Marketing Concepts, Segmentation, And Demographic Trends In International Marketing

Non-profit organization implementing the marketing concept

1. Water Is Life is a nonprofit organization which aims at ending the water scarcity by the year 2020. The organization works hard in order to provide access to clean water, food and shelter to everyone. The organization works for families who are facing extreme water poverty and is aiming to increase the survival rate of children for present and for future generations (Williams, 2016).

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The company implements the marketing concept as it promotes its campaigns by using special media and digital media strategies. The company promotes its campaigns through advertisements. The company ran campaign #Firstworldproblems which was for raising the awareness and positive impact on people. The trending hashtag is powerful to create a powerful impact on people (Eagle et al., 2014).

The company does not seek profit and all the funds and grants received from various sources are used for the betterment of its target population. The company is working with the marketing concept and is using the collected funds for people they are focusing on. This is clear because the company is doing mouth activity and is also using various platforms to viral its campaign. This type of marketing is definitely different from the conventional marketing ideas and purpose (WaterIsLife, 2018).

2. Peters Ice Cream is the premier ice cream brand of Australia founded by Fred Peters’ in 1907. The company has a variety of brands to cater to every section of its audiences. The brands include Barney Banana, Peters Billabong, and Gelato Fiasco, Proud & Punch, Milo and more. The company believes in keeping the website colorful so that it attracts the customers.  The company has launched Connoisseur Mini, Big and Rich Maxibon and Raspberry flavored drumstick. The company is trying to cater every segment of the market right from the kids to adults and also have lower range to higher range of ice creams so that it can serve the needs of everyone (Elliott, 2015).

As per the latest news, Peters’ is aiming at keeping the summer vibes on with the new frosty fruits and drumstick lollies which will be available in different flavors like pineapple, vanilla, watermelon and more.  The general manager of Nestle said that he is happy with the collaboration with peters and it will integrate the effect of two big brands on the nation. This will be done with the help of a marketing campaign through offline and online mediums. The campaigns designed will run on the digital media platforms to attract millions of customers and it will also be used at the retail stores to attract families and kids. This will help the brand in engaging a huge chunk of its audience with the brand (Peters’, 2018).

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Latest product launches of Nestle’s Australian website

3. The businesses need to know about the differences in the income distribution or income inequality because there may be the widening gap between people and their income which can hamper their consumption habits and spending. A company can estimate the distribution of income by referring to the government data and publications.

On that basis, the national income in the Northern Territory can be categorized amongst the group of individuals, social classes, households and factors of production so that the average can be computed for the purpose of comparison. The distribution of income is the equality with which the income is dealt amongst the members of the society. The company can estimate the distribution of income in the Northern Territory by estimating how much the income is earned by the various segments of the population (Terpstra, Foley and Sarathy, 2012).

It can be explained with the help of an example. The population of a particular region is categorized into five segments in terms of their earnings. A chart can be created for explaining the earnings made by each segment out of the total income. It would help the company in estimating the demand for its products for a particular segment (Rundh, 2013).

4. The three FMCG companies are Unilever, Procter & Gamble Co. and Nestle. Unilever is a fast moving consumer goods company, having its headquarters in Rotterdam, Netherlands. It deals in products ranging from food and beverages to personal care and cleaning products. Procter & Gamble Co.(P & G) is a multinational consumer goods corporation based in America which is headquartered in Downtown Cincinnati, Ohio. It was founded by William Procter and James Gamble in the year 1837. It deals in a wide range of personal care and hygiene products. Nestle S.A. is a Swiss FMCG company which deals in food and beverages on an international level. It is headquartered in Vevey Vaud, Switzerland.

The marketing strategies of both Unilever and P & G are based upon catering to every single individual in the market whereas Nestle adopts the strategy of segment marketing. So, Unilever and P & G are ranked equally and Nestle is ranked at the second level. So, in order to increase their penetration in the market, it is recommended that they should investigate the market of their competitors and the advertising strategies used by them to attract the consumers (Christopher, Payne and Ballantyne, 2013).

5. Demographics refer to the statistical information about the various aspects of the population.  The demographic trends are affecting the international marketing as they can provide crucial sights on the target market and ways to address the needs of the consumers. The demographic variables consider the purposes of marketing in the ways such as it considers the age group of the target consumer which  indicate their interest in the products of the companies.

Estimating income distribution in Northern Territory or New Zealand’s North Island

They also consider the social class bands like the wealthier consumers and the low and middle-income groups. Another aspect which is to be considered is on the basis of gender. Males and females have different interests and they require hygiene and clothing products which vary from each other. The religious affirmations are associated with individual values and holiday celebrations which are related to the preferences and spending habits of the consumers (Tapp and Spotswood, 2013).

Industries such as health care services, property travel, financial planning and aged care facilities are set to be benefitted by the aging baby boomers. The real estate industry can be benefitted as the family house is not counted in the assets and the retirees opt for investing in the houses. The heath care and aged care industries are benefitted as this age demands increased  expenditure on health . Due to their increasing interest in cruise ships and caravan parks, the travel industry is benefited the most. Lastly, the ageing population seeks the taxation and legal advice so that the superannuation tax can be minimized, so it gives a boom to the financial tax planning industry.

Water Is Life is a nonprofit organization which has been started with the motive of meeting the water and food needs of people who are striving for the daily basic needs. The company says that nearly 1 billion people lack access to safe water and the company is taking initiatives globally to end the World water crisis (WaterIsLife, 2018).

It is very crucial even for nonprofit organizations to build their brands which help people to identify the particular organization through logo, slogan or color. It can be done through the communication, events or alliances.  Water IS Life allows the charities, donors, supporters to remember its brand through effective communication and marketing which helps them to collect funds in big number. The organizations deal in the offline as well as online practices to build up public relations so that it can achieve its vision and mission. Nowadays, with the advent of social media, the company is using social media channels like YouTube or Twitter to run their campaigns in order to achieve what is decided (Wymer, 2013).

The company stays connected with its stakeholders through social media. It posts videos and pictures of its programs and campaigns on channels like YouTube and Twitter. The company is teamed up with the Innovative water technologies to end World crisis of water and this has been advertised and marketed through its website (WaterIsLife, 2018). For e.g. the company is using hashtags on Twitter to seek the help of people to join hands for helping the school in Liberia where the students are living in slum and needs at least basic needs to survive a healthy life. Its website asks people to donate and join hands in this noble cause through messages.

                               

                                               Figure 1: Marketing Campaign for collecting donations

                                                                        Source: (WaterIsLife, 2018).

The creators of this nonprofit organization believe in the long-term gain and short-term pain and that is why they put more emphasis on advertising its efforts and activities so that long-term effects can be seen. Another example of the usage of marketing concept can be seen in the Creative innovation scholarship winner campaign where the individuals had to provide a 60-second pitch for innovative ideas. This helped them in advancing the awareness of the public education on water poverty, engagement of people, encouraged people to donate more and to share the mission of the organization (Williams, 2016). The company uses another campaign which is a follow up of #FirstWorldproblems with #5yearstolive. This campaign includes video clips featuring the kids who will probably not die within five years. The campaign will run through radio spots and through prints advertisements as well (AdAge, 2013).

The company engages itself in research and also uses media to spread awareness about the global issue and to promote the activities of the organization (Payne and Friedman, 2012). This concept of marketing is adopted by Water Is Life which does not work like conventional marketing but it solves the purpose of marketing the activities which are spreading awareness. The profits are not gained through marketing but funds are collected through government grants, public donations and corporate donations (OToole, 2012).

The market of Unilever caters to every single person available in the market. These consumers can range from babies to elderly persons. The company adopts the mass marketing approach and the population is divided into 6 classes viz. poor, rich, average, children elderly people and adults.  It plans to venture into the savory, deodorants, dressings, tea, ice – cream and spreads.

The marketing mix of Unilever considers the four Ps of marketing viz. price, product, promotion and place. The company caters to all the section of consumers and its products indicate that its marketing strategies are highly diversified. The element of the place indicates that the venues and places selected for the distribution of products are the retailers, stores and kiosks. The promotional tactics used by the company are sales promotion, public relations, direct marketing and personal selling. The pricing strategies adopted by the company are premium, product bundle and market-oriented pricing strategy (Gordon, 2012).

How worldwide demographic trends are affecting opportunities for international marketing

With regards to the product mix, the companies deal with the segments pertaining to grooming, beauty, healthcare , baby and personal care products and fabric and home care products. There are many entities involved in the distribution process such as P& G shops, authorized distributors and retailers. The promotional mix pertains to public relations, personal selling, sales promotion and directs marketing.The pricing strategies are associated with marketing – oriented, premium pricing and product bundle pricing strategies.

Nestle adopts the strategy of segment marketing. The company deals in four units within which it manages its food products. They are divided into categories such as beverages such as Nescafe coffee, milk and milk products such a Nestle Slim and Milk Maid, prepared dishes such as Maggi noodles, pasta and sauce. Lastly, it deals in chocolates such as Nestle Kit Kat ( Baker, 2014).

The price is dependent upon the market of every product. For high-income groups, good quality products are provided in the market with a bit of skimmed price.  For example, Maggie and Nescafe dominate the market as they are high-quality products and pricing at higher margins.

With the element of place in its marketing mix, there are two types of distribution strategies adopted by the company. It introduces trade discounts and various tactics to enhance the circulation of its products in the market. It promotes its products through its Nescafe tune. It is the best advertising strategy adopted by the company. Besides this, it uses catchy taglines for promoting its products. Kit Kat focuses on ‘Take a Break ‘and the company has adopted innovative promotional strategies for publicizing the same (Rutkauskas and Lapinskait?, 2012).

There are certain recommendations for the companies to segment their market further. The companies should focus on providing value to the key market segments. At the first step, a SWOT of the firm should be conducted. It would help in evaluating the probable market opportunities which would serve as a basis for contrasting the attractiveness of each opportunity. The four strategies to be adopted by the firm can be market penetration, development , product diversification and development.

                                       

With the help of market development, the companies can enhance their sales by selling the present products into the new untapped markets. Through market penetration, the company would increase its sales into the present market. Diversification will help the company to diversify its products in the new lines of business and through developing its products, it would offer new products into the present market (Chelliah et al., 2013).   

References:

AdAge (2013) Water Is Life Launches Emotional Follow Up to #FirstWorldProblems, With #5YearsToLive. [online] Available from:     https://www.adageindia.in/advertising/creativity-pick-of-the-day/water-is-life-launches-emotional-follow-up-to-firstworldproblems-with-5yearstolive/articleshow/45799944.cms  [Accessed 29 th August 2018].

Baker, M.J.(2014) Marketing strategy and management. London: Macmillan International Higher Education.

Chelliah, S., Kwon, C.K., Annamalah, S. and Munusamy, J.( 2013) Does marketing mix still relevant? A study on herbal coffee in Malaysia. International Journal of Management and Innovation. 5(1), p.31.

Christopher, M., Payne, A. and Ballantyne, D.(2013) Relationship marketing. NY: Routledge. pp. 1-20.

Eagle, L., Dahl, S., Czarnecka, B. and Lloyd, J.(2014)  Marketing communications. NY: Routledge. pp. 1-20.

Elliott, C.( 2015) ‘Big Food’and ‘gamified’products: promotion, packaging, and the promise of fun. Critical Public Health. 25(3), pp.348-360.

Gordon, R.( 2012) Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ). 20(2),pp.122-126.

OToole, E. (2012) Despite its flaws, #firstworldproblems ad campaign breaks new ground. The guardian. [online] Available from:    https://www.theguardian.com/commentisfree/2012/oct/09/firstworldproblems-ad-campaign-new-ground [Accessed 29 th August 2018].

Payne, E. and Friedman, C .(2012) Viral ad campaign hits #FirstWorldProblems. CNN. [online] Available from:    https://edition.cnn.com/2012/10/23/tech/ad-campaign-twist/index.html  [Accessed 29 th August 2018].

Peters’( 2018)  Brands  [online] Available from:  https://www.peters.com.au/brands/ [Accessed 29 th August , 2018].

Rundh, B.( 2013) Linking packaging to marketing: how packaging is influencing the marketing strategy. British Food Journal. 115(11), pp.1547-1563.

Rutkauskas, A.V. and Lapinskait?, I.(2012) Marketing as core instrument to implement sustainability strategy for a business world. The case of fast moving consumer goods [online] Available from: https://www.researchgate.net/profile/Indre_Lapinskaite/publication/268603007_Marketing_as_Core_Instrument_to_Implement_Sustainability_Strategy_for_a_Business_World_The_Case_of_Fast_Moving_Consumer_Goods/links/5a014b1aa6fdcc82a317f6f5/Marketing-as-Core-Instrument-to-Implement-Sustainability-Strategy-for-a-Business-World-The-Case-of-Fast-Moving-Consumer-Goods.pdf [Accessed 29 th August , 2018] .

Tapp, A. and Spotswood, F. (2013)  From the 4Ps to COM-SM: reconfiguring the social marketing mix. Journal of Social Marketing. 3(3), pp.206-222.

Terpstra, V., Foley, J. and Sarathy, R.( 2012) International marketing. Naperville:  Naper Press.

WaterIsLife (2018) Global Overview [online] Available from:  https://waterislife.com/global/overview [Accessed 29 th August , 2018].

Williams, W. (2016) Water Is Life [online] Available from: https://probonoaustralia.com.au/news/2016/11/water-is-life/ [Accessed 29 th August , 2018] .

Wymer, W.( 2013)  The influence of marketing scholarship’s legacy on nonprofit marketing. International Journal of Financial Studies, 1(3), pp.102-118.