In this chapter, we will address the following questions:

  1. In what ways can a company divide a consumer or business market into segments?
  2. How should a company choose the most attractive target markets?
  3. What are the different levels of market segmentation?

In this chapter we will address the model/theory:

  1. Porter 5 Forces

To compete more effectively, many companies are now embracing target marketing. Effective target marketing requires that marketers

  1. identify and profile distinct groups of buyers who differ in their needs and wants (market segmentation), 
  2. select one or more market segments to enter (market targeting), and 
  3. establish, communicate, and deliver the right benefit(s) to each target segment (market positioning).

This chapter focuses on the first two steps; Chapter 7 discusses the third step