Final answer:
The five steps in segmenting and targeting a market include market research, market segmentation, target market selection, market positioning, and market evaluation, with research methods being critical throughout the process.
Step-by-step explanation:
The five steps involved in segmenting and targeting a market are:
- Market research: This is necessary to understand consumer behaviors and the competitive landscape.
- Market segmentation: After research, the market is divided into distinct segments based on variables such as age, gender, income, etc.
- Target market selection: Choosing one or more segments to focus the company's marketing efforts on.
- Market positioning: Developing a strategy to position the company's offering in a way that resonates with the target market.
- Market evaluation: Assessing the effectiveness of the segmentation, targeting, and positioning efforts to make necessary adjustments.
These steps are crucial for a company to identify and serve potential customers effectively. Research methods are integral to inform these steps, including surveys, ethnographic field research, interviews, secondary data analysis, and content analysis.