Market Segmentation, Targeting and Positioning

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Market segmentation, targeting and positioning Introduction You must have ever wondered why marketers only target certain markets and how these markets are identified. Think about universities: how do they identify which students to touch with about degrees schemes? What criteria or base (variables) do they use? Do they base it on where you live, your age, or your previous schooling scores? Do they market to postgraduate and undergraduate groups differently, what about international and domestic student groups----is this difference important for the effective marketing of higher education services to students? This essay gives a brief answer to it. Firstly it introduces market segmentation and its methods; then it describes how to…show more content…
Every step of the above is important in establishing an effective segmentation, especially the data collection must be from customers in a wide scope. Only through the accurate information can companies know what offerings can be provided to the target market. How to identify the characteristics of consumers To segment markets, we must know about customers and collect the data and use market information in brands. As shown in the following figure, companies normally use the following segmentation bases(variables) for segmenting market: profile (e.g. who are my market and where are they?); behavioral (e.g. where, when, and how does my market behave?); and psychological criteria (e.g. why does my market behave that way?). (Elizabeth C.Thach, 2006) Figure: Segmentation criteria for consumer markets In order to understand the above figure in details, let’s analyze the picture item by item, see the following table for reference: Table: Segmentation criteria for consumer markets in details Base type Segmentation criteria explanation profile Demograhic Age, sex, occupation, level of education, religion, social class and income characteristics etc., this item determines a potential buyer’s ability to purchase a product or service lifestage Based on the fact that people need different products at different stages in their lives ( childhood, adulthood, young couples, retired) geographic The needs of potential
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