Making marketing decisions: segmentation, targeting, positioning

Question 1

Market Segmentation

Answer 1

Market segmentation splits up a market into different types (segments) to enable a business to better target its products to the relevant customers.

Measured in terms of sales value or volume

Question 2

Market Targeting

Answer 2

Targeting in marketing is a strategy that breaks 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.

Question 3

Market Positioning

Answer 3

Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors

for example: High/Low quality

Question 4

Choosing a target market

Answer 4

Mass marketing (undifferentiated)
- Whole Market
Segmented (differentiated)
- Several market segments within the same market
Concentrated (niche)
- Focuses narrowly on smaller segments or niches