Segmentation, targeting and positioning represent the core
of marketing strategy. They are activities that require an investment in time
and creativity. If poor decisions are made, or shortcuts are taken during these
processes, your business will suffer.
Segmentation is the process of identifying sets of consumers.
These sets must be homogeneous, distinct, attractive and reachable. We use
demographic (i.e. age), geographic (i.e. ZIP codes), and psychographic (i.e.
attitudes) information to describe and separate groups. Segmentation requires
the marketer to look at pools of potential customers from multiple angles to
consider their areas of focus.
Targeting a specific segment or segments requires the
evaluation of multiple segments. Choices can be hard to make and sometimes seem
arbitrary. To aid the marketer, metrics for the most important criteria should
be associated with each potential segment. In the end, the segment(s) with the greatest
potential should be selected.
Positioning is the process of creating a perception of your
brand in the mind of your target consumers relative to your competitors. Working
knowledge of your environment is required to position your service or product. What
does your product or service mean to your customers? Great positioning is
succinct and simple.
Clear positioning might seem simple, but is the result of
focus and repetition. Marketers compete for precious mind space. The position of
your product or service builds on existing knowledge and perceptions held by
the consumer. Try to remember that everything is relative. Your product or
service is “like (blank) but different because (blank).” In order to successfully create a strong
position, the marketer must segment the market thoroughly, select a target
market wisely, and continuously communicate a relatively simple and consistent
message.
Understanding these three marketing activities is not
difficult. Facing the constant pressures of changing markets and increased
competition can make sticking to your marketing strategy very difficult. Use
segmentation, targeting and positioning to aid your strategic development and
to help keep you focused on the big picture.
