Segmentation, Targeting and Positioning

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Perceptual mapping

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The visual representation of the different competitive brand offerings/objects of interest in perceptual space (in the minds of consumers).
What matters is what the customer believes, not what the brand manager believes!
Perceptual maps can be built based on different dimensions/axes, e.g.
- Quality AND price
- Key attributes / benefits.
Potential customers (i.e. non-customers) often perceive a brand differently from existing customers.

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What does segmentation mean?

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Undifferentiated market but one with many different purchase combinations.
Different needs in a market.
Segments in a market.
"The process of identifying individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy" (Jobber, 2007).
A market segment defined as a group of buyers with 'distinctive characteristics, behaviours, or needs who make similar buying decisions, and who have money to spend. Based on this definition, there are virtual infinite combinations of market segments comprising infinite combinations of buyers" (Branchik, 2010).