Marketers know that they cannot appeal to all buyers in their markets or at least not to all buyers in the same way. Buyers are too numerous, too widely scattered, and too varied in their needs and buying practices. Therefore, most companies today practice market segmentation, target marketing and market positioning.
(a) Define each of these three practices.
The consumer electronics firm for which you work is about to launch a new model of mobile telephone (cellphone or handphone). This will be a very basic model offered at a price far lower than that charged by competitor firms.
(b) Explain the benefits of undertaking market segmentation in this situation.
(c) Identify and describe three characteristics of a segment that you think would be profitable for this firm to target, using:
i. behavioural segmentation;
ii. demographic segmentation;
iii. psychographic segmentation.
(d) Briefly explain the four target marketing strategies and state how you would choose one specific marketing strategy to market the mobile telephone.
(e) Identify and explain two factors that can influence buyer's decision.
(f) What does the term "product positioning" mean?