Lecture 10 - Segmentation, targeting & positioning

In today's lecture we talked about segmentation, targeting and positioning. The main factors involved in this process where:

• Age
• Income
• Social Class
• Gender
• Personality
• Lifestyle
• Benefit
• Usage


Segmentation, targeting and positioning (STP) are often used before marketing programs are planned. It is a tool that helps the company to differentiate its product offering from that of its competitors and ensure that the same reaches the exact market profile for which it is intended. STP is related with market research and marketing research.

STP uses information about current market size, market shares, concentration of customer base for particular products, potential customers, customer's purchase decision process that gathered from market and marketing research to find out kinds of consumers with different needs and different characteristics.

Segmentation, targeting, and positioning together comprise a three stage process. The first stage is to determine which kinds of customers exist, then the second stage is to select which ones we are best off trying to serve and finally the third stage is to implement our segmentation by optimizing their products/services for that segment.


Targeting is the next step after segmentation. Once a company has selected the most appropriate segments for its product and/or service, it needs to develop a strategy to target its specific audience. The company then selects the most appropriate way to target their audience.

Positioning involves implementing our targeting. For example, Apple Computer has chosen to position itself as a maker of user-friendly computers. Apple has done a lot through its advertising to promote itself, through its intimidating icons.

Example of segmentation:

Segmentation are products such as soaps, shampoos and toothpastes.
In today's modern society there is a variety of products such as shampoos that companies offer. For example, there are shampoos that can meet every individuals needs such as for greasy hair, damaged hair, colored hair, and fine hair. The images below represent various shampoos for different types of hair:



This shampoo is to help get rid of dandruff.












This shampoo is for kids hair, who have soft and sensitive hair.













Above the diagram is basically is explaining that segmentation is the identification of buyers within the market that have similar needs and buyer behavior. Society is made from thousands of buyers with different needs. Segmentation is trying to match groups of buyers with the same needs. Certain group is referred as 'segment'.