Segmentation
Segmentation means to divide the marketplace into parts, or segments, which are definable, accessible, actionable, and profitable and have a growth potential.
A definable segment means a mass of people who can be identified and targeted with reasonable effort, cost and time.
Segmentation allows a seller to closely tailor his product to the needs, desires, uses, and paying ability of customers.
It allows sellers to concentrate on their resources, money, time, and effort on a profitable market, which will grow in numbers, usage and value.
Targeting
Targeting in marketing is a strategy that brakes a large market into smaller segments to concentrate on a specific group of customers within that audience.
It defines a segment of customers based on their unique characteristics and focuses solely on serving them.
The types of target markets are often segmented by characteristics such as:
Demographics- Age, gender, education, marital status, race, religion, etc.
Psychographics: Values, beliefs, interests, personality, lifestyle, etc.
Business Industry: Business industry or vertical
Geographic Areas: Neighborhood, area code, city, region, country, etc.
Importance-
It's a part of a holistic marketing strategy.
It impacts advertising, as well as customer experience, branding, and business operations.
Speak directly to a defined audience
Attract and convert high-quality leads
Differentiate your brand from competitors
Build deeper customer loyalty
Improve products and services
Stay focus
Positioning
A marketing strategy that aims to make a brand occupy a distinct position, relative to comparing brands, in the mind of the customer.
Companies apply this strategy either by emphasizing the distinguishing features of their brand (What it is, what it does, and how etc).
They may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising.
Once a brand is positioned, it is very difficult to reposition it without destroying its credibility. Also called product positioning.
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