Marketing Pillars - Segmentation, Targeting, Positioning and Differentiation

5693 Words Sep 1st, 2012 23 Pages
marketing pillars - segmentation, targeting, positioning and differentiation

While there may be theoretically 'ideal ' market segments, in reality every organization engaged in a market will develop different ways of imagining market segments, and create product differentiation strategies to exploit these segments. The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage.
Criteria for Segmenting
An ideal market segment meets all of the following criteria: * It is possible to measure. * It has to be large enough to earn profit. * It has to be stable enough that it does not vanish after some time. * It is possible to reach potential customer via
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The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved.
Improved segmentation can lead to significantly improved marketing effectiveness. Distinct segments can have different industry structures and thus have higher or lower attractiveness
Once a market segment has been identified (via segmentation), and targeted (in which the viability of servicing the market intended), the segment is then subject to positioning. Positioning involves ascertaining how a product or a company is perceived in the minds of consumers.
This part of the segmentation process consists of drawing up a perceptual map, which highlights rival goods within one 's industry according to perceived quality and price. After the perceptual map has been devised, a firm would consider the marketing communications mix best suited to the product in question.

Behavioral Segmentation
In behavioral segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. It is actually based on the behavior of the consumer.
Occasions
Segmentation according to occasions. We segment the market according to the occasions of use. For