3.

Market Segmentation, Target Market Selection, and Positioning

AFTER THE MARKETING ANALYSIS PHASE, THE NEXT stage in the marketing process consists of the following three steps:  

  1. Market segmentation
  2. Target market selection
  3. Product positioning

These steps are the prerequisites for designing a successful marketing strategy. They allow the firm to focus its efforts on the right customers and also provide the organizing force for the marketing mix elements. Product positioning, in particular, provides the synergy among the four Ps (product, price, place, and promotion) of the marketing plan.1

This chapter elaborates on each of the three steps.

Market Segmentation

Market segmentation consists of dividing the market into groups of (potential) ...

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