Segmentation, Targeting and Positioning

Segmentation, targeting and positioning

Market segmentation is a process of marketer through market research and based on the need and desires of consumers, buying behavior, buying habits and other aspects of consumer to divide a whole market in to several group of customer. Each group is a consumer market segment; each segment was constituted by who have similar consumer demand. Markets can be segmented in three ways: by geography, demography and psychological factors. By marketing targeting, the company wants to select one or more segment to target with a different marketing mix.

Geographic segmentation refers to the geographical location of the consumers, the natural environment market segments. Due to the consumers in different geographic environments for the same products often have different needs and preferences. In addition, they reflect the price of the company's products, distribution channels, advertising and other marketing measures, often there is a difference. So those are the reason why geographic segmentation is feasible. Different countries have different ethnicities and culture so product modifications may be necessary. For instance, Oreo cannot have a good respond when introduced it in the Chinese market with a slightly different recipe that is because Chinese consumers thought it was too sweet and too expensive. In order to respond to the customer’s demands so Oreo made necessary changes to make the cookie less sweet. As a result, Oreo’s sales doubled in China and became China’s best-selling cookie accounting for 7.3% of the country’s entire cookie market.

Psychographics segmentation is segment the market based on the consumer’s social class, attitude, and lifestyle, personality, buying motive, and the respond about the event and issued. For example, children who eating Oreo is usually come from a busy family because they need an expedient and price-friendly food which can be