Blog Five: One Size Does Not Fit All- Market Segmentation

I have always been on the small size and I have seen the misconception that comes with the statement "one size fits all," because lets face it- those socks are way too big for my tiny feet, my head is too small for that hat, and those gloves are way too big for my small hands- ONE SIZE DOES NOT FIT ALL!

As I have observed through my experiences in shopping for winter accessories, one product will not satisfy all consumers needs and/or wants. Something that a child would want is certainly not something that a middle-aged man is going to need . In marketing it is important to have a target market- one specific set of potential consumers toward which a company directs its marketing activities. The target market of a product cannot possibly be people of all ages, it would be way to expensive. and thus ineffective, to market such a product to each demographic. One way of increasing the effectiveness of marketing is through market segmentation- placing prospective buyers into different groups in which members will have the same needs and interests and respond similarly to a product, thus resulting in various market segments of consumers with similar behaviors.

There are three different types of segmentation strategies that companies follow- one product and multiple market segments, multiple products and multiple market segments, and segments of one/ mass customization.

One Product and Multiple Market Segments occur when a company or an organization produces one specific product with the idea to sell it to 2 or more market segments. Much like with the Harry Potter book series by J.K. Rowling, Disney released the movie Frozen in 2013 originally targeted towards children and parents. However, buzz quickly spread and these products have become extremely successful for all ages. 

 

♫Let it go, Let it go♫

Multiple Products and Multiple Market Segments are found in companies which produce different products within their product lines targeted towards different types of customers. While Apple came out with the iPhone, which replaced the iPod for many, the iPod is still popular among young children who do not have a need for a device with a phone in it. 

While one product seemed to have replaced another, a new market is found for the product which seemed to be obsolete. 

Segments of One: or Mass Customization has occurred as a result of consumers wanting to be as unique as possible. Companies had to find a way to address consumers growing desire for a unique product tailored toward individual consumers, while being able to produce this product with fast and effective manufacturing. A heightened flexibility in manufacturing along with the internet has helped to make this possible, allowing for online ordering to produce products in a process of mass customization. M&M's, a Mars company, has adopted a product available for mass customization. 

Using an online ordering system consumers can customize their M&M's.

In selecting a specific market segment as a target market, a company can increase the effectiveness of their marketing strategy. 

Blog Four: You Can't Always Get What You Want, But...You Get What You Need

One of the things I like the most about going to Saint Michael's is the Liberal Studies Curriculum that we follow. With this, we are required to not only take courses in our major, but also to take foundation courses in each major subject area here at the college, for instance English, History, Science, Math, and Art, but also Religion, Language, and Philosophy.

As a First-Year student (what freshmen are referred to at Saint Mike's) I took a foundation course in Philosophy cleverly titled Introduction to Philosophy, and while I don't remember much from this class (It's been almost 3 years!) I do remember learning about a concept called The Hierarchy of Needs Theory by Abraham Maslow.

In taking classes within this Liberal Studies Curriculum, I have found that a lot of times my classes overlap and I learn about something I have already learned in another class, much like what happened last week. Not only did our Marketing textbook-and exam that followed, cover this theory relating it to marketing, but my Management textbook covered it also relating it to motivation. It was definitely a deja-vu moment that allowed me to connect the dots and understand this theory more deeply.

This theory, published by psychologist Abraham Maslow in 1943, states that there are five different types of human needs. These needs are arranged in a hierarchy, so that once one need is satisfied, another one can be met, much like going up a staircase- you can't reach the second step without going up the first to begin with.

So what are these needs and how do they relate to marketing?

As we have already learned, Marketing seeks to Identify the needs of consumers, and to fulfill those needs. Maslow organizes these 5 basic human needs into categories- physiological, safety, love, esteem, and self-actualization.

Physiological Needs- the most basic needs to be met by consumers which include food, water, air, clothing and shelter.

If you are driving down the street and are hungry, you may see this sign and recognize you need to fulfill your hunger and stop at McDonald's for some food.

Safety Needs-make up protection, security, and freedom from harms way. 

Companies that provide homes with security alarms fulfill these homeowner's safety needs.

Social Needs- include feelings such as affection, love, belonging, and friendship.

Online Dating companies that help others find love are attempting to fulfill ones social needs.

Personal/Esteem Needs- bring need for achievement, prestige, status, and respect. 

Luxury cars bring the feeling of prestige.

Self-Actualization Needs- the highest level of needs and also the hardest needs to fulfill, this category achieves the feeling of self-fulfillment once one has met every other need.

Ads such as this U.S. Army recruitment poster that invite one to "be all you can be" suggest to satisfy ones self-fulfillment needs. 

As a college student on a budget I can completely relate to Maslow's hierarchy of needs while I am shopping. I focus my buying on items like food and gas which are necessities to fulfill my physiological needs while items which satisfy esteem or self-actualization needs are put on hold. However my parents, who already own a home, have found love, and own nice cars, may be looking to fulfill their self-actualization needs at this stage in their lives. As we know in Marketing, it is all about targeting the right person at the right time!