Chapter 5 – Segmentation, Targeting, and Positioning
Introduction
Segmentation, targeting, and positioning (STP) is a key concept in marketing. Money spent on ads, commercials, or brochures is wasted if they do not reach the people (or companies) you want to appeal to. Therefore, identifying your target audience is critical. Although other people outside your target audience can and will buy your products, your marketing will be directed towards people who will gain the most value from your product and will connect the most with your marketing.
Segmentation and positioning help place your offerings in the best context so your target audience can access and gain the most value from it. At the same time, these methods will help you understand the optimal position to market your company or product (e.g., low-cost leader or luxury item).
Readings
5.2 How Markets Are Segmented from Principles of Marketing – H5P Edition (2022).- 5.3 Selecting Target Markets and Target-Market Strategies from Principles of Marketing – H5P Edition (2022).
- 5.4 Positioning and Repositioning Offerings from Principles of Marketing – H5P Edition (2022).
- All of Chapter 5 (Market Segmentation, Targeting, and Positioning), starting with:
- 5.1 Market Segmentation and Consumer Markets from Principles of Marketing (Albrecht et al., 2023).
Practice Activities
In the activity below, you will practice positioning brands with the help of a Perceptual Map. You are given a perceptual map for clothing brands. Drag and drop each brand into the appropriate spot on the Perceptual Map. If you are not familiar with the brands, do some research online before you complete this exercise.
References
Albrecht, M. G., Green, M., & Hoffman, L. (2023). Principles of marketing. OpenStax. https://openstax.org/books/principles-marketing/pages/1-unit-introduction.
Principles of marketing – H5P edition. (2022). BCcampus. https://opentextbc.ca/principlesofmarketingh5p/.
