The objective of segmentation is to identify unique markets of consumers with similar attributes and then find segments that are profitable.
Here are some common market segment dimensions:
1. Demographic and Geographic location - These affect the size of market and consumer needs, desires, and usage.
2. Behavioral needs, attitudes, and consumer patterns - These affect the product and promotion variables.
3. Urgency of needs satisfaction - These affect the place and price variables.
Targeting refers to identifying attractive market segments and tailoring the marketing mix to match the needs of target consumers. A target market must be large enough to be profitable and the members must have disposable income to purchase the products offered.
Target marketing is contrasted with mass marketing where in in the latter, the marketing is targeted to all consumers and not on a particular segment only.
Positioning is the concept of defining the product in the consumers' minds. Identifying how the product will enhance their lives and highlighting certain brand attributes to match that of the consumers' needs.
There are 3 steps involved in brand position:
1. Understanding how consumers perceive key dimensions of the brand compared with competitor's brand.
2. Understanding which needs the target consumers would like to satisfy with the brand.
3. Positioning the brand to meet these needs by manipulation of the four P's.