Basic Segmentation, Targeting and Positioning
Segmentation
When entering a market, an organisation needs to identify its customers and what its customer needs are. A business can’t go into a market with a product and expect to sell it, because the demand for the product may not be there. It is important for the business to plan thoroughly before entering a market and understand the diverse nature of a market. For example, a market may have large range of consumers who have different tastes, preference and needs. So this is where the concept of segmentation will be applied.
Segmentation is defined as ‘the identification of individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy’. To break this down, an organisation will need to group together the consumers that share the same traits in order to serve them properly. A company is bound to fail if it has created a marketing mix which serves one customer, but does not serve another. By creating sub markets or market segments, a marketing mix can be created to suit the needs of each segment which will create satisfied customers.
Once a company has successfully segmented a market, it can then provide products or services that will satisfy customers in a specific segment. If a company does not have a product or service to satisfy a sub market, then it is in the company’s interest to develop a product or service that will satisfy that part of the market. This is because one of the main reasons for segmentation is maximising profits. Segmentation is a way to match consumer needs, which in turn can enhance profitability. When a segment hasn’t been supplied with goods or services, this is seen as an opportunity to enhance profits.
You may segment consumers into three main groups, Behavioural, psychographic and profile variables, each group has its own sub categories. Marketers use these as a basis to segment their potential markets, for example the behavioural segment has the
When entering a market, an organisation needs to identify its customers and what its customer needs are. A business can’t go into a market with a product and expect to sell it, because the demand for the product may not be there. It is important for the business to plan thoroughly before entering a market and understand the diverse nature of a market. For example, a market may have large range of consumers who have different tastes, preference and needs. So this is where the concept of segmentation will be applied.
Segmentation is defined as ‘the identification of individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy’. To break this down, an organisation will need to group together the consumers that share the same traits in order to serve them properly. A company is bound to fail if it has created a marketing mix which serves one customer, but does not serve another. By creating sub markets or market segments, a marketing mix can be created to suit the needs of each segment which will create satisfied customers.
Once a company has successfully segmented a market, it can then provide products or services that will satisfy customers in a specific segment. If a company does not have a product or service to satisfy a sub market, then it is in the company’s interest to develop a product or service that will satisfy that part of the market. This is because one of the main reasons for segmentation is maximising profits. Segmentation is a way to match consumer needs, which in turn can enhance profitability. When a segment hasn’t been supplied with goods or services, this is seen as an opportunity to enhance profits.
You may segment consumers into three main groups, Behavioural, psychographic and profile variables, each group has its own sub categories. Marketers use these as a basis to segment their potential markets, for example the behavioural segment has the
References: Chris Horton. (04/05/2012). Positioning Case Study: How Nokia Fell From Number 1 Read more at Al Ries and Jack Trout – Book Positioning: The Battle for Your Mind (1981) Ivan Levison