ABSTRACT
The process of segmentation, targeting and positioning is central to effective strategic marketing. Segmentation is concerned with the process of identifying different groups of customers who are similar in ways that are relevant to marketing. In order to segment a market, it is important to understand who your customers are, why they behave in particular ways and how they may be grouped together. Targeting decisions can then be made based on the range of identifi ed segments. In order to choose the most appropriate target markets, it is necessary to understand what different segments want and the extent to which the organisation can supply those wants. Finally, having identifi ed target markets, the organisation must then consider how to position itself in those markets. Positioning refers to the way in which an organisation tries to communicate its value proposition to its target market in order to convince customers that it has a distinct offer. In effect, positioning is about the way in which the organisation tries to build and communicate its competitive advantage, and is, therefore, concerned with how to differentiate a brand or company from its competition.
