Segmentation_Targeting_and_Positioning.docx

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Segmentation ,Targeting and Positioning AN ESSAY BY: ZAMIN ALI 25/10/2014 For any business to survive it has to be profitable .And marketing, according to Kotler and Armstrong is “managing profitable customer relationships”. (Kotler,P.and,Armstrong,G.2014.p.26).Therefore in times of globalisation and increased awareness, organisations have to focus on their customers and commit themselves to identify and relate themselves to their customers needs. More competition has created an urgent need to retain existing market share and to capture the untouched market before the competitor does. This essay will discuss in brief the Marketing Strategy. Segmentation, Targeting and Positioning, separately. It begins with a definition for each, discussions, liminations and it will go on to show its importance. It will be illustrated by providing examples of two particular airlines to show synthesis for better and easy understanding. And will show how these two businesses have used them for their marketing purpose. Various academic views of different authors will be discussed and then critically concluded. Customers have to be grouped accordingly and markets are divided to cater to these groups. To understand the individual needs of different customers and then grouping them together for the product to be targeted at, is called segmentation. “A market segment is therefore a group of individuals, groups or organisations sharing one or more similar characteristics” (Dibb,Sally. et al. 2012.p.212). Segmentation helps to decide the targeting of customers for the products and services offered. Needs and wants can be categorised and products can be specifically made for the identified segment to give the customer a product or a service that can be comfortable enough for the customer to buy as it would satisfy their needs. “Market segmentation involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviours that might require separate marketing strategies or mixes” (Kotler,P.and,Armstrong,G.2014.p.214). A single product or service cannot appeal to everybody therefore the customer target is derived from proper segmentation based on what the consumer wants. And there are numerous ways to segment a market; the four major variables are, geographic, demographic, psychographic and behavioural. The intention is to group people with similar needs so that one product can be offered to that particular group. According to Armstrong and Kotler (2014) this greatly helps a marketer as the company can use it as a tool to comprehend in detail important customer segments and effectively customise its offerings and messages to their precise needs. Airlines, earlier were quite alike, each offering similar services. But as the industry grew, the customer had more choices thus more competition allowed segmenting the market into luxury and budget flying. The airlines industry in the United Arab Emirates, is also host to two airlines namely Emirates and Air Arabia, amongst others. Both these airlines cater to the two ends of the spectrum
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