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market segmentation, targeting and positioning

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Market segmentation, targeting and positioning
a) Market segmentation
According to (“ Market Segmentation, Targeting and Positioning,” n.d.), market
segmentation is diving a larger business into small grouping or segments that contain people
or individuals who have the same taste of products or who have shown interest in similar
products. For instance, school going kids will have most needs that are common. Thus school
going kids can form a market segment.
b) Market targeting
Targeting comes right after market segmentation has been successfully completed
(“Segmentation, Targeting & Positioning,” n.d.). This is a very important stage as it helps the
business know and decide what strategies it will employ so that it can maximize on its profits.
There are three levels of targeting. These are:
Undifferentiated targeting: this technique takes an assumption that the market is one
large segment. It adopts a single strategy for the same. This technique is most
appropriate for a market product that has little or no competition at all.
Concentrated targeting: this method targets one single segment
Multi-segment targeting: this technique targets two or more segments at the same time
c) Market positioning
Positioning is the last stage in the STP process. This is where the business identifies and
defines a given product in a manner that they want its consumers to view it(“What is the STP
Process?,” n.d.).
For a business to position its products in the best position, it has to identify a distinctive
selling proposition and draw a positioning plan. This is helpful as it will enable the business
to identify how various market segments view their product.

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Market channel strategy and management
(“What is channel strategy?,” n.d.) Defines channel strategy as the business’ outline on the
way they are going to ferry goods and services through the business chain until the product
reach the intended consumer.
When coming up with a channel strategy, a business will have to decide on what is the best
channel or best channels they are going to employ. They should also be in a position to tell
what kind of partners are going to be attracted along as they implement the strategy. The best
strategy will entirely depend on the type of product or service involved. There are a number
of channel strategies that can be employed by different manufacturers:
Direct channel: this is the easiest technique a vendor can employ. It may involve
having a crew who sells directly to customers or a business can decide to have a
website for the same purpose.
Indirect channels: this technique or method will involve one or more intermediaries
before the product can reach the consumer. These intermediaries include retailers,
wholesalers, value-added resellers and distributors. In most cases, when a business
decides to use the indirect channel, then it knowingly or unknowingly creates a
partner program to manage these ties.
It should be noted that, if a business decides to employ both direct and indirect techniques;
then it should be very careful so as to avoid channel conflict(“What is channel strategy? ,”
n.d.)

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Market segmentation, targeting and positioning a) Market segmentation According to (“ Market Segmentation, Targeting and Positioning,” n.d.), market segmentation is diving a larger business into small grouping or segments that contain people or individuals who have the same taste of products or who have shown interest in similar products. For instance, school going kids will have most needs that are common. Thus school going kids can form a market segment. b) Market targeting Targeting comes right after market segmentation has been successfully completed (“Segmentation, Targeting & Positioning,” n.d.). This is a very important stage as it helps the business know and decide what strategies it will employ so that it can maximize on its profits. There are three levels of targeting. These are: Undifferentiated targeting: this technique takes an assumption that the market is one large segment. It adopts a single strategy for the same. This technique is most appropriate for a market product that has little or no competition at all. Concentrated targeting: this method targets one single segment Multi-segment targeting: this technique targets two or more segments at the same time c ...
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