Market segmentation, targeting & positioning

Topics: Marketing, Target market, Product differentiation Pages: 36 (3961 words) Published: March 6, 2015
Steps in market segmentation, targeting and positioning
Market segmentation
Why does segmentation required?
Steps in segmentation process
Stages of Identifying Market Segments
Market Segmentation of Consumer Market , Business Market and international marketing Target market
Targeting strategies
Evaluating segmentation for targeting
Evaluating Market Segments
Process of choosing target market
Factors to be considered while target market selection
Decision involved in in targeting
Targeting strategy decisions are influenced by
Target market size
Result of wrong targeting strategy
Positioning concept :
The main issues in product positioning are
Positioning errors
Criteria for successful positioning

Market segmentation, targeting & positioning

Market segmentation, targeting and positioning are very important terms in marketing. To discuss about market segmentation, targeting, positioning, first of all we need to know about market and marketing Market: Market is combination of actual and potential buyers of a product. Marketing: Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service Abstract:

An organization can’t afford to have similar strategies for product promotion amongst all individuals. Not every individual has the same requirement and demand. The marketers thus came with the concept of STP. STP stands for segmentation, targeting and positioning. Market segmentation means Market Segmentation refers to the process of creation of small groups (segments) within a large market to bring together consumers who have similar requirements, needs and interests. Once market segments are created, organization then targets them. Targeting is the second stage and is done once the markets have been segmented. Positioning is the last stage in the Segmentation Targeting Positioning Cycle. Once the organization decides on its target market, it strives hard to create an image of its product in the minds of the consumers. The marketers create a first impression of the product in the minds of consumers through positioning. Positioning helps organizations to create a perception of the products in the minds of target audience.

Steps in market segmentation, targeting and positioning:
The steps of market segmentation, targeting and positioning is as follows:

Now we will discuss about market segmentation, targeting and positioning broadly- Market segmentation:
A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another. Generally three criteria can be used to identify different market segments: Homogeneity (common needs within segment)

Distinction (unique from other groups)
Reaction (similar response to market)

Why segmentation is required:
Not all individuals have similar needs. A male and a female would have varied interests and liking towards different products. A kid would not require something which an adult needs. A school kid would have a different requirement than an office goers. Market Segmentation helps the marketers to bring together individuals with similar choices and interests on a common platform. Market Segmentation helps the marketers to devise appropriate marketing strategies and promotional schemes according to the tastes of the individuals of a particular market segment Market segmentation helps the marketers to understand the needs of the target audience and adopt specific marketing plans accordingly. Organizations can adopt a more focused approach as a result of market segmentation....

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