Segmentation and targeting principles are often mistaken as being the same in marketing. For this discussion:
- Define the two concepts of segmentation and targeting.
- Using a product of your choice, identify a primary customer group based on common, shared characteristics.
- Include demographic and behavioral characteristics of the customer group.
- Explain how the product you have chosen would be positioned or repositioned amongst those target customers.
- Indicate the key differences between positioning and repositioning in your analysis.
no words limited
Example:
Segmentation is defined as the process by which a business separates consumers in the market into different segments, based on a variety of defining characteristics while targeting is defined as the selection and pursuit of the segments a company wishes to market to. (Schiffman & Wisenblit, 2015)
For example, Topo designs, a small business based in Denver, Colorado targets ethnocentric individuals who have a higher median income and are likely to spend their money on outdoor apparel and gear to show off to friends, but do not want to appear materialistic.
An example of a carefully positioned product, is the backpack titled the "Mountain Pack", that is positioned in line with the company's umbrella positioning and sets it apart from competitor by being locally made and featuring bright colors and lighter weight than most backpacks.
This is a different position than its competitor, REI, an outdoor equipment company that has positioned itself as the standard of outdoor equipment at an affordable price. While Topo Designs has a smaller selection than REI, it appeals to the emotional values of potential customers by marketing the handmade, local nature of the Mountain Pack.
In the case of repositioning, Topo Designs could easily outsource its manufacturing in an effort to reduce the cost and offer a wider selection. The company would have to appeal to potential customers solely on the fact that it is a locally owned company, which reduces its geographical target to Colorado only. It also would risk appearing as a "me too" company by mimicking products similar to REI.
By positioning the entire brand as locally owned, locally made, hand crafted and high quality, it would be extremely risky to reposition itself as a mass producer of products and alternative repositioning would be recommended. In my opinion, it would be better to reposition the company focused around the locally made apparel line rather than expanded its equipment line due to the saturation of that market.
References
Schiffman, L. & Wisenblit, J. (2015) Consumer Behavior. Upper Saddle River, NJ: Pearson Education.