Discussion On Market Segmentation, Targeting, And Positionin
Discussion Market Segmenting Targeting And Positioninginstructions
Discuss the reasons why firms often use more than one segmentation base, identify which segmentation strategy is the broadest and which is the narrowest, explain why companies position products, and discuss why they might reposition a product. Your response should be supported by credible sources, formatted in APA style, with in-text citations and a reference list. Your initial post must be submitted by Saturday, September 18th by 11:59pm, and your response to at least one classmate should be posted by Sunday, September 19th by 11:59pm.
Paper For Above instruction
Firms often utilize multiple segmentation bases to gain a comprehensive understanding of their target markets, which helps tailor their marketing efforts more effectively and reach specific customer needs with greater precision. By combining different bases—such as demographic, psychographic, geographic, and behavioral—they can segment the market more accurately, leading to improved customer targeting and increased competitive advantage. For example, a company might segment consumers by age (demographic) and lifestyle (psychographic) to develop customized marketing messages that resonate more deeply with specific groups (Kotler & Keller, 2016).
The broadest segmentation strategy is the multi-segment approach, which targets several distinct groups within the market with different marketing mixes. Conversely, microtargeting is the narrowest segmentation strategy, focusing intensely on very specific groups, often at an individual level, such as personalized advertising based on individual behaviors and preferences (Lamb, Hair, & McDaniel, 2019). The broad approach enables companies to reach larger audiences, while narrow strategies are used for highly specialized products or services that cater to unique customer needs.
Product positioning involves designing and communicating a product’s unique value proposition to occupy a distinct place in the consumer’s mind relative to competing offerings. Positioning allows companies to differentiate their products through various strategies such as competitive positioning, attribute-based positioning, or positioning on benefits. For example, a luxury car brand might emphasize quality and prestige to position itself as a symbol of status (Keller, 2010). Companies often position their products to create a favorable perception and influence consumer choice, ensuring their offerings stand out in a crowded marketplace.
Repositioning is the strategy used to alter the way consumers perceive a product, often to respond to market changes, combat competitive threats, or revitalize sales. Organizations reposition products to maintain relevance and attract new customer segments or to reinforce current positioning. For instance, a beverage company might reposition a soft drink as a healthier alternative to appeal to health-conscious consumers. Repositioning is essential to staying aligned with evolving consumer preferences and market conditions, maintaining the product’s competitiveness (Aaker, 2012).
References
- Aaker, D. A. (2012). Building strong brands. Free Press.
- Keller, K. L. (2010). Branding and brand equity. In A. H. Hult, G. T. Kellogg, & D. J. Lenox (Eds.), The Founder's Dilemma: Repositioning Strategies in Market Competition (pp. 123-136). Routledge.
- Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson Education.
- Lamb, C. W., Hair, J. F., & McDaniel, C. (2019). Mktg. This is the sample source presumed for the example even though actual page numbers or editions may vary.