Segmentation, Targeting and Positioning

Segmentation, targeting, and positioning together comprise a three stage process.  Determining first what kind of customers exist, then selecting the ones the business are best off trying to serve and finally implementing the segmentation by optimising the products or services for that segment and communicating that the choice made to distinguish the business that way.

Segmentation is the division of the market into sub-groups and each segment presents a separate target market within the marketing mix. This happens due to the standard of living rising and the fact that consumers now have more choice in the market. Effective segmentation ensures that each segment is identifiable/measurable, substantial, accessible and meaningful.

This makes targeting each segment in the market much simpler. Establishing a position in the market is important as it is relevant to the customer’s choice. It is important how the customers perceive the brand - fashionable, modern, etc.

A marketing mix suitable to how the customers will perceive the brand should be designed to ensure appropriate positioning.