Segmentation, targeting & positioning

Segmentation
Segmentation is the procedure that an organisation goes through to segregate the market into different groups according to the different characteristics which might need different products...

Kotler (2000) “The subdividing of a market into homogenous (or similar) subsets of customers, where any subset may conceivably be selected as a target market to be reached with a distinct marketing mix”

Market researchers differentiate as it assists them to keep hold of existing consumers; it allows them to raise the value in some upper segments. This enhances brand loyalty as it meets the consumer’s needs and wants...

Most marketers segment their consumers in the following groups:

• Age
• Social class
• Gender
• Religion
• Race
• Income
• Family life cycle
• VALS
• ACORN

There are four main parts which market segments are put in, these are:

1. Demographic (Gender, age, income, family life cycle, education, race etc)
2. Psychographic (Personality & lifestyle)
3. Behavioural (Knowledge, attitude etc)
4. Geographic (Regions, counties, cities etc)

Targeting

Targeting is the procedure that a business goes through to evaluate the attractions of each group and choose the best choice...

Below are Doyle's factors to measure the attractiveness of the group:

• Segment size - potential consumers
• Segment growth - growing or declining market
• Segment profitability - Porter's five forces
• Current & potential competitiors - competitive analysis
• Core capabilities - strengths, weaknesses, assets etc

Positioning

Positioning is the procedure that an organisation goes through to choose the best target market and maintainable and appropriate advantage with value to the competition..