Let's explore the concepts of segmentation and positioning a little bit. We create market segments from the total market for our products to be more effective and more efficient at selling to our chosen target groups. The process simplified works like this. We start with the overall market, then we identify segments of that market using relevant variables to define different groups of customers that are meaningful for us to pursue with our marketing efforts. Next we choose which of those specific segments that we are going to target (or pursue with our marketing efforts. Finally we use the marketing mix (the 4 P's) to determine the best positioning strategy to reach those chosen target groups.

Let's put this process into action. Let's assume that you are a commercial copy machine salesperson. Your company sells machines that make 35 to 44 copies per minute.

1. Please identify two variables that you might use as a company to segment your potential customers. Explain why you chose those variables and how you will apply them in this situation.

2. What customer groups do you expect that will be created from your two segmentation variables?

3. Which of these groups will your company choose to target

* Note you can target everyone, but you would need to have a different positioning strategy for at least some of them or else the task of segmentation, targeting, and positioning is not relevant.

*Also note your segment groups are different than your target groups or target market. A target group is the one you choose to pursue, your segment groups are all the different types of customers based on your segmentation variables.

4. What is the positioning strategy (you should mention a brief product, price, place, and promotion strategy for each of your target groups)