Market segmentation divides the market into subgroups of individuals who share similar

needs, wants, and characteristics.

Market Targeting involves deciding which customer segment or market the firm should be

aiming at.

Market Positioning involves determining where your brand or product stands affecting

others in the market.

The first step in segmentation, targeting, and positioning includes segmenting the market.

Segmentation can be demographic, geographic, psychographic, behavioural, or a mix of

each. The next step includes deciding which customer subgroups (segments) to target.

Finally, the company has to decide how to position its product in the market to address the

right customer groups.

Market Segmentation:
● Market segmentation involves dividing a broad target market into smaller,
more manageable segments based on similar characteristics, such as
demographics, psychographics, behavior, or geographic location.
● The purpose of segmentation is to identify and understand different
groups of customers with distinct needs, preferences, and buying
behaviors.
● By segmenting the market, businesses can tailor their marketing
strategies and offerings to better meet the specific needs and desires of
each segment.
● For example, a clothing retailer might segment their market based on age
groups, offering trendy styles for teenagers, professional attire for working
adults, and comfortable wear for seniors.
Target Marketing:
 ● Target marketing involves selecting one or more segments identified
through market segmentation as the focus of the company's marketing
efforts.
● Once segments are identified, the company must decide which segments
it wants to target based on factors such as segment size, growth
potential, profitability, and compatibility with the company's capabilities
and objectives.
● Target marketing allows businesses to concentrate their resources more
effectively by tailoring their marketing mix (product, price, place,
promotion) to appeal to the specific needs and preferences of the chosen
target segments.
● For example, if a company identifies young professionals as a lucrative
segment, it might develop marketing campaigns that emphasize
convenience, affordability, and modernity to appeal to this group.
Positioning for Competitive Advantage:
● Positioning refers to the way a company's product or brand is perceived
relative to competitors in the minds of consumers.
● Competitive advantage in positioning is achieved by establishing a unique
and favorable position in the marketplace that differentiates the
company's offerings from competitors.
● Effective positioning involves creating a distinct and compelling value
proposition that resonates with the target market and communicates the
benefits of the product or brand.
● Positioning can be based on various factors, such as product attributes,
price, quality, convenience, customer service, or brand image.
● By positioning their products or brands in a way that resonates with target
customers and distinguishes them from competitors, companies can gain
a competitive advantage and attract loyal customers.
● For example, a company might position its organic skincare products as
environmentally friendly, cruelty-free, and high-quality, appealing to
environmentally conscious consumers who are willing to pay a premium
for sustainable products.

In summary, market segmentation, target marketing, and positioning are interconnected

concepts that help businesses identify and understand their target customers, tailor
their marketing strategies to meet their needs, and differentiate themselves from
competitors to achieve a competitive advantage in the marketplace.

Segmentation in consumer, business, and international markets involves dividing these

markets into smaller, more manageable segments based on relevant characteristics. Let's

explore how segmentation applies to each of these markets:

Consumer Market Segmentation:
● In the consumer market, segmentation involves dividing the market based on
various demographic, psychographic, behavioral, and geographic factors.
● Demographic segmentation divides the market based on characteristics such as
age, gender, income, education, family size, and occupation.
● Psychographic segmentation focuses on consumers' lifestyles, values, beliefs,
attitudes, interests, and personality traits.
● Behavioral segmentation divides consumers based on their purchasing behavior,
such as usage patterns, brand loyalty, benefits sought, and occasions.
● Geographic segmentation categorizes consumers based on their location,
including region, city size, climate, and population density.
● For example, a company selling sports apparel might segment the consumer
market by demographics (targeting young adults aged 18-30), psychographics
(targeting fitness enthusiasts with an active lifestyle), and behavior (targeting
frequent gym-goers).
Business Market Segmentation:
● Business market segmentation, also known as B2B segmentation, involves
dividing the market based on characteristics specific to businesses and
organizations.
● Firmographics, similar to demographics, categorize businesses based on factors
such as industry, size, revenue, location, and ownership structure.
● Behavioral segmentation focuses on businesses' purchasing behavior, including
their buying processes, decision-making criteria, purchasing frequency, and
loyalty.
● Technographic segmentation categorizes businesses based on their use of
technology, such as their reliance on certain software, hardware, or IT
infrastructure.
● For example, a company providing office furniture might segment the business
market by firmographics (targeting medium-sized businesses in the technology
sector), behavior (targeting businesses that frequently update their office
equipment), and technographics (targeting businesses with a preference for
ergonomic furniture).
International Market Segmentation:
● International market segmentation involves dividing global markets into smaller
segments based on factors such as cultural, economic, political, and legal
differences across countries and regions.
● Cultural segmentation considers variations in values, beliefs, customs,
languages, and lifestyles among different countries and cultures.
● Economic segmentation takes into account differences in income levels,
purchasing power, economic development, and consumer spending patterns
across countries.
● Political and legal segmentation considers regulatory frameworks, trade barriers,
government policies, and political stability that may affect market entry and
operations in different countries.
● For example, a multinational electronics company might segment international
markets by cultural factors (targeting consumers in Asia with a preference for
technologically advanced gadgets), economic factors (targeting affluent
consumers in Western Europe), and political factors (targeting countries with
favorable trade agreements and regulations).
In summary, segmentation in consumer, business, and international markets involves dividing

these markets into smaller, more homogeneous segments based on relevant characteristics to

better understand and meet the needs of target customers or organizations.

Evaluating market segments involves assessing the attractiveness and viability of different
segments to determine which ones offer the greatest potential for success. Here are key steps

in evaluating market segments:

Segment Identification:
● Identify potential segments based on relevant criteria such as demographics,
psychographics, behavior, and geographic location.
● Consider the size, growth potential, profitability, accessibility, and compatibility
with the company's objectives and resources.
Segment Desirability:
● Assess the attractiveness of each segment by evaluating factors such as market
size, growth rate, purchasing power, and potential profitability.
● Determine the level of unmet needs or underserved demand within each segment
and the extent to which the company's offerings can address these needs
effectively.
Segment Accessibility:
● Evaluate the accessibility of each segment in terms of the company's ability to
reach and serve customers within that segment.
● Consider factors such as geographic reach, distribution channels, marketing
channels, and regulatory barriers that may affect access to the segment.
Segment Differentiation:
● Assess the degree of differentiation between segments to identify opportunities
for competitive advantage.
● Evaluate factors such as customer preferences, buying behavior, brand loyalty,
and competitive intensity within each segment.
Segment Compatibility:
● Evaluate the compatibility of each segment with the company's capabilities,
resources, and strategic objectives.
● Consider factors such as product fit, production capacity, marketing expertise,
and financial viability in serving each segment.
Segment Profitability:
● Estimate the potential profitability of each segment by analyzing factors such as
revenue potential, cost structure, pricing dynamics, and long-term growth
prospects.
● Consider the lifetime value of customers within each segment and the cost of
acquiring and retaining customers over time.
Segment Selection:
 ● Prioritize segments based on their overall attractiveness, accessibility,
differentiation, compatibility, and profitability.
● Select target segments that align closely with the company's strengths,
resources, and strategic goals.
● Consider developing tailored marketing strategies and offerings to effectively
serve the selected segments and maximize their potential value.
Monitoring and Adaptation:
● Continuously monitor market dynamics, customer preferences, and competitive
trends to assess the performance of selected segments.
● Adapt marketing strategies, product offerings, and resource allocation as needed
to capitalize on emerging opportunities and mitigate risks within chosen
segments.

In summary, evaluating market segments involves a systematic analysis of various factors to

identify and prioritize segments that offer the greatest potential for success and competitive

advantage. It requires a thorough understanding of customer needs, market dynamics, and the

company's own capabilities and objectives.

Selecting target market segments involves choosing specific segments from the
broader market that a company will focus its marketing efforts and resources on. Here's
a step-by-step process for selecting target market segments:

Market Segmentation:
● Begin by conducting market segmentation to identify different groups of
customers with similar characteristics, needs, and preferences. This can
include demographic, psychographic, behavioral, and geographic
segmentation.
Segment Evaluation:
● Evaluate each segment based on criteria such as size, growth potential,
profitability, accessibility, and compatibility with the company's objectives
and resources.
● Consider factors such as the level of unmet needs, competitive intensity,
and the company's ability to differentiate itself within each segment.
Segment Attractiveness:
● Assess the attractiveness of each segment by analyzing market dynamics,
customer preferences, purchasing behavior, and competitive landscape.
● Determine the level of demand and growth potential within each segment,
as well as the degree of competition and market saturation.
Competitive Advantage:
● Identify segments where the company can gain a competitive advantage
by offering unique value propositions, differentiated products or services,
or superior customer experiences.
 ● Evaluate the company's strengths, capabilities, and resources relative to
the requirements of each segment to determine where it can best
compete.
Resource Allocation:
● Consider the company's resources, budget, and strategic priorities when
selecting target segments.
● Allocate resources effectively to target segments where the company can
achieve the highest return on investment and maximize its impact.
Strategic Fit:
● Ensure that selected segments align closely with the company's overall
strategy, goals, and brand positioning.
● Choose segments that complement the company's strengths, values, and
long-term objectives, and that are consistent with its market positioning.
Segment Compatibility:
● Select segments that are compatible with the company's capabilities,
distribution channels, marketing channels, and operational infrastructure.
● Ensure that the company can effectively reach and serve customers within
chosen segments and deliver on its value proposition.
Final Selection:
● Narrow down the list of potential segments to a smaller set of target
segments that offer the greatest potential for success and competitive
advantage.
● Prioritize segments based on their attractiveness, alignment with
company objectives, and feasibility of implementation.
Testing and Validation:
● Validate target segment selections through market research, customer
feedback, and pilot programs.
● Test marketing strategies and product offerings within target segments to
assess their effectiveness and refine the approach as needed.
Continuous Review and Adjustment:
● Continuously monitor market dynamics, customer preferences, and
competitive trends to ensure that target segments remain relevant and
viable.
● Adjust target segment selections as needed in response to changes in the
market environment, customer behavior, or company capabilities.

By following these steps, companies can effectively select target market segments that
align with their objectives, resources, and capabilities, and that offer the greatest
potential for success and competitive advantage.

Choosing, communicating, and delivering positioning strategies involves a

comprehensive approach to establish a distinctive and favorable perception of a
product or brand in the minds of consumers. Here's a breakdown of each step:
Choosing Positioning Strategies:
a. Identify Competitive Advantages: Determine the unique features, benefits, or
attributes of the product or brand that differentiate it from competitors. This
could be based on product quality, price, innovation, customer service, or other
factors.
b. Analyze Target Market: Understand the needs, preferences, and perceptions of
the target market segments. Identify what matters most to them and how the
product or brand can fulfill those needs better than competitors.
c. Evaluate Market Positioning: Assess the positioning strategies of competitors
to identify whitespace or areas of opportunity where the product or brand can
carve out a distinct position in the market.
d. Develop Positioning Statement: Craft a clear and concise positioning
statement that communicates the unique value proposition of the product or
brand and resonates with the target audience. This statement should address the
target market's needs and highlight the key benefits or solutions offered.
Communicating Positioning Strategies:
a. Brand Messaging: Develop compelling messaging that reinforces the chosen
positioning strategy and resonates with the target audience. This messaging
should be consistent across all communication channels, including advertising,
branding, marketing materials, and online platforms.
b. Marketing Communication Channels: Select appropriate communication
channels to reach the target audience effectively. This could include traditional
channels such as print, television, and radio, as well as digital channels such as
social media, websites, email, and mobile apps.
c. Creative Execution: Create engaging and memorable creative assets, such as
advertisements, videos, graphics, and slogans, that effectively communicate the
positioning strategy and capture the attention of consumers.
d. Integrated Marketing Campaigns: Implement integrated marketing campaigns
that leverage multiple communication channels and touchpoints to reinforce the
positioning strategy and build brand awareness, consideration, and loyalty.
Delivering Positioning Strategies:
a. Product Development: Ensure that the product or brand delivers on the
promises made in the positioning strategy. Continuously innovate and improve
the product or service to meet evolving customer needs and maintain a
competitive edge.
b. Customer Experience: Provide exceptional customer experiences that align
with the brand's positioning and foster positive perceptions and emotional
connections with consumers at every touchpoint, from pre-purchase to post-
purchase interactions.
c. Distribution Strategy: Select distribution channels and partners that enhance
the accessibility and availability of the product or brand to the target audience.
Ensure that distribution channels align with the brand's positioning and deliver a
consistent brand experience.
d. Brand Reputation Management: Monitor and manage the brand's reputation to
uphold the desired positioning in the market. Address any issues or concerns
promptly and transparently to maintain consumer trust and loyalty.
By carefully choosing, communicating, and delivering positioning strategies, companies
can effectively differentiate their products or brands in the market, attract target
customers, and build long-term competitive advantage and brand equity.