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Difference Between Market Segmentation,Targeting, and Positioning

In marketing, studying market is a very important way to make effective marketing strategies. Segmentation, Targeting, and Positioning (STP) are the main approaches in making marketing strategies that we will discuss here.

It is one of the most commonly applied marketing models in practice. Perhaps some people can differentiate from market segmentation, targeting, and positioning while others don’t know much about them. Therefore, through this article, we are going to tackle and discuss in detail the Difference Among Market Segmentation, Targeting, and Positioning.

Market segmentation

It is defined as the process of taking the total heterogeneous market for a product and dividing it into several submarkets or segments, each of which tends to be homogeneous in all significant aspects. The manufacturer is in a better position to find out and compare the marketing potential of his products.

The result obtained from market segmentation is an indicator to adjust the production, usage of man­power, materials and other resources in the most profitable manner.

Market Segmentation refers to the process of the creation of small groups (segments) within a large market to bring together consumers who have similar requirements, needs, and interests. The individuals in a particular segment respond to similar market fluctuations and require identical products. In other words, market segmentation can also be called as Grouping.


Once the company has identified its market segment opportunities, it must decide upon how many segments and which ones are to be served with its products and services. This process is said to be market targeting. Once the marketer creates different segments in the market he then devices various marketing strategies according to the taste of particular segments.

This process is called targeting, Once market segments are created, the organization then targets them. Targeting is the second stage and is done once the markets have been segmented, Organizations with the help of various marketing plans and schemes target their products amongst the various segments.

What is needed for market targeting

Criteria Size The market must be large enough to justify segmenting.

Difference Measurable differences must exist between segments.

Money Anticipated profits must exceed the costs of additional marketing plans.

Accessible  Each segment must be accessible.

Focus on different benefits Different segments must need different benefits.


Positioning is the last stage in the segmentation, targeting and positioning cycle. Once the organization decides on its target market, it strives hard to create an image of its product in the minds of the consumers. The marketers create the first impression of the product in the minds of consumers through positioning. Positioning helps organizations to create a perception of the products in the minds of the target audience.

Positioning is an act of designing the company’s offerings and image to occupy a distinctive place in the minds of the target market. The goal is to establish the brand in the minds of consumers to maximize the potential benefits to the firm.

It involves implanting the brand’s unique benefits and differentiation in the minds of customers. This part indicates how you want to position a product in the eyes of the consumers which means how you want to display the product.