Concepts Of Segmentation Essay

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Marketing Assignment-3- Explain the concepts of segmentation, targeting, and positioning and how they are applied in global marketing? Market segmentation is the process of splitting a market of potential customers into groups, or segments, based on distinct characteristics. It is also based on the premise that companies should attempt to identify customers in different countries who share similar needs and wants. The process of it begins with the choice of one or more variables to use as a basis for grouping customers. Market segmentation is applied to increase the quantity of sale and profit. For example, the segmentation of Mercedes Benz is luxury automobile segment including sedans, …show more content…

If the answer is no, does it have significant growth potential to make it attractive in terms of a company’s long-term strategy? One of the advantages of targeting a market segment globally is that although the segment in a single-country market might be small, even a narrow segment can be served profitably if the segment exists in several countries. Potential competition: a market segment or country market characterized by powerful competition may be a segment to avoid. However, if the competition is weak in terms of price or quality disadvantages, it is possible for a market newcomer to make significant inroads. The conditions of entry are low barriers – potential competition will represent an effective competitive limit, and high barriers- potential competition is not likely to represent an effective competitive limit. Feasibility and compatibility: The feasibility of targeting a particular segment can be negatively impacted by various factors. Marketers must consider several criteria as follow: Will adaptation be required? If so, is this economically justifiable in terms of the expected sales volume? Will import restrictions, high tariffs, or a strong home-country currency drive up the price of the product in the target market currency and effectively dampen demand? Is it advisable to source locally? In many cases, reaching global market segments requires considerable expenditures for distribution and travel by company personnel. Would it make sense to source products in the country for export elsewhere in the

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