Segmentation, Targeting, and Positioning

This chapter examines how firms identify, segment, and target markets, then position their offerings to deliver maximum customer value. It begins by outlining methods of market segmentation (geographic, demographic, psychographic, and behavioural), then explains targeting strategies and the evaluation criteria firms use to select the most attractive segments. The chapter also discusses positioning theory, showing how firms can differentiate themselves through product, service, personnel, channel, and image. Lastly, it outlines positioning strategies and the principles of value-based differentiation, providing the reader with an understanding of how to create and sustain a competitive advantage.