Segmentation, Targeting and Positioning

Target marketing is comprised of the terms mentioned above-Market Segmentation, Market Targeting and Market Positioning. 

Segmentation:

Market segmentation involves grouping your various customers into segments that have common needs or will respond similarly to a marketing action. Each segment will respond to a different marketing mix strategy, with each offering alternate growth and profit opportunities. Broadly segmentation is the process of dividing the target market into groups based on considerations that may include one or more or all of the following factors:

• Geographic segmentation: based on world region, country, city, topography, climate etc.
• Demographic segmentation: based age, gender, family size, income, occupation, nationality etc.
• Psychographic segmentation: based on personality, class, social preferences etc.
• Behavioral segmentation: based on occasions, benefits, user preferences etc.

Targeting:

After segmenting the market based on the different groups and classes, you will need to choose your targets. No one strategy will suit all consumer groups, so being able to develop specific strategies for your target markets is very important.

There are three general strategies for selecting your target markets:

• Undifferentiated Targeting: This approach views the market as one group with no individual segments, therefore using a single marketing strategy. This strategy may be useful for a business or product with little competition where you may not need to tailor strategies for different preferences.

• Concentrated Targeting: This approach focuses on selecting a particular market niche on which marketing efforts are targeted. Your firm is focusing on a single segment so you can concentrate on understanding the needs and wants of that particular market intimately. Small firms often benefit from this strategy as focusing on one segment enables them to compete effectively against larger firms.

• Multi-Segment Targeting: This approach is used if you need to focus on two or more well defined market segments and want to develop different strategies for them. Multi segment targeting offers many benefits but can be costly as it involves greater input from management, increased market research and increased promotional strategies.

Positioning:

Positioning is developing a product and brand image in the minds of consumers. It can also include improving a customer's perception about the experience they will have if they choose to purchase your product or service.  The business can positively influence the perceptions of its chosen customer base through strategic promotional activities and by carefully defining your business' marketing mix.

Effective positioning involves a good understanding of competing products and the benefits that are sought by your target market. It also requires you to identify a differential advantage with which it will deliver the required benefits to the market effectively against the competition. Business should aim to define themselves in the eyes of their customers in regards to their competition.

Segmentation:

In India Mc'Donalds segments its market according to its customers. 

The way customers are segmented are as follows :-

1) on basis of age

2) on basis of income

3) on basis of working class

Targeting:

Mc'donald's targets nations all over the world. It expands itself by targeting specific number of franchises that it will open in a particular nation & then may even open more if required based on demand. Today, Mc'Donald's values transcend borders and cultures. Each and every day, 47 million consumers worldwide visit Mc'Donald's because they know and love the Golden Arches, Ronald McDonald and Big Mac sandwiches.

From one restaurant in 1955, to more than 31,000 locations in 119 countries, McDonald's has become not only the leading global foodservice company, but also one of the strongest and most recognized brand names in the world. 

Brand Positioning:

McDonald's has placed considerable emphasis on enhancing its brand positioning through the general mediums of TV and print. OOH advertisement has also been widely used by McDonald's to tap into its target base of audience residing in metropolitan areas.

Basically, they have a hang of what kind of a burger do you like, what do you like with your burger, how do you like eating it and when do you like eating your burger combo meal! Seems I was wrong-they got to me anyway.