why are segmentation and positioning so important in marketing?

Answer 1

Companies have limited resources and budgets so it is important for companies to use those resources on its best and most important opportunities. Segmentation is a technique to group a company's customers so they can best identify and tackle these opportunities.

Segmentation is used by customer service, sales, marketing and product development teams to maximize their effectiveness. For example, a company's customer service department might segment customers based on how much they spend per year. The customers who spend the most would receive the highest level of service, focus and resources.

A company also needs an indentity. An identity is important so it attracts customers. An identity is also important so that a company's employees recognize how to drive value for its customers. An identity is useful if it is unique and different from the competition. This identity is formed in the minds of customers and is attributed a "position" relative to competitive identities. For example, Walmart is known for it "everyday low prices". Customers believe Walmart has the lowest prices relative to Kmart and other competitors. Because it owns this position, customers want to shop at Walmart. Employees of Walmart focus on keeping costs low so it can continue to better deliver against this promise relative to Kmart.

Marketing uses positioning to communicate what they want the company to be. A company strategy is designed to deliver against this position, attract customers and ultimately drive revenue.

Answer 2

Positioning is a huerestics concept. Suppose one does anything he or she will know their priorities right. It is connected with buyer behavior. When you are a consumer you will place different products in different order of priority. For example cologne is cheap and perfumes are expensive. So sometimes colognes are used for cheaper occassions and perfumes for other expensive occassions. So it is the duty of the Marketer to place the product in the mindset of the consumer properly. So positioning.
For segmentation, your marketing mission will be more effective if you can identify the particular cluster who will adore your product rather than direct it to the whole population more generally. If you know the predispositions of some cluster, their manias their phobias their avocation etc; then it is easier to incorporate or remove these from your product functionality and market it to the segment to which the cluster belongs to make it more effective. Some of the segments are lifestyle segments, geographic segments, demographic segments etc;.

Answer 3

Why Positioning Is Important

Answer 4

segmentation is very important in order to define your target customers or consumers and locate them and when u do that u study them very well to market ur product or service using the most efficient way that saves time and hit the target, also it gives you the opportunity to market your product in a way that makes the consumer think this product is made for him (a tailored product). if you reach this point, ur gonna succeed in selling any product even bad quality, its like an art.
positioning is important because u should differentiate between new, already existing, stylish, old fashioned...product, if u know what i mean.
its the position or image u wanna give to ur product, its the impression u want ur consumers to have when they see or hear the name of ur product or service.
both segmentation and positioning are related to one another.

Answer 5

The market for any product (say the car market) is not homogenous.
No model can satisfy the whole market.
So a car manufacture break up the market in to different groups with similar qualities etc.
Then the car manufacture tries to satisfy one or more group/s of the whole car’s market.

To better sell its products, a manufacturer must convince the consumer that its products are unique or have some unique qualities as compare to the products of its competitors in the same market. So it is here that positioning comes in.

Answer 6

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Answer 7

Because the cost to reach your potential customer is so large, you want to target only those who have proven potential.