Segmentation Strategies Essay

Abstract
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.

Introduction
Marketing is much more involved than just the business of selling and advertising of products and services. Of course it is the main aspect of marketing, but it does branch out to many different areas of processing before a product or service are ready to be presented to the consumers. There has to be a need or want for a product or service before it is established and then it is to be designed in order to satisfy the audience. However, the total market consists of a large population therefore there must be further research to be carried out, as a means to select the potential market and this is where segmentation occurs. Once all the characteristics have been identified through segmentation, a target market is achieved where those consumers with similar needs in relation to the product or service, are grouped. The next step in this process is the communication medium of which the marketer would choose that would be effective in getting the message of the product or service, across to the target audience.

A growing communication medium includes the Internet where it is easily accessible to the market. This report identifies a company’s website and how effective it is reaching its target market. Beginning from the determination of their segmentation objectives to their target market, and identifying their communication objectives. 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.

Segmentation
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.

Geographic Segmentation
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 population but not only focuses on production in America as they’re ‘Proud Lady Symbol can be found over 3,500 different products in the United States and abroad ’.

Demographic Segmentation
Demographic segmentation identifies those characteristics that are identifiable and measurable statistic of the population. These characteristics include age, gender, marital status, income, occupation and education, which can provide the basis for this particular segmentation. Demographic segmentation can be seen as the major factor when marketers need to locate a target market, as it is often the most accessible and cost-effective way (Schiffman et al 2001, pg. 59).

The AHBAI website doesn’t really focus on a demographic segment in particular, but they do focus on the more ethnic population of America. They eagerly promote that the AHBAI members are there to ‘serve Black America by providing jobs and scholarships and by teaching consumers how to recycle their dollars in the Black community’ . The website purely expresses that they are there to serve the Black American community and the demographics that they have focused on is mainly those who want to get into health and beauty care. As already mentioned before, AHBAI offers to their community, scholarships, internships or training, which therefore covers a lot of aspects in the demographic segment. Students who want to have a career in health and beauty and are fresh out of high school, seem to be a target segment for AHBAI however they do not outline the ages that they are observing, but they do take other variables into consideration like academic achievement, school activities and extracurricular activities.

Psychological Segmentation
This variable refers to the more intrinsic qualities of a consumer. Consumer segmentation is usually based on specific psychological variables, for example, their needs and motivations, personality, perceptions, learning, level of involvement and attitudes.

Psychological segmentation pretty much outlines the desires of an individual. Therefore, if someone had the desire to become a hairdresser or beautician, then this segment is all about those individuals. AHBAI focuses on their Proud Lady Beauty Show where they have a World Fantasy Competition. The highlight of this show focuses on the creativity and imagination of the leading Black hair designers have to offer the world.

Psychographic Segmentation
Closely aligned with psychological research is a valuable marketing tool that can help identify future market segments that are likely to be responsive to specific marketing messages. This is the attempt to profile many consumer aspects that includes individual lifestyle, personality, buying motives, interests, attitudes, beliefs and values. Therefore being summed into a consumer’s activities, interests and opinions (AIO). This information may also be acquired through questionnaires.

Pretty much along the lines of the psychological segmentation, the psychographic segmentation appeals to the individual and their main needs and wants in this particular trade.

Sociocultural Segmentation
This segmentation provides a further basis for target marketing. The population has successfully been divided into segments according to stage in the family life cycle, social class, core cultural values, sub cultural memberships and cross-cultural affiliation.
This segmentation variable has been the main focus of the website where the emphasis of the Black American population is expressed. Hand in hand with the demographic segment, which focuses on the race variable, the website tries to keep within these boundaries.

Target Market
After the identification of the bases for consumer segmentation, marketers are required to select one or more of the segments to target with the appropriate targeting mix. These are further explained in the following.

Identifiable
Marketers must be able to identify and measure the relevant characteristics to divide a market into separate segments on the basis of a common need that is relevant to the product or service. Therefore they have to gather the appropriate information, where some segments are easily identifiable or observable, for example geography (location) or the consumer’s demographic (age, gender, occupation, race). Whereas some you may need to acquire through the use of a questionnaire or survey, these characteristics may include education, income and marital status.

AHBAI satisfies this requirement in their marketing strategy where ‘the Proud Lady is a symbol of pride, hope and dignity and a promoter of economic growth in the Black Community’ . It also assures consumers that the product was manufactured by a stronger Black America.

Sufficient
Marketers have to keep in mind that a worthwhile target market has to have a relatively sufficient number of people to be able to tailor the specific needs or interests of the consumer towards a product or service. To estimate the size of the target market, the marketer can use the secondary demographic data which would definitely be provided by the Australian Bureau of Statistics (ABS), or undertake a probability survey themselves, which can then be a guide in reflection of the total market. In regards to AHBAI’s target market, the Black American community is quite substantial in the US.

Stability
There has to be some sort of relative stability amongst the consumers in terms of needs, and demographic and psychological factors, which are more than likely to grow and expand over time. Marketers tend to avoid those segments that are highly unpredictable, which are sometimes observed through the teenagers as they are a sizeable and easily identifiable market segment because they are eager to buy, eager to spend and easy to reach, however their attention span are quite limited.

Stability is satisfied through their target market for those who are interested in a profession in regards to this particular trade in hairdressing and beauty care.

Accessibility
Accessibility to the target market is one of the most important criteria for effective targeting is because marketers have to find the most effective way to target the desired market segment in an efficient and economical way. There are many different communication means which can include television programs or special interest magazines that marketers can use to reach their target market with minimum waste circulation and competition, but they are also always in search or other communication mediums. This would definitely include the Internet. This has been a growing phenomenon, where messages are constantly in the hands of the consumer, whenever and wherever they want.

As the main focus is of the website, it’s accessibility is quite straightforward and simple to navigate. There is no clutter of excess information, just necessary details the company. The hair care and beauty products are in no doubt easily accessible.

Communication Objectives
Once market segmentation and target marketing has been achieved, the marketer has to establish their communication strategy, involving in the transmission of a message from a sender to a receiver through some kind of channel or medium. Even this is involved in a process, beginning from identifying the communication objectives, then selecting the appropriate audience for the message and the appropriate media through which to reach them, and then design the message so that it is appropriate to the medium and the audience (Schiffman et al 2001, pg. 264).

Communication Strategy
In developing the communication strategy, the marketer has to identify the primary communication objectives, which may include creating awareness of a service, promoting sales of a product, attracting retail patronage, creating goodwill or a favourable image and any other objectives that the company might want to promote. The essential component of a communication strategy is selecting the appropriate target audience and what the company seeks to accomplish with its promotional program, which are often stated in terms of the nature of the message to be communicated or what specific communication effects are to be achieved (Belch & Belch 2001, pg. 30). However, marketers should keep in mind that each individual of the target audience are different according to their own traits, characteristics, interests, needs, experience and knowledge, therefore segmenting the audience into different groups that are homogenous in terms of some relevant characteristic (Schiffman et al 2001, pg. 264). The marketer is then able to create specific messages for each target group, keeping in mind the budget available to present these messages to the audience.

The Internet is a very successful way of trying to get messages through to a target audience. AHBAI in this respect managed to inform their audience about how and why they are a substantiated company and what they had to offer to their target audience. If the website was not of sufficient information, then they are able to further contact the home source either by correspondence, phone or email.

Conclusion
Segmentation is a vital management tool that marketers require to identify their target market to effectively and efficiently promote their product or service. Marketers are also able to expand that same target market or enter a new market in response to their consumers needs and wants. AHBAI serves the Black American community and those who want to have a profession in the hair and beauty industry. Their target market is quite substantial as the community is rather large in the US. Their communication medium may not only lie within the Internet, as they may have other promotional methods, like advertisements on television. However, their beauty shows are also a promotional method in which to promote their hair care and beauty products and they also are selling a couple of their Proud Lady merchandise which can be purchased through a form attached to the site.

________________
Our professional custom writing service can provide you with a 100% non-plagiarized custom essay, research paper, term paper, thesis, dissertation or other assignment of high-quality. All custom papers are written from scratch by professional academic writers. Any topic, any discipline, any deadline. Feel free to order a custom research paper on Segmentation Strategies now.