Thoughts on Market Segmentation and Marketing

May 08, 2018

There are three keys to market research and then the four "P's" of marketing.

For market research, we need to consider

  1. market segmentation
  2. target markey selection
  3. Positioning

The idea with market segmentation is that there is a population of people that have similar characteristics that can be addressed with marketing messaging. These similarities ought to be derived from the value they receive from the product or the observable characteristics of the group. Ideal segmentation is based on product benefits.

There is a three step process to segmentation

  1. Understand the value derived and the benefits of the product
  2. Develop user profiles based on the segments you infer
  3. Find observable characterists that allow you to segment a given population

Target market selection

Analyze target market & its profitabilit.t

  1. Analyze target market by segment
  2. Pick the segments to serve

Analyze a target market's attractiveness - is there a rubric for this?

  1. Ability to conceive and design
  2. Ability to produce given certain quality and quantity
  3. Ability to market
  4. Ability to finance
  5. Ability to manage/execute

Differential Advantage Analysis

Look at each of these 5 topics and judge strength and weaknesses.


Positioning allows sellers to respond to customer complaints directly.

Positioning answers three questions

  1. Who are the sellers
  2. What needs are fulfilled
  3. Why is this proudct the best - key differentaiators

Positioning statement

'Our product has a specific claim among all competitors because of X.'

The four P 's are a powerful guideline for implementing successful business plans. These "P's" are:

  1. product
  2. price
  3. place (channel)
  4. promotion