Segmentation, Targeting And Positioning

Question 1

The value of market segmentation

Answer 1

Differentiate itself from its competitors

Develop and build its brand

Identify and satisfy the needs of a specific group of customers

Reach customers with good marketing

Focus the business activities

Build brand loyalty

Question 2

Methods of segmentation

Answer 2

Geographic - where people live

Behavioural - when people buy, why people buy and loyalty

Income - how much people earn

Demographic - age, gender, occupation, race

Question 3

SEGMENTATION, TARGETING AND POSITIONING PROCESS

Answer 3

1) segmentation - identify target market based on business strengths, potential for sales and profitability

2) targeting - use methods for categorising customers based on their characteristics and needs

3) positioning - position business relative to competitors so that u can meet customer needs and find gaps in market