Choosing a market segment and positioning

Once the marketer has a thorough understanding of consumers and segments, they choose specific segments to focus marketing efforts. Marketers consider consumers’ demand from each segment and also the competition in order to achieve the best possible sales results.

Companies collect data on product or service benefits and rate each group – then compare to competitor’s abilities to fulfill the consumers’ specific needs.

The first step is to eliminate any segments that cannot be easily or affordably reached and those which are outside the scope of the brand. Then, determine which segments offer the best opportunities and most possible profits. Then the marketers must assess how the brand will perform and compete in the market, while factoring in environmental threats. Marketers eventually weigh each segment, prioritize and develop strategies based on their evaluations.

After marketers choose target segments, they create a positioning strategy based on the previous market research. Positioning is highlighting a product or services benefits and differentiating it from any other choices in the consumers’ minds. Marketers determine one or more distinguishing characteristics of their product or service and develop a message to make the brand stand out. Positioning displays brand value.