Marketing Foundations Tutorial 4: Markets:
Segmentation, Targeting and Positioning
Learning objectives
Learn about the concept of a market and target marketing
Learn how companies’ segment, target, and position
- Segmenting
- Geographic, Demographic, Psychographic and Behavioural
- Targeting
- Positioning
Target marketing
An approach to marketing based on identifying, understanding and
developing an offering for those segments of the total market that the
organisation can best serve
Discussion Questions
6.1.2 Why is it unlikely that an organisation could successfully target an
entire market with its offering?
- It’s too expensive to target the entire market
- People are different, therefore it’s hard to target an entire market
6.2.4 Outline the three main stages of the target marketing process.
- Segmentation: Process of dividing a market into groups, or segments,
based on different characteristics
- Targeting: Concentrating marketing efforts on one or a few key
segments consisting of the customers whose needs and desires closely
match a company’s product or service offering
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, - Positioning: Relates to the consumer’s perception of a product/ brand,
not the actual reality of the product/brand
6.3.2 Why are behavioural variables a better indicator of purchasing
behaviour than other consumer market segmentation variable
- Behaviour variables: Involve end consumer’s knowledge, attitude and
use of product or service
- Behavioural variables are a better indicator because they are reflective
of consumers’ attitude towards products, which can be the difference
between consumers buying products or skipping them
- Example of a behavioural variable:
o If a business is selling ski jackets, it’s better to target to skiers
since realistically, they are more enticed to buy that product
6.4.1 Recall the most recent item of clothing that you purchased. Describe
the market segment(s) at which you think it is targeted.
- Birkenstocks (Brand of sandals) example: They are targeted at:
o young adults
o people with orthopedic issues
6.5.1 Explain the concept of market positioning
- Market positioning: Relates to the consumer’s perception of a product/
brand, not the actual reality of the product/brand (As previously stated)
- A concept used by marketers to differentiate their business from the
competitors
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Segmentation, Targeting and Positioning
Learning objectives
Learn about the concept of a market and target marketing
Learn how companies’ segment, target, and position
- Segmenting
- Geographic, Demographic, Psychographic and Behavioural
- Targeting
- Positioning
Target marketing
An approach to marketing based on identifying, understanding and
developing an offering for those segments of the total market that the
organisation can best serve
Discussion Questions
6.1.2 Why is it unlikely that an organisation could successfully target an
entire market with its offering?
- It’s too expensive to target the entire market
- People are different, therefore it’s hard to target an entire market
6.2.4 Outline the three main stages of the target marketing process.
- Segmentation: Process of dividing a market into groups, or segments,
based on different characteristics
- Targeting: Concentrating marketing efforts on one or a few key
segments consisting of the customers whose needs and desires closely
match a company’s product or service offering
Page 1
, - Positioning: Relates to the consumer’s perception of a product/ brand,
not the actual reality of the product/brand
6.3.2 Why are behavioural variables a better indicator of purchasing
behaviour than other consumer market segmentation variable
- Behaviour variables: Involve end consumer’s knowledge, attitude and
use of product or service
- Behavioural variables are a better indicator because they are reflective
of consumers’ attitude towards products, which can be the difference
between consumers buying products or skipping them
- Example of a behavioural variable:
o If a business is selling ski jackets, it’s better to target to skiers
since realistically, they are more enticed to buy that product
6.4.1 Recall the most recent item of clothing that you purchased. Describe
the market segment(s) at which you think it is targeted.
- Birkenstocks (Brand of sandals) example: They are targeted at:
o young adults
o people with orthopedic issues
6.5.1 Explain the concept of market positioning
- Market positioning: Relates to the consumer’s perception of a product/
brand, not the actual reality of the product/brand (As previously stated)
- A concept used by marketers to differentiate their business from the
competitors
Page 1
