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discuss the principles of market segmentation, targeting and positioning
market segmentation questions and answer
market segmentation and its role in marketing
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Marketing segmentation is the process in which a large market is broken down into simple segments that have similar needs or demand characteristics for designing the marketing strategy to meets the expectations of a particular segment (Wedel, 2000). Most companies cannot meet the needs of the whole market; therefore, the companies are forced to subdivide the market into segments and target the segments that they can handle (Wedel, 2000). In order to do market segmentation, data such as age, income, gender, town of residence, and marital status may be required. This data is then analyzed to allow for targeted marketing to the potential customer.
Market Segmentation
It is not possible for companies to meet the needs of all the consumers in a
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Certain people are more interested in a particular product than others are. Even the interested people will buy a certain product in different quantities. The interest of some consumers may vary with price while others may not. Therefore, it is important for the marketer to single out these classes of different types of consumers; this is the market segmentation process. Marketers need to identify the groups of consumers with similar needs so that they can tailor their marketing strategies towards them. This helps to save on the limited marketing budget (Steenkamp & Ter Hofstede, 2002). In addition, by tailoring the marketing strategies to a particular group, the marketer is likely to get more satisfied customers. This will help the organization gain a great advantage over its competitors (Allenby, Fennell, Bemmaor, Bhargava, Christen, Dawley, & Yang, …show more content…
The questionnaire will be administered among the sampled 100 customers. It will contain both open ended and closed questions. The questionnaire will be structured into three sections. The first section will be an introduction that will brief the study participants on the study purpose and encourage them to answer the survey questions truthfully. The second section will focus on the participants’ demographics such as age, income, gender, family life cycle, and their purchasing behavior. The third section of the questionnaire will contain questions focusing on the consumer preferences when they buy products from the
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Segmentation, targeting and positioning are the fundament of modern marketing (Proctor, 2002, p. 188, as cited in Harris and Schaefer, 2015).
To begin with, it is crucial to appreciate the meaning of segmentation and targeting because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product. What is the meaning of targeting? It is where an enterprise evaluates every segment with an objective of identifying segments with promising business opportunities. Considering the nature of the product in question, it sufficed to mention that liquor- filled chocolates are to be sold to adults.
There are a range of segmentations that allows a company to target potential customers effectively.
Many factors should be addressed when defining a target market. These factors include market segmentation, product life cycle, and the four "P's" that make the marketing mix. Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product wants and needs. There are four major segmentation variables: geographic, demographic, psychographic, and behavioral. Geographic segmentation includes world region, country region, city, density, or climate. Demographic segmentation can consist of age, gender, income, occupation, education, race, religion, or nationality. Social class, lifestyle, and personality fall into the psychographic segment. The behavioral segment divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product (Bethel, 2007). Once the market segment is identified, that market can be targeted.
According to Kotler et al 2013 market segmentation is defined as dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes. As per the industry data which we were operating we used different theories to segment the market one of them is STP process. In this method whole market is sub divided into different segments based on three activities these are segmentation, targeting and positioning. From the market information in case study we identified similar groups of consumer under market segmentation activity. For example market E had consumers travelling between mini hub to medium city that had a new and growing market. While targeting the market we identified which group of consumers to aim for instance market D had major university and service sectors. Lastly in the product and brand positioning we created a concept so as to appeal the target market by running as discount airline. One of the approaches for market segmentation according to Kotler et...
Segmentation is the process of determining the breakdown of the target market into smaller specific variables that make it easier to evaluate. Gabbott M (2004, p 159) describes the consumer related segmentation variables as being Geodemographic, Psychographic and Behavioural.
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and marketing strategy. Journal of Marketing, 51(2(April 1987)), 1-10. Retrieved from http://www.jstor.org/stable/1251125
Market segmentation allows marketers to easily categorise customers in order to identify target markets and products for certain types of customers. Elaborating on this, Pine, Peppers and Rogers (1995) mention that market segmentation is a set of broad characteristics that focus on a group of customers. Furthermore, Kotler (1988) states that segmentation is the act of separating a specific set of customers, that open up markets, with apparent needs, behaviours and characteristics that require specific products. With this being said, marketers use this foundation in order to build and gain more information to target certain markets.
Nevertheless, one of the most important constants among all of us, regardless of our differences, is that, above all, we are buyers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services, and even ideas. As consumers, we play an essential role in the health of the economy; local, national and international. The purchase decision we make affect the requirement for basic raw materials, for transportation, for production, for banking; they affect the employment of employees and the growth of resources, the successfulness of some industries and the failure of others. In order to be successful in any business and specifically in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers; what they are want, what they are think, how they are work, how they are spend their leisure time. They have to find out the personal and group influences that affect consumer decisions and how these decisions are made. In these days of ever-widening media choices, they need to not only identify their target audiences, but they have to know where and how to reach
Volterman’s product is unable to meet the need of people from all age group so they need to use market segmentation to meet the customer requirement with the common needs and characteristics. (3) Volterman organization are able to determine exactly who is their targeted market such as
To achieve and maintain success in such a complex system as market it is essential to every marketing person to understand clearly consumer behavior. Understanding consumer behavior is not that easy as it may seem from the first glance. The reason is that there are plenty of various factors that may influence it in one certain way or the other. When considering each of the factors it is also important not to forget that they ought to be analyzed as different parts of one whole picture, that is, in correlation with each other.
It does involve grouping of people (customers) into segments that do share common needs or will give a common reaction to a marketing event by the business. Toyota’s third generation Prius has created a new segment for hybrid cars along with its competitors. This segment caters to the need of the environmentally conscious buyer. This has opened up a whole new ...
Segmentation is a marketing strategy that involves separating a wide target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed. Market segmentation strategies are utilized to identify these groups of consumers and strategies are designed and implemented to make the product or service appeal to them. Support and also the product will be strategically placed in order to successfully achieve the ultimate marketing goal. Businesses and organizations may come up with different type of strategies involving different products and catchy phrases depending on the product or the target segment.