Market Segmentation Targeting and Positioning Essay

1181 Words Feb 17th, 2013 5 Pages
MARKET SEGMENTATION, TARGETING and POSITIONING

Objectives:

At the end of the lesson, students will be able to:

• Define market segmentation, market targeting, and market positioning.

• Discuss the major bases for segmenting consumer and industrial markets

• Explain how companies identify attractive market segments.

• Explain how companies position their products in the marketplace.

TARGET MARKETING

Different Marketing Practices

Organizations recognize that they cannot appeal to all buyers in a given market.

Buyers are too numerous, too widely scattered, and too varied in their needs and buying practices.

So instead of trying to compete in the entire market, each company must identify parts
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Psychographic Segmentation - Consists of dividing buyers into different groups based on social class, life style, or personality characteristics

Note that people in the same demographic group can have very different psychographic makeups.

- Social Class (lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, upper uppers)‏

- Life Style (achievers, believers, strivers)‏

- Personality (compulsive, gregarious, authoritarian, ambitious)‏

Ex:

- products for healthy, active lifestyle

- magazines for working moms

4. Behavioristic Segmentation - Consists of dividing buyers into groups based on their knowledge, attitude, uses or responses to a product.

Many marketers believe that behavior variables are the best starting point for building market segments.

- Purchase occasion (regular occasion, special occasion)‏

- Benefits sought (quality, service, economy)‏

- User status (nonuser, ex-user, potential user, first-time user, regular user)‏

- Usage rate (light user, medium user, heavy user)‏

- Loyalty status (none, medium, strong, absolute)

- Readiness stage (unaware, aware, informed, interested, desirous,

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