Concept of Segmentation, Targeting and Positioning in Business Context

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“Concept of Segmentation, Targeting and Positioning in Business Context”
The aim of this essay is to highlight the details about the segmentation, targeting and positioning
strategies of the business in generic. The essay elaborates the details about all the concepts along
with the elaboration of marketing examples of companies that have implemented such concepts
in their business in different ways. Generic recommendations are provided in the paper to
analyse the ways in which companies can apply the concept of segmentation, targeting and
positioning in the company to achieve competitive advantage in the target market. Segmentation
is the method of separating the marketplace into different group on the basis of their
specifications like age, income, geographic location etc. The segmentation process divides the
market into smaller segments that later help them to target accurate type of clients in the market.
The process of segmentation aids the business to identify the consumers on the basis of their
needs and priority and then approach to them accordingly in the market.
This type of process increases the competence of the organization to successfully target the
adequate form of people in the marketplace. Further, targeting in marketing denotes to the
process of breaking down the marketplace into varied segment and then focusing on marketing
strategies to attain the sales from the end of target customers in the market. This type of process
helps in increasing the sales in the market. The segmentation process divides the market into
several groups and the targeting process analyse the right type of group and then target them to
attain sales (Camilleri 2018). Thirdly positioning is the procedure of engaging the brand of the
organization at the right place in the market so that the customers easily get to distinguish the
brand against other competitors present in the market. More details about the essay are discussed
below:
Market segmentation states to the method of grouping people on the basis of their same interest
level and characteristics in the market. Every market segment is different and show differential
attributes in the market. Due to which it is vital for the business to group the clients so as to
attain a clear view of the customers whom they should target in the market. Each segment is
approached differently in the market by companies (Schlegelmilch 2016). This is one of the most
important crucial activities that should be conducted by the business as it helps the organization
in attracting the precise type of consumers for the business. Market segmentation is further
divided in four segments that are demographic, psychographic, geographic and behavioural

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segmentation. The customers groups are further divided on the basis of these four segments and
the organization choose the best suitable customers segment on the basis of their product
attributes (Andaleeb 2016).
The demographic market segmentation refers to the process of segmentation that focuses on the
dividing the market on the basis of age, size of family, level of education, income level, type of
occupation etc. This type of segmentation is one of the most widely used segmentation that
divides the group on the basis of different income level, occupation, level of education etc. On
the basis of this type of features of the customers the organization get to target the people by
looking at their product and company description as well. The basic needs of an individual are
catered under this type of segmentation process. The demography of the customers is an
important factor for the organization that is analysed by the marketers while implementing
marketing and promotion activities of the product in the market. For instance, considering the
age factor, it should be noted that all organization analyse the age of the target market before
supplying the product in the market (Pyo 2015).
Like, Lego toys company will analyse the age of the customers and prospective buyers before
targeting them in the market. This activity will aid the business to target the right type of
customer (kids) and initiate sales in the market. Supposedly, if the organization does not focus on
this type of segmentation criteria, then they would target people of all age group that would
reduce the competence of Lego Company in the marketplace (Kubacki, Dietrich, and Rundle-
Thiele 2017). Thus, it should be noted that it is important for the organization to target the right
type of people who would purchase the products of the company from the market. Second basis
of segmentation is geographic segmentation that targets the customers based on their predefined
location. The preference, taste and interest of the consumers drastically changes according to the
change in location of the customers. As background, behaviour and preferences is strongly based
on the attributes of the city or region, due to which it is important for the company to focus on
geographic segmentation while targeting the consumers in the market (Venter, Wright, and Dibb
2015).
Psychographic segmentation refers to the process of segmentation that focuses on the intrinsic
traits of the customers present in the market. This type of segmentation divides the industry into
several parts on the basis of the values, personality, lifestyle and opinion of the customers.

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Lastly, behavioural segmentation denotes the process of segmentation that divides the
marketplace on the basis of decision making capability and ordering behaviour of the consumers
in the market. The behavioural segmentation is similar to the psychographic segmentation but it
focuses on the specific reaction and decision making process of the customers (Lees, Winchester,
and De Silva 2016).
After the segmentation process is conducted by the organization, the management then focuses
on implementing the targeting activity. This type of activity involves breaking the market into
different segments and choosing the segment that the business should target in the market. The
marketer implements the targeting activity after the initiation of segmentation activity in the
market (Dibb 2017). As discussed above that the targeting activity provides several segments to
the organization on the basis of differential characteristics of the customers, on the basis of this
segmentation activity, the management chooses best target market for the product in the
marketplace. For instance, considering the case of the company Prada, it should be noted that the
management initially segregated the market because of level of income, age of the consumers
and buying behaviour of people in the market. After considering all these aspects in the market,
the marketer of Prada should have then decided to target high income level people in the market
who belong to age group of 37 to 50 (Barton 2015).
These are the prospective people for Prada in the market, so after the segmentation process, the
business identified the best-suited target market because of the characteristics of the products
that the brand serve in the market. This aspect helps the organization to perform the marketing
activities according to characteristics of the customers as well. Resulting in which, the promotion
and advertisement activities becomes more effective as with the help of this type of activity, the
management get to understand the mind-set of the customers and initiate promotion activities
accordingly so as to increase their interest in the product. Nowadays, social medium platform has
been significantly used to analyse the target market and attract the customers towards the brand
in the marketplace (Thoeni, Marshall, and Campbell 2016).
Coming up to the positioning strategy of marketing, it should be noted that positioning of a
company refers to the strategy where the company chooses the key areas to concentrate for the
business. The positioning strategy of the company assists the business in presenting the brand to
the customers in a right manner. A positioning strategy helps the organization in attain