segmentation targeting and positioning

Segmentation and targeting is broken up into 3 parts:

1. What customers exist 
2. who will be the chosen customer
3. reaching the needs of the customer 

Once an organisation has developed and chosen both product and customer research is carried out to find out what the target market wants and needs. However,  some customers are known as the undifferentiated  buyer ( those that are treated all the same). This label only falls under the commodities that are in non competitive environment and all can offer the same frills to all customers.  

Furthermore, when considering a target market it is essential to consider the demographics of the buyer's surroundings. For example, if one country finds the colour red offensive to their culture a motovehicle organisation would avoid illustrating the colour red in any possible form, but if the same organisation is also advertising the product where the colour red is considered to be lucky then marketers would inject the colour everywhere. This example suggests that positioning a brand globally needs to adapt to the buyers behaviour, culture and the area's economic growth. 

'segments that are less dependent on demographics and more likely to borrow behavioural patterns and fashion across what were formerly more significant borders or barriers' - Consumer Behaviour, Michael Solomon. 

In addition, the scale on how large the segment depends on how price, product, positioning and distribution is. If the segment is on a small scale the risque of competitors are considerably low, however if its on a large scale competition will be left,right and centre. 

The diagram above show how positioning a segment relies on how the target consumer full fills their needs and wants from value and brand personality.  This may suggest that depending on whether the segment is apart of a niche market or has universal appeal the value of the product (premium, low price, value) has to engage and attract the consumers wants.