When introducing a new product or service into the market, it is important for entrepreneurs to develop a strategy that allows quick receipt of product information by those consumers who are most likely to buy the product or service offering; and segmenting, targeting, and positioning methodologies accomplishes this task. By using an example of an entrepreneur introducing a new service, this paper illustrates how segmenting, targeting, and positioning methodologies are developed for successful marketing strategies.
Segmenting consumers by characteristics, and then using that information to define your target market and position yourself in that market, are worthwhile undertakings when introducing a new product or service into the market. Tanner and Raymond (2014) describe market segmentation as the process of breaking down all consumers into groups of potential buyers with similar characteristics; and typical segmentation bases include consumer behavioral, demographic, geographic, and psychographic segmentations (p.95). They go on to explain that once segmented, it is easier to identify the consumer groups who will most likely purchase your product, and the identified group becomes your target market …show more content…
This strategy is considered riskier because you are investing in one market, therefore your product future relies on the stability of that market. Understanding that MOS’s target market includes retirees, this market is attractive for its service offering because demographic study reveals that Baby Boomers, the “second-largest generation in the United States” (Tanner & Raymond, 2014, p.102), are retiring; hence, relaxing the risk of MOS’s concentrated marketing strategy. Once a target market is deemed applicable, a firm must define a way to acquire its target customers’ attention and
Segmenting consumers by characteristics, and then using that information to define your target market and position yourself in that market, are worthwhile undertakings when introducing a new product or service into the market. Tanner and Raymond (2014) describe market segmentation as the process of breaking down all consumers into groups of potential buyers with similar characteristics; and typical segmentation bases include consumer behavioral, demographic, geographic, and psychographic segmentations (p.95). They go on to explain that once segmented, it is easier to identify the consumer groups who will most likely purchase your product, and the identified group becomes your target market …show more content…
This strategy is considered riskier because you are investing in one market, therefore your product future relies on the stability of that market. Understanding that MOS’s target market includes retirees, this market is attractive for its service offering because demographic study reveals that Baby Boomers, the “second-largest generation in the United States” (Tanner & Raymond, 2014, p.102), are retiring; hence, relaxing the risk of MOS’s concentrated marketing strategy. Once a target market is deemed applicable, a firm must define a way to acquire its target customers’ attention and