Segmenting-targeting-positioning: Difference between revisions

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* ''Segmenting'' means identifying and classifying consumers into categories called segments.<ref name=":6" />

* ''Targeting'' identifies the most attractive segments, usually the ones most profitable for the business.<ref name=":0">{{Cite book |last=Bowen |first=John |title=Market segmentation in hospitality research: no longer a sequential process |year=1998}}</ref>

* [[Positioning (marketing)|Positioning]] proposes distinctive competitive advantages for each segment.<ref>{{Cite journal |last=Maggard |first=John P. |date=1976 |title=Positioning Revisited |url=https://www.jstor.org/stable/1250678?origin=crossref |journal=Journal of Marketing |volume=40 |issue=1 |pages=6363–66 |doi=10.2307/1250678|jstor=1250678 }}</ref>

== Segmenting ==

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Whereas [[market segmentation]] is the act of dividing the market into distinct and meaningful groups of buyers who might merit separate products or marketing mixes,<ref name=":5">{{Cite journal |lastlast1=Beane |firstfirst1=T.P. |last2=Ennis |first2=D.M. |date=1987-01-01 |title=Market Segmentation: A Review |url=https://doi.org/10.1108/EUM0000000004695 |journal=European Journal of Marketing |volume=21 |issue=5 |pages=20–42 |doi=10.1108/EUM0000000004695 |issn=0309-0566}}</ref> ''segmentation,'' in the S-T-P framework, means classifying consumers into categories. Therefore, segmentation has two meanings:<ref name=":6">{{Cite journal |lastlast1=Diaz Ruiz |firstfirst1=Carlos A. |last2=Kjellberg |first2=Hans |date=2020 |title=Feral segmentation: How cultural intermediaries perform market segmentation in the wild |url=http://journals.sagepub.com/doi/10.1177/1470593120920330 |journal=Marketing Theory |language=en |volume=20 |issue=4 |pages=429–457 |doi=10.1177/1470593120920330 |s2cid=219027435 |issn=1470-5931}}</ref> it denotes both the overall process ([[market segmentation]]) and the first step of the S-T-P framework, the identification of consumer segments.<ref name=":6" /> This section refers to the first step of the S-T-P model.

Segmenting can be referred to as a process of segregating the market on the basis of different variables.<ref>{{Cite web|last=Alter|first=Tom|date=June 14, 2018|title=What is STP model in Marketing?|url=https://www.makemyassignments.com/blog/what-is-the-stp-model-in-marketing/|url-status=live|access-date=November 22, 2021|website=Make My Assignments}}</ref> However, segmenting a market has widely been debated over the years as researchers have argued over what variables to consider when dividing the market. Approaches through social, economic and individual factors, such as brand loyalty, have been considered<ref>{{Cite book|title = Marketing, Planning and Strategy|last = Jain|first = S C|publisher = South-Western Publishing Co.|year = 1993|___location = Cincinnati, OH, United States}}</ref> along with the more widely recognized geographic, psychographics, demographic and behavioral variables proposed by Philip Kotler.<ref>{{Cite book|title = Marketing Management Analysis, Planning, Implementation, and Control|last = Kotler|first = Philip|publisher = Prentice Hall International|year = 1997|___location = New Jersey}}</ref> Since a single product offered by a firm cannot satisfy the needs of all of the consumers, segmenting a market therefore, is a process of ''organising'' the market into groups that a business can gain a competitive advantage in and satisfy its needs. They must, however, avoid over-fragmenting the market as the diversity can make it difficult to profitably serve the smaller markets.<ref name=":1">{{Cite book|title = Business to Business Marketing|last1 = Vitale|first1 = Robert|last2 = Giglierano|first2 = Joseph|publisher = South-Western publishing|year = 2002|___location = Mason, Ohio}}</ref> The characteristics marketers are looking for are measurability, accessibility, sustainability and actionability.