Market Segmentation, Targeting and Positioning Essay
Market Segmentation Concept :
Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are …show more content…
Degree of loyalty – customers who buy one brand either all or most of the time are valuable to firms. By segmenting markets in this way, firms can adapt their marketing in order to retain loyal customers, rather than having to focus constantly on recruiting new customers. It is often said that it is ten times more profitable selling to existing customers than trying to find new ones. So the moral is – work hard at keeping your customers.
Occasions – this segments on the basis of when a product is purchased or consumed. For example, some consumers may only purchase flowers, wine or boxes of chocolates for celebrating birthdays or Christmas, whereas other consumers may buy these products on a weekly basis. Marketers often try to change customer perception of the best time to consumer a product by promoting alternative uses for a product. For example, recently Kellogg’s has attempted to change the image of cereals to that of an ‘any time’ snack, rather than simply a