Target Markets, Positioning, and Segmentation In Marketing

Not everyone likes the same cereal, restaurant, university, or movie. Marketers therefore identify distinct segments of buyers by identifying demographic, psychographic, and behavioral differences between them. They then decide which segment(s) present the greatest opportunities. For each of these target markets, the firm develops a market offering that it positions in target buyers’ minds as delivering some key benefit(s).

Volvo develops its cars for the buyer to whom safety is a major concern, positioning them as the safest a customer can buy, Porsche targets buyers who seek pleasure and excitement in driving and want to make a statement about their wheels.


Companies address customer needs by putting forth a value proposition, a set of benefits that satisfy those needs. The intangible value proposition is made physical by an offering, which can be a combination of products, services, information, and experience.

A brand is an offering from a known source. A brand name such as Apple carries many different kinds of associations in people’s minds that make up its image: creative, innovative, easy-to-use, fun, cool, iPod, iPhone, and iPad to name just a few. All companies strive to build a brand image with as many strong, favorable, and unique brand associations as possible.


To reach a target market, the marketer uses three kinds of marketing channels, communication channels deliver and receive message from target buyers and include newspapers, magazines, radio, television, mail, telephone, smart phone, billiards, posters, fliers, CDs, audiotapes, and Internet. Beyond these firms communicate through the look of their retail stores and Web sites and other media, adding dialogue channels such as e-mail, blogs, text messages and URLs to familiar monologue channels such as ads.

Distribution channels help display, sell, or deliver the physical product or service(s) to the buyer or user. These channels may be direct via the Internet, mail, or mobile phone or telephone or indirect with distributors, wholesalers, retailers, and agents as intermediaries.

To carry out transactions with potential buyers, the marketer also uses service channels that include warehouses, transportations with potential buyers, the marketer also uses service channels that include warehouses, transportation companies, banks, and insurance companies . Marketers clearly face a design challenge in choosing the best mix of communication, distribution, and service channels for their offerings.


The rise of digital media gives marketers a host of new to interact with consumers and customers. We can group communication options into three categories. paid media include TV, magazine and display ads, paid search, and sponsorships, all of which allow marketers to show their ad or brand for a fee. Owned media are communication channels marketers actually own, like a company or brand brochure, Website, blog, Facebook page, or Twitter account. Earned media are streams in which consumers, the press, or other outsiders voluntarily communicate something about the brand via word of mouth, buzz, or viral marketing methods. The emergence of earned media has allowed some companies, such as chipotle, or reduce paid media expenditures.


Chipotle is one of the fastes growing restaurant chains over the last decade, Chipotle is committed to fresh feed. The Company supports family and sources sustainable ingredients from local growers who behave responsibly toward animal and the environment. It has over 1,600 stores and over 1.7 million social media fans-yet spends next to nothing on traditional paid media. Instead Chipotle engages customers through Facebook, Twitter, and other social media via its grassroots “Food with Integrity” digital strategy which puts the focus on what it sells and where it comes from. As CMO Mark Crumpacker notes, ” Typically, Fast-food marketing is a game of trying to obscure the truth. The more people know about most fast-food companies, the less likely they’d want to be a customer. YouTube videos with country legend willie nelson and indie rocker karen O from the yeah Yeahs musically made Chipotle’s case against processed foods and the industrialization of family farms.

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