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Investigate segmentation bases 3. We will write a custom essay sample on Tasks in Market Segmentation or any similar topic only for you. Develop product positioning 4. Select segmentation strategy 5.

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Marketing managers may brainstorm the product concept and consider what types of consumers are likely to purchase and use the product and how they differ from those less likely to buy. Focus groups and other types of primary research can be used for identifying differences in attributes, benefits, and values of various potential markets 3. Secondary research may further investigate differences in potential target markets, determine the relative sizes of those markets, and develop a better understanding of consumers of this or similar products Investigate segmentation bases.

There are no simple way to determine the best bases for segmenting markets. Benefit segmentation. The benefits people seek in consuming a given product are the basic reasons for the existence of true market segments. Psychographic segmentation. Differences on consumer lifestyles. Market can be divided on the basis of usage situation. Example: clothes and footwear—market are divided on the basis of sex, size, usage situation or social events Geodemographic segmentation.

Identifies specific households in market focusing on local neighbourhood geography such as zip codes to create classifications of actual addressable, mappable neighbourhood where consumers live and shop. Develop product positioning.

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Positioning the product relative to competing products in the minds of consumers. Positioning by attribute. Most common positioning strategy associating a product with an attribute, a product feature, or a customer feature. Example: toothpaste —fights cavity, whitens teeth 2. By use or application. Represents a 2nd or 3rd position designed to expand the market. Example: Cellphone—texting, 2nd videocam, 3rd—email 3.

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By product user or class user. Associating with a specific lifestyle profile. Example: alcohol—pampamilya na pangsports pa 4. By product class. Example: camay—beauty soap, safeguard—family soap, ivory-mild soap for sensitive skin 5. By competitors. To convince consumers that a brand is better than the market leader or another well-accepted brand on important attributes.

Commonly done in advertisement where competitor is compared. Example: tide compared with brand x and brand y Positioning Map. A visual depiction of consumers perceptions of competitive products, brands, or models. It is done by surveying consumers about various product attributes and developing dimensions and graph indicating the relative positions of competitors. The firm may decide not to enter the market.

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This may mean there are no viable market niche for the product or brand or model. The firm may decide not to segment but to mass marketer. This may be appropriate in three situations— a. When the market is so small that marketing to portion of it is not profitable b. When heavy users make up such a large proportion of the sales volume that they are the only relevant target. When the brand is dominant in the market and targeting to a few segments would not benefit sales and profits.

The firm may decide to market to only one segment 4. The firm may decide to market to more than one segment and design a separate marketing strategy each. Be able to measure size and characteristics. Example: income 2. Segment is large enough to have sufficient sales and growth potential to offer long-run profits. Can be reached and serve profitably. Consumer Behavior and Product Strategy Product affect and cognition: Satisfaction and dissatisfaction. Consumer satisfaction is critical in marketing thought and consumer research.

Satisfied more likely to purchase the product; dissatisfied more likely to switch products or brand. Expectancy disconfirmation with performance approach is a current approach in studying satisfaction. This approach views consumer satisfaction as the degree to which a product or service provides a pleasurable level of consumption-related fulfilment. It is a degree to which a product performance exceeds the consumers expectations.

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Prepurchase expectations are consumers beliefs about anticipated performance of the product. Disconfirmation refers to difference between the two perceptions. Positive disconfirmation occurs when product performance is better than expected. This lead to satisfaction or a pleasurable level of fulfilment.

How to Use Market Segmentation: Developing a Target Market

Negative disconfirmation occurs when product performance is lower than expected. This thought lead to dissatisfaction. Neutral disconfirmation occurs when performance perceptions just meet expectations. Product Behavior Major objective of marketing is to increase the probability and frequency of consumers coming into contact with products, purchasing and using them and repurchasing them. Two classes of consumer behavior: 1. Product Contact. Market Segmentation There are a variety of ways to segment a market in order to identify a target market and perform many of the key marketing functions.

Determining the basis of an effective segmentation is a multi-step and even multi-disciplinary process that can be incredibly complex. The five key forms of segmentation include: Geographic Demographic Behavioral Psychological Price Geographic segmentation is simply by region. This is especially important to brick and motor retail stores and businesses in the service industry that only cater to certain areas.

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However, national operations such as Amazon that ship their products have a lot more flexibility in this segmentation category. Demographic segmentation will focus on factors such as age, income level, and education status. This is an extremely useful way to focus on a target market and can be used in conjunction with geographic or other segmentation methods. For example, an ideal target market figure…… [Read More].

Market Segementation Market segmentation is a way to differentiate a group so that the seller of goods or services does not concentrate on the entire universe, but on a group of high potential customers that are more likely to purchase the product. A market segment, of course, is a sub-set of the entire marketing unit that is made up of individuals or organizations with characteristics that allow them to be grouped together to provide a more appropriate marketing experience, a more individuated for of sales.

Since different segments have different values, the homogeneity with in the segment defines the common goals and needs. This has been part of the more sophisticated manner of looking at specific demographics and psychographics to set pricing, packaging, and even types of service.

Market Segmentation

In effect, while there may be a number of "ideal" market segments for a specific product or service, manufacturers must develop different…… [Read More]. Market Segmentation and Targeting the. Having identified their target markets with targeted solutions, Nissan introduced a model called "Cube. Each segment needs to be evaluated: how large is the segment and can a single solution distributed through a specific set of channels be profitably? According to Murphy, the domestic sales of Japanese car manufacturers continued to decline; however, he did not provide enough information to determine the success of the "Cube.

Market Segmentation and Promotion Strategies in Achieving.