The 3rd - Segmentation, Targeting and Positioning

This is a very important part of marketing, before the marketer plans to promote a certain business or product, they will have to see how they will segment the market and who their target market is. This is where STP comes in, only after the marketer has an idea of who the target market is and how the market is segmented, they can develop better ways of communicating with the customers. With STP, the marketer can also differentiate their tools of marketing and target specific groups of customers with the tools appropriate for that audience. This helps get the best responses from the customers.

Segmentation, in marketing, is the dividing of the customer base to target different groups of people. Marketsegmentation.com offers a professional definition of exactly what it is.
"Market segmentation is the process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same or comparable set of needs satisfied by a distinct marketing proposition".
So simply it is the splitting up of groups of customers to better satisfy their needs. For example there would be different ads to target a 15 year old then to target a 50 year old. So age is one of ways in which marketers can segment the market. This takes to how the market can be segmented, these are the ways in which they can be segmented:

• Age
• Income
• Social Class
• Gender
• Personality
• Lifestyle

If you didn't like the text explanation of market segmentation, how about a presentation video!?

It has no background music but it does get the point across!



This basically explains the concept of segmentation and how businesses segment the market to meet different customers' needs.

Market Positioning

Market positioning is the way in which a marketer positions his/her business to attract attention to the business from possible customers and existing customers.
The main reason why a business would position itself in the area it has would be because there is a need for the product in that market. If there is a need for the product then there will be a demand and thus the business would profit from this.
The advantage of positioning is that businesses can find parts of the market in which there are gaps and thus they can fullfill the customers needs with this. Without this, the business will have to offer something different then the existing products in the market.
Maybe this guy explains the concept a little better!
Take a look at the video.



This person is obviously an expert in the field. Its the best video I could find quite frankly.