Concept of Market Segmentation, Targeting and Positioning. Market Segmentation apply on Hotel and Personal Computer.

1978 WordsNov 2, 20038 Pages
Market Segmentation Market Segmentation means breaking down the total market into self contained and relatively homogeneous subgroups of customers, each possessing its own special requirements and characteristics. This enables the company to modify its output, advertising messages and promotional methods to correspond to the needs of particular segments. Accurate segmentation allows the firm to pinpoint selling opportunities and to tailors it's marketing activities to satisfy on consumer needs. Through the process of market segmentation, there are certain variables to identify customer groups, such as needs, income geographical, location, buying habits and other characteristics as well, we can focus on the parts of the market that it can…show more content…
(B) Selecting suitable market segments with different Market -Coverage Strategies 1)Undifferentiated MarketingOne offer for the whole market. E.g. Coke. It may be less profitable due to heavy competition. 2) Differentiated Marketing Different marketing mixes for different segments. E.g. Nike shoes. However, company must weigh increased sales against costs. 3) Concentrated Marketing One marketing mix for several segments, especially appealing when company resources are limited. Mercedes cars for high income class. Which strategy is best depends on company resources. Stage Three - Market Positioning Arranging for a product to occupy a clear, distinctive, and desirable place related to competing products in the minds of target consumers. Formulating competitive positioning for a product and a detailed marketing mix. E.g. Toyota is positioned on economy, Mercedes on luxury, Porsche on performance & Volvo on safety. (A)Some positioning strategies 1)Product attributes E.g. Disney Land as a theme park. 2)Benefits sought E.g. Dell Computer, customer can order their own configuration. No extra penny is paid for parts not needed. 3)Usage occasionsE.g. Gatorade as a beverage for replacing athletics' body fluids. 4)Classes of usersE.g. Johnson & Johnson's baby shampoo for babies. 5)Against a competitorsE.g. CTI to HK Telecom 6)Away from competitors E.g. 7-up, "UN-cola" to Coke

More about Concept of Market Segmentation, Targeting and Positioning. Market Segmentation apply on Hotel and Personal Computer.

Open Document