Segmentation, Targeting and Positioning

Summary of chapter

Segmentation, targeting and positioning are all marketing strategies that can be used by manufacturers of a product to survive in the marketplace and stay above its competitors. As the market tightens up and consumer tastes change, manufacturers use these techniques to make profits. Segmentation refers to the division of the market by geography, the behavior of consumers and sometimes the consumer’s economic class. Demography has also been used during the segmentation of the market (Grewal & Levy, 2013). Different segments have various needs and hence dissimilar motivations to buy certain products. The segmentation involves both position and targeting.

Positioning, as an element of segmentation, is very important to marketing. It refers to making a company product unique in some ways so that consumers prefer it to those that are offered by competitors. Consumer perception of a brand or product is very vital in marketing. For example, Volvo has been perceived to be the safest on the road. This perception keeps the brand ahead of its competitors.

The segmentation of the market is important in identifying which segment to target when marketing a product. For example, Coca-Cola Company introduced Coca-Cola Zero so as to maintain its consumer base that was health-conscious. It also introduced Diet Cola, which targeted the women market. This strategy is very useful for attracting new customers. The segmentation can be used to increase sales in the dynamic market (Grewal & Levy, 2013).

China has been manufacturing cars particularly meant for low-end consumers while manufactures in other countries have concentrated on cars targeting the wealthy population. This strategy has made China one of the leading exporters of cars. Targeting low-end consumers by the Chinese car manufacturers translates into a large customer base. It, therefore, means that a company can target other segments of the population to promote its products when the competition is tightening. Some companies always come up with different sizes of a product so as to cater to all the segments of the market. If nearly everyone is able to afford a particular product, there will be an upsurge in the sale of that particular product.

Importance of segmentation, positioning and targeting

In order for these strategies to succeed, a manufacturing company needs to apply more than one method of segmentation. Therefore, a company can use geographical location to segment the market and then use other methods of segmentation, such as behavior or demographics (Grewal & Levy, 2013).

Positioning of a company is important to the marketing of products because it enables consumers of a product to have a clear, desirable and distinctive understanding of the product being sold. Positioning enables consumers to understand the differences that exist in competing products and brands. Symbols and silent attributes of a product are some of the positioning methods that are useful in marketing.

Many organizations have applied these marketing strategies to ensure success in their sales. However, it is worth noting that no strategy can be deemed to be better. Once an organization identifies its target group, it can survive even in times of market constraints. For example, most companies manufacturing Mercedes target-rich consumers but they still make profits. People still buy such cars because they believe in their quality. Even when cheaper cars are produced, they are not likely to buy them. For such consumers, price is not the only consideration in purchasing a car.


Grewal, D. & Levy, M. (2013). M: Marketing (3d ed.). New York: McGraw-Hill/Irwin.

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