Market Segmentation and Positioning | Central Piedmont Community College

University:
Central Piedmont Community College
Course:
MKT 120 | Principles of Marketing
Academic year:

2024
Views:

344

Pages:

1
Author:

J. Haikey

MARKET SEGMENTATION AND POSITIONING. Concept and Utility. Segmentation.It is about dividing the market into homogeneous subgroups based on their characteristics, behaviors or needs in order to carry out a differentiated commercial strategy that allows the consumer's needs to be satisfied in the most effective way and achieve the commercial objectives of the administration. Utility. - Helps improve understanding of consumer needs and wants. Highlights existing business opportunities. • It helos establish priorities and discover groups that are not sufficiently served. - Facilitates competitive analysis. We can look at what other competitors are targeting a specific segment. It allows you to better identify who is competing and analyze it in depth. - It makes it easier to adjust the marketing strategy to the specific needs of consumers and adapt the product better to what the consumer asks for. Segmentation Requirements. Not all segmentations are effective. In order for them to be so, they must meet a series of requirements. The segments must be: - Identifiable and with measurable (quantifiable) purchase potential. It must be possible to identify the members of the group. - Accessible. If we have identified a segment but we do not know how to communicate with its members, it is of no use to us. How they live and inform themselves, main motivations, etc. - Substantial. That they are large enough to be profitable or that they have sufficient purchasing power. It has to be worth investing money to develop a specific offering for that market. - Different. They must show different behaviors in purchasing habits or product differentiation. Your response to the marketing mix must be clearty different to justify a commercial strategy. - Possible to serve. We have to look at our resources and the company's capacity and determine if we can really develop a differentiated offering for the seement. - Defensible. Do we have the necessary resources or sufficient advantages to defend this segment against the possible entry of competitors?