Report of the Segmentation, Targeting and Positioning of Supermarket.

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Report title: Report of the Segmentation, Targeting and positioning of supermarket. Prepared for: Miss Samantha Liew
Written by: Johan Chandra (3804717)
Date of Submission: Friday, 3 April 2009.
Tutorial Group & Time: T9 (12.30-1.30)

Table of Contents

Cover Page1
Executive Summary3
1. Introduction4
2. Discussion6
2.1. Market Segmentation6
2.2. Market Targeting7
2.3. Market Positioning8
3. Conclusion9
4. Recommendation10
Reference List11

Executive Summary

The purpose of this report is to know the three market selection process, which is market segmentation, market targeting, and market positioning. The business will be opened is supermarket which sell the most important and customer needs. There are three main parts of market selection. First thing the company must segment the market then divides them into a group of customer needs. Secondly, make a target from whom the market will be sold. The third is making customer remember the uniqueness of the market. In conclusion, the company needs to do three steps of market selection. For attain success, high profit, and income.

1. Introduction

The purpose is to give a clearer view about how organizations attract customers, and what marketing strategy that will attracts the customers in. The chosen organization is supermarket that is offering household needs, foods, and clothes. The location of the supermarket is going to be located in strategic area that can be found easily by customers such as Sunway Pyramid. The name of this supermarket is Alpha Century Mart. This supermarket will be opened daily from 10.00 AM – 10.00 PM. Marketing is ‘as a group of people who as individuals or as organizations, have needs for products in a classy product and have the ability, willingness, and the authority to purchase such products’ (Pride et al. 2007 p. 115) Market segmentation consists of two steps that divide customers into groups based on their characteristics. First step is to identify segmentation variables. ‘Segmentation variables are the characteristics of individuals, groups, or organizations used to divide a market into segments’ (Pride et al. 2007 p. 117). For example: location of the market, income of the social class, and lifestyle in social environment. The second step is developing the market segment profile by finding the similarities and differences among customers and divides each of them into separate group. In target market, there are three sections within selection process. First of all, market segment; secondly is market targeting, and the last is market positioning Market segment is ‘some individuals or group or organizations with one or more similar characteristics that cause them to have similar products needs’ (Pride et al. 2007).

Market targeting is ‘a detailed examination and evaluation of the range of possible market segments and the degree to which the company can satisfy the entire society, beyond their expectations’ (Pride et al. 2007) The market targeting has three strategies. The first strategy is ‘undifferentiated strategy, the second strategy is concentrated strategy, and the last strategy is differentiated strategy’ (Pride et al. 2007). Market Positioning is ‘what the difference or exceptional of the product the company offers and how the company is different than others’ (Boone & Kurtz 2006 P. 309) The purpose of market positioning is ‘making the customers remember the company’s either in product or brand and also the advantage to compare with other competitors’ (Boone & Kurtz 2006 p. 400).

2. Discussion

2.1. Market Segmentation

Market segmentation is ‘division of the total market into smaller relatively homogeneous groups’ (Boone & Kurtz 2006). Alpha Century Mart focus on demographic variable, and psychographic variable. Demographic variable is division of an overall market into homogeneous groups based on variables, such as income,...
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