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Market Segmentation, Targeting and Positioning

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Abstract

Businesses may not be in a position to satisfy all of their customers, every time. It may prove difficult to meet the exact requirements of each individual customer. People do not have identical preferences, so rarely does one product completely satisfy everyone. Many companies may usually adopt a strategy that is known as target marketing. This strategy involves dividing the market into segments and developing products or services to these segments. A target marketing strategy is focused on the customers’ needs and wants. Hence, a prerequisite for the development of this customer-centric strategy is the specification of the target markets that the companies will attempt to serve. The marketing managers who may consider using target marketing will usually break the market down into groups and to target the most profitable segments. They may adapt their marketing mix elements, including; products, prices, channels, and promotional tactics to suit the requirements of individual consumers. In sum, this chapter explains the three stages of target marketing, including; market segmentation (ii) market targeting and (iii) market positioning.
Market Segmentation, Targeting and Positioning
By Mark Anthony Camilleri1, PhD (Edinburgh)
How to Cite : Camilleri, M. A. (2018). Market Segmenta#on, Targe#ng and Posi#oning. In Travel Markeng,
Tourism Economics and the Airline Product (Chapter 4, pp. 69-83). Springer, Cham, Switzerland.
Abstract

       

      
      
 !"
#
 
$%
           
&      
         
&$%$%
4.1 Introduction

'
(
$
%$
%)

1 *++, )- (. )
))(*/010) 2 345
1



4.2 The Market Segment


6
            
7

4.3 Market Segmentation
)
#
)#

    
(

         ,
( !####'#
!
'
$#%
7
*,

#8

    #      
"
2

"
4
")$%
&
()$%
&
 ))$%
&

&
,(
#&


"
        



4.3.1 The Benefits of Segmentation

        9!
!!
 (        
!!


+

3
 # ,  !
     $
%
,##
   #    !    #

     #   $( : ( /0;<&
+/0;=%
4.4 Segmentation Variables
"&
6
        4 $% *& $%
>$%&$%?$%#@,
4.4.1 Demographic Segmentation
*
     & 
     A     
           

,
#  ($/0;<% B 
 7
<C=C>
D=EF

)
 $(/0;<%"
'
4
.
$@/0;=%
      +

F # 
 


#"
    
    =0G  .(    1HG  
$(/0;C%#
H1G$(/0;C%


$>/0;=%
!2
>
         "   

$+1%
!

4.4.2 Geographic Segmentation
>         

)

 ,


5

8
#
#38 I

   
       

4.4.3 Psychographic Segmentation

 


*!
,
!((:"/00;%
!
($%4
4 "&
4 &
+;4 ('&
+/4 (&
*4 (&
34 (
) +;

)

    3         
$+ %&
# 
6
  
#
+/*3
4.4.4. Behavioural Segmentation

#

       ,   
 #


!
            
)

4.4.5 Product-related Segmentation

''!
,
J
           
   
"
 $%     





   
7
 

     '     !   
,#
2(#
22#
7#
$A%'
# 2
@
7

4.5 The Requirements for Effective Segmentation
  "
)
4
4.5.1 Measurability
A
,C/G
K;00000     

4.5.2 Substantiality
9!
,
3
8
4.5.3 Accessibility
,
   
#
4.5.4 Actionability

,



4



 
 
@
A


 A     
)
'A
 


 
"  

9
,
'A
4.6 Market Targeting
7



&
&
4.6.1 An Undifferentiated Marketing Strategy

      

   

4.6.2 A Differentiated Marketing Strategy


"




,!
&#
  

10
4.6.3 Concentrated marketing
'#

"#

4
!
&
,
####
&
*         
! ,   

&
!,
&

J6

#
4.7 eTourism: Targeting Customers in the Digital Age
 "

    


>,3 A
&
11
  #       > 
(!    >      

>

LM
     L M   L M  
 A
 

$+/0;=%7
LMF


    !,  *
+* 2!
!,
3
 

"   
)       
&6N
  
#
(
 3
 

&
12
4.8 Targeted Segmentation through Mobile Devices
)
,
$%L M
>$/0;H%

)
    

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2# 
      
!>
    #     


 N

       "    
!LM
      
! 

#
,

O


,#
13
 (" 
P
!         
      #  $8,+%
 !   
!    8,+       )
8,+
#
#

#
7

##

,
 #  &  #    


    #    !   

!
#

$%#
$
%)
,) #
!  ,    
#

14
#


#  > )  &      
+
     


       #

+     
!  
        
   

           #

#

4.9 Product Positioning
         ,  L
M!
!+
           
!$!%3
,   
(     !       

,
    
    ,  #   

15




#( 
###
           .( @   N
    ! 9##!
!
4.10 Questions
What is market segmentation?
If your company is working with very limited resources. Which alternative would you
recommend and why?
Define product positioning and briefly state its relevance to the airline industry.
Outline in your own words, the variable which you could use, when segmenting the
business travel market in the airline industry.
4.11 Summary



           4 

(

    .       
     #  

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    &  & 


"
!
         +  
!

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... STP theory is a core framework to analyze the market position strategies and consumers' requirements [5]. Through segmentation, targeting and positioning, Movies can accurately satisfy different groups of consumers' requirements, thereby raising their business values. ...
... The concept of targeting is also used in marketing. The core target market is the middle-aged and elderly audience, while attracting the young audience through emotional resonance, and adopting differentiated marketing strategies [5]. Finally, do market positioning. ...
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With the rapid development of the global film and television industry, market competition is becoming more and more fierce, and consumer demand is also increasingly diversified. The global film and television industry has entered a digital transition period, and the market competition has shifted from the content supply side to the demand side for accurate matching. The success of a film depends not only on its content quality, but also on its market position. This paper will focus on the market positioning strategy of film and television works and the study of consumer demand and analyze the importance of finding suitable market positioning that meets consumer demand. This paper will take the movie The Complete Circle as an example to analyze how they generate strategies to meet the audience's emotional resonance and social needs. The research results show that accurate market positioning can effectively enhance the competitiveness of movies and meet diversified consumer demand.
... Согласно M.A. Camilleri, сегментация целевой аудитории определяется как идентификация групп потребителей, обладающих схожими характеристиками, что позволяет маркетологам разрабатывать эффективные планы для каждого сегмента. Она может проводиться с использованием демографических, географических, психографических, поведенческих и связанных с продуктом переменных [5]. J.E. Grunig считает, что основная идея сегментации заключается в том, чтобы «разделить население, рынок или аудиторию на группы, члены которых больше похожи друг на друга, чем представители других сегментов» [7]. ...
... GIS is designed to collect, store, and analyze objects and phenomena where geographic location is an essential and critical characteristic to analyze (Ershad & Ali, 2020). The Geographic Information System Location application is an alternative for people to search for information on job vacancies whenever and wherever they are, just by utilizing media smartphones (Camilleri, 2017). ...
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In order to learn about job openings, candidates still rely on manual methods including going to companies and looking at job notice boards, as well as looking through print materials like newspapers, magazines, brochures, and word-of-mouth recommendations. A lot of research is being done to find out about things like the Geographic Information System (GIS), Palembang Job Openings, and Mobile Based. With the help of an information system, job hunters can quickly get comprehensive information. The Internet is a state-of-the-art telecommunications tool; thus, it is expected to make things easier for its users, which is good for job seekers and companies that are hiring. Eventually, job seekers will be able to contact recruiters and companies to post job openings through this program, which may be conveniently accessed online and created as a non-profit organization. This paper presents the analysis of mobile-based GIS requirements and the development of the system that can tackle the mentioned problem above.
... This research aims to study the profile the market (Lee, Lee, Bernhard, & Yoon, 2006). The ultimate aim of segmenting the market is to explore and identify the segment with the maximum amount of interest in a particular product or service and then, by adopting the best marketing styles, the organizations attempt to deliver utmost satisfaction to the customers (Camilleri, 2018;Jang, Morrison, & O'Leary, 2002). ...
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Rural tourism in India is increasingly becoming competitive. Customers expect better services and unique experiences. It is therefore essential for the service providers to better understand the expec�tations of the visitors and carefully match their offers. Segmentation and targeting of the market are accepted principles of business and there has been a lot of research on the basis of segmentation. The primary objective of this article is to identify the profile of the different clusters (popularly known as segments) of motivations of tourists traveling within rural India. The intention is to decipher the causative clusters, which influences the tourists to visit the rural areas. These variables are used to identify the various rural domestic tourist market segments. A self-administered instrument was used to collect the data. Four factors have been identified through exploratory factor analysis: socializa�tion, escape, rural experience, and self-indulgence. After identifying factors, K-means clustering was used to segment the market. The researchers have identified two relevant segments of domestic rural tourists. These are family retreaters and rural escapists. The study advances the understanding of the Indian domestic rural tourism market. It will help policymakers and practitioners to design products and marketing programs matching the expectations of these targeted markets.
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The purpose of this study is to understand the segmentation, shopping tendencies, and commercial product preferences of passengers at Terminal 3 Soekarno Hatta Airport. The research design uses a quantitative method as an approach. Data collection was conducted through questionnaires randomly distributed to 385 respondents as a sample, using the Lemeshow formula with a 95% confidence level, a 5% margin of error, and a 50% maximum estimation. The results of the study show that passenger segmentation at Terminal 3 Soekarno Hatta Airport is dominated by solo travelers, families, and business groups. The majority of passengers (62%) tend to shop within the price range of IDR 50,000 – 250,000, with the main product preference being food and beverages such as coffee shops, bakeries, and cafes available in the waiting areas and departure zones.
Chapter
As the tourism industry takes a big leap and continuously flourishes, the concern on its sustainability is a significant matter for all the stakeholders of the tourism industry. Thus, planning, development and marketing tourism products and services have become more valuable as destinations have seen the contribution of tourism in national development particularly in the economic, social, cultural and environmental aspects. This chapter presents niche tourism, its concept and principles, the evident strategies and responses to overtourism in some selected areas, and the considerations of high value and low volume tourists in tourism destinations.
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Digital transformation has changed the way enterprises communicate with their customers entirely, especially in markets that are growing fast, such as India. This research will look into the changing trends of customer loyalty in India due to technological advancements. It has examined the critical factors that have started to influence consumer loyalty by referring to review papers, business reports, and government reports. The research highlights the importance of digital platforms for two consumer activities-socialization/communication (social media) and shopping/switching (e-commerce), as well as digital engagement-customization-marketing and online reviews on brand perception and consumers' loyalty. The results demonstrate that consumer loyalty in today's increasingly digitally networked world is not only influenced by the quality of online interaction and experience customization but rather a pre-comprised trinity
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