Segmentation, targeting and positioning are interrelated activities which are important to achieving a successful Marketing Mix. Discuss these concepts in theory and give practical examples of how they can be applied to one industry of your choice
It has been observed since the inception of Marketing that marketers target to only specific market and how they identify such market. There are certain criteria or base they use to identify the consumers who they would be serving to. Customers do have unique requirements satisfaction levels and aspirations. Some customers however are similar with respect to their requirements of goods and services. In such case if their needs are identified and they can be grouped in quantities of a specific size then it can be segmented. Now each customer group have specific expectations and businesses must cater to the needs of the segmented that has been targeted.
Marketing involves activities to find right people for the business and then gaining their attention and retaining them for life. There are many theories marketers employed to stand their business out of crowd or at least make it visible. To make any business efficiency and effective, it is important to seek the target customer market. There are primarily three main areas to consider while identifying the target market. Those are as follows;
It does involve grouping of people (customers) into segments that do share common needs or will give a common reaction to a marketing event by the business. Toyota’s third generation Prius has created a new segment for hybrid cars along with its competitors. This segment caters to the need of the environmentally conscious buyer. This has opened up a whole new segment for cars in the developed markets. This is a segment for cars running on cleaner energy.
Geographic variables: This is identified based on location such as continent, country or a particular region where the group of customers belong to
Demographic variables: This characteristic focuses on age, gender, income bracket, job, cultural background and education of consumers.
Psychographic variables: This refers to customers’ lifestyle for instance; attitude, social class, personality, opinions, and attitudes.
Behavioral variables: This is based on the behavior of customer group such as brand preference, prior purchases, shopping center customers and online shoppers.
The assortment of potential consumers to whom a corporate needs to sell merchandises or facilities. The targeting strategy comprises segmenting the market, selecting which divisions of the consumer base are suitable, and determining the merchandises that will be obtainable in each segment. Toyota Prius is targeted at young executives and small families. It is a hybrid car and targets those families and individuals who care for the planet. The green initiative by Toyota also in a way tackles the fuel price rise. It is this aspect which has made it a...