RSM250H1 Chapter Notes - Chapter 3: Target Market, Marketing Mix
Document Summary
After market research and analysis, the next steps are: market segmentation, target market selection, positioning. They help in making the right/best market strategy as it shows the firm where they should target their product, which helps them to also know how much workforce or marketing mix elements should be contributed to fulfil the need. Market segmentation means to divide the market into groups (segments) with distinct characteristics, behaviors or needs. It is difficult to serve a large heterogeneous market where needs and people are different. It is better to have different homogenous groups consisting of people with the same preferences (needs, values etc. It is important that the group (segments) are significantly different from each other. Moreover, the segmentation should be based on the values/ characteristics that are related to the business. Segmentation can be based on: benefits sought by customers or observable characteristics of customers.
