Colgate-Palmolive has remained a leader in the oral hygiene industry. The company operates all over the world and has been successful in all markets. One reason the company has remained successful is because the company understands its customers and customer buying behaviors. This paper will discuss different segmentation variables for Colgate-Palmolive. This paper will also discuss the behavioral influences. Finally, this paper will make some recommendations for the Colgate-Palmolive company. Segmentation Variables According to Keller and Kotler (2009) there are four segmentation variables. Those four variables are geographic, psychographic, demographic, and behavioral. Colgate-Palmolive operates in four geographic divisions: North America, Latin America, Europe/South Pacific, and Greater Asia/Africa (Datamonitor, 2011). The company sells its products in over 200 countries (Colgate-Palmolive, 2011). Demographic variables include age and life-cycle stage, life stage, gender, income, generation, and social class (Keller & Kotler, 2009). According to Laidler and Quelch (2011) “CP’s consumer research indicated that consumers of the baby boom generation (adults born in the 1940’s, 1950’s and early 1960’s) were becoming more concerned about the health of their gums as opposed to cavity prevention and were willing to pay a premium for new products addressing this issue.” Colgate offers a wide variety of products that address total oral care. Mothers, Hispanics and people with a busy schedule are also a target market of Colgate-Palmolive. Women and mothers are generally the person that does the shopping for the family. Pictures of mothers and their children are in many of their advertisements. The United States has a growing Hispanic population that Colgate has begun to market to. The company has advertisements in Spanish and packaging in Spanish (Veiders, 2008). For people on the go, Colgate developed the Colgate Wisp. In order to better understand the psychographic variable the company has put into place a new business planning tool. This new business planning tool will help executives measure the impact of the company’s advertising strategies. The business planning tool will also help the company determine where they should reallocate advertising and promotional spending (DeSanto, 2010). There are many consumer behavioral variables. Many of Colgate’s products are impulse buys and are decided in the store (Drug Store News, 1900). The company realizes how important shelf space and in store promotions are. They are offer a wide variety of products to fit anyone’s needs.
Another marketing strategy that Clorox is employing is consumer fragmentation. Through consumer fragmentation, the company is able to group its target consumers into groups that can be served with a particular advert or marketing approach. Clorox also intends to increase its brand investment behind superior products and more targeted 3D plans. The company appreciates the influence that media has on the purchasing decisions of consumers, it therefore wants to evolve its demand-creation model of 3Ds in the face of increased fragmentation of retailers and consumers. The three D’s of the model stand for desire, d...
P&G was founded in 1837 by William Procter and James Gamble as a maker of soaps and candles. P&G was known in Corporate America as a company to be admired and imitated. In addition, it was envied for its profitability as well as strong brand name. P&G has a long standing reputation as having life long employees. This dedication and loyalty by P&G's employees created the notion that outside sources were unwelcome and all products and ideas must come from within, however, this is not the way of the future.
Segmentation variables can be classified into four major classes; geographic, demographic, psychographic and behavioural. The use of these categories either individually or in combination assists companies to identify and establish market segments which is relevant to the product or service they are offering. This in turn helps these organisations to evaluate the relevant segments to choose the pertinent target market.
Segmentation, targeting and positioning are the fundament of modern marketing (Proctor, 2002, p. 188, as cited in Harris and Schaefer, 2015).
Popular brands and companies typically rely heavily on brand names to unfairly convince people to buy their specific product, even though another brand would likely work almost the same. In order to do this, those companies use many elements of ethos, but they also attempt to establish the superiority of their brand with logos and pathos. In the commercial, “Colgate Dentist DRTV,” the brand attempts to persuade consumers to buy Colgate Total toothpaste by presenting their name and relatable women, followed by attractive visuals, but ultimately the advertisement fails to provide enough logic to convince a well-informed audience that it truly matters which brand of toothpaste they buy, and that Colgate is better than any
The marketing mix, which is basic to any organization, can be considered the ‘controllable’ variables that every business encounters. These controllable variables can be modified based on the uncontrollable variables (external factors found in Environmental Scan) that directly affect business operations. A company focuses on four elements in the marketing mix: Product, Price, Place, and Promotion, which are managed and coordinated through marketing programs in efforts to appeal to their target market. Marketers strive to understand what motivates consumers to purchase certain products. The marketing mix helps to break down some of these questions: What will consumers buy? How much will they spend? Where will they buy? And will they buy again?
Procter and Gamble (P&G) and Colgate-Palmolive (C-P) are two of the largest consumer goods company in the world and have been in the industry since the 80s. The companies manufacture and market fast moving consumer goods (FMCG) such as household products, personal care and hygiene, targeting at various segments of consumers. Among the brands carried by P&G are Downy, Olay, Tide, Clairol and Bounty. Popular brands under C-P are Palmolive, Kleenex, and Colgate.
Many factors should be addressed when defining a target market. These factors include market segmentation, product life cycle, and the four "P's" that make the marketing mix. Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product wants and needs. There are four major segmentation variables: geographic, demographic, psychographic, and behavioral. Geographic segmentation includes world region, country region, city, density, or climate. Demographic segmentation can consist of age, gender, income, occupation, education, race, religion, or nationality. Social class, lifestyle, and personality fall into the psychographic segment. The behavioral segment divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product (Bethel, 2007). Once the market segment is identified, that market can be targeted.
Marketing Plan: Phase Two. The A-Team has introduced a new product called Pepsi Platinum for the company, PepsiCo, in Phase Two. This dissertation will identify segmentation criteria that will impact PepsiCo target market selection. This dissertation will describe the organizational buyers and consumers of Pepsi Platinum and the factors that influence their purchasing decisions, and discuss how these factors will impact PepsiCo’s marketing strategy.
Purchase behavioural helps companies to develop an effective strategy for their products. Figure 4 categorises the purchase behavioural with profitability. Furthermore, attitudinal loyalty is a significant factor for the future profits of companies. They want to know exactly which customers have high relative attitude and other crucial facts. The customers’ attitude analysis is presented on figure 5. Companies are using CLV (customer lifetime value) as it is a method, which can combine all elements and data of customers’ loyalty, behaviour, attitude and help them to increase their profitability (Kumar and Shah, 2004). Gregg is a model o business which loyal and returning customers is vital part of its stability and future development. However, Greggs is a hospitality brand, which has specific characteristics as far as sales and customers’ range are concerned. It has more than 1600 brunches on high street and urban areas. The majority of the brunches are aiming to serve local and tourist customers. Thus, they want returning customers for the local scale operations and for the tourist they are interested more for big and success brand advertisement for
In all reality, all businesses will, in some way shape or form, complete all of the marketing activities, even if completing these activities is not their main goal. (Dlabay 2006.) These marketing activities are product, place, price, and promotion. A business tool called that marketing mix takes all of these activities and puts them together in a way that can be used to help improve a business’s marketing strategy. Product is what the company is selling; Place is where the consumer will obtain this product; Price is what the consumer will pay for the product; Promotion is any type of communication that is intended to remind, inform, or persuade. (Dlabay 2006.) The marketing mix and the four P’s describe very well what business marketing is all about.
In conclusion, Colgate’s advertisement used Logos, Pathos, and Ethos to reveal to the world that they have the best toothbrush out there. Their advertisement persuades everyone who has teeth to go out and buy their new product which is a toothbrush. The advertisement used Ethos, Logos, and Pathos to persuade viewers to buy their product. Although throughout the years, they’ve extended their products, their sales have gone down
Kotler, P., & Keller, K. (2012). Marketing management (14th ed., Global ed.). Boston, [Mass.: Pearson.
The research on consumer behavior assists the organization recognize and forecast the purchase behavior of the consumers while they are purchasing a product. Thus, the study of consumer behavior helps the marketers not only to understand what consumer's purchase, but helps to understand why they purchase it (Kumar, 2004). There are a lot of elements which can influence the purchase decision of consumers such as social influences, cultural influences, psychological factors and personal factors (Super Professeur, 2011). Understanding these factors helps the company to market the product on right time to the right consumers in order to generate more profits. On the other hand, if the marketers fail to understand these components that might influence consumers, they will fail to convince the consumers to purchase that product or will fail to meet the demands of consumers. However, consumer behavior is one of the stimulating and challenging areas in marketing studies being a human activity focused on the products and services. Thus understanding the behavior of the consumers is a great challenge. Moreover, it is not easy to get a full picture of consumer behavior as customers make plenty of different buying decision every day and they usually do not know exactly what influences their purchase. In short, basing on all
Overall impact of brand on consumer behavior is moderate Brand name, brand loyalty, after purchase service, verification of the product; symbolic mean...