This essay mainly focuses on the AHBAI website, promoting their Proud Lady hair care and beauty products and merchandise. Their main focus is on the large Black Community within the US, but they are also starting to go abroad as well. They provide job opportunities, scholarships and training within the desired industry and are a thriving association in representation of Black-owned manufacturing companies. Their segmentation variables reflect on how they selected their target market and also how they had decided to communicate to their product and service to their target audience.
Marketing is much more involved than just the business of selling and advertising of ...view middle of the document...
The company that will be in focus for this particular report is the American Health and Beauty Aids Institute (AHBAI), the trade company in association with The Proud Lady beauty products. AHBAI is an internationally renowned trade association representing the world’s leading Black-owned companies that manufacture ethnic hair care and beauty related products featuring the Proud Lady Symbol.
All products and services rely on the use of market segmentation for appropriate advertising purposes and it can be seen as a vital management tool. Schiffman defines market segmentation as the process of dividing a market into distinct subsets of consumers with common needs and characteristics and selecting one or more segments to target with a distinct marketing mix (2001, pg. 54). Hawkins view of segmentation involves in the development of specific marketing programs targeted at consumer groups with unique needs and/or purchasing processes (1994, pg. 9). Since companies vary between what they can offer to their markets, segmentation has been proven to be efficient and effective in regards to selecting and serving their segment of the market, in which they can provide the best service within that segment.
Market segmentation also allows marketers of consumer goods and services identify the needs of the market and can usually provide the marketer with the opportunity to expand their target market or enter a new market to satisfy more effectively the specific needs or wants of particular consumers (Schiffman, Bednall, Cowley, O’Cass, Watson, Kanuk 2001, pg. 55). It shows that this is an effective practice rather than aiming at all potential customers and taking other competition head on, companies secure themselves by targeting a section of that market and specialising in features that appeal to their consumers (Poulos, M. 2001, pg. 12).
Segmentation studies can assist the marketer to design existing and new products to satisfy newly discovered needs and wants of specific groups in the target market. This can involve in the redesign and the repositioning of existing products or even the addition of a new market segment. However, the segmentation strategy relies on establishing the appropriate bases, which include geographic factors, demographic factors, psychological characteristics, psychographic characteristics and sociocultural variables.
Through geographic segmentation, the market is divided by location. This is followed through by the theory that people who live in the same area share some similar needs and wants which differ from those people who live in other areas. There can be many variables that can affect this segmentation by location, which therefore does not allow the same marketing strategies that can apply to one location, to a totally different location like for example, climatic and regional differences.
In relation to this variable, the AHBAI website mainly focuses on the American...