Market Segmentation Targeting and Positioning

LO2.3: In most cases companies produces different goods and services for a certain group of people or customers. Businesses can follow different targeting strategies like differentiated or selected marketing, niche/concentration

1. Compared with other approaches to business, the marketing concept is distinct in that it

A firm wants to expand its marketing efforts. Which market segmentation criteria should be considered?

By using Marketing strategy, organizations concentrate their resources on the greatest opportunities to increase sales and maintain a competitive advantage in its market (Wickipedia, pg1).Market segmentation is the process companies use to divide their market into groups of buyers and establish marketing tailored to individual groups. Market targeting is the process of actually choosing the market which poses the greatest profitability. Positioning involves product placement and helps marketers highlight their product over a competitor. The

1. Compared with other approaches to business, the marketing concept is distinct in that it

B. Shopping products are those products for which customers usually want to use routinized buying behavior. C. Specialty products are those that customers usually are least willing to search for. D. Unsought products are not shopped for at all.

With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group.

• The company should find effective way to communicate about the product in public to boost up the sale of existing product but this plan does not work every time and it can be tricky also.

A marketing strategy provides a big picture of what a firm can do in a specific market. When creating a marketing strategy, a firm must identify a target market and a related marketing mix. A target market is "a group of similar customers to whom a firm wishes to appeal," and a marketing mix is "the controllable variables the company puts together to satisfy this target group." (Perrault and McCarthy 36) Focusing on specific target customers can help a firm develop a marketing mix that satisfies those customers ' specific needs better than another firm, making a firm less likely to face direct competitors.

Sometimes it’s not so important that your product fits the exact needs of the segment you target; rather, it’s vital that customers perceive that you do, even if it’s not true. In order to achieve this, the proper amount of advertising and sending the appropriate message are both vital.

This process helps a firm or organisation in focusing its marketing effort towards a specific segment or a group of segments. Depending on the product, organisational goals, the size of the firm and the marketing resources available a firm may target only one ‘niche’ segment or alternatively focus on several related segments. Another method can be to start with one segment and add more when business grows successfully. Large companies often target all market segments and try to serve them by offering a large variety of products to suit all their needs, wants and demands.

The Right Target Market One of the most important marketing functions for a firm is finding

A firm's aim is to survive and grow. Marketing helps achieve this through marketing activities, for example the process of market segmentation leads to the identification of a suitable target market. This identification means firms can manipulate a series of controllable factors- price, place, promotion and product, otherwise known as the marketing mix to produce a positive response in their target market. However a firm must also take into account the marketing environment; these are factors outside the firm's control. These can influence a firm's relationship with their target market; ignoring them can have disastrous consequences.

these segments thus giving marketers an added leverage so as to market their product more

Formulated marketing: when small companies achieve success, they move to formulated marketing i.e. already laid down advertising methods, like thru TV etc.