In marketing a three stage process comprising of Segmentation, targeting, and positioning strategic approach is essential.

In this

  • the kinds of customers that exist is determined first
  • then to which kind we can provide our services to best and
  • finally to bring segmentation into consideration and optimizing our products/services to that segment and to let them know that we made the choice to serve them



Based on the needs that exist divergent consumers are identified in this. It is quite obvious that we cannot satisfy all the needs of all people and existing firms demonstrated profits by specializing to meet the needs of only a group of consumers. As strategy a firm will choose to focus on one of the several segments that are present by leaving its competitors other segments. Consumers of a given product category cane be differentiated by using a large number of variables. Among those Demographic variables essentially refer to personal statistics such as age, income, gender, marital status, education, location, ethnicity, and family size. Also other variables like Psychographics, behavior, geography, benefit, belief and values etc.


This is the next step where one or more segments are targeted and based on several factors our choice should be decided.

  1. How are other manufacturers serving the existing segments
  2. The existing size of the segment selected and to estimate how it can be increased.
  3. To analyze if our company have the strength to meet the needs of one particular group of consumers


It involves implementing our targeting.

The Discipline of Market Leaders (1993) by Michael Treacy and Fred Wiersema suggested that most successful firms fall into one of three categories:

  • Operationally excellent firms
  • Customer intimate firms
  • Technologically excellent firms



Demographics, psychographics & behavioral factors are considered by COLGATE to segments its offerings across oral, personal & Home care product categories. As different Deo’s for men & women are available, as such oral care products are meant to satisfy needs of different age and income groups.

COLGATE products though target mass population; most of its sales come from Middle class. Colgate and its sub brands across the product categories got their household name through the Usage & Benefit based positioning implemented by Colgate Palmolive

A broad variety of toothbrushes and toothpaste were introduced by Colgate-Palmolive ever since the company was established. This is to serve the needs of different consumers with a diverse oral health problems and priorities. Till today new and improved products are still introduced by them to meet the needs of different types of consumers.


  • Region, population factor, urban, or climactic conditions are used for Geographic segmentation. The business of COLGATE is currently present in over 200 countries around the world. They are currently selling twenty-two different varieties of tooth paste in UK and sixteen different types in the USA. Colgate-Palmolive does extensive research to achieve that right products are marketed to the right countries and showed a commitment to their global brand.
  • Demographic factors, such as age, gender, and social class are taken into consideration for Demographic segmentation. Colgate-Palmolive markets their products targeting diverse age groups. Both adult and kid products are sold by them. Kids market is classified into four different age groups with ages 0-2, 2-5, 5-8, and 8-12. flouride-free tooth paste is sold for the age group 0-2 where babies and toddlers are present to whom oral health care is new
  • Lifestyle, values, or personality traits are considered when a company considers Psychographic segmentation

As already stated Colgate markets its products based on oral healthcare needs of different people. For example they sell whitening toothpaste and toothbrushes to those individuals that want whiter teeth.


Segment Personal Care – Oral Hygiene – Toothpaste for Sensitive Teeth
Target Group Urban middle class Men and Women
Positioning With regular use of  Colgate Sensitive toothpaste relief from sudden shocks of pain and protection from  long term sensitivity is seen as it builds a protective shield and also soothes the nerve ends



Choosing the market segmentation is very important for any company so it can better understand their customers while identifying their needs and wants. The company has to set their strategy based on different different factors. Segmentation makes Colgate palmolive  to develop new market and positioning in market. This allowed the loyalty between the company and its customers.


  • Iacobucci, D. (2014) Marketing Management (MM), 4th Edition, South-Western, Cenage Learning, Mason, Chapter 3, Segmentation, Chapter 4, Targeting, and Chapter 5, Positioning.
  • Sally Dibb, Lyndon Simkin, (1991) “TARGETING, SEGMENTS AND POSITIONING”, International Journal of Retail & Distribution Management, Vol. 19 Iss: 3
  • Natter, Mild, Wagner, and Taudes: Practice Prize Report: Planning New Tariffs at tele.ring Marketing Science 27(4), pp. 600–609, ©2008 INFORMS.
  • Martin, G., 2011. The importance of market segmentation. American journal of business education, 4(6), pp. 15-18.



ID: 215475126


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