Bme2 - Alvarez, Airish Gian - 3TM2 - Activity 15

Alvarez, Airish Gian S.
ACTIVITY 15
3TM2 Mr. Paul Poblador
Essay: Explain and expound why market segmentation and product positioning are
important strategy-implementation tools.
Market Segmentation, from the term itself, "segment" meaning divide into
separate parts or sections. In the business world, this segmentation is a practice of
dividing that target market into sections that are approachable and enthused. Thus, the
division creates a better selection of targets that allows the organization to gather better
options in bringing out their products and services more efficient and profitable.
Just like doing our groceries, we segment our interests and needs in a cart. We
separate our toiletries from drinks and dry food, we separate them also from our wet
food or frozen food, and etc. Same goes with market segmentation. In order to segment
a market, just as mentioned, the organization must separate their target market into
sections that would create better opportunities. Hence, there are categories that can be
used to determine the target market’s interests and needs while distinguishing where
those targets belong. There are 4 types of segmentation: Geographic, Demographic,
Psychographic, and Behavioral. These market segmentations create some type of
rubric in which the organization can look further into to understand the target market in
terms of the categories as stated.
Geographic segmentation of the market is very self-explanatory. This kind of
segmentation is targeting the audience who lives in the same location or shop at a
particular area. Since there is just a particular area to observe, the organization works
on the principle that the target audience from that location have similar needs, interests,
and culture.
When it comes to market segmentation, it is helpful to have a clear
understanding of the demographics of the target audience. The process of demographic
segmentation needs to consider a wide variety of factors, some of which are: age,
gender, household income, job title, and citizenship status. By analyzing this data, the
corporation may be able to determine which segments of the population are most likely
to have an interest in the products and services it offers.
Psychographic segmentation may seem to be a tough word to define, but, if you
put it into simpler words, it is basically the segmentation of the audience based on their
lifestyle and personalities. This kind of segmentation already happened to the most of
us personally, for example, you determine the type of people you want to be friends
with, you segment the careers and choose the best that fit your skills and capabilities,
but most important is the career you are passionate about, and other decisions that
require you to determine certain factors first before choosing. Same goes with
psychographic segmentation wherein the organization focuses on the interest and
personality of the audience to provide the best fit for them. And, while psychographic
segmentation deals with the personal interests and lifestyle of the audience, behavioral
segmentation is dependent on the behavior that the audience shows. One of the
behavioral patterns is the target market’s attitude toward the service or product and their
usage. This response from them gives the organization an idea regarding their next
move.
While Market Segmentation focuses on the division of the audience in different
categories to establish their further actions, the organization’s product positioning must
be given the attention as well. “What is Product Positioning?” as one may ask. This is a
strategy of the organization wherein the benefits of their products and services are
presented to the audience. Through careful research after the presentation of the
products, the audience with the most favorable response towards the product will be
sought out and eventually will become the target market. Product positioning, just like
any market segmentation strategies, is a very critical part of any organization’s
strategies. Though your audience are divided into groups with the potential to be the
target market, there is no guarantee that they will avail, thus, the products must be
positioned in a way that effectively attracts and drives the target market to the product
presented.
Now, why are these actions necessary in strategy implementation? Both are just
as important as any other actions of the organization that belongs to strategy
formulation and management. The factors: Target Market and Product, is such a crucial
thing in any organization. Market Segmentation clearly paves the way for the
organization to not simply come up but to able to carefully observe and analyze their
segmented audience with potential and capability to meet their products. Instead of
going up to your audience with such a cliché or generic approach, this strategy of
segmenting creates an improvement and increase with the organization’s advertising
engagement with the properly chosen target market. Another important component is
the product. This strategy of bringing out the best from the product would create such
an appeal that not only the primary target market would find interesting and worth it but
also gives the secondary target market the idea of its message and other ways that it
could beneficial to them.
References:
Jones, N. (2022, April 29). Behavioral Segmentation Defined with 4 Real-Life Examples.
Yieldify. Retrieved June 11, 2022, from https://www.yieldify.com/blog/behavioral-
segmentation-definition-examples/#:%7E:text=Behavioral%20segmentation%20r
efers%20to%20a,a%20particular%20business%20or%20website.
Qualtrics.xm. (2022, April 4). What is Psychographic Segmentation? A Beginner’s

Guide. Qualtrics AU. Retrieved June 11, 2022, from
https://www.qualtrics.com/au/experience-management/brand/psychographic-seg
mentation/#:%7E:text=Psychographic%20segmentation%20is%20how
%20marketers,on%20customer%20attitudes%20and%20lifestyles.
Qualtrix.xm. (2022, March 30). Geographic Segmentation: Definition & Examples |
Qualtrics. Qualtrics AU. Retrieved June 11, 2022, from
https://www.qualtrics.com/au/experience-management/brand/geographic-segme
ntation/#:%7E:text=What%20is%20geographic%20segmentation%3F,%2C
%20wants%2C%20and%20cultural%20considerations.
Thomas, S. R. (2022, April 14). Demographic Segmentation Defined with 5 Marketing

Examples. Yieldify. Retrieved June 11, 2022, from
https://www.yieldify.com/blog/demographic-segmentation-ecommerce-marketing
/#:%7E:text=Definition%3A%20Demographic%20segmentation%20groups
%20customers,income%2C%20occupation%20%26%20family%20status.

Bme2 - Alvarez, Airish Gian - 3TM2 - Activity 15

Uploaded by

Copyright:

Available Formats

Bme2 - Alvarez, Airish Gian - 3TM2 - Activity 15

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bme2 - Alvarez, Airish Gian - 3TM2 - Activity 15

Uploaded by

Copyright:

Available Formats

Alvarez, Airish Gian S.

Qualtrics.xm. (2022, April 4). What is Psychographic Segmentation? A Beginner’s

Thomas, S. R. (2022, April 14). Demographic Segmentation Defined with 5 Marketing

You might also like