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1. Explain how segmenting, targeting and positioning can help reduce cannibalism in marketing.2. When it comes to laundry detergents, what did P&G find about what Americans, Western Europeans and Australianslook for, previously and now?3. Explain the higher-level basis of segmentation that P&G uses, and the lower-level basis.4. What do you think are some further ways in which P&G can segment the market for its laundry detergent brands besidesgeographic and demographic?

Question

  1. Explain how segmenting, targeting and positioning can help reduce cannibalism in marketing.2. When it comes to laundry detergents, what did P&G find about what Americans, Western Europeans and Australianslook for, previously and now?3. Explain the higher-level basis of segmentation that P&G uses, and the lower-level basis.4. What do you think are some further ways in which P&G can segment the market for its laundry detergent brands besidesgeographic and demographic?
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Solution

  1. Segmenting, targeting, and positioning (STP) can help reduce cannibalism in marketing by clearly defining and differentiating each product's target market and value proposition. Segmenting involves dividing the market into distinct groups of consumers with different needs, characteristics, or behaviors. Targeting involves selecting which segments to go after. Positioning involves defining how the product will be perceived in the minds of the consumers in relation to competitors. By doing this, a company can ensure that each product appeals to a different segment, reducing the likelihood of one product eating into the sales of another.

  2. P&G found that previously, Americans, Western Europeans, and Australians looked for laundry detergents that were effective in cleaning clothes and had a pleasant scent. However, now, these consumers are more concerned about the environmental impact of the products they use. They prefer laundry detergents that are eco-friendly, have less packaging, and use natural ingredients.

  3. The higher-level basis of segmentation that P&G uses is psychographic segmentation, which involves dividing the market based on lifestyle, personality, and social class. This allows P&G to target consumers who are more likely to be interested in their products. The lower-level basis of segmentation is demographic segmentation, which involves dividing the market based on age, gender, income, and other demographic factors. This allows P&G to target specific groups of consumers who are more likely to purchase their products.

  4. Besides geographic and demographic, P&G can segment the market for its laundry detergent brands using psychographic segmentation (lifestyle, social class, personality), behavioral segmentation (usage rate, loyalty status), and benefit segmentation (the benefits that consumers seek from the product). For example, P&G could target consumers who are looking for eco-friendly products, or those who are loyal to the brand and buy their products regularly.

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1. Explain how segmenting, targeting and positioning can help reduce cannibalism in marketing.2. When it comes to laundry detergents, what did P&G find about what Americans, Western Europeans and Australianslook for, previously and now?3. Explain the higher-level basis of segmentation that P&G uses, and the lower-level basis.4. What do you think are some further ways in which P&G can segment the market for its laundry detergent brands besidesgeographic and demographic?

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