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Market Segmentation

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INTRODUCTION Business knows that they cannot appeal to all buyers in their markets or at least not to all buyers in the same way. Buyers are too numerous, too widely scattered and too varied in their needs and buying practices. Hence, many companies today are smartly moving away from mass marketing into target marketing in which they identify market segments, selecting one or more market to enter and developing products and marketing mixes tailored to each market. Example of companies that had successfully implemented marketing strategies are Subway and Crocs.
The strategies are market segmentation, market targeting, and positioning. Market segmentation involves dividing market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments. While market targeting consists of evaluating each market segment’s attractiveness and selecting one or more market to venture in. Compare to the first two strategies, positioning is deciding on a value proposition which they are offering to create superior customer value and to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
A little bit about the history of both companies, SUBWAY was started 43 years ago in the summer of 1965 by an enterprising 17 years old young man, Fred Deluca. Subway is the market leader in the sub and sandwich shops offering a healthier alternative to traditional fast foods. Subway’s annual sales exceeded $ 6.3 billion, while countless awards and accolades have been bestowed its chain over the past 43 years. Subway has more than 28,000 units worldwide whilst its rapid growth has attracted many investments and brought it many competitors such as

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