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Segmentation Targeting & Positioning

Segmentation Targeting & Positioning - Segmentation...

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Segmentation targeting & positioning The Concept of Segmentation, Targeting, and Positioning A) A market segment is a homogeneous group of customers with similar needs, wants, values, and buying behavior. Each segment is an arena for competition. B) Target marketing is the process that companies select certain ones that they attempt to cater to and satisfy better than competitors. C) Positioning is the creation of an image, reputation, or perception in the minds of consumers about the organization or its products relative to competition. D) Segmentation, targeting, and positioning give organizations the means to connect with customers by identifying and understanding their characteristics, by focusing resources to meet their needs and wants, and by establishing how customers will view the organization Market Segmentation (analytical process) A) Segmentation versus mass marketing a) The objective of mass marketing is to reach as many people as possible with the same marketing approach. b) Because of competition that appeals to consumer diversity, mass marketing is not very useful today. c) Do not confuse mass marketing with mass customization, which is a form of target marketing that takes advantage of technology and resources to provide customers unique services. B) Segmentation versus product differentiation a) Product differentiation makes a product appear unique relative to others, whether produced by the same company or the competition. b) It implies recognition that consumers may seek variety. But the leading dynamic of product differentiation is difference in the product, not in buyer characteristics as market segmentation. C) Segmentation variables a) Heterogeneous whole market is segmented into homogeneous subgroups. b) A segmentation variable is any descriptive characteristic that helps separate all potential purchasers into groups. c) Geographic segmentation c.1) Global companies often segment their markets by city. c.2) Geodemography combines geographic information with data on consumer expenditures and demographics to identify segments with common consumption patterns.
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