7 - Segmentation and Positioning Principles
1. Why is it essential for organizations to segment markets and target particular
groups of consumers?
There are various reasons to segment markets. Personally, my favorite is to
matching customer needs. Customers differ from one another and generalizing markets
would be a disservice to them. What I mean is that the prime purpose of businesses
is to give value to customers by offering goods and services to meet their needs.
Of course customers have different needs. Not identifying the specific traits of
marget segments won't help understand understand their customers behavior and
provide insight on their purchase decision. As a result, the company won't able to
meet their needs and demands.
2. Explain how and why the Internet makes market segmentation easier.
Lots of consumers shop online. Whenever they do online shopping, online shoppers
leave digital footprints such as their age, location and information with regards
to the product they bought.
This information then can be used by companies to adjust their marketing efforts
accordingly.
3. Discuss the major bases for segmenting consumer and business markets.
Market segmentation defines dividing the larger market into smaller segments of
buyers who have different wants, attitudes, buying behavior. They are the ff:
(1) Geographic Segmentation- divides the market based ondifferent geographical
areas, units, nations , regions, countries, cities or neighborhoods.
(2) Demographic segmentation- divies the market into different segments based on
different variables like age, income, occupation,education, gender, life-cycle
stage etc. This is commonly used by consumer markets.
(3) Psychographic segmentation-means dividing the market into different segment
based on different social class, lifestyle, attitude, personality or
characteristics. People in the same demographic group can have different
psyhocological needs.
(4) Behavioral segmentation- divides the market into different segments according
to consumer knowledge, attitudes, and their usage/respond to the product.
4. Choose five local brands and identify their positioning statement. Do you
believe in their positioning statement? Why or why not?
A positioning statement is a brief description of a product or service and target
market, and how the product or service fills a particular need of the target
market. It's meant to be used as an internal tool to align marketing efforts with
the brand and value proposition.
(1) HUMAN NATURE
Human Nature provides is a social enterprise that provides affordable, quality,
natural products here and in neighboring countries.
(2) ASAHI's Retro Wooden Fans
This line is positioned as slightly affordable, stylish and durable for Filipinos.
1. Why is it essential for organizations to segment markets and target particular
groups of consumers?
There are various reasons to segment markets. Personally, my favorite is to
matching customer needs. Customers differ from one another and generalizing markets
would be a disservice to them. What I mean is that the prime purpose of businesses
is to give value to customers by offering goods and services to meet their needs.
Of course customers have different needs. Not identifying the specific traits of
marget segments won't help understand understand their customers behavior and
provide insight on their purchase decision. As a result, the company won't able to
meet their needs and demands.
2. Explain how and why the Internet makes market segmentation easier.
Lots of consumers shop online. Whenever they do online shopping, online shoppers
leave digital footprints such as their age, location and information with regards
to the product they bought.
This information then can be used by companies to adjust their marketing efforts
accordingly.
3. Discuss the major bases for segmenting consumer and business markets.
Market segmentation defines dividing the larger market into smaller segments of
buyers who have different wants, attitudes, buying behavior. They are the ff:
(1) Geographic Segmentation- divides the market based ondifferent geographical
areas, units, nations , regions, countries, cities or neighborhoods.
(2) Demographic segmentation- divies the market into different segments based on
different variables like age, income, occupation,education, gender, life-cycle
stage etc. This is commonly used by consumer markets.
(3) Psychographic segmentation-means dividing the market into different segment
based on different social class, lifestyle, attitude, personality or
characteristics. People in the same demographic group can have different
psyhocological needs.
(4) Behavioral segmentation- divides the market into different segments according
to consumer knowledge, attitudes, and their usage/respond to the product.
4. Choose five local brands and identify their positioning statement. Do you
believe in their positioning statement? Why or why not?
A positioning statement is a brief description of a product or service and target
market, and how the product or service fills a particular need of the target
market. It's meant to be used as an internal tool to align marketing efforts with
the brand and value proposition.
(1) HUMAN NATURE
Human Nature provides is a social enterprise that provides affordable, quality,
natural products here and in neighboring countries.
(2) ASAHI's Retro Wooden Fans
This line is positioned as slightly affordable, stylish and durable for Filipinos.
