Please review this article for further information on the background factors that resulted in the development and launch of New Coke.
Market segmentation Markets generally fall into two broad types, namely consumer markets and business markets. A consumer market consists of individuals or households who purchase goods for private consumption and do not intend to resell those goods for a profit.
A business market consists of individuals or organisations who purchase goods for one of three main purposes; a for resale; b for use in producing other goods or services and; c for general use in daily business operations. Market segmentation is the process of dividing a total available market, using one of a number of key bases for segmenting such as demographic, geographic, psychographic, behavioural or needs-based segments.
Whereas a pyschographic segmentation might yield segments such as Young Singles, Traditional Families, Socially Awares and Conservatives.
Identifying consumer demand and opportunity within these segments should assist the marketer to idenfify the most profitable segments. Although there are many different ways to segment a market, the most common bases used in practice are: Psychographic — Attitudes, values, beliefs, interests and lifestyles.
Behavioral — usage occasion, degree of loyalty, user status, purchase-readiness  Needs-based segmentation — relationship between the customer's needs for specific features and product or service benefits  During the market segmentation process, the marketing analyst will have developed detailed profiles for each segment formed.
This profile typically describes the similarities between consumers within each segment and the differences between consumers across each of the segments.
The primary use of the segment profile is to assess the extent to which a firm's offerings meet the needs of different segments. A profile will include all such information as is relevant for the product or service and may include basic demographic descriptors, purchasing habits, disposition to spend, benefits-sought, brand preferences, loyalty behavior, usage frequency and any other information deemed relevant to the subject at hand.
Additional research may be undertaken at this juncture to ascertain which segments require detailed analysis with the potentail to become target segments.
Selecting the target market[ edit ] A key consideration in selecting the target markets is whether customer needs are sufficiently different to warrant segmentation and targeting.
In the event that customer needs across the entire market are relatively similar, then the business may decide to use an undifferentiated approach. On the other hand, when customer needs are different across segments, then a differentiated i.
In certain circumstances, the segmentation analysis may reveal that none of the segments offer genuine opportunities and the firm may decide not to enter the market. The primary market is the target market selected as the main focus of marketing activities and most of the firm's resources are allocated to the primary target.
The secondary target market is likely to be a segment that is not as large as the primary market, but may have growth potential. Alternatively, the secondary target group might consist of a small number of purchasers that account for a relatively high proportion of sales volume perhaps due to purchase value, purchase frequency or loyalty.
However, these considerations are somewhat subjective and call for high levels of managerial judgement. Accordingly, analysts have turned to more objective measures of segment attractiveness. Historically a number of different approaches have been used to select target markets.
Under this approach, the business attempts to define the primary geographic catchment area for the business by identifying people who live within a predetermined distance of the business. For a retailer or service-provider the distance might be around 5 km; for domestic tourist destination, the distance might be km.
This method is used extensively in retailing. Using this method, the business allocates its resources to target markets based on historical sales patterns. This method is especially useful when used in conjunction with sales coversion rates. This method is used in retail.Segmentation, target marketing, and positioning all work together and as Walker () describes, need to be reviewed and analyzed by a firm to make.
Market segmentation is a two-step process of: naming broad product markets, and segmenting those markets in order to select target markets.
Most segmentation efforts fail because inexperienced marketers attempt to find one or two demographic characteristics to segment a mass market.
Marketing for Libraries: Part 1: Overview from Annette Lamb on Vimeo. Some librarians say they are too busy to think about marketing but are they busy providing the customer service needed for a thriving library?
Marketing is the ongoing process of creating a connection between the library and. The relationship that exists between market segmentation, target marketing, positioning is an integral relationship that is predicated upon reliance upon specific variables that must be addressed in each stage for the organization to excel.
This change in marketing strategy by Pepsi in response to the competitive action by Coke, clearly highlights the three steps of segmentation – targeting – positioning.
By a change in the segmentation view, and the selection of a new target market, the company is enabled to construct a modified market positioning, which should have the.
What Is The Relationship Among Market Segmentation Target Marketing And Positioning. 1. Describe in your own words, market segmentation, give an example of how a market may be segmented, and explain the reason for segmentation Explain the principles of targeting and give two examples of .