target marketing segmentation and positioning
Target market
A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards.[1] A well-defined target market is the first element to a marketing strategy. The marketing mix variables of product, place (distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace.
Market segmentations
Target markets are groups of individuals that are separated by distinguishable and noticeable aspects. Target markets can be separated by the following aspects:
• Geographic segmentations, addresses (their location climate region)
• demographic/socioeconomic segmentation (gender, age, income, occupation, education, household size, and stage in the family life cycle)
• psychographic segmentation (similar attitudes, values, and lifestyles)
• behavioral segmentation (occasions, degree of loyalty)
• product-related segmentation (relationship to a product)[2]
In addition to the above segmentations, market researchers have advocated a needs-based market segmentation approach to identify smaller and better defined target groups. A seven step approach proposed by Roger Best is as follows:
• Select the target audience– the customers are grouped based on similar needs and benefits sought by them on purchase of a product.
• Identify clusters of similar needs- demographics, lifestyle, usage behaviour and pattern used to differentiate between segments.
• Apply a valuation approach- market growth, barriers to entry, market access, switching, etc. are used.
• Test the segments- A segment storyboard is to be created to test the attractiveness of each segment’s positioning strategy.
• Modify marketing mix- expanding segment positioning strategy to include all aspects of marketing mix.
Strategies for Reaching Target Markets
Marketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing or mass marketing,
A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards.[1] A well-defined target market is the first element to a marketing strategy. The marketing mix variables of product, place (distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace.
Market segmentations
Target markets are groups of individuals that are separated by distinguishable and noticeable aspects. Target markets can be separated by the following aspects:
• Geographic segmentations, addresses (their location climate region)
• demographic/socioeconomic segmentation (gender, age, income, occupation, education, household size, and stage in the family life cycle)
• psychographic segmentation (similar attitudes, values, and lifestyles)
• behavioral segmentation (occasions, degree of loyalty)
• product-related segmentation (relationship to a product)[2]
In addition to the above segmentations, market researchers have advocated a needs-based market segmentation approach to identify smaller and better defined target groups. A seven step approach proposed by Roger Best is as follows:
• Select the target audience– the customers are grouped based on similar needs and benefits sought by them on purchase of a product.
• Identify clusters of similar needs- demographics, lifestyle, usage behaviour and pattern used to differentiate between segments.
• Apply a valuation approach- market growth, barriers to entry, market access, switching, etc. are used.
• Test the segments- A segment storyboard is to be created to test the attractiveness of each segment’s positioning strategy.
• Modify marketing mix- expanding segment positioning strategy to include all aspects of marketing mix.
Strategies for Reaching Target Markets
Marketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing or mass marketing,