Chapter 8 - Segmenting and Targeting Markets

               TRESemmé has it's own market that sells products very well. A market refers to people or organizations with needs or wants and the ability and willingness to buy. The idea that influences these people or organizations are TRESemmé's product categories, since TRESemmé owns different types of products in different categories, the market is more likely to buy TRESemmé's products because there are different varieties to choose from. When the market has it's eye on one of TRESemmé's item, it's their job to influence them to buy it. Within a market, a market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. All people have similiar characteristics and needs, as do all organizations. Another process that TRESemmé's goes through is a market segmentation, which is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. All of these definitions make up a market.

                      Since all markets include groups of people or organizations with different product needs and preferences, market segmentation helps marketers define customer needs and wants more precisely. This is why having a market segmentation is important for TRESemmé and any other company out there. Since TRESemmé's products will be more precise with market segmentation, markets can easily find what they exactly want and need. An example of TRESemmé's market segmentation would be one of their shampoos, lets say a customer wanted to buy a smaller bottle of TRESemmé's shampoo? The market segmentation will be able to help this customer because the shampoo will come in different shapes and sizes overall. To have a successful segmentation, companies must have these 4 important things: sustainability (a segment must be large enough to warrant developing and maintaining a special marketing mix), identifiability & measurability (segments must be identifiable and their size measurable), accessibility (the firm must be able to reach members of targeted segments with customized marketing mixes), and responsiveness (markets can be segmented using any criteria that seem logical).

                             Marketers use segmentation bases which divides a total market into segments. There are 5 basic segmentations that marketers follow. Geographic Segmentation refers to markets by region of a country or world, market size, market density, or climate; TRESemmé follows this segmentation because they have their products all around the world for marketers to grab their attention and make more profits out of them. Demographic Segmentation refers to age, gender, income, ethnic background, and family life cycle; TRESemmé's products aim for marketers who were born in the Y generation because they tend to buy their products more other than the X generation and baby boomers. They also make their products cheaper than other brand names that sell similar products. Psychographic Segmentation deals with personality, motives, lifestyles, and geodemographics; this is when TRESemmé gathers information about people and this determines how they should sell their products and what products should they sell. Benefit Segmentation is the process of grouping customers into market segments according to the benefits they seek from the product; TRESemmé will examine what their customers like and WANT in a product and what they should fix about their products. Once they get the hang of this, their product would sell real good. Usage-Rate Segmentation divides a market by the amount of product bought or consumed; TRESemmé keeps track on which one of their products are having the most sales because this allows them to notice the special idea in that specific product that they can add into their other not-so-well-selling products.

                         TRESemmé's business market consists of 4 broad segments: producers, resellers, government, and institutions. TRESemmé's company characteristics is reasonable since they are located in drugstores geographically and many buyers prefer to purchase from local suppliers since distant suppliers may have difficulty competing in terms of price and service. TRESemmé's buying processes segments customers and prospective costumers on the basis of how they buy. This allows them to become better sellers for their markets.

                          After the whole segmentation process, the next task is to choose one or more target markets. TRESemmé is the type of company who deals with one specific target market because this way they can attract customers with a single marketing mix. There are different ways on how TRESemmé targets their marketers. TRESemmé's way of targeting is the concentrated targeting method. They select a market niche for targeting its marketing efforts. The developing of any marketing mix depends on positioning, this influences potential customers's overall perception of a brand, product line, or organization in general. TRESemmé needs to know where they should position their products so they can catch the consumer's eyes. They have all their products in one section of a store as a product line going from shampoos, conditioners, gels, hairsprays, hair styling products, etc.