Editing Market segmentation (section)

== Developing the marketing program and positioning strategy ==
{{See also |Marketing mix|Positioning (marketing)|Perceptual mapping}}

[[File:Circle-spoke-Diagram-Target-Market.png|thumb|The marketing program is designed with the needs of the target market in mind.]]

When the segments have been determined and separate offers developed for each of the core segments, the marketer's next task is to design a marketing program (also known as the marketing mix) that will resonate with the target market or markets. Developing the marketing program requires a deep knowledge of key market segments' purchasing habits, their preferred retail outlet, their media habits, and their price sensitivity. The marketing program for each brand or product should be based on the understanding of the target market (or target markets) revealed in the market profile.

Positioning is the final step in the S-T-P planning approach; Segmentation → Targeting → Positioning. It is a core framework for developing marketing plans and setting objectives. Positioning refers to decisions about how to present the offer in a way that resonates with the target market. During the research and analysis that forms the central part of segmentation and targeting, the marketer will gain insights into what motivates consumers to purchase a product or brand. These insights will form part of the positioning strategy.

According to advertising guru, David Ogilvy, "Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market. The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. A good brand positioning helps guide marketing strategy by clarifying the brand’s essence, what goals it helps the consumer achieve, and how it does so in a unique way."<ref>{{cite book |last=Ogilvy |first=David |author-link1=David Ogilvy (businessman) |title=Ogilvy on advertising |year=1985 |publisher=Vintage Books |isbn=9780394729039 |edition=First}}</ref>

[[File:PerceptualMap1.png|thumb|300px|Perceptual map of the U.S. motor vehicle category]]

The technique known as perceptual mapping is often used to understand consumers' mental representations of brands within a given category. Traditionally two variables (often, but not necessarily, price and quality) are used to construct the map. A sample of people in the target market are asked to explain where they would place various brands in terms of the selected variables. Results are averaged across all respondents, and results are plotted on a graph, as illustrated in the figure. The final map indicates how the ''average'' member of the population views the brand that makes up a category and how each of the brands relates to other brands within the same category. While perceptual maps with two dimensions are common, multi-dimensional maps are also used.

There are different approaches to positioning:<ref>Based on Belch, G., Belch, M.A, Kerr, G., and Powell, I., ''Advertising and Promotion Management: An Integrated Marketing Communication Perspective'', McGraw-Hill, Sydney, Australia, 2009, pp. 205–206</ref>

# Against a competitor
# Within a category
# According to product benefit
# According to product attribute
# For usage occasion
# Along price lines e.g. a luxury brand or premium brand
# For a user
# Cultural symbols e.g. Australia's Easter Bilby (as a culturally appropriate alternative to the Easter Bunny).