MBA Boot Camp: Segmentation, Targeting, & Positioning (4.3)
Concepts & Vocabulary
Segmentation: Dividing a broad, diverse market into smaller groups of people who share similar needs, behaviors, or demographics.
Targeting: Selecting whichever segment(s) you believe your company can serve most profitably and effectively.
Positioning: Designing your company’s offering and image to occupy a distinct, valued place in the target customer's mind.
Core Lesson: You Can't Be Everything to Everyone
If you try to market to "everyone," you will appeal to no one. This is where the STP Framework comes in. It is the beating heart of modern marketing strategy.
Step 1 (Segment): You look at the entire automobile market. You slice it up into groups: people who want safety for their families, people who want cheap commuter cars, people who want to look wealthy, and people who want eco-friendly cars.
Step 2 (Target): You decide your company is best equipped to build eco-friendly cars. You ignore the other segments.
Step 3 (Position): You build the brand in the customer's mind. (e.g., Tesla positioned itself not just as an eco-friendly car, but as a high-performance luxury eco-friendly car).
Application & Reflection
The Positioning Statement: In business school, you will be taught a classic template for positioning.
"For [Target Audience], [Your Library] is the [Category/Industry] that delivers [Core Benefit / Value] because [Reason to Believe / Proof]."
(Example for Volvo: "For upscale American families, Volvo is the luxury automobile that delivers ultimate peace of mind because of its rigorous, industry-leading safety engineering.")
One statement for the public library I directed could have gone something like this: For busy families, the library is the community hub that delivers free access to fun educational experiences, because we offer curated programs and a diverse collection of materials.
