TARGETING, SEGMENTS AND POSITIONING

TLDR

Customers have unique requirements, but similar groups share common needs, and identifying and grouping such customers defines market segments, a core element of modern retail marketing strategy. The study examines the key decisions and steps required for successful implementation of segmentation, targeting, and positioning. Retailers develop brands and concepts tailored to segment expectations and then position those brands with imagery that resonates with the targeted customers, following the key decisions and steps for successful implementation.

Abstract

Customers have unique requirements, aspirations and satisfaction levels. Some customers, though, are “similar”: they have common requirements for goods, services and ideas. If these customers′ needs can be clearly identified and those with similar needs grouped in quantities of sufficient sizes, market segments have been determined. Each customer group – or market segment – has specific expectations and retail marketers must develop retail brands and concepts which cater for the needs of the segment targeted. Having decided on which segment (or segments) to target, retailers position their brands with an image with which the targeted customers identify. Market segmentation, targeting and positioning is a fundamental process in modern retail marketing strategy. The key decisions and the steps necessary for successful implementation are examined.