Segmentation is the act of dividing markets into specific groups of customers or buyers who share a common needs and who might require separate products and marketing mixes 

Segmenting is an aggregating process, clustering together people with similar needs into a market segment, a relatively homogeneous group of customers just don’t fit neatly into market segments. They may be ignored or end up paying a higher price to meet their needs 

Market segmentation is identifying the most productive bases for dividing a market, identifying the customers In different segments and development of segments descriptions 

Market segmentation and competitive positioning 

Market segmentation and positioning

  • Market segmentation is a process, in which groups of buyers within a market are divided and profiled according to a range of variables, which determine the market characteristics and tendencies. The processes of segmentation, targeting and positioning are parts of a chronological order for market segmentation
  • Segmentation comprises identifying the market to be segmented; identification, selection, and application of bases to be used in that segmentation; and development of profiles.
  • Targeting is the process of identifying the most attractive segments from the segmentation stage, usually the ones most profitable for the business.
  • Positioning is the final process, and is the more business-orientated stage, where the business must assess its competitive advantage and position itself in the consumer’s minds to be the most attractive option these categories.


Segmenting a market therefore, is a process of organizing the market into groups that a business can gain a competitive advantage in. They must, however, avoid over-fragmenting the market as the diversity can make it difficult to profitably serve the smaller markets. The characteristics marketers are looking for are measurability, accessibility, sustainability and actionability

Characteristics  for the segmentation process

  • Measurability – The understanding of size, purchasing characteristics and value needs of a particular segment
  • Accessibility – The ability to communicate with the segment in an effective manner
  • Sustainability – The segment is profitable enough to differentiate itself from other segments in the market and maintains the value the business offers.
  • Actionability – The capability of an organization to create a competitive advantage with its offering in the specific segment of the market

Key steps in market segmentation

  • identify possible segments: individuals, groups
  • Gather information: information about identified segments must be gotten
  • Evaluate the attractiveness: large and profitable enough to be viable
  • Assure the competitive positioning
  • Develop variations to meet specific market needs
  • Design appropriate communication mix

Example of targeting

For example, someone consistently accessing photography-based searches is likely to have advertisements for camera sales appear, due to the cookie information they deliver showing an interest in this area

types of positioning that are key in positioning the brand to give a competitive advantage

  • Symbolic Positioning is based on the characteristics of the brand that fulfill customers’ self-esteem.
  • Experiential positioning is based around the characteristics of the brands that stimulate the sensory or emotional connection with the customers.
  • Functional Positioning is focused on the aspects of the products or services that can fulfill consumers’ needs or desires

The marketing mix

The marketing mix is an effective marketing strategy consists of a clever combination of four marketing instruments that are used to tackle the market. These marketing tools are often referred to as the marketing mix or the four Ps. The marketing mix variables are closely related to one another. If we change one of them, this may have consequences for the other three; essentially it creates an entirely new mix.

They include:

  • Product
  • Price
  • Place
  • position


These are goods, services or ideas that meet the wants and needs of the customer. Besides the physical product, this P includes other factors that determine which brand a person buys, such as the warranty, packaging, brand image, product range and customer service


This is the amount of money exchanged for a product or service. When developing a price strategy, a company will consider not only the product’s manufacturing cost, but also the prices being charged by its competitors and how an increase or reduction in the selling price is likely to affect demand


how the company gets its product into the buyers’ hands. How a product is distributed often matters more in determining its success than the product itself


Promotion or marketing communication includes advertising, sponsorship, sales promotion (such as free gifts, contests and product demonstrations), direct marketing, and personal selling and public relations activities, including free publicity. Developing a promotional strategy requires various decisions, such as establishing communication objectives, determining the advertising budget, and selecting the best combination of promotional instruments and media including social media