Question

How important is market segmentation, targeting and positioning for an entrepreneur who is planning to launch sneaker (shoe) business?

Answer 1

Market segmentation is very important for any business. It gives concentration in offering the products and services with more efficiency. Segmentation means classification of group of people who have common likes, behavior, or any set of qualities.

Sneaker shoes are worn by youth generally hence the company should focus on teenagers as well as youth. Let say age group of 12-28 years. It means the company can run its campaign targeting the youth only. Now it will not advertise its product on religious channels but on programs which teenagers generally watch. It will save the cost for the company and ads will be more effective.

After segmentation targeting in next step. The firm knows that they have to target 12-28 years of age group so they can align their strategies in this direction. Now the firm has direction to work.

Positioning means getting a place in consumer’s mind. Positioning will help when the customers see many brands to choose from, when the customer have strong positioning of this firm he/she will prefer the brand. So by this way positioning helps the customers out.