Segmentation Variables Benefits Sought Special / Regular Marketing Mix Sensitivity Price Sensitivity Demographics Age that can segment our focus market. Any company could potentially use these segmentation variables to segment the skin care market. We believe the relevant segmentation variables are: benefits sought, demographics, and marketing mix sensitivity. We believe that women seek the benefits of both intensive skin treatments and less intensive, basic skin care products. Older and younger women are becoming increasingly interested in anti-aging products, while many still prefer basic skin care.

The skin care market can also be segmented based on marketing mix sensitivity. With price sensitivity, consumers' reactions to various levels of price are taken into inconsideration. Demographics, in terms of age, is another way to segment the skin care market by considering both older and younger women. Segmentation Circle High Price 01 De raw mom Medium Low Price After dividing the focus market into segments, we developed a segmentation circle that visually depicts how this market can be segmented for all competitors.

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These segmentation variables not only help determine how to segment the market, but also help formulate a company's market coverage strategy. There are three possible market coverage strategies: undifferentiated, differentiated and concentrated. With an undifferentiated market coverage strategy, a company offers a single brand to satisfy all market segments. A differentiated market coverage strategy offers multiple brands to satisfy all consumers in the market. A concentrated market coverage strategy uses one brand to satisfy one particular market segment.