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SEGMENTING is dividing the customers with similar characteristics, like similar habits, income, buying deport or behaviors, social class, etc. Many companies make customers segments to divide customers groups that offer handsome sales, market share, and profit, etc. A niche is a small or narrow segment of customers, for example, a niche market of diet chocolate users, a niche of ice tea. A niche is attractive when it offers high profit margins. The customers segments of Nike are walking and jogging shoes, while its niche segments are tennis shoes, basket ball shoes, and foot ball shoes. Segmenting is done in many ways.

DEMOGRAPHIC SEGMENTATION is segmenting of customer groups according to 1 age; 2 income; 3 education; 4 gender; 5 race; 6 ethnicity; 7 religion; 8 occupation or employment; 9 household ownership; 10 family size; etc.

GEOGRAPHIC SEGMENTATION is done according to geographic locations of customers.

PSYCHOGRAPHIC SEGMENTATION is done by matching audience / target market with similar attitudes, values, beliefs, behaviors, motivation, etc. Or customers can also be divided on the basis of social classes, personality, and lifestyles.


TARGETING is focusing on particular customers segments that may be more profitable or easy to penetrate and potential growth oriented.

DIFFERENTIATION is about making a product different than its competitors. A product can be differentiated by its features, quality, performance, innovativeness, durability, reliability, reparability, design, packaging, fast delivery, installation, customer training, and consulting service in terms of equipments, warranty to repair, money back guarantee if unsatisfied with the product’s quality or performance, etc.

POSITIONING is moving into customers mind and making an image, like an image of quality, benefits or features, packing, price, etc. The commercials of Mobilink focuses on all such features, especially quality and widest network, while the ads of Warid positions on quality, fun and economy or low price.

SOME OF THE POSITIONING OPTIONS ARE AS UNDER:

- Positioning by product differences or different features;
- Positioning by overall product attributes or benefits;
- Positioning by product users, or choosing a separate segment of users;
- Positioning by product usage i.e. a different and new usage;
- Positioning by against a particular competitor (like the brand leader or the lowest price brand);
- Positioning against and entire product category (extra pack milk ad against open milk ad);
- Positioning by association with some other product category (eg. Ads of shell fuel with Toyota cars and KFC chicken and Pepsi);
- Positioning by solving a problem (ex. Cancer treatment solution with a new drug, dandruff removal with Pantene or Head & Shoulders shampoos);
- Positioning by copy-cat product. It’s a very common strategy used in textile fashion designs, footwear, electronics field, etc.
- Positioning by quality and price image, such as high quality, high price position, or high quality, low or reasonable price image position.

WARRANTY is a promise or assurance usually in writing by a seller to a buyer about the quality and durability of a product and the facility to get replaced some defective parts and get repair services for free or at a discount, for example warranty on buying personal computers.

GUARANTY is a promise or assurance usually in writing by a seller to a buyer about the quality and durability of a product and the facility to get replaced the product or receive full price refund if the product does not perform satisfactorily, for example warranty on buying personal computers along with a money back guaranty to get replaced the brand or buy another product of the same company.