Corsair is a computer peripherals and hardware company headquartered in Fremont, California. Corsair designs and sells a range of products for computers, including high-speed DRAM modules, ATX power supplies (PSUs), USB flash drives (UFDs) , CPU and memory cooling solutions, computer cases, solid-state drives (SSDs), and speakers.
In addition to its worldwide headquarters in Fremont, CA, Corsair maintains a production facility in Taiwan for assembly, test, and packaging of select products, distribution centers in Asia, the United States, and Europe, and has sales and marketing offices throughout the United States, Europe, and Asia.

he wide range of technologies used to gather data has led to the creation of data centers where information is stored. Today many of these data centers are sharing information with other centers in a manner that offers the marketer a fuller picture of their customers. For instance, as we will discuss in the Managing Customers Tutorial, many companies have multiple contact points where customers can interact with the company (e.g., in-person, on the web, via phone call). In the past the information gathered at these points was often stored separately so if a customer contacted the company through one contact point they may not be recognized if they also contacted the company through a different point.

Companies now see the value in knowing what customers do across all contact points and work to integrate customer information. Additionally, some marketers are going outside their own data collection and seek information on their customers from other sources, such as information provided by credit card companies. This information is then merged with the company-owned information to get a fuller picture of customer activity.
Marketing in a nutshell, is defined as the art of selling products. However, marketing does not only aim to sell products. It involves a deep understanding of the customer and identification of products or services that will satisfy their needs and wants. Marketing according to Bradley (2003) is a philosophy that leads to the process by which organizations, groups, and individuals obtain what they need and want by identifying value, providing it, communicating it and delivering it to others. Marketing is strategically concerned with the direction and scope of the long-term activities performed by the organization to obtain a competitive advantage. Marketing according to Proctor (2000) is about satisfying wants and needs and in the course of doing so facilitating the achievement of an organization’s objectives. By paying attention to customer wants and needs, organizations are more likely to achieve their objectives in the marketplace.

This paper generally, looks at how marketing is employed in Avon and how Avon creates its marketing strategies. Avon presents am excellent case in marketing because of its innovative business philosophy. In the succeeding sections, the author intends to tackle the different marketing techniques of Avon.



Market Segmentation

In this section, the author will discuss how Avon segments its markets and what bases for segmentation the company uses.

Market segmentation, according to Applbaum (2004), is the act of dividing distinct groups of buyers who might require separate products and/or marketing mixes (p. 32). According to Mochis (1994), market segmentation refers to subdividing the market into several groupings, with each group being recognized for its preferences regarding products/services and methods of delivery (p.41). Market Segmentation is a marketing management technique which can help firms find ways of establishing competitive advantage. A market segment is a section of a market which possesses one or more unique features that both give it an identity and set it apart form other segments. Market segmentation amounts to partitioning a market into a number of distinct sections, using criteria, which reflect different and distinctive purchasing motives and behaviour of customers. Segmentation makes it easier for firms to produce goods or services that fit closely with what people want (Proctor, 2000). Segmentation enables marketers to divide prospective customer groups into segments that consist of people with similar demographic, psychographic or usage patterns (Locke, 2001).



Avon is a global leader in cosmetics and as a company with global presence the company uses different bases for segmenting its customers and target markets. Among the bases of segmentation that Avon uses are:

1. Geographic - geographic segments mean location and this can include streets, towns, cities, regions, countries, continents etc (Proctor, 2000).

2. Demographic - demographics or social statistics includes age, sex, family, life cycle, job type/socioeconomic and group income level (Proctor, 2000).

3. Psychographic - psychographics attempts to segment according to psychological profiles of people in terms of their life-styles, attitudes, and personalities (Proctor, 2000). This approach according to Sternthal and Tybout (2001a) focuses on lifestyle rather than demographic information as a basis for describing segments. For this purpose, questions about activities, interests, and opinions are asked.

In recent years, Avon started focusing on capturing the market for younger women, College students, and men with disposable income. Avon also looks at extending market growth to include developing countries such as Poland, Vietnam, Cambodia, and Czech Republic.





The growth has largely been in the category dubbed "fast-moving consumer goods." This category, which comprises over 100 consumer products sold at the retail level, constitutes 60 percent of the total spending for marketing research activities. Other growth areas have been the financial services and automotive sectors.

The Indian automobile market was, until a few years ago, closed to the global giants. Deregulation has resulted in a rush of the world’s major automobile manufacturers to India. Today, American, European, Japanese and Korean automobile companies manufacture vehicles in India. Demand for research in this area inevitably followed. Recognizing the need, several of the large marketing research companies have set up groups within their organizations to cater to this burgeoning market. The other major growth area has been in media services. While most research is conducted on consumer goods, business-to-business studies have been catching up. The main research interests of biz-to-biz studies have been in the office automation and industrial products areas.

Major players
The two giants in marketing research are the Indian Market Research Bureau (IMRB) and ORG-MARG. Founded in 1970, IMRB, the larger of the two firms, is also the largest marketing research organization in South Asia (India, Nepal, Sri Lanka and Bangladesh), and has a staff of 400. Several of the newer firms were founded by IMRB alumni. ORG-MARG was formed in 1995 by the merger of Operations Research Group (ORG) and Marketing and Research Group (MARG), and employs more than 900 people. The other large marketing research firms include Dun & Bradstreet Marketing Research, Protech India Limited, Indica Research, Marketing and Business Associates, MBL Research and Consultancy Group, MODE Research, Pathfinders: India, and Research International India. Several large U.S. and European firms have established a presence in India. They have accomplished this either through strategic alliances or partial ownership. Some well-known U.S. firms which have a presence include Dun & Bradstreet, Millward Brown, Gallup, and Yankelovich. European firms include Research International, Lintas Worldwide, MBL Group plc, MRB Group and VNU.

Almost all the large companies are headquartered in the city of Bombay, with branch offices in other large cities. Bombay is the business capital of the country. A few of the large firms are located in other cities such as New Delhi, Calcutta, Bangalore and Hyderabad. An average research study costs between $5,000 and $10,000.

Research methods
Quantitative research is the most commonly used approach, accounting for 80 percent of the research studies conducted by companies in India. Qualitative makes up the other 20 percent. Due to lack of a strong research infrastructure, several of the data collection methods commonly prevalent in the U.S. cannot be used. The most common data collection method for quantitative studies is in-person interviews. The response rate for this method is up to 60 percent in upscale markets and as high as 80 percent among other population segments.

Focus group facilities equipped with one-way mirrors and audio/video-recording devices are not available. Hence, focus groups are held mostly in hotel rooms with closed-circuit television monitoring facilities.

Telephone interviews and mail surveys are used on a very limited basis. The principal reasons are lack of adequate telephones and low literacy rates. Lack of scientific samples and databases are another major drawback. Companies usually rely on telephone books to compile lists. Telephone availability is mostly restricted to middle- to high-income families living in the large cities. Among this segment, as many as 50 percent of the households have telephones.

The low penetration of telephones is also compounded by rates for long-distance calls, which are comparatively high by Indian standards. While clients increasingly recognize the need for research, they balk at the high cost of telephone, and computer-assisted personal interviewing (CAPI) methods in collecting data.

The use of scanners and automated equipment at retail checkout counters in almost nonexistent. Nevertheless, there are companies that conduct retail audits and provide data on consumer product sales.

While syndicated studies are just beginning to gain recognition, researchers believe that the number of clients is not sufficient enough to justify them. For similar reasons, companies are hesitant to offer off-the-shelf reports similar to those being conducted in the U.S. and Europe.

National readership studies are conducted once every two years. Advertising agencies use these studies for their media planning activities. Political polling, while being a recent phenomenon, is also gaining increased attention.

An advertising study was initiated in 1987 by the consumer products giant, Hindustan Lever. Lever, India’s equivalent of Procter & Gamble in the U.S., is an affiliate of Unilever. This study, called PULSE, has been regularly tracking advertising since then. Recently, however, several other research firms have launched their own studies to track advertising.

The most interesting development has been in the area of measuring television ratings. The two largest firms, IMRB and ORG-MARG, both have their own ratings study and are locked in a race to be the winner. Both companies have invested heavily in people meters. Recently a joint industry group awarded the ratings contract to IMRB. A fallout may result in the future. Nevertheless, for now, the two competing systems are seemingly secure because clients continue to use both.

Most market research companies have staff who are experienced in analytical techniques, including sophisticated analysis. They use industry standard software such as SPSS and SAS, and custom software developed in-house. According to V. Ravi, executive director of Indica Research, research companies in India are modeled after companies in the U.K. and thus tend to use psychology in focus groups. Conducting nationwide studies poses a challenge to researchers because of multiple language skills required. However, researchers have developed a keen sense of understanding of the cross-cultural differences that exist among the various regions in India.

Growing pains
The rapid growth has not been without its problems. Researchers in India are hampered by a serious lack of supporting infrastructure. For example, only one percent of all households has telephones. Literacy rates are also low. Thus, telephone and mail surveys are almost nonexistent.

The lack of adequate support services such as list companies, and focus group facilities have prevented researchers from offering the quick turnaround that clients in the U.S. and Europe are accustomed to. Rapid growth has also led to a shortage of trained research staff, says Thomas Puliyel, country manager for Research International India, a member of the Research International, the U.K.-based giant.

Professional organizations
The Marketing Research Society of India (MRSI) is the professional body for India’s marketing researchers. The society, established in 1981, has 50 corporate and 110 individual members. While there are no government regulations on the research industry, the society has established a set of rules called the Contractors Code of Conduct for its members. It encourages its individual and corporate members to actively participate in industry seminars. Several members have presented papers at past meetings of the European Society for Opinion and Market Research (ESOMAR). MRSI is based in Bombay on the campus of Xavier Institute of Management, one of India’s best management schools. The society publishes a membership directory and is considering the publication of a regular newsletter or magazine.
 
Corsair is a computer peripherals and hardware company headquartered in Fremont, California. Corsair designs and sells a range of products for computers, including high-speed DRAM modules, ATX power supplies (PSUs), USB flash drives (UFDs) , CPU and memory cooling solutions, computer cases, solid-state drives (SSDs), and speakers.
In addition to its worldwide headquarters in Fremont, CA, Corsair maintains a production facility in Taiwan for assembly, test, and packaging of select products, distribution centers in Asia, the United States, and Europe, and has sales and marketing offices throughout the United States, Europe, and Asia.

he wide range of technologies used to gather data has led to the creation of data centers where information is stored. Today many of these data centers are sharing information with other centers in a manner that offers the marketer a fuller picture of their customers. For instance, as we will discuss in the Managing Customers Tutorial, many companies have multiple contact points where customers can interact with the company (e.g., in-person, on the web, via phone call). In the past the information gathered at these points was often stored separately so if a customer contacted the company through one contact point they may not be recognized if they also contacted the company through a different point.

Companies now see the value in knowing what customers do across all contact points and work to integrate customer information. Additionally, some marketers are going outside their own data collection and seek information on their customers from other sources, such as information provided by credit card companies. This information is then merged with the company-owned information to get a fuller picture of customer activity.
Marketing in a nutshell, is defined as the art of selling products. However, marketing does not only aim to sell products. It involves a deep understanding of the customer and identification of products or services that will satisfy their needs and wants. Marketing according to Bradley (2003) is a philosophy that leads to the process by which organizations, groups, and individuals obtain what they need and want by identifying value, providing it, communicating it and delivering it to others. Marketing is strategically concerned with the direction and scope of the long-term activities performed by the organization to obtain a competitive advantage. Marketing according to Proctor (2000) is about satisfying wants and needs and in the course of doing so facilitating the achievement of an organization’s objectives. By paying attention to customer wants and needs, organizations are more likely to achieve their objectives in the marketplace.

This paper generally, looks at how marketing is employed in Avon and how Avon creates its marketing strategies. Avon presents am excellent case in marketing because of its innovative business philosophy. In the succeeding sections, the author intends to tackle the different marketing techniques of Avon.



Market Segmentation

In this section, the author will discuss how Avon segments its markets and what bases for segmentation the company uses.

Market segmentation, according to Applbaum (2004), is the act of dividing distinct groups of buyers who might require separate products and/or marketing mixes (p. 32). According to Mochis (1994), market segmentation refers to subdividing the market into several groupings, with each group being recognized for its preferences regarding products/services and methods of delivery (p.41). Market Segmentation is a marketing management technique which can help firms find ways of establishing competitive advantage. A market segment is a section of a market which possesses one or more unique features that both give it an identity and set it apart form other segments. Market segmentation amounts to partitioning a market into a number of distinct sections, using criteria, which reflect different and distinctive purchasing motives and behaviour of customers. Segmentation makes it easier for firms to produce goods or services that fit closely with what people want (Proctor, 2000). Segmentation enables marketers to divide prospective customer groups into segments that consist of people with similar demographic, psychographic or usage patterns (Locke, 2001).



Avon is a global leader in cosmetics and as a company with global presence the company uses different bases for segmenting its customers and target markets. Among the bases of segmentation that Avon uses are:

1. Geographic - geographic segments mean location and this can include streets, towns, cities, regions, countries, continents etc (Proctor, 2000).

2. Demographic - demographics or social statistics includes age, sex, family, life cycle, job type/socioeconomic and group income level (Proctor, 2000).

3. Psychographic - psychographics attempts to segment according to psychological profiles of people in terms of their life-styles, attitudes, and personalities (Proctor, 2000). This approach according to Sternthal and Tybout (2001a) focuses on lifestyle rather than demographic information as a basis for describing segments. For this purpose, questions about activities, interests, and opinions are asked.

In recent years, Avon started focusing on capturing the market for younger women, College students, and men with disposable income. Avon also looks at extending market growth to include developing countries such as Poland, Vietnam, Cambodia, and Czech Republic.





The growth has largely been in the category dubbed "fast-moving consumer goods." This category, which comprises over 100 consumer products sold at the retail level, constitutes 60 percent of the total spending for marketing research activities. Other growth areas have been the financial services and automotive sectors.

The Indian automobile market was, until a few years ago, closed to the global giants. Deregulation has resulted in a rush of the world’s major automobile manufacturers to India. Today, American, European, Japanese and Korean automobile companies manufacture vehicles in India. Demand for research in this area inevitably followed. Recognizing the need, several of the large marketing research companies have set up groups within their organizations to cater to this burgeoning market. The other major growth area has been in media services. While most research is conducted on consumer goods, business-to-business studies have been catching up. The main research interests of biz-to-biz studies have been in the office automation and industrial products areas.

Major players
The two giants in marketing research are the Indian Market Research Bureau (IMRB) and ORG-MARG. Founded in 1970, IMRB, the larger of the two firms, is also the largest marketing research organization in South Asia (India, Nepal, Sri Lanka and Bangladesh), and has a staff of 400. Several of the newer firms were founded by IMRB alumni. ORG-MARG was formed in 1995 by the merger of Operations Research Group (ORG) and Marketing and Research Group (MARG), and employs more than 900 people. The other large marketing research firms include Dun & Bradstreet Marketing Research, Protech India Limited, Indica Research, Marketing and Business Associates, MBL Research and Consultancy Group, MODE Research, Pathfinders: India, and Research International India. Several large U.S. and European firms have established a presence in India. They have accomplished this either through strategic alliances or partial ownership. Some well-known U.S. firms which have a presence include Dun & Bradstreet, Millward Brown, Gallup, and Yankelovich. European firms include Research International, Lintas Worldwide, MBL Group plc, MRB Group and VNU.

Almost all the large companies are headquartered in the city of Bombay, with branch offices in other large cities. Bombay is the business capital of the country. A few of the large firms are located in other cities such as New Delhi, Calcutta, Bangalore and Hyderabad. An average research study costs between $5,000 and $10,000.

Research methods
Quantitative research is the most commonly used approach, accounting for 80 percent of the research studies conducted by companies in India. Qualitative makes up the other 20 percent. Due to lack of a strong research infrastructure, several of the data collection methods commonly prevalent in the U.S. cannot be used. The most common data collection method for quantitative studies is in-person interviews. The response rate for this method is up to 60 percent in upscale markets and as high as 80 percent among other population segments.

Focus group facilities equipped with one-way mirrors and audio/video-recording devices are not available. Hence, focus groups are held mostly in hotel rooms with closed-circuit television monitoring facilities.

Telephone interviews and mail surveys are used on a very limited basis. The principal reasons are lack of adequate telephones and low literacy rates. Lack of scientific samples and databases are another major drawback. Companies usually rely on telephone books to compile lists. Telephone availability is mostly restricted to middle- to high-income families living in the large cities. Among this segment, as many as 50 percent of the households have telephones.

The low penetration of telephones is also compounded by rates for long-distance calls, which are comparatively high by Indian standards. While clients increasingly recognize the need for research, they balk at the high cost of telephone, and computer-assisted personal interviewing (CAPI) methods in collecting data.

The use of scanners and automated equipment at retail checkout counters in almost nonexistent. Nevertheless, there are companies that conduct retail audits and provide data on consumer product sales.

While syndicated studies are just beginning to gain recognition, researchers believe that the number of clients is not sufficient enough to justify them. For similar reasons, companies are hesitant to offer off-the-shelf reports similar to those being conducted in the U.S. and Europe.

National readership studies are conducted once every two years. Advertising agencies use these studies for their media planning activities. Political polling, while being a recent phenomenon, is also gaining increased attention.

An advertising study was initiated in 1987 by the consumer products giant, Hindustan Lever. Lever, India’s equivalent of Procter & Gamble in the U.S., is an affiliate of Unilever. This study, called PULSE, has been regularly tracking advertising since then. Recently, however, several other research firms have launched their own studies to track advertising.

The most interesting development has been in the area of measuring television ratings. The two largest firms, IMRB and ORG-MARG, both have their own ratings study and are locked in a race to be the winner. Both companies have invested heavily in people meters. Recently a joint industry group awarded the ratings contract to IMRB. A fallout may result in the future. Nevertheless, for now, the two competing systems are seemingly secure because clients continue to use both.

Most market research companies have staff who are experienced in analytical techniques, including sophisticated analysis. They use industry standard software such as SPSS and SAS, and custom software developed in-house. According to V. Ravi, executive director of Indica Research, research companies in India are modeled after companies in the U.K. and thus tend to use psychology in focus groups. Conducting nationwide studies poses a challenge to researchers because of multiple language skills required. However, researchers have developed a keen sense of understanding of the cross-cultural differences that exist among the various regions in India.

Growing pains
The rapid growth has not been without its problems. Researchers in India are hampered by a serious lack of supporting infrastructure. For example, only one percent of all households has telephones. Literacy rates are also low. Thus, telephone and mail surveys are almost nonexistent.

The lack of adequate support services such as list companies, and focus group facilities have prevented researchers from offering the quick turnaround that clients in the U.S. and Europe are accustomed to. Rapid growth has also led to a shortage of trained research staff, says Thomas Puliyel, country manager for Research International India, a member of the Research International, the U.K.-based giant.

Professional organizations
The Marketing Research Society of India (MRSI) is the professional body for India’s marketing researchers. The society, established in 1981, has 50 corporate and 110 individual members. While there are no government regulations on the research industry, the society has established a set of rules called the Contractors Code of Conduct for its members. It encourages its individual and corporate members to actively participate in industry seminars. Several members have presented papers at past meetings of the European Society for Opinion and Market Research (ESOMAR). MRSI is based in Bombay on the campus of Xavier Institute of Management, one of India’s best management schools. The society publishes a membership directory and is considering the publication of a regular newsletter or magazine.

Hey netra, you did an awesome job and i really appreciate your work. As we know that there are many students here who would find your report useful for their project or research work. BTW, i am also going to upload some more useful information on Corsair Memory for helping others.
 

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