24210 Chap.4 Segmentation, Targeting and Positioning
Segmentation, Targeting and Positioning
Segment
The STP process starts by dividing the market. Consumer markets are segmented on geographic, demographic, psychographic and behavioural bases; business markets on geography, demography, product type and buying situation.
Buying groups add new category users, brand loyals, switchers and other-brand loyals.
Target
Segments are profiled, then evaluated on sales potential, competition and cost before the organisation decides which to target and which to disregard.
Position
Positioning is how the target perceives the offer relative to competitors.
Perceptual maps reveal current positions, a six-step platform guides the decision, and seven strategies, from attributes to cultural symbols, give it a basis.
What this chapter covers
- 01
The STP process
- 02
Consumer and business segmentation bases
- 03
Segmenting by buying group
- 04
Profiling and selecting target markets
- 05
Perceptual mapping
- 06
Seven positioning strategies
Worked example · free
Choose a positioning strategy for a tutoring app
- 1Rule out price: every rival already claims it, so a price position would not stand apart.
- 1Match the strength to the target: specialist chemistry tutors meet the attribute parents value most.
- 1Lead with attributes and benefits, or with use or application as the best answer for Year 12 chemistry, and support it with results evidence.
Key terms
- Brand Switchers
- Buyers who move between brands in a category and respond to reasons to choose one this time.
- Positioning Platform
- The six-step sequence from identifying competitors to monitoring a chosen position.
- Segment Profile
- A description of the typical potential customer in a segment and how the segment differs from others.
Segmentation, Targeting and Positioning FAQ
What bases can a consumer market be segmented on?
Lecture 3 lists geographic, demographic, psychographic and behaviouristic bases for consumer markets, and the Assessment 3 brief asks for demographic, geographic, psychographic and behavioural variables when you profile your audience. Business markets swap psychographics and behaviour for product type and buying situation.
What are the buying groups used in segmentation?
New category users, brand loyals, brand switchers and other-brand loyals. Each needs a different message: newcomers must first be sold the category, switchers want a reason to choose this time, and other-brand loyals need a strong reason to leave a brand they already prefer.
How is a target market selected?
After profiling each segment, the organisation evaluates it on sales potential, the competitive situation and its own cost structure, then decides which segments to target and which to disregard. Lecture 5 adds that targeting deepens insight and makes communication more effective.
What does a perceptual map show?
It shows how buyers see competing brands on two chosen attributes, as points on a two-dimensional chart. Crowded areas mark contested positions, and empty space may be an opportunity, but only if research confirms that buyers value that combination.
What positioning strategies does Lecture 5 list?
Seven bases: attributes and benefits, price or quality, use or application, the product user, the product class, a competitor, and cultural symbols. The Week 5 tutorial asks you to find a real brand for each, and one strategy should usually lead a campaign.
What does the creative brief need on positioning?
Positioning objectives that compare the brand with competitors, a visual such as a perceptual map, and an opportunity or problem written from the target audience’s perspective rather than the business’s. That problem then leads into the key message.
Why do new category users need a different message?
New category users have not yet bought anything in the category, so before they can prefer your brand they must be convinced the category solves their problem. Brand loyals, switchers and other-brand loyals already know the category, which is why the lecture separates the four buying groups.
Assessment move
Build a perceptual map for your project category with four real brands, then write the problem it reveals in the audience’s own words. Rehearse the seven positioning strategies with one example each that you found yourself. Practise naming the buying group your campaign targets and what that group needs to hear first.
Add one sentence to your plan naming which of the seven positioning strategies leads, and why rivals cannot already claim it.
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