Segmentation Analysis : Segmentation And Targeting

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Literature review Segmentation and Targeting The world is made up of different people, therefore segmentation provides consumers products that fulfil their individual needs. Martin (2011) states that companies have to try different segmentation variables either alone or in combination because often the best choices arise from using various strategies. There are few ways to segment a market, therefore, companies must think innovatively and be willing to re-segment if needed. There are five major segmentation strategies that group various customers into segments. Fill (2009) explains that demographic segmentation consists of factors such as age, nationality or level of education. Geographic segmentation is based on the assumption that…show more content…
It is vital that marketing communication mix responds to competitive environment, therefore, Porter’s five competitive forces could be used to evaluate firms competitive positioning. In addition, Porter’s generic strategy grid can be applied to a product. He called the generic strategies ‘cost leadership’, ‘differentiation’, ‘cost focus’ and ‘differentiation focus’ (Vrontis and Sharp, 2003). These strategies have attributes that defend against competitive forces. According to Dahlén, Lange and Smith (2010), perceptual maps could be used to profile the relationship against competition, however every consumer already has a perceptual map as a frame of reference in which brands occupy a space with denotations and connotations. Although frames of reference can be represented by product’s attributes, it can be also because of the needs of the consumer such as status or self-esteem. Therefore, the development of positioning has to be carefully analysed so that the brand can stand for the right values and beliefs. Manhas (2010) states that successful positioning can only be achieved by adopting a customer’s perspective and according to him, in developing a positioning, the company has to consider four things: the target market, differentiation of the product, the value of this difference and the ability to communicate this to the target market. A quantitative way to assess what attributes
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