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39. What are the market segmentation and positioning? Give the characteristics of them.

Market segmentation divides a market into subsets of customers who behave in the same way, have similar characteristics that relate to purchase behavior.

Segmentation strategy can be pursued through variations in some or all aspects of marketing mix elements.

The process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment). The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment.

m-g segmentation lets a firm tailor to develop products and strategies to appeal to the preferences and unique needs of specific groups of customers.

These groups are typically referred to as target markets; groups of consumers and org-ons with which a firm wants to create m-g exchange.

Targeting involves selecting which segments in a market are appropriate to focus on and designing the means of reaching them.

Related to market segmentation is product differentiation. Pr.dif. exists when a firm’s offerings differ or are perceived to differ from those of competing firms on any attribute, including price. A product differentiation strategy positions a product within the market.

Marketers attempt to position a product or services in customers’ minds – to convince customers that the product has unique and desirable characteristics.

Positioning involves ascertaining how a product or a company is perceived in the minds of consumers.

This part of the segmentation process consists of drawing up a perceptual map, which highlights rival goods within one's industry according to perceived quality and price. After the perceptual map has been devised, a firm would consider the marketing communications mix best suited to the product in question.

40. What are the criteria for effective segmentation? Give the characteristics each of them.

Successful execution of a market segmentation strategy depends on the presence of several characteristics in the overall market and its various segments.

A firm should consider 5 criteria for effective segmentation:

1. measurability (измеримость)

2. accessability (доступность)

3. substantialness (значимость, существенность)

4. durability (долговечность, продолжительность)

5. differential responsiveness (обратная связь)

Measurability reflects the degree to which the size and purchasing power of segments can be assessed. Measur. is enhanced of segments are defined by concrete variables enabling easily obtainable data.

Accessablity describes the degree to which a firm can reach intended target segments efficiently. That is. The selected market segments must be reachable with unique m-g communications and distribution strategies.

Substantialness refers to the degree to which identified target segments are large enough or have sufficient sales and profit potential to warrant unique or separate m-g programs.

Durability has to do with stability of segments – whether distinctions between segments will diminish or disappear as the product category or the markets themselves mature.

Differential responsiveness refers to the degree to which market segments exhibit varying responses to different m-g mix combinations. This is a key aspect of the productivity perspective and the use of m-g segmentation.