Targeting, segemntation and positioning

Marketing segmentation is a process of identifying different group of users within a market who could possibly be targeted with separated products or marketing programs. Market segmentation was first defined as ‘a condition of growth when core markets have already been developed on a generalised basis to the point whereadditional promotional expenditures are yielding diminishing returns’ (Smith,1956).The objective of segmentation research is to analyze market and find the opportunities.(McDonald, 2004) .

Segmentation makes it possible for organisations to tailor the marketing mix for specific target markets, thus better satisfying customer needs. The bases for segmenting consumer markets include:

    * Demographical bases (age, family size, life cycle, occupation)

    * Geographical bases (states, regions, countries)

    * Behavior bases (product knowledge, usage, attitudes, responses)

    * Psychographic bases (lifestyle, values, personality)

For examople, the product presented below is addressed for woamen, who like cosmetics and goodlooking:

The graph below presents segmentatin criteria for consumer markets .

Targeting is the process for selecting and prioritizing targets and matching appropriate actions to those targets to create specific desired effects that achieve objectives, taking account of operational requirements and capabilities.
For example while McDonald’s has a great reputation for fast, consistent quality, family friendly food, it would be difficult to convince consumers that McDonald’s now offers gourmet food.  Thus, McD’s would probably be better off targeting families in search of consistent quality food in nice, clean restaurants.




Positioning involves implementing our targeting. It is a marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer. For example, Apple Computer has chosen to position itself as a maker of user-friendly computers.  Thus, Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as a computer for “non-geeks.”