Question

In context of motivation, one of the pioneer theories is the Need Hierarchy Theory. Abraham Maslow formulated a theory of human motivation based on a universal hierarchy of needs in 1943. He identified five basic levels of needs. The Marketing application of this theory has been broadly identified to be in two heading:

1. Market Segmentation of the products

2. Market positioning of the products.

As a marketing manager for an FMCG brand (choose any brand) in Malaysia, demonstrate the application of the theory for identifying your market segment and positioning your product. Please ensure that your discussion is supported with relevant logic.

Answer 1

Sime Darby is a FMCG brand operating business in Malaysia. Company has segmented the market and positioned the products based on need hierarchy theory given by Maslow.

Market segmentation-

The marketing manager of the company has segmented the market based on geographic, demographic, psychographic and behavioral factors. The firm offers products such as oil, beauty products etc. Based on geographic factors, Sime Darby offer its products in Indonesia, India, Vietnam etc. The products of the firm help to satisfy different levels of needs of consumers such as physiological, safety, love and belonging needs.

Market positioning-

The firm adopted a cost leadership strategy to offer the goods and services to the customers. It delivers the items at price lower than the competitors do. It helps the management to promote an increase in profit of the firm. It also helps to save money for consumers. Moreover, the positioning strategy assists marketing manager to fulfill physiological needs of buyers.