Consumer Buying Behavior
Consumer Buying Behavior
It is true that companies should give more emphasis on advertising, sales promotion and need to make some brand image amongst the consumers to face the competitive environment. The world of toothpaste has grown in the past few years. Different companies with similar brands have developed and entered into the market with a common idea of securing market segment. Currently, the two companies that compete in toothpaste industry are HLL and Colgate. Living standard of individuals has changed and awareness about health something that helps a company develop its competition strategy. The world of toothpaste industry has for the past few years affected by competition. Consumers of toothpaste have increased due to change in life style. Companies providing toothpaste have been focusing on ways to reach the largest market and sale its products. Without advertisement, any company may experience stiff competition from the competitors, (Kengthon, 2011).
Evidence suggests that, advertisement is among the key aspects of market survival. Companies have changed their brands and products simply because consumption of toothpaste has increased. In order to retain customers and get new ones, companies use advertisement strategies. Advertisement is important because companies reach the target market where it informs consumers on the concept of new products and services it offers. The companies should engage in health awareness campaigns in order to increase their customers. This helps the company increase market share by educating consumers on the importance of healthy life style. Although the development of new product may be costly and risky, the company must ensure that customers are aware of the product. Advertisement is the only means that any company for instance Colgate may reach the target population. To ensure that consumers are aware of the new products, the company should have a clear advertising strategy that other similar companies don’t and that will secure its market share, (Kengthon, 2011).
Sales promotion plays a vital role in development of a company. Without promotion, the company does not touch the customers taste. Toothpaste companies must acknowledge that the consumption of toothpaste has increased due to health awareness amongst people. In order to ensure that customers buy the company products, the company must develop strategies to promote its sales. This approach has been used by different companies and yields favorable results. Promotion helps the company introduce its new products to the market in order to fight with competition. Product promotion and advertisement goes hand in hand. It is the approach that toothpaste companies should use in order to make its products public. Evidence suggests that publicity is a vital concept in promoting sales of a given company, (Kengthon, 2011).
Market segmentation
Market segmentation means different things to different people in different market situations. My understanding about market segmentation is knowing your customers in the market in order to determine how to play with competition. The word segmentation means grouping people, things, or objects that have similar characteristics say demographics, age, weight, and height among others. Market segmentation is important in small business as well as large business. Without a clear understanding of customers, a company may fail to serve customers appropriately. It’s advisable for the company to know its customers in order to serve them appropriately. Sales and marketing strategies are developed under the knowledge of market segmentation. The more a company knows its customers, the more it becomes successful because it helps determine what customers want. With market segmentation, the company enables to create an environment where it sales its products. Market segmentation gives relevant feedback that a company uses to improve its products and services. Market segmentation is an important tool in business operation because it allows the company knows the customers are thus determining what to produce and sell, (Kengthon, 2011).
There are different types of market segmentations that organizations use during business operations. Commonly, there are four market segmentation namely demographic, behavior, and psychographic and geographic market segmentation. Toothpaste industry must know its customers in order to produce the best products. Understanding customers help the company produce relevant products that consumers will use, (Kengthon, 2011).
In the case of toothpaste industry, demographic and psychographic are the two appropriate market segmentations. Demographic segmentation deals with things such as language, age, education, income, age, religion, gender, economic class, family size, and occupation among others. In order to have products that suits all of the above aspects, the company must know and understand the demographic aspect in all angles. Some consumers are rich while others are poor but will have to use toothpaste. The company must design products for the two groups in order for either to feel represented fully. Psychographic segmentation is another important segmentation that toothpaste industry should focus. Individuals have different types of lifestyles and should be considered when developing products. Evidence shows that understanding people’s life style helps an organization develop in its sales and production level, (Kengthon, 2011).
Reference:
Kengthon, W. (2011). Consumer Buying Behaviour: GRIN Verlag
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