Market Segmentation

Market Segmentation, Targeting & Positioning

Once your top markets have been identified through market research, each market should be segmented, targeted and positioned properly for overall export success. This process helps a company to focus on those clients or market segments that offer the most potential, rather than using a de-segmented marketing approach.

Market segmentation, target marketing and market positioning are integral components to a successful marketing plan. Market segmentation involves separating markets into distinct groups with defined needs, wants and demands. Target marketing requires the firm to rank and select target segments based upon overall sales potential. Market positioning involves communicating a consistent message about your products in order to differentiate them from those of the competition.

Market Segmentation

In order to segment a market, it must be divided into separate groups which have distinct needs and characteristics. Each segment may hold potential for different products or require a separate marketing mix.

There are many ways to segment markets, especially in export marketing. Below are a few segments that will be discussed in more detail throughout the section:

Geographic Segmentation

Demographic Segmentation

Psychographic Segmentation

Global Market Segmentation

Geographic Segmentation

Geographic segmentation divides markets into different groups based on regions, countries or even regions within countries. For example, the “North American” market could include the United States, Canada and Mexico. However, Mexico could also be segmented into the “Latin American” market.

Other geographic segments throughout the world might include:

Western Europe

Central Europe

Pacific Rim

Asia

Southeast Asia

Middle East

Caribbean

These regions are too large to be target markets, but they are regions where targets might be located. Within each...