Market segmentation involves dividing a market into distinct groups that require separate products or marketing strategies. It aims to improve competitive positioning, minimize cannibalization, identify new product opportunities, and find new customers. Effective segments are homogeneous within the segment, heterogeneous between segments, substantial, accessible, differentiable, and actionable. Markets can be segmented by consumer characteristics like demographics, behaviors, and psychographics. Positioning involves designing an image and value proposition so customers understand a company's offering relative to competitors. It is done through competitive, consumer, and message-based positioning strategies. Proper targeting and positioning using segmentation tools is an art that requires deep consumer insights to avoid issues like underpositioning or confusion.

1. Segmenting, Targeting and Positioning

2. Market Segmentation The act of dividing a market into distinct groups of buyers who might require separate products and/or marketing mixes

13. Top-down vs Bottom-up Market Segments Total Market divided into segments segments derived from Single Consumer

15. Targeting Product User

16. Porter Narrow Broad Uniqueness Cost Differentiation Strategy Cost Leadership Market Segmentation Core Competency Market Scope

18. Positioning

21. Map!

22. Map! Possible Area Impossible position New Position Competitor Area