has to accept the fact that people has enough from the perfect world and the continuously growing expectations. We just simply want to enjoy the life!
Anja Schaefer (2006) B120 Book 4 An introduction to marketing in business, Milton Keynes, The Open University. Newman, E. (2002). Marketing: Positioning yourself for success http://www. businessnorth. com/marketing. asp. Review of 2008 Sustainable Development Report from L’Oreal SA Mansell, J. (2007). Marketing basics: The marketing mix and product lifecycle Ferrel, O. C. , ; Hartline, M. D. (2005). Marketing Strategy Fill, C. (2006) Simply Marketing Communications Blythe J. (2006) Essentials of marketing communications