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Definition
Dividing a market into distinct groups
with distinct needs, characteristics, or
behaviour who might require separate
products or marketing mixes.
1. It must be identifiable.
2. It must be accessible.
3. It must be optimum in size.
4. It must be profitable.
5. It must be durable.
6. It must be compatible.
STEPS IN MARKET SEGMENTATION
Definition
Target Marketing involves breaking a market into
segments and then concentrating the marketing efforts
on one or a few key segments. Target marketing can
be the key to a business’s success.
Segmentation is actually the prelude to target market
selection.
FACTORS TO BE CONSIDERED WHILE
TARGET MARKET SELECTION
12. Whether the firm can offer superior value to the customers in the segment.
13. The impact of serving the segment on the firm's image.
14. Access to distribution channels required to serve the segment.
15. The firm's resources vs. capital investment required to serve the segment.
TARGET MARKET STRATEGIES
Definition
It is all about placing a product / brand in the minds
of the customer to occupy a stable, distinct and
permanent place in their rational and conscious mind
set.
According to Al Ries and Jack Trout, “Positioning
is not what you do to your product, but what you
do to the mind of your prospective customer”.
Thus it is all about winning a distinct place in the
minds of the customer.
DIFFERENT POSITIONING PLANKS / BASES
Economy.
Benefit.
Gender .
Luxury and exclusiveness.
Fashion for elite class.
Technology and value added features.
Clarity .
Consistency .
Credibility.
Competitiveness.
REPOSITIONING
Definition
Repositioning involves changing target market or
distinct positioning claim/differences advantages or both
to bring the saturated attention of the existing customers
back into the limelight once again to survive safely and
happily in the market. In some cases, the products that
are faring well are repositioned. Example- Maruti Omni
repositioning.
Conclusion