The purpose of segmentation and positioning

Running head: MARKETING
Marketing
Name of student
Name of University
Author note

1
MARKETING
Table of Contents
Question 1.................................................................................................................................3
Purpose of segmentation and positioning..........................................................................3
Selected bases of segmentation............................................................................................4
Demographic segmentation base........................................................................................5
Geographic segmentation base............................................................................................6
Behavioural segmentation base...........................................................................................7
Question 2.................................................................................................................................9
Importance of shaping consumers perceptions.................................................................9
External marketing environment factors impacting business.........................................9
Social factors influencing consumer perception..............................................................10
Technological factors influencing consumer perception................................................11
Reasons for which the consumers choose the products with labelling..........................13
Effective use of labelling in real life marketing...............................................................13

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MARKETING
Question 1
Purpose of segmentation and positioning
The purpose of segmentation and positioning is mainly to enhance the marketing
efficiency considering the business organisation named Woolworths in Australia. The
segmentation and positioning are considered as critical aspects that constitute a framework
required to ensure that the marketplace is divided into multiple segments with different set of
buyers with varied needs and preferences. The market segmentation and positioning would
also allow the business organisations to determine the characteristics of market and at the
same time, position the products and services properly in the marketplace for easily
accessibility by the customers1. This could not only help in the acqusitions of new clients but
would also help in retaining the existing clients, furthermore, generate higher revenue in
business and attain the desired level of profit and competitive advantage in business.
The segmentation would allow the organisation to understand the size of market,
purchasing behaviours and consuming patterns of each of the segments regarded in the
targeted market while it would also be easy for the business communicate with the different
segments quite conveniently2. Moreover, on the other hand, the segments must be
differentiated from the others and the products would also be made available based on the
different needs of different market segments and thus allow the company to target the clients
in each of these segments quite easily and effectively too.
1 McDaniel, Carl, and Roger Gates. Marketing research. Singapore, 2013.
2 Lei, Ningrong, and Seung Ki Moon. "A Decision Support System for market-driven product
positioning and design." Decision Support Systems 69 (2015): 82-91.

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MARKETING
Selected bases of segmentation
The segmentation of market is based on the various assumptions made on behalf of
the needs and preferences of the customers in different market segments, which could help in
implementing the right marketing strategies while at the same time, tailor the strategies
accordingly for meeting the customers’ demands and expectations. The marketers are
responsible for segmenting the market and at the same time, allow for targeting different
kinds of segments present in the marketplace3. The bases of segmentation are the
demographic segmentation, geographic segmentation and behavioural segmentation are
critical for categorising the marketplace into different market segments, thereby, ensure
targeting the market segments consisting of customers with different demographical features
and also the socio-economic factors and various features of the products too. It is based on
various demographic features including the age, gender, educational level, income, etc. The
geographic segmentation is another base of segmentation, which could allow the company to
categorise the market into geographical units including the national segment, regional
segment and even based on other locations while the psychographic segmentation is based on
the various aspects that must be focused on by the company so as to keep the consumers
motivate and encouraged towards making purchases along with creating positive perceptions
and behaviours to match up to the lifestyles of customers4. Furthermore, influence their
buying behaviours largely too. Thus, information about the customers and what drives their
3 Pyo, Sungsoo. "Integrating tourist market segmentation, targeting, and positioning using
association rules." Information Technology & Tourism 15, no. 3 (2015): 253-281.
4 Mihailović121, Branko, and Vesna Popović122. "The role of segmentation and positioning
in the development of modern tourist market in Serbia." MODERN MANAGEMENT TOOLS
AND ECONOMY OF TOURISM SECTOR IN PRESENT ERA (2017): 550.