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An introduction to Segmentation, targeting and positioning:
Segmentation, targeting and positioning are the three steps that make up an entire procedure. The three steps take place in a particular order: starting with segmentation, then moving on to targeting and finally ends with positioning.
- Segmentation: In this step, the segment of consumers for whom the products are to be launched is figured out. In the market, there are different kinds of customers with distinguished needs. Say, when buying cars, some people look out for the mileage and speed while some people are more concerned with the internal space and safety. Statistics prove that the companies which aim to satisfy a certain group of consumers earn more profit.
- Targeting: In this step, it has to be decided which segment would be the most profitable target. Companies often go for segments that are not already well-served by other companies. This makes them an easy-catch.
- Positioning: It is largely concerned with advertisements. Positioning is about creating an image for the company among the consumers. Companies need to create an impression upon the consumers’ mind that they will have a better experience if they choose this particular product over other similar ones.
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