1. How are market segmentation, targeting, and positioning interrelated? Illustrate
how these three concepts can be used to develop a marketing strategy for a product
of your choice.
Market Segmentation is the process of dividing a market into subsets of consumers with
common needs or characteristics. (pg.26) Different market segments react commonly to a
marketing action. For an example, big giant companies dividing their huge target into a
smaller one. As we discuss that market segmentation divide into bases range from age,
gender etc. To psychographic factors like attitude interest and values. Companies will set
the target according to their customers because if Apple is planning to sell their iPhone to
children than it will not work, their focus is people who has high income and want to
spend more on technology, it is the example of marketing segmentation base on value.
Targeting consist of selecting the segments that the company view is prospective
customers and pursuing them. (pg. 26) It is the part of demand analysis in company, for
an example, some companies target only online customers, where some likes to do their
business in stores, and some offers door to door services. We all have different need and
companies target their clients on their needs. Company like sprit airlines targets economy
class customers and try to offer lowest price possible and provide them value according
the price, where southwest targets on better values so their prices are higher than spirit
