Segmentation, targeting, and positioning form the foundation of customer-focused strategy. Organizations cannot serve every customer equally, so they must identify groups with similar needs and select those they can serve profitably and effectively.
| Approach | Examples |
|---|---|
| Geographic | Country, city, climate, region, and urban or rural location |
| Demographic | Age, income, occupation, education, and household size |
| Psychographic | Lifestyle, values, interests, personality, and attitudes |
| Behavioral | Benefits sought, usage, loyalty, occasions, and readiness |
| Needs-Based | Customer problems, desired outcomes, and decision criteria |
| Value-Based | Revenue, margin, lifetime value, and service cost |
A positioning statement identifies the target customer, category, main benefit, point of difference, and reason to believe. Effective positioning should be relevant, distinctive, credible, sustainable, and easy to communicate.
A perceptual map visually compares brands according to important customer criteria such as price, quality, innovation, convenience, or prestige. It helps identify crowded positions and possible market gaps.