Segmentation, targeting, and positioning are a three stage process.
First, you determine which kinds of customers exist, then you select which ones you’d like to sell to and, finally you optimize your products/services for that segment and communicate to that segment that you differentiate yourself from competitors because of the characteristics you possess.
Segmentation’s about finding out what kinds of customers or consumers with different needs exist. In the breakfast cereal market, for example, some consumers demand nutrition and health, while others might just want Cheerios. » Read more: Segmentation – A Quick Flyover
Segmentation is a term used so frequently that most people aren’t even sure what it means. To me, a market segment is a group of individuals that have a similar set of needs. Simple.
