Valencia Soap By White Sight Co.

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WHITE SIDE COMPANY

INTRODUCTION

White side co. had been established in 2008 in Dubai by Mr.Usman
Bashir a biuionaire in Dubai. Mr. Usman is basically an industrialist.
In the year of 2008in the month of July, he felt a great need
forgetter infrastructure of health soap for health purpose boom in his
country. So he decided to launch VALENCIA SOAP.

In the start, it was a single person company but afterward general
public from all over the world was invited for subscription. Many
Pakistani now has a reasonable share in White side co.

In the earlier stages, it only worked in UAE states successfully, but
as time passes, Mr.Usman with the consultation of his Directors of
the company agreed that Pakistan is Worlds best place at that time
for VALENCIA SOAP Boom.

So now VALENCIA SOAP is in Pakistan since Sep 2008. It is working
in almost all the cities of Pakistan with best available packages and
services.

COMPANY OBJECTIVES

TRUST OF THE CUSTOMER ON OWN SERVICES IS the pride of the
VALENCIA SOAP. We always tried to arrange best possible services
to our customer which any other company does not offer. We really
value the customer. A right word is customer have the status of
order perception is that we are contribution in the health progress of
Pakistan. We will be all the time with Pakistan this process as our
motto is
“Sari Zindgi Sath Sath”

The mystery of soap making

Suggestions & Feedback: Feedbacks@Whiteside.com Valencia
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I always wanted to be one of those Suzy homemakers that did a lot
of Canning and jarring and making my own soap and candles! All
that stuff sounded so great to me. I never tried because I thought it
was too hard! As of late however at the ripe old age of 45 I have
decided it's now or never so I am going on some exploits and I am
taking you with me (if you want to come!)We are now entering the
twilight zone of 'Country gal 101' Today’s lesson is Wonderful and
healthy soap making made easy! There is a list of 'soap making'
sites at the end visit them for soap making in different degrees of
difficulty. I don't know about you but the easy way works for me! I
think I might advance one day but not today! I am a beginner
myself but soap making, like I said, has always interested me!

Add some Spice to your soap!

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Ways to make your soap great!

As shown below there are many ways to make your soap uniquely
yours!

Scented oils and healthy skin oils and butters herbs such as
eucalyptus and

Mint, Cinnamon, Aloe and Green tea just to name a few. You can
scent with

Fragrance oils and molds them into anything you want with soap
molds! You can

Even add sand or crunched up nuts to give the soap texture and
'scrub' qualities :)

((((TIP))))

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Put them in the freezer for an hour and they will come out of the
molds easier!

It works well to spray your mold with cooking spray! You can also
add color to

Make the soap beautiful! This stuff makes GREAT gifts! People love
it!

Unit Price Qty. Cost

COCONUT SOAP BASE, 1 LB BLOCK

[Remove] $5.49 $5.49

LIQUID SOAP SCENTS: GARDENIA, LIQUID SOAP SCENT

[Remove] $4.99 $4.99

LIQUID SOAP SCENTS: LAVENDER, LIQUID SOAP SCENT

[Remove] $4.99 $4.99

Subtotal: $15.47

Total: $15.47

Keep Shopping

Related items:

LIQUID SOAP COLORS: BLUE, LIQUID SOAP COLOR

Price: $1.99

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GLYCERIN SOAP BASE, 5 LB BLOCK

Price: $18.99

LIQUID SOAP COLORS: YELLOW, LIQUID SOAP COLOR

Price: $1.99

An Easy Soap recipe!

This should be a family affair! Get yo' Mama or Yo' Granny
and get in that kitchen together! Nothing brings a family
closer than making something together!

What you'll need:
• Glycerin soap, clear or white (This only works with glycerin soap
- transparent Neutrogena bars will work fine.)
• Soap dye in colors or your choice
• Soap or candy molds
• Microwave safe liquid measuring cup
• Spoon
• Popsicle stick or coffee stirrer
• Knife (adults only)

How to make it:
1. If using bars of soap, cut into three pieces. If using purchased
glycerin blocks, cut off 2-3 pre-measured chunks.
2. Put glycerin soap into a measuring cup, microwave according to
package directions (or 20 seconds), then in 10-second intervals
until melted.
3. If you want colors, this is the time to add the dye. Add a few
drops and stir with a spoon. If you want the color darker, simply
add more dye. If you want fragrance add fragrance oil. If you

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want a 'scrubbing side' to your soap add sand or crushed nuts. If
you want healthy soap add aloe or olive oil now!
4. Slowly pour the liquid soap into the mold. Set aside to harden for
45 minutes to an hour. Some soap may harden sooner than
others.
5. Rinse out measuring cup and repeat process for other colors.
6. After soap has cooled completely, pop them out of the molds. If
you find this difficult, you can place the soap into the freezer for
ten minutes and try again.

Tips:
• For a tie dye effect, don't add dye until after you have poured
white soap into the molds. Add random drops of dye into white
soap in mold and swirl with a coffee stick or toothpick.
• For multicolor layers, pour the first color in and allow it to cool
enough to form a skin (about 5 minutes). Carefully and very
slowly add the second color over that.
• For pastel shades, add only a couple drops of dye. For more bold
colors, add more drops.
• Make your own colors by mixing the dyes, or create a tie dye
effect by using two or more colors instead of just one.
Have fun with it! That’s what life is about discovering and inventing!

MARKET SEGMENTATION

INTRODUCTION: What we are seeing here is that within the
some general market there are groups or customers __marker
segments __ with different wants, buying preferences, of product-
use behavior. In some markets these differences are relatively
minor, and the benefits sought by consumers can be satisfied with a

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single marketing mix. In other markets, some customers are
unwilling to make the compromises necessitated by a single
marketing mix. As a result, the segments must be targeted
individually with different marketing mixes. A specific market
segment (people or organizations) for which the seller designs a
particular marketing mix is a target market. Using the marketing
mix, a firm attempts to attractive position for offering in the minds
of the target market.

SEGMENTATION The variation in customers’ responses to
a marketing mix can be traced to differences in buying habits, in
ways in which the good or services is used, or in motives for buying.

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Customer oriented marketers take these differences into
considerations, but they usually cannot afford to design a different
marketing mix for every customer. Consequently, most marketers
operate between the extremes of one marketing mix for all and a
different one for each customer. To do so involves market
segmentation. A process of dividing the total market for a good or
service into several smaller, internally homogeneous groups. The
essence of segmentation is that the members of each group are
similar with respect to the factors that influence demand. A major
element in a company’s success is the ability to segment its market
effectively. Segmentation, Targeting, and Positioning

Segmentation, targeting, and positioning together comprise a three
stage process. We first (1) determine which kinds of customers
exist, then (2) select which ones we are best off trying to serve and,
finally, (3) implement our segmentation by optimizing our
products/services for that segment and communicating that we have
made the choice to distinguish ourselves that way.

Segmentation involves finding out what kinds of consumers with
different needs exist. In the auto market, for example, some

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consumers demand speed and performance, while others are much
more concerned about roominess and safety. In general, it holds
true that “You can’t be all things to all people,” and experience has
demonstrated that firms that specialize in meeting the needs of one
group of consumers over another tend to be more profitable.

Generically, there are three approaches to marketing. In the
undifferentiated strategy, all consumers are treated as the same,
with firms not making any specific efforts to satisfy particular
groups. This may work when the product is a standard one where
one competitor really can’t offer much that another one can’t.
Usually, this is the case only for commodities. In the concentrated
strategy, one firm chooses to focus on one of several segments that
exist while leaving other segments to competitors. For example,
Southwest Airlines focuses on price sensitive consumers who will
forego meals and assigned seating for low prices. In contrast, most
airlines follow the differentiated strategy: They offer high priced
tickets to those who are inflexible in that they cannot tell in advance
when they need to fly and find it impractical to stay over a
Saturday. These travelers—usually business travelers—pay high
fares but can only fill the planes up partially. The same airlines then
sell some of the remaining seats to more price sensitive customers
who can buy two weeks in advance and stay over.

Note that segmentation calls for some tough choices. There may be
a large number of variables that can be used to differentiate
consumers of a given product category; yet, in practice, it becomes
impossibly cumbersome to work with more than a few at a time.
Thus, we need to determine which variables will be most useful in
distinguishing different groups of consumers. We might thus decide,
for example, that the variables that are most relevant in separating
different kinds of soft drink consumers are (1) preference for taste
vs. low calories, (2) preference for Cola vs. non-cola taste, (3) price
sensitivity—willingness to pay for brand names; and (4) heavy vs.
light consumers. We now put these variables together to arrive at
various combinations.
Several different kinds of variables can be used for segmentation.

• Demographic variables essentially refer to personal statistics
such as income, gender, education, location (rural vs. urban,

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East vs. West), ethnicity, and family size. Campbell’s soup, for
instance, has found that Western U.S. consumers on the
average prefer spicier soups—thus, you get a different product
in the same cans at the East and West coasts. Facing flat
sales of guns in the traditional male dominated market, a
manufacturer came out with the Lady Remington, a more
compact, handier gun more attractive to women. Taking this a
step farther, it is also possible to segment on lifestyle and
values.”
• Some consumers want to be seen as similar to others, while a
different segment wants to stand apart from the crowd.
• Another basis for segmentation is behavior. Some consumers
are “brand loyal”—i.e., they tend to stick with their preferred
brands even when a competing one is on sale. Some
consumers are “heavy” users while others are “light” users.
For example, research conducted by the wine industry shows
that some 80% of the product is consumed by 20% of the
consumers—presumably a rather intoxicated group.
• One can also segment on benefits sought, essentially
bypassing demographic explanatory variables. Some
consumers, for example, like scented soap (a segment likely to
be attracted to brands such as Irish Spring), while others
prefer the “clean” feeling of unscented soap (the “Ivory”
segment). Some consumers use toothpaste primarily to
promote oral health, while another segment is more interested
in breathe freshening.

In the next step, we decide to target one or more segments. Our
choice should generally depend on several factors. First, how well
are existing segments served by other manufacturers? It will be
more difficult to appeal to a segment that is already well served than
to one whose needs are not currently being served well. Secondly,
how large is the segment, and how can we expect it to grow? (Note
that a downside to a large, rapidly growing segment is that it tends
to attract competition). Thirdly, do we have strengths as a company
that will help us appeal particularly to one group of consumers?
Firms may already have an established reputation. While
McDonald’s has a great reputation for fast, consistent quality, family
friendly food, it would be difficult to convince consumers that
McDonald’s now offers gourmet food. Thus, Mud’s would probably

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be better off targeting families in search of consistent quality food in
nice, clean restaurants.

Positioning involves implementing our targeting. For example,
Apple Computer has chosen to position itself as a maker of user-
friendly computers. Thus, Apple has done a lot through its
advertising to promote itself, through its unintimidating icons, as a
computer for “non-geeks.” The Visual C software programming
language, in contrast, is aimed a “techies.”

Michael Treaty and Fred Wiremen suggested in their 1993 book The
Discipline of Market Leaders that most successful firms fall into one
of three categories:

• Operationally excellent firms, which maintain a strong
competitive advantage by maintaining exceptional efficiency,
thus enabling the firm to provide reliable service to the
customer at a significantly lower cost than those of less well
organized and well run competitors. The emphasis here is
mostly on low cost, subject to reliable performance, and less
value is put on customizing the offering for the specific
customer. Wal-Mart is an example of this discipline. Elaborate
logistical designs allow goods to be moved at the lowest cost,
with extensive systems predicting when specific quantities of
supplies will be needed.

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• Customer intimate firms, which excel in serving the specific
needs of the individual customer well. There is less emphasis
on efficiency, which is sacrificed for providing more precisely
what is wanted by the customer. Reliability is also stressed.
Nordstrom’s and IBM are examples of this discipline.
• Technologically excellent firms, which produce the most
advanced products currently available with the latest
technology, constantly maintaining leadership in innovation.
These firms, because they work with costly technologies that
need constant refinement, cannot be as efficient as the
operationally excellent firms and often cannot adapt their
products as well to the needs of the individual customer. Intel
is an example of this discipline.

Tracy and Wireman suggest that in addition to excelling on one of
the three value dimensions, firms must meet acceptable levels on
the other two. Wal-Mart, for example, does maintain some level of
customer service. Nordstrom’s and Intel both must meet some
standards of cost effectiveness. The emphasis, beyond meeting the
minimum required level in the two other dimensions, is on the
dimension of strength.
Repositioning involves an attempt to change consumer perceptions
of a brand, usually because the existing position that the brand
holds has become less attractive. Sears, for example, attempted to
reposition itself from a place that offered great sales but unattractive
prices the rest of the time to a store that consistently offered
“everyday low prices.” Repositioning in practice is very difficult to
accomplish. A great deal of money is often needed for advertising
and other promotional efforts, and in many cases, the repositioning
fails.

To effectively attempt repositioning, it is important to understand
how one’s brand and those of competitors are perceived. One
approach to identifying consumer product perceptions is
multidimensional scaling. Here, we identify how products are
perceived on two or more “dimensions,” allowing us to plot brands
against each other. It may then be possible to attempt to “move”
one’s brand in a more desirable direction by selectively promoting
certain points. There are two main approaches to multi-dimensional
scaling. In the a priori approach, market researchers identify

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dimensions of interest and then ask consumers about their
perceptions on each dimension for each brand. This is useful when
(1) the market researcher knows which dimensions are of interest
and (2) the customer’s perception on each dimension is relatively
clear (as opposed to being “made up” on the spot to be able to give
the researcher a desired answer). In the similarity rating approach,
respondents are not asked about their perceptions of brands on any
specific dimensions. Instead, subjects are asked to rate the extent
of similarity of different pairs of products (e.g., How similar, on a
scale of 1-7, is Snicker’s to Chitchat, and how similar is Tolerance to
Three Musketeers?) Using a computer algorithm, the computer then
identifies positions of each brand on a map of a given number of
dimensions. The computer does not reveal what each dimension
means—that must be left to human interpretation based on what the
variations in each dimension appears to reveal. This second method
is more useful when no specific product dimensions have been
identified as being of particular interest or when it is not clear what
the variables of difference are for the product category.

MARKETING SEGMENTATION: Dividing a market into
distinct groups of users with different needs, characteristic, or
behavior who might require separate products or marketing mixes.
Dividing a market into distinct group of buyers with different
needs, characteristics and behavior who might require separate
product or marketing mix. The company identifies different way to
segment the market and develops profiles of the resulting market
segments.

MARKET TARGETING: The second step is market targeting –
evaluating each markets segment’s attractiveness and selecting one
or more of the market segments to enter.

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The process of evaluating each market segment’s
attractiveness and selecting one or more segments to enter.

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MARKET POSITIONING: The third step is market
positioning – setting the competitive positioning for the product and
creating a detailed marketing mix. Formulating competitive
positioning for a product and a detailed marketing mix

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STEPS IN MARKET SEGMENTATION,
TARGETING AND POSITIONING

6. Develop marketing mix for each
target segment

5. Develop positioning for each
target segment Market
Positioning

4. Select the target segments
Market Targeting
3. Develop measures of segment
attractiveness
Market
Segmentation
2. Develop profiles of resulting
segments

1. Identify bases for segmenting the
market

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BENEFITS OF MARKET
SEGMENTATION

Market segmentation is customer-oriented, and thus it is
consistent with the marketing concept. In segmenting, we first
identify the wanes of customers within a submarket and then decide
if it is practical to develop a marketing mix to satisfy those wants.

By tailoring marketing programs to individual market
segments, and company can do a better marketing fob and make
more efficient use of its marketing resources. Market segmentation
is customer-oriented, and thus it is consistent with the marketing
concept. In segmenting, we first identify the wants of customers
within a submarket and then decide if it is practical to develop a
marketing mix to satisfy those wants.

BENEFIT SEGMENTATION: Dividing the market into groups
according to the different benefits that consumers seed from the
product.

o BENEFIT SOUGHT

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o USER STATUS
o USAGE RATE
o LOYALTY STATUS

BENEFIT SOUGHT: A powerful form of segmentation is to
group buyers according to the different benefits that they seed from
the product. Benefit segmentation requires finding the major
benefits people look for in the product class, the kinds of people who
look for each benefit, and the major brands that deliver each befit.

USER STATUS: Markets can be segmented into groups of
nonusers, ex-users, potential users, first-time users, and regular
users of a product.
A company’s market position also influences its focus. Market
share leaders focus on attracting potential users, whereas smaller
firms focus on attracting current users away from the market leader.

USAGE RATE: Markets can also be segmented into light,
medium, and heavy product users. Heavy users are often a small
percentage of the market but account for a high percentage of total
consumption.

LOYALTY STATUS: A market can also be segmented by
consumer loyalty. Consumers can be loyal to brands (Tide), stores
(Wal-Mart), and companies (Ford). Buyers can be divided into
groups according to their degree of loyalty. Some consumers are
completely loyal __ they buy one brand all the time. Others are

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somewhat loyal __ they are loyal to two or three brands of a given
product or favor one brand while sometimes buying others. Still
other buyers show no loyalty to and brand. They either want
something different each time they buy or they buy whatever’s on
sale.

BENEFITS SEGMENTATION OF
HEALTH SOAP MARKET

Benefits Demographic Behavior Psychographics Favored
Segments Brands
Economy Women Heavy High Autonomy Brand on
(Low Price) Users (Value Oriented) Sale
Medicinal Large Family Smokers High Sociability, Crest
(Decay Active
Prevention)
Cosmetics Teens, Young Heavy Hypochondriacally Alovera,
(Bright Adults Users Conservatives Aqua
Face) fresh
Fragrance Children Spearmint High Self Pearl,
Lovers Involvement, Aim

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Hedonistic

THE PROCESS, OF MARKET
SEGMENTATION

Markets are sometimes segmented intuitively; that is, a
marketer relies on experience and judgment to make a decision
about the segments that exist in a market and how much potential
each offers. Others follow the lead of competitors or earlier market
entrants.

1. IDENTIFY THE CURRENT AND POTENTIAL
WANTS THAT EXIST WITHIN A MARKET: The marketer
carefully examines the market to determine the specific needs being
satisfied by current offerings, the needs current offerings fail to
adequately satisfy, and the needs that may not yet be recognized.
This step may involve interviewing and/or observing consumers or
firms to determine their behavior, levels of satisfaction, and
frustration.

2. IDENTIFY CHARACTERISTICS THAT
DISTINGUISH AMONG THE SEGMENTS: In this step the
focus is on what prospects who share a particular want have in
common to distinguish them from other segments in the market that
have different wants. Among business firms it could be a physical
feature (like size or location). Among consumers it might be an

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attitude or a behavior pattern. From the results of this step,
potential marketing mixes (including product ideas) for the various
segments can be geed. These alternatives can then be further
analyzed.

3. Determine the size of the segments and how
well they are being satisfied: The final step is to estimate
how much demand (or potential sales) each segment rep- resents
and the strength of the competition. These forecasts will determine
which segments are worth pursuing. American Express launched an
internet banking service that allows customers to make deposits,
purchase certificates of deposit, and pay bills online. Despite the fact
that online competition from conventional banks and other credit
card companies is fierce, American Express’ existing cardholders
make up an attractive initial market segment.

LEVELS OF MARKETING
SEGMENTATION

Because buyers have unique needs and wants, each buyer is
potentially a separate market. Ideally, then, a seller might design a
separate marketing program for each buyer. However, although
some companies attempt to serve buyers individually, many others
face larger numbers of smaller buyers and do not find complete
segmentation worthwhile. Instead, they look for broader classes of

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buyers who differ in their product needs or buying response. Thus,
market segmentation can be carried out at many different levels.

DIAGRAM OF COMPLETE SEGMENTATION

MASS MARKETING: Companies have not always practiced
target marketing. In fact, for most of the twentieth century, major
consumer products companies held fast to mass marketing __ mass
producing, mass distributing, and mass promoting about the same
product in about the same way to all consumers. Henry Ford
epitomized this marketing strategy when he offered the Model T Ford
to all buyers; they could have the car “in any color as long as it is
black”. Similarly, Coca Cola at one time produced only one drink for
the whole market, hoping it would appeal to everyone.

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The traditional argument for mass marketing is that it creates
the largest potential market, which leads to the lowest costs, which
in turn can translate into either lower prices or higher margins.

SEGMENT MARKETING: Isolating broad segments that make
up a market and adapting the marketing to match the needs of one
or more segments. A company that practices segment marketing
recognizes that buyers differ in their needs, perceptions, and buying
behaviors.

Segment marketing offers several benefits over mass
marketing. The company can market more efficiently, targeting its
products or services, channels, and communications programs
toward only consumers that it can serve best. The company can also
market more effectively by fine-tuning its products, prices, and
programs to the needs of carefully defined segments. The company
may face fewer compete- tours if fewer competitors are focusing on
this market segment.

NICHE MARKETING: Focusing on sub segments or niches
with distinctive traits that may seek a special combination of
benefits.
Market segments are normally large identifiable groups within a
market __ for example, luxury car buyers, performance car buyers,
utility car buyers, and economy car buyers. Niche marketing or
inching focuses on subgroups within these segments. A niche is a

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more narrowly defined group, usually identified by dividing a
segment into sub segments or by defining a group with a distinctive
set of traits who may seek a special combination of benefits.
Whereas segments are fairly large and normally attract several
competitors, niches are smaller and normally attract only one or a
few competitors.

MICROMARKETING: The practice of tailoring Products and
marketing programs to suit the tastes of specific individuals and
Locations __ includes local marketing and individual marketing.
Segment and niche marketers tailor their offers and marketing
programs to meet the needs of various market segments. At the
same time, however, they do not customize their offers to each
individual customer. Thus, segment marketing and niche marketing
fall between the extremes of mass marketing and micromarketing.
Micromarketing is the practice of tailoring products and marketing
programs to suit the tastes of specific individuals and location.
Micromarketing includes Local mar-keting and individual marketing.

LOCAL MARKETING: Tailoring brand and promotions to the
needs and wants of local customer groups. Local marketing involves
tailoring brands and promotions to the need and wants of local
customer groups – cities, neighborhoods, and even specific stores.
Thus, retailers such as Sears and Wal-Mart routinely customize each
stores merchandise and promotions to match its specific clientele,
and Citibank provides different mixes of banking services in its

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branches depending on neighborhood demographics. Kraft helps
supermarket chains identify the specific cheese assortments and
shelf positioning that will optimize cheese sales in low income,
middle income, and high income stores, and in different ethnic
communities.

INDIVIDUAL MARKETING: Tailoring products and
marketing programs to the needs and preferences of individual
customer __ also labeled markets of one marketing, customized
marketing.

BASES FOR SEGMENTING CONSUMER
MARKETING
There is no single way to segment a market. A marketer has to try
different segmentation variables, alone and in combination, to find
the best way to view the market structure. Table outlines the major
variables that might be used in segmenting consumer markets. Here
we look at the major geographic, demographic, psychographic, and
behavioral variables.

We will discuss four bases for segmenting consumer markets that
are used separately or in combination

o GEOGRAPHIC

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o DEMOGRAPHIC
o PSYCHOGRAPHIC
o BEHAVIORAL

TABLE MAJOR SEGMENTATION VARIABLES FOR
CONSUMER MARKETS.

GEOGRAPHC
World North America, Western Europe, Middle East, Pacific Rim,
region or China, India, Canada, Mexico
County
Country Pacific, Mountain, West North Central, Wet South Central,
region East North Central, East South Central, South Atlantic, Middle
Atlantic, New England.
City or Under 5,000; 5,00 – 20,000; 20,000 – 50,000 – 100,000;
metro 100,000 – 250,000; 250,000 – 500,000;
Size 500,000 – 1,000,000; 1,000,000 – 4,000,000; 4,000,000 or
over
Density Urban, suburban, rural
Climate Northern, Southern
DEMOGRAPHIC
Age Under 6, 6-11, 12 -19, 20-34, 35-49, 50-64, 65+
Gender Male, female
Family size 1-2, 3-4, 5+
Family life Young, single; young, married, no children; young, married
with children;
Cycle Older, married with children; older, married, no children
under 18; older, single; other
Income Under $ 10,000; $ 10,000-20,000; $20,000-$30,000;
$30,000-$50,000; $50,000-$100,000; $100,000 and over
Occupation Professional and technical; managers, officials, and proprietors; clerical,
sales; craftspeople; foremen; operatives; farmers; retired; students;

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homemakers; unemployed
Education Grad school or less; some high school; high school graduate;
some college; college graduate
Religion Catholic, Protestant, Jewish, Muslim, Hindu, other
Race Asian, Hispanic, black, white
Nationality North American, South American, British, French, German,
Italian, Japanese
PSYCHOGRAPHIC
Social Lower lowers, upper lowers, working class, middle class,
class upper middles, lower uppers, upper uppers
Lifestyle Achievers, strivers, strugglers
Personality Compulsive, gregarious, authoritarian, ambitious
BEHAVIOAL
Occasions Regular occasion, special occasion
Benefits Quality, service, economy, convenience, speed
User Nonuser, ex-user, potential user, first-time user, regular user
status
Usage rate Light user, medium user, heavy user
Loyalty None, medium, strong, absolute
status
Readiness Unaware, aware, Informed, interested, desirous, intending to
buy
Stage
Attitude Enthusiastic, positive, indifferent, negative, hostile
toward
Product

GEOGRAPHIC SEGMENT: Dividing a market into different
geographical units such as nations, states, regions, counties, cities,
or neighborhoods.
Geographic segmentation calls for dividing the market into
different geographical units such as nations, regions, states,
counties, cities, or neighborhoods. A company may decide to operate

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in one or a few geographical areas, or to operate in all area but pay
attention to geographical differences in needs and wants.

DEMOGRAPHIC SEGMENTATION: Dividing the market into
groups based on demographic variables such as age, sex, family size
family life cycle, income, occupation, education, religion, race, and
nationally
DEMOGRAPHIC SEGMENTATION divides the market into
groups based on variables such as age, gender, family size, family
life cycle, income, occupation, education, religion, race, and
nationality. Demographic factors are the most popular bases for
segmenting customer groups largely because consumer needs,
wants and usage rates often vary closely with demographic
variables. Also, demographic variables are easier to measure than
most other types of variables. Even when market segments are first
defined using other bases, such as personality or behavior, their
demographic characteristics must be known in order to assess the
size of the target market and to reach it efficiently.

 AGE AND LIFE-CYCLE SEGMENTATION
o Dividing a market into different age and life-cycle groups

 GENDER SEGMENTATION
o Dividing a market into different groups based on

 INCOME SEGMENTATION

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o Dividing a market into different income groups

PSYCHOGRAPHIC SEGMENTATION: Dividing a market
into different groups based on social class, lifestyle, or personality
characteristics.
Psychographic segmentation divides buyers into different
groups based on social class, lifestyle, or personality characteristics.
People in the same demographic group can have very different
psychographic.
Marketers also have used personality variables to segment
markets, giving their products personalities that correspond to
consumer personalities. Successful market segmentation strategies
based on personality have been used for products such as cosmetics,
cigarettes, insurance, and liquor.16

BEHAVIORAL SEGMENTATION: Dividing a market into
groups based on consumer knowledge, attitude, use, or response to
a product.
Behavioral segmentation divides buyers into groups based on
their knowledge, attitudes, uses, or responses to a product. Many
marketers believe that behavior variables are the best starting point
for building market segments.

OCCASION SEGMENTATION: Dividing the market into groups
according to occasions when buyers get the idea to buy, actually
make their purchase, or use the purchased item.

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SEGMENTING BUSINESS MARKETS

Even though the number of buyers in a business market may be
relatively few com- pared to a consumer market, segmentation
remains important. The reason is quite simple a highly focused
marketing effort directed at meeting the specific needs of a group of
similar customers is both more efficient and more likely to be
successful.

SEGMENTATION BASES FOR BUSINESS
MARKET

Segmentation Bases Possible Market Segments
Customer Location
 Region South East Asia, Central America,
 Location Upper Midwest, Atlantic Seaboard
Single buying site, multiple buying
sites.
Customer Type
 Industry Selected NAICS Codes
 Size Sales Volume, Number of
 Organization Structure Employees
Centralized or Decentralized,
 Purchase Criteria Group or Individual Decision
Quality , Price, Durability, Lead

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Time
Transaction Condition
 Buying Situation Straight Rebury, Modified Rebury,
 Usage Rate New Buy
 Purchasing Procedure Nonuser, Light Users, or High
 Order Size Users
 Service Requirements Small, Medium or Large
Light, Moderate or Heavy

CUSTOMER LOCATION: Business markets are frequently
segmented on a geographic basis. Some industries are
geographically concentrated. For example, businesses that process
natural resources locate close to the source to minimize shipping
costs. Other industries are geographically concentrated simply
because newer firms either spun off from of chose to locate near the
industry pioneers.
Companies also segment international markets geographically.
In considering developing countries, for example, a firm might
consider the reliability of public utilities, the quality of the
transportation system, and the sophistication of the distribution
structure in deciding where to expand its operation.

CUSTOMER TYPE
Customer Types includes the following:

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o INDUSTRY
o SIZE
o ORGANIZATIONAL STRUCTURE
o PURCHASE CRITERIA

INDUSTRY: Any firm that sells to business customers in a
variety of industries may want to segment its market on the basis of
industry. For example, a company that sells small electric motors
would have a broad potential market among many different
industries. However, this firm will d better by segmenting its
potential market by type of customer and then specializing in order
to more completely meet the needs of organizations in a limited
number of these segments.

SIZE: Business customer size can be estimated using such factors
as sales volume, number of employees, number of production
facilities, and number of sales offices. Many sellers divide their
potential mar into large and small accounts, using sep- aerate
distribution channels to reach each segment. The seller’s sales force
may contact large-volume accounts directly, but to reach the
smaller accounts, the seller may use a middleman or rely on the
Internet or telemarketing.

ORGANIZATION STRUCTURE: Firms approach buying in
different ways. Some rely heavily on their purchasing departments

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to control the inflow of information, reduce the number of potential
alternatives, and conduct negotiations. Selling to such companies
would require a strong personal selling effort directed specifically at
purchasing executives. It would also need excellent supporting
materials if the product exceeded the technical expertise of the
purchasing managers.
Other buyers opt for greater involvement in the purchase
process by the people who will be directly affected by the purchase.
These buyers tend to include many people in their decisions, hold
meetings over a long period of time, and engage in a lot of internal
communication.

PURCHASE CRITERIA: All buyers want good quality, low
prices, and on-time delivery. However, within a market there are
groups for which one of these or some other purchase criterion is
particularly significant.

TRANSACTION CONDITIONS: The circumstances of the
transaction can also be a basis for segmenting a market. Sellers may
have to modify their marketing efforts to deal with different buying
situations, usage rates, purchasing procedures, order sizes, or
service requirements. To illustrate, three o these transaction
conditions are described below.
Transaction Conditions include the following:

o BUYING SITUATION
o USAGE RATES

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o PURCHASE PROCEDURES

BUYING SITUATION: When United Airlines is faced with the
decision of whether or not to buy Boeing’s Sonic Cruiser, a plane
that will hold 300 passengers and fly at near the speed of sound, it
is making a new buy. The decision is quite different from the
modified rebury that occurs when United purchases additional 737s,
a plane it has flown successfully for years. These buying situations,
along with the straight rebury, are sufficiently unique that a business
seller might well segment its market into these three buy-class
categories.

USAGE RATE: Markets for most products can be divided among
heavy users, light users, and nonusers (prospects). Heavy users
appear to be the most attractive because of the volume they
purchase, but they also generate the most competition. As an
alternative to pursuing heavy users, some firms have found it
profitable to avoid the competition by concentrating on light users.

PURCHASE PROCEDURE: Products can be leased, financed, or
purchased outright. Rice can be simply stated, negotiated, or
submitted in a sealed bid. Consider how a bidding system affects a
seller. Government agencies often by on the basis of sealed bids;
that is, each prospective seller submits a confidential bid in response
to a detailed description of what the agency wants to buy. When the
bids are opened, the agency is typically bound by law to accept the
lowest bid unless it is clearly inappropriate.

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Segmentation identifies the opportunities that exist in a
market. The next step is for a firm to decide which of those
opportunities to target with a marketing effort.

TARGET-MARKET STRATEGIES: After a company has
segmented a market, management must next select one or more
segments as its target markets.

TARGET MARKET: A set of buyers sharing common needs or
characteristics that the company decides to serve

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THE COMPANY CAN FOLLOW ONE OF THREE
STRATEGIES:

o UNDIFFERENTIATED MARKETING
o DIFFERENTIATED MARKETING
o CONCENTRATED MARKETING

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UNDIFFERENTIATED MARKETING: A market-coverage
strategy in which a firm decides to ignore market segment
differences and go after the whole market with one offends. By
adopting a market-aggregation strategy-also known as a mass-
market strategy or an undifferentiated-market strategy__ a seller
treats its total market as a single segment. An, aggregate market’s
members are considered to be alike with respect to demand for the
product.

DIFFERENTIATED MARKETING: A market-coverage
strategy in which a firm decides to target several market segments
and designs separate offers for each. Under a multiple-segment
strategy, two or more different groups of potential customers are
identified as target markets. A separate marketing mix is developed
to reach each targeted segment. For example, the maker of Bayer
aspirin offers seven variations of its pain relief product, each with its
own marketing program. In a multiple segment strategy.
A multiple-segment strategy normally results in a greater sales
volume than a single-segment strategy. It also is useful for a
company facing seasonal demand.

CONCENTRATED MARKETING: A market coverage
strategy in which a firm goes after a large share of one or if you
submarket.
A single-segment strategy, also called a concentration
strategy, involves selecting one segment from within the total

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market as the target market. One marketing mix is developed to
reach this single segment. A company may want to concentrate on a
sin- glue market segment rather than take on many competitors in
the broader market.

Company
Marketing Market
Mix

A. Undifferentiated Market

Company Marketing
Mix 1
Segment 1
Company Marketing Segment 2
Mix 2
Company Marketing Segment 3
Mix 3

B. Differentiated Market

Company Segment 1
Marketing
Segment 2
Mix
Segment 3

C. Concentrated Market

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CHOOSING A MARKET-COVERAGE
STRATEGY

Many factors need to be considered when choosing a market-
coverage strategy. Which strategy is best depends on company
resources. When the firm’s resources are limited, concentrated
marketing makes the most sense. The best strategy also depends on
the degree of product variability. Undifferentiated marketing is more
suited for uniform products such as grapefruit or steel. Products that
can vary in design, such as cameras and automobiles, are more
suited to differentiation or con- contraction. The Product’s lifecycles
stage also must be considered. When a firm introduces a new
product, it is practical to launch only one version and
undifferentiated marketing or concentrated marketing makes the
most sense. In the mature stage of the product life cycle, however,
differentiated marketing begins to make more sense. Another factor
is market variability. If most buyers have the same tastes, buy the
same amounts, and react the same way to marketing efforts, under
important. When competitors use segmentation, undifferentiated
marketing can be suicidal. Conversely, when competitors use,
undifferentiated marketing, a firm can gain an advantage by using
differentiated or concentrated marketing.

POSITIONING: Having identified the potential segments and
selected one or more to target, the marketer must next decide what
position to pursue. A position is the way a firm’s producer, brand, or

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organization is viewed relative to the competition by current and
prospective customers. To establish itself in a market that was
dominated by firms appealing primarily to the preferences of
children, Wendy’s positioned its burgers as
”hot and juicy,” and therefore primarily for adults. If a position is
how a product is viewed, then positioning is a firm’s use of all the
elements at its disposal to create and maintain in the minds of a
target market a particular image relative to competing products.

THERE ARE THREE STEPS IN A POSITIONING
STRATEGY:

o SELECT THE POSITIONING CONCEPT
o DESIGN THE DIMENSION OR FEATURE THAT MOST
EFFECTIVELY CONVEYS THE POSITION
o COORDINATE THE MARKETING MIX COMPONENTS TO CONVEY
A CONSISTENT POSITION

SELECT THE POSITIONING CONCEPT: To position a
product or an organization, a marketer needs to first determine what
is important to the target market. Marketers can then conduct
positioning studies to see how members target market view
competing products or stores on the important dimensions. The
results of this research can be portrayed in a perceptual map that
locates the brand or organization relative to alternatives on the
dimensions of interest.

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DESIGN THE DIMENSION OR FEATURE THAT
MOST EFFECTIVELY CONVEYS THE POSITION: A
position can be communicated with a brand name, a slogan, the
appearance or other features of the product, the place where it is
sold, the appearance of employees, and in many other ways.
However, some features are more effective than others. It is
important to not overlook details. According to a consultants chairs
for customers are vital in upscale retail environments because they
signal that the seller”Cates”. Because the marketer has limited
resources, decisions have to be making on how best to convey the
desired positioning concept.

COORDINATE THE MARKETING MIX
COMPONENTS TO CONVEY A CONSISTENT
POSITION: When though one or two dimensions may be the
primary position communicators, all the elements of the marketing
mix the product, price, promotion, and distribution should
complement the intended position. Many product failures are the
result of inconsistent positioning that confuses consumers.

WHAT IS PRODUCT DEVLOPEMENT
AND SERVICE?

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PRODUCT: Anything that can be offered to a market for
attention, acquisition, use, or consumption that might satisfy a want
or need.

SERVICE: Any activity or benefit that one party can offer to
another that is essentially intangible and does not result in the
ownership of anything.

THE PRODUCT SERVICE CONTINUUM: A company’s
offer to the marketplace often includes both tangible goods and
services. Each component can be a minor or a major part of the total
offer. At one extreme, the offer may consist of a pure tangible good,
such as soap, toothpaste, or salt __ no services accompany the
product. At the other extreme are pure services, for which the offer
consists primarily of a service. Examples include a doctor’s exam or
financial services. Between these two extremes, however, many
goods and services combinations are possible.

PRODUCT CLASSIFICATIONS

Products and services fall into two broad classes based on the
types of consumers that use them consumer and industrial products.

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Broadly defined, products also include other marketable entities such
as organizations, persons, places and ideas.

o CONSUMER PRODUCTS
o INDUSTRIAL PRODUCTS

CONSUMER PRODUCTS

Product bought by final consumer for personal consumption.

 CONVENIENCE PRODUCT: Consumer product that the
customer usually buys frequently, immediately, and with a
minimum of comparison and buying clot.

MARKETING CONSIDERATIONS FOR
CONSUMER PRODUCTS

Type of Consumer Product
Marketing Convenience Shopping Specialty Unsought
Consideration

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Customer Frequent Less Strong Little
Buying purchase, frequent brand product
Behavior Little planning, Purchase, Preference Awareness,
little much and
Comparison or Planning Loyalty, Knowledge
and special (or if
shopping
Shopping Effort, Purchase Aware, little
effort, low comparison effort, little or even
of
Customer Brands on Comparison Negative
involvement price, of brands, interest)
Quality, Low price
style sensitivity
Price Low price Higher price High price Varies
Distribution Widespread Selective Exclusive Varies
distribution distribution
Distribution, In fewer In only one
butlers or a few
Convenient Outlets per
locations market
Area
Promotion Mass Advertising More Aggressive
promotion by and carefully advertising
The producer Personal Targeted And
selling by promotion personal
by selling
Both Both By producer
producer producer and
and and
resellers resellers Resellers
Examples Toothpaste, Major Luxury Life

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appliances, Goods such insurance,
as Red
Magazines, Television, Rolex Cross blood
laundry furniture watches or donations
fine
Detergent Clothing Crystal

 SHOPPING PRODUCT: Consumer good that the
customer, in the process of selection and purchase,
characteristically compares on such bases as suitability, quality,
price, and style.

 SPECIALTY PRODUCT: Consumer product with unique
characteristics or brand identification for which a significant group
of buyers is willing to make a special purchase effort.

 UNSOUGHT PRODUCT: Consumer product that the
consumer either does not know about or knows about but does
not normally think of buying.

INDUSTRIAL PRODUCT

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Product bought by individuals and organizations for further
processing or for use in conducting a business.

Industrial products are those purchased for further processing
or for use in conducting a business. Thus, the distinction between a
consumer product and an industrial product is based on the purpose
for which the product is bought. If a consumer buys a lawn mower
for use around home, the lawn mower is a consumer product. If the
same consumer buys the same lawn mower for use in a landscaping
business, the lawn mower in an industrial product.

The three groups of industrial products and services include
materials and parts, capital items, and supplies and services.
Materials and parts include raw materials and manufactured
materials and parts. Raw materials consist of farm products (wheat,
cotton, livestock, fruits, vegetables) and natural products (fish,
lumber, crude petroleum, iron ore). Manufactured materials and
parts consist of component materials (iron, yarn, cement, wires) and
component parts (small motors, tires, castings). Most manufactured
materials and parts are sold directly to industrial users. Price and
service are the major marketing factors; branding and advertising
tend to be less important.

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MACHINES USED IN SOAP
MANUFACTURING
These are the machines which are used in product development of
health

Soap. This machine is known as
stamper-mazzoni-duplo-pq.

This machine is known as Roll-mill-
bulhre-pq.

This machine is known as
plodder_mazzoni_dtm300_4024_pq.

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This machine is known as atomizer_mazzoni_pq.

This machine is
known as cutter_mazzoni_tva_pq.

This machine is known as logoimj.

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This machine is known as
vacuum_pump_pq.

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PERSONS, PLACES, AND IDEAS: In recent years
marketers have broadened the concept of a product beyond tangible
products and services, to include other marketable entities __
namely, organizations, person’s places; and ideas.

Organizations often carry out activities to sell the organization
itself. Organization marketing consists of activities undertaken to
create, maintain, or change the attitudes and behavior of target
consumers toward an organization. Both profit and nonprofit
organizations practice organization marketing. Business firms
sponsor public relations or corporate advertising campaigns to polish
their images. Nonprofit organizations __ such as churches, colleges,
charities, museums, and performing arts groups’ __ market their
organizations in order to raise funds and tract members or patrons.

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Corporate image advertising is a major tool company’s use to
market themselves to various publics.

 PERSON MARKETING: People can also be thought of as
products. Person marketing consists of activities undertaken to
create, maintain, or change attitudes or behavior toward
particular people. All kinds of people and organizations practice
person marketing. Presidents Reagan and Clinton skillfully
marketed themselves, their parties, and their platforms to get
needed votes and program support. Entertainers and sports
figures such as Michael Jordan and Tiger Woods use marketing to
promote their careers and improve their impact and incomes.
Professionals such as doctors, lawyers, accountants, and
architects market themselves in order to build their reputations
and increase business. Business leaders use person marketing as
a strategic tool to develop their companies’ fortunes as well as
their won. Businesses, charities, sports marketing. Creating or
associating with well know personalities often helps these
organizations achieve their goals better.

 SOCIAL MARKETING: The design, implementation, and
control of programs seeking to increase the acceptability of a
social idea, cause, or practice among a target group.

 PACE MARKETING: Involves activities undertaken to
create, maintain, or change attitudes or behavior toward

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particular places. Examples include business site marketing and
tourism marketing. Business site marketing involves developing,
selling, or renting business sites or for factories, stores, offices,
warehouses, and conventions. For example, most states operate
industrial development offices that try to sell companies on the
advantages of locating new plants in their states. Even entire
nations __ such as Canada, Ireland, Greece, Mexico, and Turkey
__ gave marketed themselves as good locations for business
investment.

INDIVIDUAL PRODUCT
DECISIONS

PRODUCT QUALITY: The ability of a product to perform its
functions; it includes the product’s overall durability, reliability,
precision, case of operation and repair, and other valued attributes.

PRODUCT ATTRIBUTES: Developing a product or service
involves defining the benefits that it will offer. These benefits are
communicated and delivered by product attributes such as quality,
features, and design.

PRODUCT FEATURES: A product can be offered with
varying features. A “stripped down “model, one without any extras,

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is the starting point. The company can create higher level models by
adding more features. Features are a competitive tool for
differentiating the company’s product from competitors’ products.
Being the first producer to introduce a needed and valued new
feature is one of the most effective ways to compete.

PRODUCT DESIGN: Another way to add customer value is
through distinctive product design. Some companies have
reputations for outstanding design, such as Black & Decker in
cordless appliances and tools, Steel case in office furniture and
systems, Bose in audio equipment, and Ciba Corning in medical
equipment. Design cab be one of the most powerful competitive
weapons in a company’s marketing arsenal.

Demographics
Demographics are clearly tied to subculture and segmentation. Here,
however, we shift our focus from analyzing specific subcultures to
trying to understand the implications for an entire population of its
makeup.

Some articles of possible interest:

Several issues are useful in the structure of a population. For
example, in some rapidly growing countries, a large percentage of
the population is concentrated among younger generations. In
countries such as Korea, China, and Taiwan, this has helped
stimulate economic growth, while in certain poorer countries; it puts
pressures on society to accommodate an increasing number of
people on a fixed amount of land. Other countries such as Japan and
Germany, in contrast, experience problems with a "graying" society,
where fewer non-retired people are around to support an increasing
number of aging seniors. Because Germany actually hovers around
negative population growth, the German government has issued

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large financial incentives, in the forms of subsidies, for women who
have children. In the United States, population growth occurs both
through births and immigration. Since the number of births is not
growing, problems occur for firms that are dependent on population
growth (e.g., Gerber, a manufacturer of baby food).

Social class is a somewhat nebulous subject that involves stratifying
people into groups with various amounts of prestige, power, and
privilege. In part because of the pioneering influence in American
history, status differentiations here are quite vague. We cannot, for
example, associate social class with income, because a traditionally
low status job as a plumber may today come with as much income
as a traditionally more prestigious job as a school teacher. In certain
other cultures, however, stratification is more clear-cut. Although
the caste system in India is now illegal, it still maintains a
tremendous influence on that society. While some mobility exists
today, social class awareness is also somewhat greater in Britain,
where social status is in part reinforced by the class connotations of
the accent with which one speaks.

Textbooks speak of several indices that have been used to
"compute" social class in the United States, weighing factors such as
income, the nature of one’s employment, and level of education.
Taken too literally, these indices are not very meaningful; more
broadly speaking, they illustrate the reality that social status is a
complex variable that is determined, not always with consensus
among observers, by several different variables.

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BRANDING

A name, term, sign, symbol, or design, or a combination of
these intended to identify the goods or services of one seller of
group of sellers and to differentiate them from those of competitors.

Perhaps the most distinctive skill of professional marketers is
their ability to create, maintain, Protect, and enhance brands of its
products and services. A brand is a name, term, sign, symbol, or
design, or a combination of these that identifies the maker or seller
of a product or service. Consumers view a brand as an important
part of a product, and branding can add value to a product. For
example, most consumers would perceive a bottle of White Linen
perfume as a high quality, expensive product. But the same perfume
in an unmarked bottle would likely be viewed as lower in quality,
even if the fragrance were identical.

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BRAND EQUITY: The value of a brand, based on the extent
to which it has on the extent to which it has high brand loyalty,
name awareness, perceived quality, strong brand associations, and
other assets such as patents, trademarks, and channel relationships.

Brands vary in the amount of power and value they have in
the marketplace. A powerful brand has high brand equity. Brands
have higher brand equity to the extent that they have higher brand
loyalty, name awareness, perceived quality, strong brand
associations, and other assets such as patents, trademarks, and
channel relationships.

BRAND NAME SELECTION: A good name can add greatly
to a product’s success. However, finding the best brand name is a
difficult task. It begins with a careful review of the product and its
benefits, the target market, and proposed marketing strategies.

Desirable qualities for a brand name include:

o IT SHOULD SUGGEST SOMETHING ABOUT THE PRODUCT’S
BENEFITS AND QUALITIES. EXAMPLES: DIE HARD, EASY OFF
CRAFTSMAN SUNKIST, SPIC AND SPAN, SNUGGLES MERRY
MAIDS, NATIONSBANK.

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o IT SHOULD BE EASY TO PRONOUNCE, RECOGNIZE, AND
REMEMBER. SHORT NAMES HELP.

PRIVATE BRAND (OR STORE BRAND): A brand
created and owned by a reseller of a product or service.

BRAND SPONSOR: A manufacturer has four sponsorship
options. The product may be launched as a manufacturer’s brand (or
national brand), as when Kellogg and IBM sell their output under
their own manufacturer’s brand names. Or the manufacturer may
sell to resellers who give it a private brand (also called a store brand
or distributor brand). Although most manufacturers create their own
brand names, others market licensed brands. Finally, two companies
can join forces and co brand a product.

 MANUFACTURE’S BRANDS VERSUS PRIVATE
BRANDS: Manufactures’ brands have long dominated the
retail scene. In recent times, however, and increasing number of
retailers and wholesalers have created their own private brands.

 LICENSING: Most manufacturers take years and spend
millions to create their own brand names. However, some
companies’ license names or symbol previously created by other
manufacturers, names of well known celebrities, characters from
popular movies and books __ for a fee, any of these can provide

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an instant and proven brand name. Apparel and accessories
sellers pay large royalties to adorn their products __ from blouses
to ties, and linens to luggage __ with the names or initials of
fashion innovators such as Bill Blass, Calvin Klein, Pierre Cardin,
Gucci, and Houston. Sellers of children’s products attach an
almost endless list of character names to clothing, toys, school
supplies, linins, dolls, lunch boxes, cereals, and other items. The
character names range from classics such as Disney, Peanuts,
Barbie, and Dr. Seuss characters, to the Muppets, Garfield, and
batman.

 CO-BRANDING: Although companies have been co
branding products for many years, there has been a recent
resurgence in co branded products. Co branding occurs when two
established brand names of different companies are used on the
same product. For example, Pillsbury joined Nabisco to create
Pillsbury Oreo Bars Baking Mix. Ford and Eddie Bauer co branded
a sport utility vehicle __ the Ford Explorer, Eddie Bauer edition.
Mattel teamed with coca Cola to market Soda Fountain
Sweetheart Barbie. Kellogg joined forces with Con Agra to co
brand Healthy Choice from Kellogg’s cereals. In most co branding
situations, one company licenses another company’s well known
brand to use in combination with its own.

BRAND STRATEGY: A company has four choices when it
comes to brand strategy (see Figure 8-4). It can introduce line

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extensions (existing brand names extended to new forms, sizes, and
flavors of an existing product category), brand extensions (existing
brand names extended to new product categories), multi brands
(new brand names introduced in the same product category), or new
brands (new brand names in new product categories).

 LINE EXTENSIONS: Line extensions occur when a
company introduces additional items in a given product category
under the same brand name, such as new flavors, forms, colors,
ingredients, or package sizes. Thus, DANONE recently introduced
several line extensions, including seven new yogurt flavors, a fat
free yogurt, and a large economy size yogurt. The vast majority
of new product activity consists of line extensions. Using a
successful brand name to introduce additional items I given
product category under the same brand name, such as new
flavors, forms, colors, added ingredients, or package sizes.

 BRAND EXTENSION: Using a successful brand name to
launch a new or modified product in a new category.
A brand extension involves the use of a successful brand name
to launch new or motioned products in a new category. Fruit of the
Loom took advantage of its very high name recognition to launch
new lines of socks, men’s fashion underwear, women’s underwear,
athletic apparel, and even baby clothes. Honda uses its company
name to cover different products such as its automobiles,
motorcycles, snow blowers, lawn mowers, marine engines, and
snowmobile. This allows Honda to advertise that it can fit six Hondas

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in a two car garage.” Swiss Army Brand Sunglasses, Disney cruise
Lines, Snack well’s Snack bars, and Century 21 Home
Improvements, Brinks home security systems __ all are brand
extensions.

 MULTIBRANDS: Companies often introduce additional
brands in the same category. Thus, Procter & Gamble markets
many different brands in each of its product categories. Multi
branding offers a way to establish different features and appeal to
different buying motives. It also allows a company to lock up
more reseller shelf space.
A major drawback of multi branding is that each brand might obtain
only a small market share, and none may be very profitable. The
company may end up spreading its resources over many brands
instead of building a few brands to a highly profitable level. These
companies should reduce the number of brands they sell in a given
category and set up tighter screening procedures for new brands.

 NEW BRANDS: A company may create a new brand name
when it enters a new product category for which none of the
company’s current brand names are appropriate. For example,
Japan’s Matsushita uses separate names for its different families
of products: Techniques, Panasonic, National, and Quasar. Or, a
company might believe that the power of its existing brand name
is waning and a new brand name is needed. Finally, the company
may obtain new brands in new categories through acquisitions.

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PACKAGING
The activities of designing and producing the container or wrapper
for a product. Packaging involves designing and producing the
container or wrapper for a product. The package may include the
product’s primary container (the tube holding Colgate toothpaste); a
secondary package that is thrown away when the product is about to
be used (the cardboard box containing the tube of Colgate); and the
shipping package necessary to store, identify, and ship the product
(a corrugated box carrying six dozen tubes of Colgate toothpaste).
Labeling, the printed information appearing on or with the package,
is also part of packaging.

LABELING
Labels my range from simple tags attached to products to complex
graphics that are part of the package. They perform several
functions. At the very least, the label identifies the product or brand,
such as the name Sunkist stamped on oranges. The label might also
describe several things about the product __ who made it where it
was made, when it was mad, its contents, how it is to be used, and
how to use it safely. Finally, the label might promote the product
through attractive graphics.

PRODUCT LINE DECISIONS

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We have looked at product strategy decisions such as branding,
packaging, labeling, and support services for individual products and
services. Bust product strategy also calls for building a product line.
A product line is a group of products that are closely related because
they function in a similar manner, are sold to the same customer
groups are marketed through the same types of outlets, or fall
within given price ranges.

The major product line decision involves product line length __
the number of items in the product line. The line is too short if the
manager can increase profits by adding items; the line is too long if
the manager can increase profits by dropping items. Product line
length is influenced by company objectives and resources.

Product lines tend to lengthen over time. The sales force and
distributors may pressure the product manager for a more complete
line to satisfy their customers. Or, the manager may want to add
items to the product line to create growth in sales and profits.
However, as the manager adds items, several costs rise: design and
engineering costs, inventory cost, manufacturing changeover costs,
transportation costs, and promotional costs to introduce new items.
Eventually top management calls a halt to the mushrooming product
line. Unnecessary or unprofitable items will be pruned from the line
in a major effort to increase overall profitability. This pattern of
uncontrolled product line growth followed by heavy pruning is typical
and may repeat itself many times.

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PRODUCT LINE: A group of products that are closely related
because they function in a similar. Manner, are sold to the same
customer groups, are marketed through the same, types of outlets,
or fall within given price ranges.

PRODUCT MIX DECISIONS
An organization with several product lines has a product mix. A
product mix (or product assortment) consists of all the product lines
and items that a particular seller offers for sale. Avon’s product mix
consists of four major product lines: cosmetic, jewelry, fashions, and
household items. Each product line consists of several sub lines. For
example, a cosmetic breaks down into lipstick, eyeliner, powder, and
so on. Each line and sub line has many individual items. Altogether,
Avon’s product mix includes 1,300 items. In contrast, a typical
Kmart stocks 15,000 item, 3M markets more than 60,000 products,
and General Electric manufactures as many as 250,000 items.
A company’s product mix has four important dimensions:
width, length, depth, and consistency. Product mix width refers to
the number of different product lines the company carries. For
example, Procter & Gamble markets a fairly wide product mix
consisting of many product lines, including paper, food, household
cleaning, medicinal, cosmetics, and personal care products. Product
mix length refers to the total number of items the company carries
within its product lines. Procter & Gamble typically carries many
brands within each line. For example, it sells eleven laundry
detergents, eight hand soaps, six shampoos, and four dishwashing
detergents.

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SERVICE MARKETING

NATURE AND CHARACTERISTICS OF A SERVICE:
Activities such as renting a hotel room, depositing money in a bank,
traveling on an airplane, getting a haircut, having a car repaired,
watching a professional sport, seeing a movie, and getting advice
from a lawyer all involve buying a service.

FOUR SERVICE CHARACTERISTICS

Intangibility Inseparability
Services cannot
be seen, tasted, Services cannot be
felt, heard or separated from
smelled before their providers
purchased

Service
s
Variability Perish ability
Quality of
services Services cannot be
depends on who stored for later
provides them sale or use
and when,
where, and how

 SERVICE INTANGIBILITY: A major characteristic of
services __ they cannot be seen, tasted, felt, heard, or smelled
before they are bought.

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 SERVICE INSEPARABILITY: A major characteristic of
services __ they are produced and consumed at the same time
and cannot be separated from their providers, whether the
providers are people or machines.

 SERVICE VARIABILITY: A major characteristic of
services __ their quality may vary greatly, depending on who
provides them and when, where, and how.

 SERVICE PERISHES ABILITY: A major characteristic
of services __ they cannot be stored for later sale or use.

MARKETING STRATEGIES FOR
SERVICE FIRMS
Just like manufacturing businesses, good service firms use
marketing to position themselves strongly in chosen target markets.
Southwest Airlines positions itself as Just Plane Smart for commuter
flyers __ as a no frills, short haul airline charging very low fares. The
Ritz Carlton Hotel positions itself as offering a memorable experience
that enlivens the senses, instills well being, and fulfills even the
unexpressed wishes and needs of our guests. “These and other
service firms establish their positions through traditional marketing
mix activities.

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SERVICE PROFIT CHAIN: The chain that links service
firm profits with employee and customer satisfaction.
Successful service companies focus their attention on both their
customers and their employees. They understand the service profit
chain, which links service firm profits with employee and customer
satisfaction. This chain consists of five links:

o INTERNAL SERVICE QUALITY: superior selection
and training, a quality work environment, and strong support for
those dealing with customers, which results in …

o SATISFIED AND PRODUCTIVE SERVICE
EMPLOYEES: more satisfied, loyal, and hard working
employees, which results in . . .

o GREATER SERVICE VALUE: more effective and
efficient customer value creation and service delivery, which
results in . . .

o SATISFIED AND LOYAL CUSTOMERS: satisfied
customers who remain loyal, repeat purchase, and refer other
customers, which result in . . .

o HEALTHY SERVICE PROFITS AND GROWTH:
superior service firm performance:

 INTERNAL MARKETING: Marketing by a service firm
to train and effectively motivate its customer contact employees

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