Week 4: Segmentation, Targeting, Differentiation, and Positioning

Reading Reflections:

STDP is all part of the process of obsessing over the consumer. Who is the consumer? What are their needs? How do we reach them? How do we stand above the competition? Segmentation examines what differentiates target consumers (both characteristics and preferences). Demographics, like age, is all a part of segmentation. The wants and needs of one age group can differ vastly from another age group with a different set of experiences and life changes. A child, for example, would have different interests and wants than a teenager.

Companies will use segmentation in order to target this type of consumer. They can use undifferentiated (single segments) or differentiated (multiple segments) approaches. Positioning then focuses on the strategy of how a brand will use this information to target this consumer.