3. Segmentation, targeting, and positioning, and the role of branding

This chapter assesses marketing segmentation, targeting, and positioning, and considers the role of branding. Marketing segmentation ensures that the organization’s resources are directed at the customer segments that are going to provide the best returns. The four generic segmentation methods that are commonly used to group customers by their overall characteristics are described as: geographic, demographic, psychographic, and behavioural. Positioning concerns the act of designing the organization’s offering so that it occupies a distinct position within its customers’ minds. Meanwhile, the four types of targeted marketing strategies of undifferentiated, differentiated, focused, and customized are explored. Lastly, the importance of brand (an intangible asset of the organization that embodies their values) to marketing efforts is discussed.