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Market Segmentation and Positioning

A corporation needs to deal with tens of thousands of consumers whose demands are varied from different areas and environments. Because of such a complex and changeable market, it is impossible for any corporations to meet all the customers' demands. Moreover, meeting all demands is doomed to be failed since the limitation of resource, equipment and technology. In this aspect, a corporation has to focus its business on a certain area which is suitable for its target market according to its own advantages. Therefore, market segmentation and positioning is necessary.

Market segmentation and positioning is the one which divides the whole market of a certain product into several segments according to the diversity and difference of consumers' demand, motivation and purchasing behavior. Consumers belong to the same market segment have a similar demand and desire for the products, while those who belong to different market segment have significant different ones. Depends on the value and competitive strategy in different market segments, the right market for the right corporation is selected. Thereby the corporation can penetrate into the market directly.

Through market segmentation and positioning research, a corporation can better know and adapt to various markets as well as improve its suitability for market supplies and demands. In this way its market competitiveness and profitability will be greatly improved. Meanwhile, since the research defines a major target market for a corporation, it will also be helpful for optimizing the market resources allocation, improving marketing effect, reducing waste of resources, and lowering or even avoiding unnecessary market risks.

Market segmentation and positioning research in Qianzhan mainly contains the following steps:

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