Segmentation, Positioning With Their Buying Behavior
We need to understand that everyone has a buying behavior and certain things will affect that. As a business it is important to know how segmentation and positioning can be great for your business or how it can hurt your business. Here you will see what a business needs to do in order to have some success.
A business needs to know what the generic market is. A generic market is a market with a broadly similar needs and sellers offering various, often diverse, ways of satisfying those needs. The market description looks at markets broadly and from a customer’s view-point. In contrast, a product-market is a market with very similar needs and sellers offering various close substitute ways or satisfying those needs. A product-market includes a four part system:
- What: 1. Product Type
- To meet what: 2. Customer (user) needs
- For whom: 3. Customer types
- Where: 4. Geographic area
A reason why you might want to open up a business in a certain area is because of the possible target markets. Market segmentation is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes. How are we going to narrow down to target markets? We do this by segmenting. Marketing-oriented managers think of this way as an aggregating process clustering people with similar needs into a “market segment.” Every individual has his or her own unique position in a market. As a business we are looking for these groups so we can focus on what we are trying to sell.
Positioning is based on the customers’ views. It refers to how customers think about proposed or present brands in a market. For example, many people think that there isn’t much difference between one provider of home owner’s insurance and another. But State Farm Insurance uses advertising to emphasize the value of the service and personal attention from its agents. Positioning statement provides direction for marketing strategy.
Economic buyers seek the best uses of time and money. Most economists assume that consumers are economic buyers — people who know all the facts and logically compare choices to get the greatest satisfaction. Personal making decisions are made from economic needs, psychological variables, social influences, culture & ethnicity, and the purchase situation. A business marketing strategy needs to looks at what the income in for that area to determine if their product will best fit the market. Every market consumer will have a need and wants. Building trust will boost sales. If you have a product that is reliable every time, the customers will come back for it each time and not worry about other products.