Segmentation, Targeting and Positioning

Segmentation:

Segmentation is the process in which customers that share a similar level of interest or needs are placed in groups in order for marketers to target a potential group of customers.

There are four basic market segmentation strategies where consumer markets can be segmented on the following customer characteristics.


Geographic Segmentation
Geographic segmentation is based on location, in order to segment the market geographically; this can be done by region, size of population, population density

Demographic Segmentation
Demographic segmentation is based on measurable statistics such as age, gender, income, social class, nationality etc.

Psycho graphic Segmentation
Psycho graphic segmentation groups customers according to their lifestyle preferences= such as activities, interests, opinions, attitudes and values.

Behavioural segmentation
Behavioural segmentation is based on customer's behaviour towards products like brand loyalty.

Targeting:

When the possible segmentation have been identified and the characteristics of each group having been clearly researched and established, the organization chooses which segments to target and which groups to ignore. The target group is organized in gender, age, lifestyle or behavior (Wright, 2000)

Positioning:
Positioning is how marketers distinguish their product or service in the market this could be from competition. As consumers perception on the way the product/ service is positioned matters as they would perceive the quality, whether its value for money.