Market Segmentation, Targeting and Positioning
Market segmentation, targeting and positioning
Introduction
You must have ever wondered why marketers only target certain markets and how these markets are identified. Think about universities: how do they identify which students to touch with about degrees schemes? What criteria or base (variables) do they use? Do they base it on where you live, your age, or your previous schooling scores? Do they market to postgraduate and undergraduate groups differently, what about international and domestic student groups----is this difference important for the effective marketing of higher education services to students?
This essay gives a brief answer to it. Firstly it introduces market segmentation and its methods; then it describes how to identify market differentiation. Thirdly, it introduces how to target a market and the judgement criteria and also puts forward targeting approaches and how to implement the positioning of the target market as well, finally 2 examples are given to support the above view.
This essay is intended to provide a simple understanding about market segmentation for readers.
Market segmentation
Market segmentation is the division of a market into different groups of customers with similar needs. Or to express it in another way, market segmentation is the division of a mass market into identifiable and distinct groups or segments, and each has common characteristics and needs and displays similar response to marketing actions. The purpose of market segmentation is to leverage scarce resources; or to ensure that the elements of marketing mix (price, distribution, products and promotion) are designed to meet specific needs of different customer groups. For companies have limited resources it is not possible to produce all possible products for all the people all the time. The best way is to provide selected offerings for selected groups of people most time. This allows companies to focus on particular customers’ needs in the most efficient and
Introduction
You must have ever wondered why marketers only target certain markets and how these markets are identified. Think about universities: how do they identify which students to touch with about degrees schemes? What criteria or base (variables) do they use? Do they base it on where you live, your age, or your previous schooling scores? Do they market to postgraduate and undergraduate groups differently, what about international and domestic student groups----is this difference important for the effective marketing of higher education services to students?
This essay gives a brief answer to it. Firstly it introduces market segmentation and its methods; then it describes how to identify market differentiation. Thirdly, it introduces how to target a market and the judgement criteria and also puts forward targeting approaches and how to implement the positioning of the target market as well, finally 2 examples are given to support the above view.
This essay is intended to provide a simple understanding about market segmentation for readers.
Market segmentation
Market segmentation is the division of a market into different groups of customers with similar needs. Or to express it in another way, market segmentation is the division of a mass market into identifiable and distinct groups or segments, and each has common characteristics and needs and displays similar response to marketing actions. The purpose of market segmentation is to leverage scarce resources; or to ensure that the elements of marketing mix (price, distribution, products and promotion) are designed to meet specific needs of different customer groups. For companies have limited resources it is not possible to produce all possible products for all the people all the time. The best way is to provide selected offerings for selected groups of people most time. This allows companies to focus on particular customers’ needs in the most efficient and