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Ebook Marketing management - A relationship approach (2nd edition): Part 2

(BQ) Part 2 book "Marketing management - A relationship approach" has contents: Segmentation, targeting, positioning and competitive strategies; CSR strategy and the sustainable global value chain; establishing, developing and managing buyer–seller relationships; product and service decisions; pricing decisions,.and other contents. | M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:14 pm Page 282 Find more at www.downloadslide.com CHAPTER 8 Segmentation, targeting, positioning and competitive strategies LEARNING OBJECTIVES After studying this chapter you should be able to: understand the importance and meaning of market segmentation explain the principle of STP identify and discuss the various bases for segmenting B2C markets and B2B markets outline how firms select target segments explain the differences between various strategic approaches to target marketing, undifferentiated, differentiated and concentrated marketing comprehend what is involved in positioning a product or service against competitors explain the difference between positioning in the B2C market and B2B markets 8.1 INTRODUCTION Market segmentation has long been considered one of the most fundamental concepts in marketing. Ever since Smith (1956) published his article in the Journal of Marketing, market segmentation has become a dominant concept both in marketing theory and in real-world applications. It not only provides one of the major ways of implementing the marketing concept but also directs a firm’s marketing strategy and resource allocation among different markets and products. Market segmentation is the process of dividing a market into distinct groups of buyers with similar requirements. It has become increasingly important in the development of marketing strategies for at least three reasons. M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:14 pm Page 283 Find more at www.downloadslide.com CHAPTER 8 SEGMENTATION, TARGETING, POSITIONING AND COMPETITIVE STRATEGIES 283 Brand extension 1 Population growth has slowed, and more product markets are maturing. This, in turn, Using a successful brand name to launch a new or modified product in a new category. STP-approach sparks more intense competition as firms seek growth via gains in market share as well as in an increase of brand extensions. 2 There is an important trend toward