6 Market Segmentation and Positioning Positioning is not what you do to a product; it is what you do to the mind of a prospect. Ries and Trout (1972) Learning outcomes After reading this chapter‚ you will be able to: ✔ Describe the principles of market segmentation and the STP process. ✔ Explain the characteristics and differences between market segmentation and product differentiation. ✔ Explain how market segmentation can be undertaken in both consumer and business-to-business
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Segmentation‚ targeting and positioning are interrelated activities‚ which are important to achieving a successful marketing mix. Discuss these concepts in theory and give practical example of how they can be applied to one industry of your choice. Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs‚ and then be designed and implemented to target these specific customer segments‚ addressing needs or desires that
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Segmentation is important in consumer analysis because understanding the consumer will allow us segment the market more meaningfully. To get a product or service to the right person or company‚ a marketer would firstly segment the market‚ then target a single segment or series of segments‚ and finally position within the segment(s). Market segmentation is the basis for customer orientation and differentiation Segmentation is essentially the identification of subsets of buyers within a market who
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MODULE 3: MARKET SEGMENTATION AND POSITIONING Lecture - 5 FAQS (FREQUENTLY ASKED QUESTIONS): Ques 1 Define Market Segmentation Ans 1 Market segmentation is the process of identifying distinct groups and or sub groups of customers in the market‚ who have distinct needs‚ characteristics‚ preferences and/or behaviors‚ and require separate product and service offerings and corresponding marketing mixes. “Market segmentation can be defined as the process of dividing a market into distinct
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Market segmentation- is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes‚ they are likely to respond similarly to a given marketing strategy. That is‚ they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service‚ sold at a given price‚ distributed in a certain way‚ and promoted in a certain way.
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The Gap in Market Segmentation What is the point of market segmentation? Really‚ what is the point? As my Uncle Jim used to say‚ "If you throw enough dirt on the wall some of it is going to stick‚ ain’t it?" So why don’t companies just throw a bunch of good products at the people and just see who buys what‚ if anything at all? That might have worked along time ago‚ but now‚ the answer in short‚ is competition. Today‚ there are to types of companies‚ those that are profitable and those
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1.Introduction 1.1. History of McDonald ’s Corporation McDonald ’s Corporation is the world ’s largest chain of fast food restaurants‚ primarily selling hamburgers‚ french fries‚ soft drinks‚ milkshakes and desserts. It appeals to local taste preferences with relevant offerings like the offerings of one-third pound Big Tasty in most Europe and Latin America. McDonald ’s began in 1940 and opened by siblings Dick and Mac McDonald in San Bernardino‚ California. “We take the burger business more seriously
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traditional target market which is high school students is projected to decrease over the next ten years‚ we at regional state university need to come with a new idea of our target market. Other potential market segmentation can be considered by using these few methods that elaborated below. 1. MARKET SEGMENTATION Market segmentation provides businesses with the possibility of customizing a unique set of elements known as the 4P’s (product‚ price‚ place‚ and promotion) for specific target markets. Therefore
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Market segmentation is the process of grouping buyers into different categories on the basis of their common needs‚ desires and requirements. It is the strategy of subdividing the target market into sub-groups of consumers with definable‚ distinct and homogeneous characteristics so that a different marketing programme can be set up for each group. This will result in an enhancement in the satisfaction to the consumers and profit to the marketer. According to Professor Philip Kotler‚ “Market Segmentation
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Chapter 2 Market segmentation Schiffman‚ Bednall‚ O’Cass‚ Paladino‚ Ward & Kanuk: Consumer Behaviour 4e © 2007 Pearson Education Australia Chapter Objectives To define market segmentation To review the uses of segmentation To outline the nine main bases of segmentation To understand the main segmentation approaches To outline the criteria for effective market segments To distinguish between concentrated and differentiated marketing Schiffman‚ Bednall‚ O’Cass‚ Paladino‚ Ward &
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