What is segmentation and location?

marketing, segmenting and location are used to help companies identify and target groups of consumers who can buy a product. Segmentation is a process of defining consumers on the basis of their wishes, needs and shopping habits. Location is a process of designing and marketing a product that meets the needs of the selected group. While the physical properties of the product play a role, the important goal of the location is to influence how the product is perceived by the consumer. The targeting, selection of which groups for the market occurs between segmenting and location.

Segmentation is a complex process that attempts to divide consumers into categories. The first aim of the segmentation is to decide which variables are important. The seemingly infinite number of variables can be used to define a segment, including demography, the benefits that the consumer required and how often the consumer is likely to buy the product. Marketing experts must also take into account the Loyalty brand, the tendency of consumers to holdET with a brand they know, even if another brand offers a better or cheaper product.

There are two basic methods of segmentation. The distribution method is most commonly used. It assumes that customers are basically the same, so marketing experts have to look for differences to define marketing segments. The building method assumes that customers are different, so a marketing professional must look for similarities as a basis for defining marketing segments.

Marketing object against selected segments is known as positioning. The company must propose a product that meets consumers and needs, while remaining within a reasonable budget so that the price of the product is more than willing to pay. Then marketing professionals must promote the product in a way that addresses target groups. The fins must be distributed to consumers. These steps - product design, price,Promotions and distribution - are known as a marketing mix.

Between segmenting and placement there is targeting. Marketing experts use information collected during segmentation to decide which groups to sell. This choice is based on the size of the group, how much money people in the group are willing to spend, and other variables.

segmentation and location are not a one -off occurrence. Significant changes in the market or demography over time may require marketing experts to reconsider segments. If the brand face problems with competition or public problems, marketing experts can try to move the brand. Moving is much more difficult than the original segmentation and location, because marketing must overcome strong associations that already exist in the minds of consumers. This process is not always successful.