In this chapter, we will address the following questions:
- In what ways can a company divide a consumer or business market into segments?
- How should a company choose the most attractive target markets?
- What are the different levels of market segmentation?
In this chapter we will address the model/theory:
- Porter 5 Forces
To compete more effectively, many companies are now embracing target marketing. Effective target marketing requires that marketers
- identify and profile distinct groups of buyers who differ in their needs and wants (market segmentation),
- select one or more market segments to enter (market targeting), and
- establish, communicate, and deliver the right benefit(s) to each target segment (market positioning).
This chapter focuses on the first two steps; Chapter 7 discusses the third step