Market-Segmentation-Targeting-and-Positioning-Crafting-Your-Marketing-Strategy.pdf

Market-Segmentation-Targeting-and-Positioning-Crafting-Your-Marketing-Strategy.pdf

1. Market Segmentation,
Targeting, and Positioning:
Crafting Your Marketing
Strategy
A comprehensive approach to identifying, focusing on, and communicating
with your ideal customers to ensure market success.

2. Why Segmentation
Matters: Understanding
Your Diverse Audience
Efficiency in
Marketing Spend
By focusing resources on the
most responsive groups, we
minimise waste and maximise
return on investment (ROI).
Deeper Customer
Insight
Segmentation moves beyond
surface-level data to uncover
genuine needs, motivations,
and pain points of specific
groups.
Product Optimisation
Understanding distinct
segments allows us to tailor
product features and services
precisely to meet unique
customer demands.

3. The Pillars of Segmentation: Defining Distinct
Groups
Effective segmentation relies on grouping customers based on shared, measurable characteristics. We focus on four primary
categories:
Demographics
Based on attributes like age, gender, income, education,
and occupation. The 'who' of your audience.
Psychographics
Focussing on lifestyle, values, attitudes, interests, and
personality traits. The 'why' behind their choices.
Geographics
Grouping customers by physical location, climate, or
population density (e.g., urban vs. rural). Where they are
located.
Behavioural
Based on purchase history, loyalty status, usage rate, and
benefits sought. How they interact with your brand.

4. Beyond the Basics: Advanced Segmentation
Techniques
To gain a competitive edge, successful organisations leverage more nuanced, qualitative methods to segment their markets.
Needs-Based
Segmentation
Groups customers based on the
specific problems they are
trying to solve, independent of
demographics or other traits.
Value-Based
Segmentation
Segments customers based on
their economic value to the
business (e.g., high-value vs.
low-value customers, or lifetime
value).
Firmographics (BB)
In Business-to-Business contexts, this considers company size,
industry, revenue, and location.

5. Targeting Your Sweet Spot: Identifying the
Most Attractive Segments
Once segments are defined, we must evaluate and select the best ones to target. This requires assessing three key factors:
Segment Size & Growth
Is the segment large enough to be
profitable? Does it show significant
potential for future growth?
Segment Attractiveness
How intense is the competition? How
accessible are customers? What are
the barriers to entry?
Organisational Fit
Do we possess the necessary
resources, expertise, and brand
reputation to serve this segment
effectively?
Targeting Strategy: Choose between undifferentiated (mass market), differentiated (multiple segments), concentrated (niche),
or micro-marketing (individual).

6. Positioning for Impact: Crafting a Unique
Brand Image
Positioning is about occupying a clear, distinctive, and desirable place in the minds of the target consumer relative to competing
products.
Company Strengths
Customer Needs Competitor Offerings
Ideal
Positioning
The Danger
Zone
Compe
titor's
Sweet
Spot
The
Danger
Zone
The goal is to find the intersection between Customer Needs and your Company Strengths4the sweet spot that competitors
cannot easily match.

7. Developing Your Value Proposition: What
Makes You Stand Out?
Your value proposition is the promise of value to be delivered. It explains how your product or service solves the target customer's
problems or improves their situation.
Unique Selling Points (USP)
Identify 1-2 core benefits that are
genuinely superior or unique to your
offering.
Focus on Customer Benefits
Translate features into tangible benefits
that resonate emotionally and logically
with the target segment.
Consistency in Messaging
Ensure the value proposition is
consistently communicated across all
channels and touchpoints.

8. Case Study: Successful STP Strategies in Action
Luxury Automotive Brand
Segmentation: High-income, psychographic focus on
status, performance, and exclusivity.
Targeting: Affluent professionals and high-net-worth
individuals.
Positioning: 'The ultimate driving machine'4positioning
based on performance and engineering superiority.
Global Coffee Chain
Segmentation: Behavioural (heavy users), geographic
(urban dwellers), and psychographic (social meeting place).
Targeting: Young adults and commuters seeking
convenience and a 'third place' between home and work.
Positioning: A premium, consistent, and convenient coffee
experience.
These examples demonstrate how clear segmentation drives targeted marketing and specific positioning.

9. Measuring Success & Adapting: Key
Performance Indicators for STP
Effective STP requires continuous monitoring and agile adjustments based on tangible results.
%
Market Share Growth
Specific to the targeted segments.
%
Customer Retention
Loyalty rate within the chosen segment.
/
Segment Profitability
Revenue and margin generated by the target group.
%
Brand Recall
How well the target audience remembers the unique
positioning.
Regularly re-evaluate segments: Markets evolve, and what was attractive yesterday might not be today.

10. Q&A and Key
Takeaways
Clarity is King: A successful strategy depends on truly
understanding 'who' you are serving and 'why' they choose you.
Focus on Value: Positioning should always highlight how you solve
a unique problem better than the competition.
Actionable Next Step: Start by identifying your single most
profitable, underserved segment for immediate focus.