The Most Important Takeaways

Before inventing a new product and publishing it into the public, a business must first do a market segmentation analysis – to give a deeper understanding of the behavior of the potential customers. The market segmentation lets us know information we need in how to act towards the goods and services development. It gives a lot of detailed comprehension to the business about the customer’s decision making process for instance, how to increase market share in the business, or even what new products to develop, and what changes needed to be done to the existing ones. The market segmentation analysis provides a blueprint for the business to plan on doing what’s next for their business, which is very important in knowing what are the most effective ways they should use to penetrate through the barrier with customers.

Product positioning is one crucial part of market segmentation analysis. It helps the company focus on the target market, and produce goods and services related to them. The product positioning also becomes the vision of the product itself – in other words, the brand and image companies want their customers to perceive when looking at their products. Take branded goods for instance, they are seen by customers as a very expensive product, but with a very good quality. Compare Hermes with Goodwill for example, the image of Hermes on the spot with high price and high quality, compared to Goodwill with low price and low quality. This is necessary for the company to plan ahead so they can envision what kind of marketing they need to position their products in the place where they want it to be.

We must also understand that the type of marketing we are practicing is a social marketing. This means we are using forms of communications, which either implicitly or explicitly tries to persuade and influence the behavior of customers. Marketing should not only persuade, but it should also shape the habit or trend at the first place. Using researches from market segmentation analysis, companies should have clear ideas about the behavior of their potential customers. Hence, using this information, businesses can build upon their customer base on that, and expand their products with the trend of the customers that they set. This can be by promoting a new product development that can be the next big thing, like jeans jacket for instance. This fashion style is used in the 1950s and is now trending again everywhere. To be on top, the business should be able to create the trend, without waiting for the habit to take place on the first hand.