Market Segmentation, Target Market Selection and Positioning

MARKET SEGMENTATION

TARGET MARKET SELECTION

POSITIONING

Differentiation

these are necessry steps to acheieve a successful marketing strategy, because it provides focus for the organization

Market Segmentation- involves dividing the marketing into different segments based distinct characteristics, behavior and needs The goal here is to group similar customers together, so that they can be served more effiently and effectively as opposed to a segment with different customer types. in order to achieve these goal, understanding the customer is very important, this would help ensure that you distinctly segment the customers so that different segments can be easily distinguishable. For my Social venture, I am differentiate my customers based on their wealth my target market is the over 71% of the Nigerian Population that is leaving below the poverty mark.

Target Market selection- This is the next step after Market segementation. the goal here is to determine what segment is financially most attractive, thus maximising the profit of the organization. Understanding differetiation is very important in this step. Marketers have to be able to identify how differenttheir organization is fro other competitors and what areas their organization is best in, and work on its advantages. For my social venture, I am hoping to increase my revenues based on an increased quantity of customers and not price, so the main variable driving my revenues is the quantity, and as such, my initially health care facilities are going to be in the areas that are both very impoverished and densely populated.

Positioning-The marketers effort to identify a unique selling proposition foe the product. A good positioning statement should answer who are the customers, what needs are being fulfiled by the product and why is the product the best option to satisfy the need.

Differentiation- Organizations shold clearly differentiaste their products from that of their competitors. There are vertical and Horizontal differentiation. Vertical differentiation, is when all buyers agree that Product A is better than Product B, and if they are both sold at the same price nobody would buy product B. Vertical differentiation.Vertical differentiations takes into considereation that even though consumers are different they take advantage of the customers willinglness to pay. Horizontal differentiation if product A and Product be are diferent in such a way that costumers consider indifeerent. So if Product A and Product B are sold at the same price some people with buy Product A and others B. Horizontal differentiation is something like differentiation based on colour.