Businesses may not be in a position to satisfy all of their customers, every time. It may prove difficult to meet the exact requirements of each individual customer. People do not have identical preferences, so rarely does one product completely satisfy everyone. Therefore, many companies may usually adopt a strategy that is known as target marketing. This strategy involves dividing the market into segments and developing products or services to these segments. A target marketing strategy is focused on the customers’ needs and wants. Hence, a prerequisite for the development of this customer-centric strategy is the specification of the target markets that the companies will attempt to serve. The marketing managers who may consider using target marketing will usually break the market down into groups (segments). Then they target the most profitable ones. They may adapt their marketing mix elements, including; products, prices, channels, and promotional tactics to suit the requirements of individual groups of consumers. In sum, this chapter explains the three stages of target marketing, including; market segmentation (ii) market targeting and (iii) market positioning

1. Market Segmentation,
Targeting
&
Positioning

2. Datuk Dr. Leow
Chee Seng
Expert
UNIDO, United Nation
Regulatory Impact Assessment, Malaysia
Productivity Corporation.
National Audit Department, Malaysia
Inland Revenue Board, Malaysia
Department of Fishery, Malaysia
Marine Department, Malaysia
The Federal Agricultural Marketing
Authority , (FAMA), Malaysia
Cambodia Chamber of Commerce, Cambodia
PERODUA, Malaysia
South China Post, Hong Kong
Book Writer
Body Language Exposed: Never Get Lies Again
Trapping the cunning fox: Lie Detection
Selling with Heart and Soul
I see, I hear and I conquer: Human Leadership
Flintstones Management: Compassionate
Management
Preventable Accident: Judging into Safety and
Health
Nudge and Fudge: Behavioural Economics
Advisor, Humanology Sdn Bhd, Malaysia
Productivity Champian, Malaysia
Productivity Corporation
Jawatankuasa Pemantauan Nexus
Productivity Perkhidmatan Profesional
Technical Expert, Behavioural Insights,
Malaysia Productivity Corporation
Honorary Professor of Nguyen Tat Thanh
University, Vietnam.
Panel of Expert of Sandikta College of
Administrative Science, Indonesia.
Advisor
Malaysia Corruption Watch (MCW)
Auditor Academy Malaysia
Vocational College Gerik, Vocational
College Kuala Selangor, Ministry of
Education, Malaysia
Vocational College Kuala Selangor,
Vocational College Kuala Selangor,
Ministry of Education, Malaysia
First City College University, Malaysia
SMART College, Malaysia
Body Language Analyst for South China
Morning Post, Hong Kong
Journal Editorial Board – Sit in more than
10 International Journal

4. 01
Segmentation
04
Positioning
02
Targeting
03
Case Study
Discussion Outlines

5. S.T.P Model and The
Relationship

6. S.T.P Approach: Strategic Marketing
Segmentation
Targeting
Positioning
Segmentation
Select base for
segmentation
Profilesegment
characteristics
Positioning
Develop position foreach
segment
Develop marketing
programforeach segment
Targeting
Evaluating segment
attractiveness
Select one ormore
segments as target

7. SEGMENTATION
CONSUMER
MARKETS
BUSINESS
MARKETS
SEGMENTING
INTERNATIONAL
MARKETS

8. CONSUMER MARKETS
Multiple Segmentation
Variables
Demographics
Behavioural
Psychographics
Geographical
Region, Climate, City
Age, Gender, Income
Lifestyle, social class,
personality
Loyalty, Benefits sought,
User Status, Occasions

11. SegmentingBusiness Market
1 Demographics
Industry, Company Size, Location
2 OPERATINGVARIABLES
Technology, usage status,
customer capabilities
3
SituationalFactors
Urgency, specific application,
size of order
4
Personal Characteristics
Buyer-seller similarity, attitudes
towards risk, loyalty

12. SegmentingInternationalMarkets
Type/Stability of
government,
amount of
bureaucracy
Political and Legal
Language, religion,
values, attitudes,
customs,
behavioural patterns
CulturalFactos
Location or region
Geographics
Population income/
level of economic
development
Economics Factors

13. Population
Market Segments Market Targets

14. Target Marketing
Choose
Right Target
Evaluating
Market
Segments
Competitor
Strategies
Degree of
Product
Variability
Market
Variability
Company
Objectives
and
Resources
Product Life
Cycle
Company
Resources
Segment Size
And
Growth
Structural
Attractiveness
Product
Substitute
Power of
Buyers
Power of
Suppliers
Level of
Competition

15. Positioning
• Map out the different
variables considered in the
market segments and
targeting. Position your
product differently to your
competitors in the mind of
your customers

17. Putting All Together

18. CASE STUDY

19. How does Gardenia Segment, Target and
Position themselves?

20. Segmentation and Targeting: Psychographics
Factors
1. Lifestyle
– customer who demands for freshness, convenience, variety
and uncompromising taste
– provide daily baked bread to their customers and have more
delivery channel such as supermarket, grocery shop or even
hawker along the road.

21. Segmentation and Targeting: Demographics
1. Age
– Teenager, adults and senior citizen.
• Teenager which is very energetic will require
some source to fight their hunger and in the same
time they are more likely to consume products
with sweet taste.
• waffle products to meet their demands.
– Adults and senior citizens: healthy diet,
• whole wheat fibre bread and contains a high
level of vitamins and fibre.
2. Income
– affordable for people of all ages and incomes
• Gardenia Twiggies, Gardenia Muffins, Squiggles, Fun-in-a-Bun and
Fluffy Bun besides its most popular sandwich loaves

22. Positioning
• Gardenia has own song to
make consumer remember
its bread which is “So
good...you can even eat it
on its own”.
• Point of Difference (PoP):
–healthy, fresh and high
quality product in
consumers’ minds