1.

Market segmentation can be defined as:

The process of splitting a market into smaller groups with similar product needs or identifiable
characteristics, for the purpose of selecting appropriate target markets.
There are many different ways to segment your target markets. For example, you can use the following
approaches:

Demographic By personal attributes such as age, marital status, gender, ethnicity, sexuality,
education, or occupation.
Geographic By country, region, state, city, or neighborhood.
Psychographic By personality, risk aversion, values, or lifestyle.
Behavioral By how people use the product, how loyal they are, or the benefits that they are
looking for.
Lifestyle

This refers to Hobbies, recreational pursuits, entertainment, vacations, and other non-work time
pursuits.
Companies such as on and off-line magazine will target those with specific hobbies i.e.
FourFourTwo for football fans.

Belief and Values

Refers to Religious, political, nationalistic and cultural beliefs and values.

The Islamic Bank of Britain offers Sharia compliant banking which meets specific religious
requirements.

Life Stages

Life Stages is the Chronological benchmarking of peoples lives at different stages.

An example is Saga holidays which are only available for people aged 50+. They claim a large
enough segment to focus on this life stage.
2. Targeting (or target market selection) refers to:
The list below refers to whats needed to evaluate the potential and commercial attractiveness of each
segment.

Criteria Size: The market must be large enough to justify segmenting. If the market is small, it
may make it smaller.
Difference: Measurable differences must exist between segments.
Money: Anticipated profits must exceed the costs of additional marketing plans and other
changes.
Accessible: Each segment must be accessible to your team and the segment must be able to
receive your marketing messages
Focus on different benefits: Different segments must need different benefits.

3. Positioning (which is sometimes referred to as product positioning) is:

Positioning is the target markets perception of the products key benefits and features, relative to the
offerings of competitive products.