SEGMENTATION TARGETING AND POSITIONING

 Follow these ONE BY ONE

1. SEGMENTATION

The purpose for segmenting a market is to allow the marketing/sales program to focus on the prospects that are "most likely" to purchase the particular offering. If done properly this will help to ensure the highest return for the marketing/sales expenditures,spending on whether they are selling the offering to individual consumers or a business.

Why should we do segmentation ?

1.Reduction in expenses
Prospects might be businesses that are downsizing (right sizing), businesses that have products in the mature stage of their life cycle or individuals with credit rating problems.

 

2.Improved cash flow

Prospects might be businesses that have traditionally low profit margins, businesses that have traditionally high inventory costs or individuals that live in expensive urban areas.

 

3.Improved productivity

Prospects might be businesses that have traditionally low profit margins, businesses that have recently
experienced low earnings or individuals who have large families.

 

4.Improved manufacturing quality
Prospects might be businesses with complex, multi-discipline manufacturing processes.

5.Improved service delivery
Prospects might be service businesses in highly competitive markets, product businesses requiring considerable post-sale support or individuals in remote or rural areas.

6.Improved employee working conditions/benefits
Prospects might be businesses where potential employees are in short supply.

2.TARGETING




A target market or target audience is a group of customers that the business  has decided to aim its marketing efforts and ultimately its merchandise.A well-defined target market is the first element to a marketing strategy


Target markets are groups of people separated by distinguishable and noticeable aspects. Target markets can be separated into:

• geographic segmentations (their location)

• demographic/socio-economic segmentation (gender,age, income occupation, education, household size, and stage in the family life cycle)

• psychographic segmentation (similar attitudes, values, and lifestyles)

• behavioral segmentation (occasions, degree of loyalty)

• product-related segmentation (relationship to a product

 

Example of targeting can be as follows:

1.World Wrestling Entertainment’s (WWE) target market is young males. Monday Night RAW is the number one entertainment program among male viewers (2 million+) including the male demographics of 18-34, 18-49 and 25-54. It is shown at 9:00 PM ET to reach its target market

The video below tells more about segmentation and targeting by the vice president of global merchandising

3.POSITIONING



Positioning can be said as the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.

Re-positioning involves changing the identity of a product

De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product.

Positioning can also be defined as identifying a market for a brand, product or service utilizing traditional marketing placement strategies (i.e. price, promotion, distribution, packaging, and competition).

Usually the process of positioning is as follows:

1. Defining the market in which the product or brand will compete (who the relevant buyers are)
2. Identifying the attributes (also called dimensions) that define the product 'space'
3. Collecting information from a sample of customers about their perceptions of each product on the relevant attributes
4. Determine each product's share of mind.
5. Determine each product's current location in the product space.
6. Determining the different types of combination according to consumer taste.

So therefore it can be seen that much important is Segmentation Targeting and Positioning for any organisation.


Syed Jafri
Business and marketing management student
BUCKS