Wednesday, January 27, 2010

Market Segments, Targeting, and Positioning

When companies create a marketing strategy they must break up consumers into multiple segments each having a common characteristic that differentiates each segment from the others. These characteristics can be based off of "geographic, demographic, physchographic, and behavioral factors (pg. 48). Once consumer segments have been created, it is a company's duty to "evaluate each market segment's attractiveness and select one or more segments to enter" (pg. 48).

Once a segment has been identified as the most attractive body of consumers to pursue a company must position itself and "decide how it will differentiate in its market offering for each targeted segment and positions it wants to occupy in those segments" (pg 49). The company must tailer its marketing campaign to stand out and appeal to its target segment.

In the following commercial example, Jack in the Box obviously has grouped college students together to form one of their marketing segments that they have chosen to target. Jack, the spokesperson in the commercial, explicitly addresses college students and explains that Jack in the Box's deal is for them. Since college students are known to be poor, Jack in the Box positions itself toward the segment as offering a deal that will "fill you up, while letting you save money" because they know what its like to be in college and live on a budget. The commercial then further appeals to college students by humorously adding that it will "allow you to save money for important things" as a large group of college students party in the background, which is what college students are notoriously known for as well. Overall, Jack in the Box groups college students into a marketing segment, targets them as a worthwhile segment to pursue, and then positions itself to attract the most college students as possible.

Michael Walker
Section E


  1. I'm loving the commercial and the deal!
    I agree that this advertisement is definitley utilizing target marketing, more like it is expliticly geared towards college students. I think you can argue that this is targeted through demographic and behavioral factors. Jack-in-the-box is targeting the customer by its age/status and the fact that college students need money!

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