What is marketing segmentation? How is the practice of market segmentation related to the marketing concept
Marketing segmentation is the process of dividing a potential market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix
Marketing concept is based on the premise that a marketer should ‘make what is can sell’. By determining the needs and wants of the consumers
How are market segmentation, targeting and positioning interrelated? Illustrate how these three concepts can be to develop a marketing strategy for a product of your choice.
Segmentation is part of a three-phase market strategy
1. Segmentation =subdividing a market into homogenous clusters
2. Targeting =developing and implementing a specific marketing mix that caters to one or more segments and
3. Positioning = ensuring that the product or service offering is perceived by the target marketing as satisfying their needs and wants better than competitors.
Under what circumstances and for what types of products should a marketer segment the market on the basis of :
Awareness status
Brand Loyalty
User situation analysis
Hybrid segmentation
Awareness status: Appropriate for segmenting the market for a new product, especially in case were prospective customers are unaware of the product. For example concave TVs.
Brand Loyalty: Can be used to segment in several ways. (1) Hard-core loyal customers, (2) consumer loyal to two or brands including its own and (3) non-loyal customers. For example coffee, wine and high-end clothing labels (Blueberry)
User situation analysis: aids organizations to enhance product usage within a segment
Hybrid segmentation: Includes attributes from 2 or more quadrants. Gernally. Most segmentation strategies employed by origination and a form of hybrid segmentation.
Marketers don’t create needs; needs pre-exist marketers. Discuss this...