Marketing 3

Market
segmentation,
Targeting
&
Positioning
BA (Hons) Fashion Design 20.1
Lecturer – Dinushka Wijesinghe

Target Market
o A market is a set of all actual and potential
buyers or customers.
o A target market is a group of people

towards whom a company markets its
goods, services, or ideas with a strategy
designed to satisfy their specific needs and
preferences.
What is Market Segmentation?
o Market segmentation is a process of dividing the market of potential customers into smaller and
more defined segments based on certain shared characteristics like demographics, interests,
needs, or location.
o The members of these groups share similar characteristics and have one or more common
aspects among them which makes it easier for the marketer to develop marketing communication
messages for the entire group.
o Marketers segment market ,to create a customized marketing mix for each segment and cater
them accordingly
Market Segmentation Definition
“Market segmentation is the

subdividing of a market into distinct
subsets of customers, where any
subset may conceivably be selected as
a target market to be reached with a
distinct marketing mix”
-Creativity and Innovation: towards a

European Network
Requirements for Effective Segmentation
• Size, purchasing power, profiles of segments can be
Measurable measured
• Segments can be effectively reached and served

Accessible
• Segments are large or profitable enough to serve
Substantial
• Segments must respond differently to different
Differential marketing mix elements & programs
• Effective programs can be designed to attract and serve

Actionable the segments
Identify Bases for Segmenting
Market the Market
Segmentation Develop Profiles of Resulting
Segments
Steps in
Segmentation, Market Develop Selection
Criteria
Targeting Select Target Segments
Targeting, and
Positioning Develop Positioning for Each
Market Target Segment
Positioning Develop Marketing Mix for Each

Target Segment
Segmentation Bases
Geographic segmentation
• Nations, states, regions, countries, cities, neighborhoods, or

zip codes–define the market segments.
• The geo-cluster approach combines demographic data with

geographic data to create a more accurate profile of a
specific consumer.
Signature Beef burger
Segmentation based on the country
In areas prone to rain and snowing , you can sell things like raincoats, umbrellas, warm clothes and
gumboots.
In hot regions, you can sell summer wear.

Demographic Segmentation
• This consists of dividing the market into groups based on

variables such as age, gender, family size, income,
occupation, education, religion, race, and nationality.
• Demographic segmentation variables are among the most

popular bases for segmenting customer groups because
customer wants are closely linked to variables such as
income and age
• Most popular and commonly used types of market

segmentation. It refers to statistical data about a group of
people
Segmentation based on gender and age
Segmentation based on gender
Psychographic
Segmentation
o Psychographic segmentation takes the psychological aspects of

consumer buying behavior into accounts.
o Consumers are divided according to their lifestyle, personality,

values, and social class.
o Psychographics segmentation has become increasingly common as

companies look to identify consumers based on interests and
activities in position of demographics.
Lifestyle of an
outdoor adventurer
o Those who loves camping, typically have few
constant demographic characteristics. Still
campers are a diverse group.
o Marketers would likely target a segment of

outdoor campers for new camping
equipment through outdoor programs or
magazines
Behavioral Segmentation
o Behavioral segmentation refers to the grouping of total consumers in a market into homogeneous
groups based on their mutual buying behavior patterns.
o Behavioral segmentation is based on user behaviors, including patterns of use, price sensitivity, brand
loyalty and benefits sought.

Brand Loyalty Based
Behavioral Segmentation
As an example , higher-income earners may

have more interest in higher-quality products
and brands. Some are brand loyal.
Benefit Sought Based Behavioral Segmentation
o Head & Shoulders Shampoo targets

individuals with dandruff issues. Every
individual requires washing their hair;
however, those who suffer from
dandruff are the target customers of
Head & Shoulders.
o Similarly, Sensodyne toothpaste target

individuals with sensitive teeth
Usage Based Behavioral Segmentation
Usage based behavioral segmentation
target the customer’s habit of repeated
purchases.
Please Watch ☺ ☺
How To Use Market Segmentation | Explained & Examples 👩🏼🧓🏼🧔🏽🧒🏿 - YouTube
The Market Targeting Process
o While the basics of segmentation are multifaceted, targeting is more straight forward.
o Once you know who could be your customer, it’s time to think about it realistically. Often, it’s
impossible to target all segments identified, because of lacking resources and so you will need to
be picky.
o When you’re done analyzing, it’s time to decide. Which segments will you choose to target?
o The selected segment(s) determine your market. Mass marketing is also

called undifferentiated because you target broadly.
o Slightly narrower is differentiated or segmented marketing and then we arrive

at concentrated or niche marketing. The narrowest targeting is micromarketing, also
called individual marketing.
Market Segmentation Levels
Economies of Scale - a
Economies of proportionate saving in Unique Consumer
costs gained by an
Scale increased level of
Needs
production
Market
Niche Market
Segmented
Homogeneous
Mass Market or
Micro Market
or
Heterogeneous
Mass Market o Refers to a market for goods produced on
a large scale for a significant number of
end consumers.
o The mass market differs from the niche

market in that the former focuses on
consumers with a wide variety of
backgrounds with no identifiable
preferences and expectations in a large
market segment
- Wikipedia -
Homogeneous Market
o A homogeneous market is a type of marketplace in which each of the products traded in that market
are more or less the same, although there may be some minor differences in design.
o Homogeneous markets are associated with just about every type of industry, with participants in those
industries offering goods and services that provide the same basic functions, but often compete on the
basis of a few additional features as well as price.
o One of the benefits of this type of market situation is consumers can compare a wider range of options
rather than being limited to one or two possibilities
Segmented Market
• Segment market is division of market into smaller markets which
have similar needs and demands.
• This type of marketing helps the marketer to connect with every

type of consumer in the best possible way.
• The promotional and advertisement activities are based on each

segment catered specifically to the needs of that segment.
• Products here are carefully designed to meet the needs of each

segment served in contrast to mass marketing, where same
product is offered to all.
Segmented based on age
Segmented based on sizes
Segmented based on
behavior
o A Niche market is a more narrowly defined group,
Niche Market Segment typically a small market which has not yet been well
served.
o A company might create a niche market and develop

highly specialized products or services to meet the
customers’ needs that aren’t being met by other
offerings.
Advantages of niche marketing:
✓ High level of specialization helps in a reduction of cost
✓ Help to occupy a dominant market position within the

chosen niche
✓ Creates a strong brand image
✓ No competition or little competition

Niche Markets
Micro Marketing
Products are specialized to

meet a very specific need of
potential customers and
marketed primarily to that
customer set.
Customized Bentley
Segmentation leads to marketing strategy that
may result in:
o Changes in products
o Changes in promotional appeals
o Changes in distribution
o Changes in pricing
o Brand positioning has been
defined by Kotler as “the act of
designing the company’s offering
and image to occupy a distinctive
place in the mind of the target
market”.
o In other words, brand positioning

describes how a brand is different
from its competitors and where,
or how, it sits in customers’ minds.
Positioning
o Positioning involves implementing the
targeting
o Positioning is a marketing term that

defines where your business, product
or service stands in relation to
competition in the marketplace in the
mind of the customer.
o In business, this refers to the position

that your firm occupies in the mind of
a potential customer.
AN EXAMPLE OF A BRAND POSITIONING MAP IN FASHION
Summary
o Segmentation is the process of classifying
customers into groups which share some
common characteristic
o Targeting involves the process of evaluating

each segments attractiveness and selecting
one or more segments to enter
o Positioning is arranging for a product to

occupy a clear, distinctive and desirable
place relative to competing products in the
mind of the consumer
Please read for more
details
o https://www.nutshell.com/blog/market-
segmentation/
o https://blog.alexa.com/types-of-market-
segmentation/#:~:text=The%20four%20base
s%20of%20market,Behavioral%20segmentat
ion
Questions
• Briefly explain Market

segmentation , Targeting and
Positioning
• How can you relate this to the

Fashion Industry ? Explain with
an example.
Thank
You !
☺

Marketing 3

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Market

BA (Hons) Fashion Design 20.1

Lecturer – Dinushka Wijesinghe

o A target market is a group of people

“Market segmentation is the

-Creativity and Innovation: towards a

• Segments can be effectively reached and served

• Effective programs can be designed to attract and serve

Positioning Develop Marketing Mix for Each

• Nations, states, regions, countries, cities, neighborhoods, or

• The geo-cluster approach combines demographic data with

In hot regions, you can sell summer wear.

• This consists of dividing the market into groups based on

• Demographic segmentation variables are among the most

• Most popular and commonly used types of market

o Psychographic segmentation takes the psychological aspects of

o Consumers are divided according to their lifestyle, personality,

o Psychographics segmentation has become increasingly common as

o Marketers would likely target a segment of

groups based on their mutual buying behavior patterns.

loyalty and benefits sought.

As an example , higher-income earners may

o Head & Shoulders Shampoo targets

o Similarly, Sensodyne toothpaste target

o The selected segment(s) determine your market. Mass marketing is also

o Slightly narrower is differentiated or segmented marketing and then we arrive

o The mass market differs from the niche

• This type of marketing helps the marketer to connect with every

• The promotional and advertisement activities are based on each

• Products here are carefully designed to meet the needs of each

o A company might create a niche market and develop

Advantages of niche marketing:

✓ High level of specialization helps in a reduction of cost

✓ Help to occupy a dominant market position within the

✓ Creates a strong brand image

✓ No competition or little competition

Products are specialized to

o Changes in promotional appeals

o In other words, brand positioning

o Positioning is a marketing term that

o In business, this refers to the position

o Targeting involves the process of evaluating

o Positioning is arranging for a product to

• Briefly explain Market

• How can you relate this to the

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