Market Segmentation, Targeting, Positioning

One first concept of marketing that we need to explain is market segmentation. In order to find value, the marketer must choose the best segment for the best opportunities.
You can group each consumers in terms of geographic, demographic, psychographic and behavioral factors. Each group will become a segment of the market, and this process of differentiating customers is called market segmentation.
According to your product, one must find the proper segment that are relevant to his market. If you sell cars, you don't find useful the same segments as a toothbrush company. You must pay attention to how you segment your market in order to stay relevant.


After you have done this market segmentation, another process takes place in marketing, which is market targeting. After finding the segment, you evaluate, test and mark the segments' attractiveness and select one or more segment to enter. Of course, one must chose the target segment that will provide him with the most benefice over the most number of years. You can chose to develop your product just for one specific market niche, or to sell it to a broader number of people. The best strategy is to enter a new market by serving a single segment, and if the campaign is a success, then you can add more segments.


Finally, sound marketing is about market differentiation and positioning. When you've decided about the market segment you are entering, you must decide how you will differentiate it from the others, and the position you want your product to have. A product position depends of the perception of the product through a customer's eyes. A customer will classify the product according to its needs. So you want to develop unique market positions for you products. A product that is exactly the same as the others won't be bought by customers.

As a result positioning is an important process to work on. You have to plan and improve this position by putting effort into your marketing teams.