Question

Two of the easiest segmentation bases used in the the (Segmenting Targeting and Positioning) process are demographic and geographic variables. Explain the difference between the two bases, giving examples, and why these are important bases to use?

Articulate the Segmenting Targeting and Positioning process and its importance to a market-oriented firm, then differentiate the concepts of segmenting, targeting, and positioning using an example?

Explain the differences between a routine decision and an extended decision making process for a consumer, using an example for each.

Answer 1

Two of the easiest segmentation bases used in the the (Segmenting Targeting and Positioning) process are demographic and geographic variables. Explain the difference between the two bases, giving examples, and why these are important bases to use?

It is true that two of the easiest segmentation bases which are used are demographic criteria and also geographic criteria. The demographic criteria talks about segmenting and differentiating the market on the basis of the population's characteristics like gender, age etc. On the other hand, geographic criteria for segmentation talks about differentiating the market onto the basis of geographic character like every region or city or country wise.

These two bases are most important to use because they are the easiest to divide the market where no extra formalities are needed and also market could be divided easily making good and attainable segments to target and work upon.

For example, a cloth line like Zara targeting demographics like gender where women's cloth are made differently and men's cloth are made differently is demographic bases of segmentation. On the other hand, Netflix has different series and shows for US audience as compared to Indian audience is geographical segmentation, onto the basis of places.

Articulate the Segmenting Targeting and Positioning process and its importance to a market-oriented firm, then differentiate the concepts of segmenting, targeting, and positioning using an example?

The Segmenting, Targeting and Positioning process is a essential marketing planning process where the market strategies are studied, divided, reached and fit into the minds of the people so that the company stand in a better and reliable manner in the economy. These processes are important to make sure every customer is reached in a well defined manner and every need of the customer could be fulfilled by the company.

For example, Netflix dividing the entire global market onto the basis of geographic sections of the countries is the process of Segmentation. When Netflix would reach country differently and design the content as per the needs of the country specifically, that is Targeting. Finally, when Netflix would do the promotion in the particular different country as per the content created to make sure promotion and goodwill is created within the people to make sure the company's ideas are fitting into the customers' minds, that's Positioning.

Explain the differences between a routine decision and an extended decision making process for a consumer, using an example for each.

Routine decisions are the decisions made by the customer without considering many alternatives ot evaluations. It is a regular decision for the daily works and doesn't require in depth knowledge or criteria for the analysis. For example, customer buying bread or eggs won't even compare with other shopkeepers and buy because they aren't that important purchase. This is routine decision.

On the other hand, extended decision making process is the one where extended knowledge, alternatives, information search and evaluation is required to make a purchase or decision. For example, customer buying a TV or a cellphone won't go and buy it immediately. A whole analysis and alternatives would be considered, prices would be compared and then the decision of purchase would be made.