Marketing Pillars - Segmentation, Targeting, Positioning and Differentiation

5693 Words23 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…show more content…
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

More about Marketing Pillars - Segmentation, Targeting, Positioning and Differentiation

Open Document