Positioning is the way in which a company aligns itself with the target audience. For example, a sports energy drink producer may position itself as an innovative, health-oriented brand for athletes. This choice will affect the target segment selection. The four types of market segmentation are as follows:
- Demographic – by observable person-related variables (sex, age, occupation, marital status, and others); For example, Bentley is a vehicle for middle-aged men who occupy top management positions.
- Behavioral – by the individual behavioral factors (purchasing habits, product usage rate); H&M is a mass-market manufacturer for people who wear these clothes daily. Versace is a luxurious offer for those who wear it on special occasions.
- Geographic – by the geographical location of an individual (area codes, states, nations); A local pizza restaurant has no interest in advertising its services to area codes outside its neighborhood.
- Psychographic – by the psychological characteristics of an individual; RedBull is an energy drink for people who see themselves as energetic and are not afraid of challenges.