Market segmentation and target market selection

Segmentation allows the firm to better satisfy the needs of its potential customers. The Need for Market Segmentation The marketing concept calls for understanding customers and satisfying their needs better than the competition.

Market segmentation and target market selection

Promotion The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner. Product The product is the physical product or service offered to the consumer.

Market Segmentation

In the case of physical products, it also refers to any services or conveniences that are part of the offering. Product decisions include aspects such as function, appearance, packaging, service, warranty, etc.

Price Pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing. Place Place or placement decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers.

The distribution system performs transactional, logistical, and facilitating functions.

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Distribution decisions include market coverage, channel member selection, logistics, and levels of service. Promotion Promotion decisions are those related to communicating and selling to potential consumers.

Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions.

It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them. Promotion decisions involve advertising, public relations, media types, etc. A Summary Table of the Marketing Mix The following table summarizes the marketing mix decisions, including a list of some of the aspects of each of the 4Ps.

Market segmentation and target market selection

Summary of Marketing Mix Decisions Product.Sap Fms Lo Sgt Segmentation - Download as Word Doc .doc /.docx), PDF File .pdf), Text File .txt) or read online. SAP FMS LO SGT Segmentation is the basis for the material master settings and functionalities in SAP FMS.

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Market segmentation and target market selection

Target market selection is a part of marketing strategy and involves deep analysis and discussions up to the corporate level. Target market selection is a component of the three main elements of strategy – segmentation targeting and positioning. The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential.

Selection of a target market (or target markets) is part of the overall process known as S-T-P (Segmentation→Targeting→Positioning).Before a business can develop a positioning strategy, it must first segment the market and identify the target (or targets) for the positioning strategy.

Understanding Targeting and Target Markets. The evaluation and selection of target markets is a cornerstone of marketing. Virtually all successful firms will have defined target markets.

Selecting Target Markets