1. Describe in your own words, market segmentation, give an example of how a market may be segmented, and explain the reason for segmentation. 2. Explain the principles of targeting and give two examples of a targeted market. 3. Discuss what is meant by positioning using two example of a business positioned in differing market sectors
Marketing consists of a range of techniques designed to sell a product/service. It focuses on customers and their needs, firms generally undertake research aimed at finding out about their customer’s requirements. A well planned marketing campaign involves a range of methods including; market positioning, Market planning, identification of target markets and market segmentation. Consideration of market segmentation and target markets will now be made in order to answer the questions outlined.
Market segmentation is about dividing the market into manageable segments, it works on the principle that all markets are not homogonous. Dividing the market into small groups or segments with similar characteristics, needs and buying behaviour allows the business to better satisfy the needs of its customers and subsequently increase their profits. The market can be segmented into many different categories to best meet the needs of the customer. The four main segmentation categories are geographic (region of the country, type of environment e.g. urban or rural), demographic (age, gender, income, education, occupation, nationality and religion), psychographic (social class, lifestyle and personality) and behavioural (product usage, brand loyalty and type of user). The purpose of market segmentation is (a) to identify customers with similar needs and behavioural pattern (b) to select which segment to target (c) to determine how to position products so they appeal to the target markets (d) to develop marketing campaigns that convey the brand positioning. Market segmentation is the process of defining and subdividing a large...
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